Sunday, October 16, 2011

New study quantifies the impact of broadband speed on GDP - Ericsson

A new report, conducted jointly by Ericsson, Arthur D. Little and Chalmers University of Technology in 33 OECD countries, quantifies the isolated impact of broadband speed, showing that doubling the broadband speed for an economy increases GDP by 0.3 percent.

Other studies, such as a 2009 study by the World Bank, suggest similar relationships.

A 0.3 percent GDP growth in the OECD region is equivalent to $126 billion. This corresponds to more than one seventh of the average annual OECD growth rate in the last decade.

The study also shows that additional doublings of speed can yield growth in excess of 0.3 percent (e.g. quadrupling of speed equals 0.6 percent GDP growth stimulus)

Both broadband availability and speed are strong drivers in an economy. Last year Ericsson and Arthur D. Little concluded that for every 10 percentage point increase in broadband penetration, GDP increases by one percent.

Broadband impact on GDP

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