Business Wire

GSMA Report Highlights Impact of Taxation on Mobile Connectivity in Latin America

Jaa

The GSMA today announced findings from its latest report, ‘Taxing Mobile Connectivity in Latin America: A review of mobile sector taxation and its impact on digital inclusion’. The report provides an overview of the tax and fee regime applied to mobile services and its impact on the affordability of mobile and investment in Latin America. While recognising the need of governments to balance the competing objectives of revenue maximisation and growth, the study explores how mobile sector taxation can raise the affordability barrier in the region, undermining digital inclusion efforts. It also discusses how uncertain and complex taxation regimes affect operators’ ability to invest in infrastructure rollout.

This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20171101005080/en/

GSMA Report Highlights Impact of Taxation on Mobile Connectivity in Latin America (Photo: Business W ...

GSMA Report Highlights Impact of Taxation on Mobile Connectivity in Latin America (Photo: Business Wire)

“Mobile connectivity is a significant enabler of digital inclusion and economic and social development, however, in many countries the mobile sector is over-taxed, which may hinder the continued development of the sector,” said Sebastián Cabello, Head of Latin America, GSMA. “In Latin America, the total cost of mobile ownership is above the five per cent of income threshold recommended by the UN Broadband Commission. Some governments in the region apply additional sector-specific taxes on consumers and mobile operators, leading to negative affordability and investment impacts. In the current economic climate, it is paramount for governments to foster, not hinder, growth.”

Key Report Findings

The report showed that the mobile industry in Latin America and the Caribbean contributed more than $260 billion to the regional economy in 2016 or five per cent of the region’s GDP, supporting 1.7 million jobs. Findings from the research demonstrate the distortionary impact of sector-specific taxation, highlighting the potential economic benefits of rebalancing sector-specific taxes and regulatory fees:

  • In Latin America, only half of the population subscribes to the mobile internet, in comparison to more than 65 per cent of the population in Europe and the US;
  • In 2016, the mobile sector in Latin America paid, on average, 25 per cent of its revenues in the form of taxes and regulatory fees;
  • Consumers face sector-specific taxation in addition to general VAT in 11 out of the 20 countries studied;
  • Markets featuring higher levels of sector-specific taxes as a proportion of market revenue tend to have lower affordability levels;
  • For all countries in the region where data is available, the total cost of mobile ownership for purchasing a handset and 1GB of data per month is above the five per cent of income threshold recommended by the UN Broadband Commission; and
  • Mobile network operators have invested considerably in the region by launching more than 108 4G networks between 2011-2016, despite a challenging reduction to average revenue of 15 per cent per connection during the same period.

Recommendations

Rebalancing sector-specific taxes and regulatory fees can promote connectivity, economic growth, investment and fiscal stability. A number of principles for reforming sector-specific taxation and fees should be considered by governments in Latin America in order to align mobile taxation with that applied to other sectors and with the best practices recommended by international organisations such as the World Bank and the IMF:

  • Reduce sector-specific taxes and fees to help increase demand for mobile services and incentivise investment, which would lead to an overall growth in government tax revenues over the medium term;
  • Avoid excessive regulatory fees and taxes on revenues, and reduce Universal Service Fund (USF) contributions where the existing funds are underutilised;
  • Reduce complexity and uncertainty of taxes and fees on the mobile sector;
  • Reduce or remove import duties, for example, on network equipment;
  • Remove consumer taxes that target access to mobile services, which would help ease the burden on affordability for the lowest earners in the region;
  • Support effective pricing of spectrum to facilitate better quality and more affordable services;
  • Avoid excessive spectrum auction prices being used as revenue raising mechanism for the government over and above mobile operators’ fair tax contributions;
  • Remove taxes on international incoming calls; and
  • Implement supportive taxation for emerging services such as the Internet of Things.

The report can be found at: https://www.gsmaintelligence.com/research/?file=61a38952cab354d09537f6675ed9772d&download (English)

https://www.gsmaintelligence.com/research/?file=78b12aeccb5227f2ca06369b9b4332f3&download (Spanish)

-ENDS-

About the GSMA

The GSMA represents the interests of mobile operators worldwide, uniting nearly 800 operators with more than 300 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces industry-leading events such as Mobile World Congress, Mobile World Congress Shanghai, Mobile World Congress Americas and the Mobile 360 Series of conferences.

For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.

Contact information

Media:
GSMA
Mauro Accurso
+5491132519811
maccurso@gsma.com
or
Clare Fenny, +44 20 7067 0749
CFenny@webershandwick.com
or
GSMA Press Office
pressoffice@gsma.com

Tietoja julkaisijasta

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Tilaa tiedotteet sähköpostiisi

Haluatko tietää asioista ensimmäisten joukossa? Kun tilaat mediatiedotteemme, saat ne sähköpostiisi välittömästi julkaisuhetkellä. Tilauksen voit halutessasi perua milloin tahansa.

