Social media at 5.8% of global GDP

Razorsight Corporation, a provider of cloud-based analytics solutions for the communications industry, has put the impact of social media at 5.8% of the entire planet’s gross domestic product (GDP).

The group has compiled an infographic which says that the global telecommunications industry generates an annual revenue of $2 trillion which grows by 5.3% each year.

Wireless generates revenue of $1.217 trillion versus $792 billion generated by wireline services, according to the report; while the Asia/Pacific region generates revenue of $775 billion annually, followed by EMEA with $683 billion, and North America at $460 billion.

By the end of 2012, there will be seven billion mobile subscribers worldwide, largely consuming mobile data. Conversely, voice revenue is on a slow but steady decline. Mobile communication (voice) is moving into second place behind mobile computing, Razorsight says.

“Today, we’re managing the revenue and billing analytics of more than 75 global customers, scrutinizing two billion daily network events and effecting in excess of 130 million service subscribers,” explained Razorsight CEO Charlie Thomas.

The increasing relevance of social media can be underlined by the immense impact of Facebook on the world, boasting close on one billion users, a seventh of the world’s population. Facebook was the first US company to debut with a capitalization of more than $100 billion

In North America, of $460 billion a year is spent on telecommunications services, an alarming $32 billion is lost annually due to billing errors. Worldwide that number jumps to $75 billion lost in annual revenue.

KPMG estimates that without the right investment in automated systems, losses could rise five times to $375 billion.

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Social media at 5.8% of global GDP