Broadband's Economic Impact (Opinion)

NO / INSTITUTION / TYPE / AUTHORS / YEAR / GEO FOCUS / GF DETAILS / APPROACH / SUMMARY / MAIN KEY FINDINGS / TITLE / LINK
1 / MICUS Management Consulting GmbH for EC / BUS/ GOV / Dr. Martin Fornefeld
Gilles Delaunay
Dieter Elixmann / 2010 / International / EU (27) / Input-output analysis to estimate the impact of BB and ICT to economy of EU (27)
The study focuses on the use of value-added services over the internet infrastructure such as extranets, e-business, online shops and web applications. The model takes into account several effects of broadband: productivity improvement in companies, displacement from traditional sectors of the economy towards knowledge-intensive sectors and broadband-based innovation. / The development of the broadband infrastructure, a high education level, the adoption of online services and the support to innovation are four essential strategic lines for the improvement of the economic impact of broadband in Europe.
The investigation focuses on the improvement of business processes through the use of online technologies in large companies and in SMBs. In the best case scenario, broadband development could yield the creation of more than 2,000,000 jobs in Europe until 2015. / Broadband-related employment growth (EU27) 2006-2015: 2,112,000 jobs could be created.
Broadband-related GDP growth (EU27) 2006-2015
The European GDP will have a broadband-related increase of € 850 bn between 2006 and 2015.In the worst case, broadband-related effects would result in an increase in GDP of only € 636 bn by 2015; while in the best case, € 1,080 bn cumulative GDP growth could be achieved.
The impact of broadband on companies: net creation of 105,000 jobs in 2006 in Europe
According to the model, broadband development resulted in a growth of the European Gross Value Added (GVA) of €82.4bn per year (+0.71%) in 2006. / The Impact of Broadband
on Growth and Productivity /
Press
2 / Intel (2009) / BUSs / Intel / 2009 / International / Global / Determinate the specific impact of BB networks deployment and penetrations and ICT to economy / Broadband networks are an increasingly essential part of the global information society, enabling overall economic growth, and creating new jobs, fostering innovation and enhancing national competitiveness. To achieve these and other benefits of broadband, developing nations need to establish enabling environments that support long-term, cost-effective broadband deployments. / Internet business solutions have enabled private companies in the U.S. to save $155 billion and have helped companies in France, Germany and the UK increase revenues $79 billion. in 2003 suggest broadband could contribute $500 billion to GDP in the United States and as much as $400 billion in Europe.
1 for every percentage point increase in broadband penetration in a particular area, employment would increase 0.2 to 0.3 percentage points per year.2 / The Economic Impact
of Broadband
Best practices enables developing nations
to reap economic benefits of broadband. /
3 / infoDev/OECD / IO / Tim Kelly, Victor Mulas, Siddhartha Raja, Christine Zhen-Wei Qiang and Mark Williams / 2009 / International / Global / Evaluation of best practices from a different countries in order to define the government “push ” role in ensuring the right environment for ICT and BB deployment / Broadband in developing countries provides significant economic and social benefits. Expanding affordable access to broadband is becoming a high priority for governments of developed and developing countries alike / Broadband is a key driver of economic growth providing a boost of 1.38 percentage
points on GDP growth in developing countries for every ten percentage points increase in broadband penetration / What Role should Governments Play in Broadband Development? / What Role should Governments Play in Broadband Development?
