Doubling broadband speeds could increase GDP by 0.3%
A new study has revealed the positive effects that arise from increasing broadband speed include an increase in economic growth. The report, carried out by Ericsson, Arthur D. Little and Chalmers University of Technology has shown that by doubling its broadband speed, a country could see its GDP increase by 0.3%.
Faster broadband can improve many things
The results found have been explained by many different factors which would result from an improvement in a country’s broadband service. Firstly, the increase in the number of new businesses and services which would be created as a result of increased broadband speeds and penetration. The researchers claim this would contribute to a third of the rise in GDP. Further increases would come from more automated and simplified processes which would arise as a result of broadband developments, as well as better access to services such as education and health.
Only 10 broadband users per 100 persons globally
However, the researchers, who used broadband data from 33 OECD (Organisation for Economic Co-Operation and Development) countries, failed to include data from many countries with limited broadband services. The countries used included Australia, Germany and UK as well as many others with similarly well developed broadband infrastructures. Indeed, statistics from the International Telecommunication Union show that in 2010, the average number of fixed broadband subcriptions per 100 persons was 25.40 for the 33 countries surveyed. This is in comparison to an annual average of 10.23 broadband users per 100 persons.
More research needed
Given the above figures, it appers clear that future research could be carried out into how broadband speeds effect GDP in countries with less well developed broadband infrastructure. If a similarly positive relationship could be shown, this could greatly impact GDP in such countries as they have a higher potential to increase broadband speeds given that exisiting speeds may be relatively low.
