November 11, 2005
Question written on 11/11/2005
To ask the Secretary of State for Trade and Industry if he will assess the contribution to the City of London’s productivity of mobile communications; and if he will make a statement.
Answered by Alun Michael
I have no information for the City of London that would allow the assessment of the contribution mobile communications has made to its productivity. The mobile network operator, O2 commissioned a study from the Centre for Economic and Business Research in July 2004 to assess how the contribution of mobile phones to the UK economy was likely to change over the next 10 years. A final report on the regional contribution of mobile communications, provided figures broken down by region. For the South East it found that mobile communications contributes 3.23 per cent. of GDP, which is 1,573 per household per year. It also found that mobile communications accounts for 1.15 per cent. of all jobs in the South East.We have no plans to undertake a further assessment specific to the City of London.The mobile phone sector contributes to both the UK GDP and Government finances. According to research by the Centre for Economic and Business Research (CEBR), mobile contributed 22.9 billion to UK GDP in 2003, 2.3 per cent. of total GDP. Mobile network operator, O2 commissioned a study from CEBR in July 2004 that assessed how the contribution of mobile phones to the UK economy was likely to change over the next 10 years. The report shows how the mobile phone sector now contributes as much to GDP as the total oil and gas extraction industry.The research shows that the mobile sector is making a major contribution to national productivity both through sustaining a high level of productivity in the sector itself and through enabling higher productivity in the rest of the economy but no specific figures are available specifically for the City of London, although the City probably has the highest concentration of mobile telecommunications use in the country.