4 / Telekom Austria Group, Frontier Economics / BUSS / Frontier Economics / 2010 / International / Eastern and Southeast Europe / Comparative analysis of Eastern and Southeast Europe countries in order to revealed notable differences within the region and in comparison in terms of penetration of fixed and mobile broadband / Eastern and Southeast Europe’s gap with its Western neighbors in terms of access to high-speed internet is widening – enhanced efforts are needed to help this region to close the digital gap by 2013 / The study concludes that even under conservative assumptions the potential total benefit of broadband for the countries amounts to EUR 9.2 billion in present value terms within the next ten years. / The impact of broadband in Eastern and Southeast Europe /
5 / ICT Regulationory Toolkit (2008) / bussIO / ICT Regulation ory Toolkit Tteam for ITU/InfoDev / 2008 / International / Global / Approach to assessing the impacts of ICT is as a system that looks at inputs, outputs, outcomes and efficiencies / Like electricity, ICT may be considered a general purpose technology, which is characterized through its pervasiveness throughout the economy and society, its constant evolution and improvement, and its capacity to spawn new innovations. / Economic impacts and benefits of broadband Internet. In general, these studies found evidence supporting the following impacts: ICT sector growth;
Productivity gains; Transformation of how individuals, business, government and other parts of the society work, communicate and interact – transforming economic relationships and processes in the private and public sector; and
Reduction in pollution (due to reduced travel). / 6.3.2 Economic impacts of broadband Internet & ICT service deployment
Overview / 6.3.2 Economic impacts of broadband Internet & ICT se
6 / LSE enterprise ltd. & The Information Technology and Innovation Foundation / BUSS/ GOV / Jonathan Liebenau, Robert Atkinson, Patrik Kärrberg, Daniel Castro and Stephen Ezell / 2009 / National / UK / Standard economics methodology in order to determined the specific impact of BB and ICT investments on direct, indirect, and induced employment by taking estimates of the economic employment and output multipliers from the Office of National Statistics . / Government has an opportunity to stimulate investment in ICT to ease the burden of the current economic downturn. Spurring investments in ICT infrastructure not only can provide an important short-term boost to the UK economy; it also can lay the groundwork for long-term economic growth, international competitiveness, and significant improvement in quality of life / An additional 5 billion GBP investment in broadband networks would create or retain an estimated 280,500 UK jobs for a year. / The UK’s Digital Road to Recovery /
7 / InfoDev (2008) / IObuss / InfoDev
Malcolm Matson / 2006 / International / US, Canada / Input-output model , comparative analysis / This studies that have demonstrated the economic impact of broadband deployment at the national, regional and local level and the role of local open access networks. It also deals with the impact of broadband deployment and adoption on the issues of social benefit and inclusion. / Canada example: Between 2001 2003, the following economic effects can be directly attributed to the fiber network in South Dundas: 62.5 new jobs , $2.8 million in commercial/industrial expansion, $140,000 in increased revenues and decreased costs / Case Studies on Economic Impact of Broadband / 2.2 CASE STUDIES ON ECONOMIC IMPACT OF BROADBAND — The infoDev
8 / ITIF (Information Technology and Innovation Foundation)publication / ACADBuss/ civil / Atkinson, Robert, Daniel Castro Steven Ezell / 2009 / National / US Focus / ITIF provides a detailed analysis and estimate of the short-term jobs impacts of investment in three critical digital networks: broadband networks, the smart grid and health IT, and outlines policy / Investing in new economy digital infrastructures will provide significant opportunities not just for short-term stimulus and job creation, but also longer term economic and social benefits. / Spurring an additional investment of $30 billion in America's IT network infrastructure in 2009 will create approximately 949,000 U.S. jobs. / The Digital Road to Recovery: A Stimulus Plan to Create Jobs, Boost Productivity and Revitalize America /
9 / CISCO / BUSs / Douglas P. Handler, Economics & Research Practice and Robert Grossman, Emerging Markets Service Provider Practice, Cisco Internet Business Solutions Group / 2009 / International / Developing countries overview / Analysis of Bb affordability in developing and developed countries using “Gini” coefficient measures the equality of a country’s income distribution across its entire population as an index. / To maximize the benefits of broadband investments, developing countries should also consider complementary social policies that promote a more egalitarian income distribution. Such policies might include additional investments in primary and secondary education; tax breaks for the lowest income strata, particularly for broadband or IT equipment purchases; or regulatory or competitive policies that reduce the price of broadband. / If Mexico’s Gini coefficient falls to 40 by 2029, the broadband penetration rate will rise to 60 percent. That is, a slightly more equitable income distribution enables an additional 3 percent of the population, or 3 million people, to afford broadband using a 5-percent-of-income threshold. If Mexico’s Gini coefficient falls to a value of 30, which is typical of many Central European countries today, then an additional 13 percent of the population will be able to afford broadband by 2029. / The Role of Income Distribution and Broadband Penetration in Developing Countries /
10 / Global Information and Communication Technologies (GICT) Department World Bank / IO / Yongsoo Kim, Tim Kelly, and Siddhartha Raja / 2010 / International / Global / This report offers policymakers and regulators an analysis of approaches, with a focus on the Republic of Korea. Case studies cover Finland, France, Japan, Sweden, the United Kingdom, and the United States. The analysis suggests policies and regulations that developing countries could consider to support the growth of broadband / The analysis suggests policies and regulations that developing countries could consider to support the growth of broadband. / This report proposes three building blocks that countries may wish to consider as they attempt to develop their broadband markets:
-Be visionary yet flexible
-Use competition to promote market growth
-Facilitate demand / Building broadband: Strategies and policies for the developing world /
11 / MIT Futures Communications Programme for U.S. Department of Commerce,
Economic Development Administration / ACAD/ GOVER / Sharon E. Gillett
Dr. William H. Lehr
Carlos A. Osorio
Professor Marvin A. Sirbu / 2006 / National / US Focus / Analysis carried through : Business Activity
Indicators, Demographic
Indicators / Controls, Geographic Controls, Broadband Metrics / The results support the view that broadband access does enhance economic growth and performance, and that the assumed economic impacts of broadband are real and measurable. / Employment (Jobs) Broadband added about 1-1.4% to growth rate, 1998-2002 Business Establishments (Proxy for Number of Firms) Broadband added about 0.5-1.2% to growth rate, 1998-2002 / Measuring Broad band’s
Economic Impact / the Economic Impact of Broadband Deployment, by Sharon Gillett, Bill Lehr, Carlos Osorio, and Marvin Sirbu, February 2006.
