The GSM Association recently released a report which investigated mobile service taxes and handset usage in 50 countries. The report found that Asian countries have lower taxes than countries in Latin America and Africa, meaning a shorter timeframe for handset penetration in this area.

 

According to the GSM Association, high taxes will hinder economic growth and stimulate black market sales, which have caused a US$2.7 billion loss in tax revenue in the surveyed 50 countries. Governments of these countries are likely to suffer an additional US$24.5 billion loss in tax revenues for the next five years if the situation remains as it is now. The report also indicated that if a country lowers taxes on mobile services by one percent, the number of handset users would increase by over two percent from 2006 to 2010.