Lue lisää julkaisijalta Business Wire

PM Studios Partners with The Playgroundz Foundation to Develop New Blockchain Project16.10.2018 09:52Tiedote

Software development and video game publisher PM Studios, partnered with the Playgroundz Foundation to help in the development of a new blockchain project. Playgroundz is best described as a “Google” for videogames. It is a platform for videogames and game related services. Playgroundz will be a gateway to a videogame database where developers and gamers can come and virtually do anything game related. We are simply creating a new gaming ecosystem where everything videogame related is decentralized and belongs solely to the players and developers. Playgroundz consists of an AI system, which takes advantage of Big Data and Machine Learning to specifically analyze the traits of users, Marketplace, which utilize Blockchain and Smart Contract in order to make Escrows safe and transparent, and Rewarded Community System, which is based on loyalty users. Based on optimized Machine Learning Algorithm, the analyzed data recommends users with new games, matches users automatically with buyer or

Kongsberg Digital and Alibaba Cloud to Explore Opportunities for Digitalizing the Energy Sector in China16.10.2018 09:06Tiedote

China has taken a global number one position when it comes to investing in renewable energy sources. Digitalization is high on the country’s agenda when it comes to increased efficiency and transformed business models. To further promote that development, Kongsberg Digital and Alibaba Cloud, the cloud computing arm of Alibaba Group, have signed a memorandum of understanding (MoU) to explore the opportunities provided by making KONGSBERG’s industrial digital platform, Kognifai, available on Alibaba Cloud’s infrastructure. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181015006030/en/ Simon Hu, Senior Vice President of Alibaba Group and President of Alibaba Cloud, and Hege Skryseth, Executive Vice President of KONGSBERG and President of Kongsberg Digital, signed an MoU to explore the opportunities to make KONGSBERG's industrial digital platform, Kognifai, available on Alibaba Cloud (Photo: Business Wire) “Bringing Kognifai to

GE’s AffinityTM: The first civil supersonic engine in 55 years – launching a new era of efficient supersonic flight16.10.2018 01:17Tiedote

At a press conference with Aerion Corporation today, GE Aviation announced that it has completed the initial design of the first supersonic engine purpose-built for business jets. This new engine class, revealed today as GE’s AffinityTM turbofan, is optimized with proven GE technology for supersonic flight and timed to meet the Aerion AS2 launch. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181015005961/en/ The name “Affinity” was chosen because it reflects this engine class’ harmonious assemblage of GE’s commercial, non-civil and business aviation propulsion technologies to bring a true step-change in commercial supersonic propulsion. (Photo: Business Wire) The Affinity is a new class of medium bypass ratio engines that provide exceptional and balanced performance across supersonic and subsonic flights. The Affinity integrates a unique blend of proven military supersonic experience, commercial reliability and the most adv

IFF to Release Third Quarter 2018 Results November 515.10.2018 23:15Tiedote

Regulatory News: International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris: IFF) (TASE: IFF), a leading innovator of scent, taste, and nutrition, announced that it will release its third quarter 2018 earnings results following the market close on Monday, November 5, 2018. The management team will host a live webcast on Tuesday, November 6, 2018 at 10:00 a.m. ET to discuss results and outlook with the investor community. Investors may access the live webcast and accompanying slide presentation on the Company's website at ir.iff.com. For those unable to listen to the live webcast, a recorded version will be made available for replay. Meet IFF International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris: IFF) (TASE: IFF) is a leading innovator of scent, taste, and nutrition, with over 110 manufacturing facilities, 100 R&D centers, and 33,000 customers globally. At the heart of our company, we are fueled by a sense of discovery, constantly asking “what if?”. That passion for

AMPLEXOR to Present on Neural Machine Translation Engine at Artificial Intelligence Event: 30 Years of DFKI – 30 Years of AI for Humans15.10.2018 22:09Tiedote

AMPLEXOR: MEDIA ADVISORY: The German Research Center for Artificial Intelligence (DFKI) is one of the largest Artificial Intelligence (AI) centers of excellence globally, and is celebrating the 30th anniversary of its efforts partnering and researching AI for humans with an event, 30 Years of DFKI – 30 Years of AI for Humans. AMPLEXOR is honored to be the only external partner presenting at the event and will join senior researcher from DFKI, Raphael Rubino, to demonstrate AMPLEXOR’s enterprise-grade, neural machine translation (NMT) solution, developed in collaboration with DFKI. The NMT collaboration with DFKI was announced earlier in 2018 to support the translation of content in highly specific and demanding industries, Life Sciences and medical devices. The solution aims to significantly reduce the amount of human intervention to produce professional translation quality and has consistently outperformed customized engines from well-known MT providers. What: AMPLEXOR joins DFKI to c

Lehman Brothers Treasury to Further Explore Strategic Opportunities15.10.2018 19:54Tiedote

Lehman Brothers Treasury Co. B.V. in liquidation (“LBT”) today, through its U.S. counsel Kramer Levin Naftalis & Frankel LLP, announced that the liquidators of LBT are continuing to explore various strategies to, among other things, facilitate the consolidation of the LBT creditor base and the wind-down of the LBT estate. To that end, the liquidators of LBT intend to engage with certain of LBT’s creditors and other market participants regarding potential strategies, including, but not limited to, a potential sale of a portion of LBT’s assets. No assurances can be made that any strategy will be employed, or if one is employed, the timing of its implementation. LBT does not undertake to publicly update its disclosure to reflect developments in this matter. View source version on businesswire.com: https://www.businesswire.com/news/home/20181015005777/en/ Contact information Kramer Levin Naftalis & Frankel LLP Daniel Eggermann, 212-715-9495

Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.

Tutustu uutishuoneeseemme