12 / Criterion
ECONOMICS / BUS / Robert W. Crandall,
Charles L. Jackson,
Hal J. Singer / 2003 / National / US Focus / This analysis estimates the impact of universal residential broadband adoption on consumers and on investment, employment, and economic growth. We begin by estimating the value to consumers—the “consumers surplus”—of universal broadband adoption. / Unleashing the full potential of broadband communications could generate hundreds of billions of dollars per year in consumer value. / We find thatthe cumulative increase in capital expenditures associated with the ubiquitous adoption of current generation technologies will result in a cumulative increase in gross domestic product (GDP) of $179.7 billion and will sustain an additional 61,000 jobs per year / The Effect of Ubiquitous Broadband Adoption
on Investment, Jobs, and the U.S. Economy /
13 / TeleNomic Research, LLC / BUSS / Stephen B. Pociask / 2002 / National / US Focus / Analysis of policies and its effects on jobs creations / This study investigates the economic benefits of building a nationwide broadband network and quantifies the job gains that this investment will have on the U.S. economy. / Building and using a robust, nationwide network will expand U.S. employment by an estimated 1.2 million new and permanent jobs / Building a Nationwide Broadband Network:
Speeding Job Growth /
14 / National Cable & Telecommunication Association (2009) / BUSS / Robert W. Crandall1 and Hal J. Singer / 2009 / National / US Focus / This analysis briefly reviewing the previous estimations on the benefits of broadband in 2001 and 2003. Estimated the consumer surplus derived from broadband Internet adoption, and the consumer benefits from universal broadband deployment. The work considered investment in both first‐ and second‐generation technologies, and made forecasts of how this investment would affect economic output and employment / Analysis of the economic impact of broadband deployment on consumer welfare, job creation, and economic output. / Annualized investment in cable modem from 2003 to 2009 was $4.3 billion, which corresponds to 63,400 jobs created.
Annualized investment in DSL and fiber from 2003 to 2009 was $11.7 billion, which corresponds to 202,400 jobs created.
Annualized investment in 3G wireless and satellite technologies from 2003 to 2009 was $11.6 billion, which corresponds to 168,300 jobs created. / The Economic Impact of
Broadband Investment / The_Economic_Impact_of_Broadband_Investment.pdf
15 / ColumbiaUniversity / ACAD / Dr. Katz / 2009 / International / Latin America / Input-Output Analysis.
