EFFECTS OF GDP PER CAPITA ON MOBILE TELECOMMUNICATION PENETRATION IN SUB-SAHARAN AFRICA

The influence of telecommunication in economic and social development is great. Some researchers established positive relationship between telecommunication development and economic development across the nations of the world as it reduced the gap between the rich and the poor. Before the advent of the mobile telecommunication, electronic communication was restricted to government cycles and well-established enterprises especially in Africa. This study investigates the influence of GDP per capita on mobile penetration in 42 Sub-Saharan Africa countries. 2016 data of GDPper capita, penetration rate and number of subscribers for the countries were used. The statistical tool employed is a panel regression analysis adopting an ordinary least square method of estimation; the data was analyzed with the aid of EVIEW version 9. The statistical models and correlation analysis indicates the relationship between GDP per capita and mobile penetration rates, the model generated revealed that penetration rate and the number of subscribers contributes to GDP per capita and that the two variables can be used to predict it. The models generated can also be used for future projections. The result of the study is in line with previous studies which support positive relationship between penetration rates and economic development. The importance of telecommunication to national developments are enumerated, while operators are expected to improve quality of service and customer satisfaction, the government must make effort to promote macroeconomic stability, the most important thing being sustenance of good governance. Other things that can improve the economy and the level of GDP per capita must also be vigorously pursued. The governments of these countries are therefore advised to pursue efforts that can improve mobile penetration as it's capable of improving their economies