Cell phones could be the next economic driver of a global growth pattern. The entrepreneurs of these countries are finding that cell phones are the perfect tools to grow their businesses, and in turn their economies and exchange traded funds (ETFs).
Andre Lehman for The Sydney Morning Tribune reports that the cell phone have allowed many industries and sectors to thrive as a result of access to mobile technologies.
Research has found that every 10% growth in mobile phone penetration brings about an increase of 0.6% in economic growth, according to a World Bank analyst. You can read more about the impact that growing economies have on the telecommunications sector here.
Thanks to mobile telephones and instant messaging, fishermen, farmers, handicraft workers have been able to sell in a more efficient way or even find new clients, and can afford to stay in business even if they can not open up a shop.
The number of mobile telephone users is expected to reach 4.6 billion this year, a more than four-fold increase from one billion in 2003, says one United Nations Telecommunications Union statistic.
- iShares S&P Global Telecommunications Sector Index Fund (NYSEArca: IXP): up 7.5% year-to-date
- WisdomTree International Communications Fund (NYSEArca: DGG): up 9.6% year-to-date
For more stories about telecom, visit our telecom category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.