MultivariateRegression
Modeling / This paper estimates the demand for broadband technology in Latin America and quantifies the macroeconomic impact of
broadband technology on employment and productivity / It is estimated that the deployment could result in, at least, 378,000 new jobs. / Estimating Broadband Demand and its Economic
Impact in Latin America /
16 / The Allen Consulting Group with Ericsson / BUSS / The Allen Consulting Group, Centre for Policy Studies / 2003 / National / Australia / The study combines the application of an economic model, with qualitative and quantitative inputs sourced from a range of relevant sources. / This study evaluates in detail the economic impact of a true broadband network in Australia. It also examines the impact for industries within the State. / Queensland economy would benefit from BB:
ways:
-increase real output or gross state product (GSP) by $854 million per annum at the end of 15 years (i.e., by 2018-19
-Additional employment equivalent to 1,155 new jobs in the year 2018-19; - increase annual aggregate consumption by around $499 million in 2018-19. / True Broadband: Exploring the Economic Impacts /
17 / PricewaterhouseCoopers / BUSS / PWC / 2009 / National / Australia / Comparative analysis of BB networks and policies in Australia with conditions listed for maximizingeconomic benefits. / Broadband does matter to the economy. Broadband is clearly related to economic well-being and is thus a critical component to our national communications infrastructure. / Economic Growth:broadband infrastructure capable of speeds of 10 Mbps is likely to have a positive economic impact of approximately 1 to 2 per cent of GDP per annum. Productivity benefits: productivity is likely to be approximately 1 per cent per annum higher than it would other be without widespread broadband penetration. Welfare benefits / Communication Alliance
Economic Impacts of Broadband for Australia and
Globally /
18 / McKinsey & Co Inc / BUSS / McKinsey & Co Inc / 2009 / International / Asia focus / Comparative analysis of BB policies and BB penetration / The collective gross domestic product (GDP) of Asia can generate an additional US$150bil-US$180bil as well as generate more than 6.5 million jobs if Asia can be on par with Western Europe in broadband penetration / An increase of 10% of broadband penetration would lead to about 0.6%-0.7% increase in GDP growth / Higher broadband penetration can boost economic growth /
19 / LeCG for Nokia Siemens Networks / BUSS / LeCG / 2009 / International / 15 OECD nations, 14 European / Analysis approach based on: Study of fixed line telecom impact, 1980s & 90s, ICT studies, 1990s & 2000s, “Forward-looking” broadband studies “Forward-looking” broadband studies, Econometric studies of broadband / That broadband can have significant payoffs in terms of increasing productivity and economic growth. In countries like the United States, the melding of the telephone and the computer has had a wide-spread economic impact, so much so that it accounts for a significant portion (in excess of 10%) of recent productivity growth / The econometric model that we have developed predicts that an increase of
1 percentage point (1 more broadband line per 100 individuals) in these “medium or high ICT” countries increases productivity by 0.1%. In US With 10 more broadband lines per 100 individuals, the productivity benefit would exceed $100 billion. / Economic Impact of Broadband: An Empirical Study /
20 / Access Economics for Australian Government / BUSS/ GOV / Access Economics / 2003 / National / Australia / The methodology for estimating the economic impact:
Step 1: calculate the total economic impact of broadband in hospitals if rolled out immediately.
Step 2: deduct the economic impact being generated from broadband already in place, including the costs and benefits from existing ISDN health applications, where applicable.
Step 3: estimate the economic impact of alternative rates of broadband rollout and thus the benefit of accelerating broadband rollout in hospitals. / This report examines the impact of a particular intervention - accelerated rollout of broadband connecting major hospitals and specialist medical centers. Tele-health applications such as tele-psychiatry and tele-radiology have a strong track record of efficiently delivering clinically-effective health services to rural and regional areas. / The analysis in this report indicates that a carefully planned, extensive broadband network connecting major health care facilities has the potential to generate net economic benefits to Australia by enhancing the delivery of health services. / The Economic Impact of an Accelerated Rollout of Broadband in Hospitals /
21 / Columbia Institute for Tele-Information / ACAD / Dr. Raul Katz & Dr. Stephan Suter / 2008 / National / US Focus / The study of the relationship between broadband and employment creation has produced few empirically driven pieces of research. Two types of studies have been conducted so far: a) aggregate cross-sectional research focused on identifying employment and/or output effects on national economies,
b) localized studies oriented to the assessment of broadband economic effects at the regional level / The objective of this research is to estimate the jobs that can be generated as a result of the grants to be disbursed by the broadband provisions of the conference report on the American Recovery and Reinvestment Act. / Network infrastructure construction could produce 128,000 jobs (32,000/year) over a four year period.
Estimated cost/job is $50,000.
The impact of “network externalities” may produce 0 to 270,000 jobs over four years / Estimating the Economic Impact of the Broadband Stimulus Plan /
22 / PantelisKoutroumpisImperialCollegeLondon / BUSSACAD / Pantelis Koutroumpis / 2008 / International / EU(15) / Structural econometric model within a production function framework that telecommunications investment / Thispaperinvestigateshowbroadbandpenetrationaffectseconomicgrowth.Amacroeconomicproductionfunctionwithamicro-modelforbroadbandinvestmentisusedtoestimatetheimpactofbroadband structureandgrowth. / The results suggest that there are increasing returns to broadband telecommunications investments which are consistent with the persistence of network externalities. What has been seen is that there is evidence of a critical mass phenomenon in broadband infrastructure investments. The level that has been identified as critical is the 20% which effectively translates in half of the population