Tuesday, September 27, 2011

Doubling broadband speed leads to 0.3% GDP growth in OECD

"Doubling the broadband speed for the economy of an OECD country increases its GDP by 0.3 percent, according to a report conducted jointly by Ericsson, Arthur D. Little and Chalmers University of Technology in 33 OECD countries. The report quantified the isolated impact of broadband speed. A 0.3 percent GDP growth (one-directional, isolated effect) in the OECD region is equivalent to USD 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 1 percent."


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