Ecuador aims to add US$7.25bn to GDP through ICT development

Ecuador can increase its GDP by some US$7.25bn between 2013 and 2017 through the development of ICT, the country's strategic sectors and telecommunications minister, Rafael Poveda, said.

ICT growth will additionally generate 521,800 jobs in that time, according to a release by telecoms ministry Mintel.

Ecuador has implemented policies which aim to provide ICT access to all citizens, and stimulate the growth of society and the economy, as well as contribute to the elimination of the digital divide, telecoms minister Jaime Guerrero said.

The country's real GDP reached US$63.7bn in 2012 and is set to maintain growth rates of above 4% in the coming years, reaching 77.6bn in 2017, according to IMF statistics, suggesting that ICTs will play a significant role in driving future GDP growth in Ecuador.

The growing contribution of ICT to GDP is part of a wider trend in Latin America. The region's mobile industry alone will account for 3.8% of GDP in 2013, with that figure increasing to 4.5% in 2020 as the impact of mobile data increases, and a broad range of new applications and services in areas including financial services, healthcare and education continue to be developed.

The telecoms industry contributes to GDP in a variety of ways, beyond simply the profits of players such as mobile operators, device manufacturers and distributors.

While the direct contribution of such companies is significant, the largest contribution which the mobile industry makes to Latin America's GDP is through productivity increases in the economy as a whole as a result of the workforce having access to voice and data services, according to a GSM Association (GSMA) report.

Ecuador currently has a high level of penetration of mobile voice services, and mobile data is growing strongly, with almost 4mn mobile broadband lines active in the country as of the end of Q2, according to technical superintendency Supertel's statistics.

However, fixed broadband penetration remains relatively low, with under 1mn active lines as of the end of June.

Given the country's low fixed broadband penetration, mobile operators have an opportunity to meet demand for broadband services and capture a large share of new broadband customers, according to Pyramid Research.

Fixed broadband is also expected to grow rapidly in Ecuador, and the government has invested significantly in fiber optic infrastructure in recent years, but this growth is coming from a lower user base.