Home Broadband Speed Positively Impacts Household Income

  • Ericsson
STOCKHOLM - Upgrading from 4 Mbps to 8 Mbps increases income by $120 per month in OECD (Organization for Economic Cooperation and Development) countries, while BIC (Brazil, India and China) households benefit most by upgrading from 0.5 to 4 Mbps, at $46 per month. These finding come from the first study to quantify the impact of broadband speed on household income, which was conducted by Ericsson, a global provider of communications technology and services, in conjunction with Arthur D. Little and Chalmers University of Technology.

This household-level (microeconomic) study reveals the thresholds for the minimum speed upgrade needed to provide a statistically significant impact on household income. These thresholds are different for OECD and BIC countries. The principle of broadband speeds increasing income holds for both OECD and BIC countries, however absolute levels of return were found to be higher for OECD economies, which supports the idea that gains from broadband increase if more advanced services are available via the broadband access.

"Results are in line with our previous study that quantified the impact of broadband speed increases on the gross domestic product of 33 countries, as well as a slew of other studies we reviewed," says Sebastian Tolstoy, VP radio business development and strategy, Ericsson. "All indicate that broadband access has a positive effect on the economy. We know that speed matters and that upgrading broadband speed has a positive impact. Now we have shown this quantitatively using large data samples in both OECD and BIC economies, even at the household level."

"The evidence is building for broadband speed as a driver of economic growth," says Martin Glaumann, partner at Arthur D. Little. "Yet in many countries, not least in the EU, regulatory developments are holding back the full growth potential. Regulators need to rethink and recognize high-speed broadband as a national imperative for BIC countries. Broadband gives households the means to improve skills and productivity through e-learning and business services, but also to gain access to new venues for consumption."


Comments

Read what others have to say, and share your own thoughts with the community.

2000 characters remaining
Advertisement

© 2020 Broadband Properties, LLC

Privacy Policy

Web Design and Web Development by Buildable