The Faster The Richer, Says New Report

A new report found that doubling broadband speed adds 0.3 percent to a nation's gross domestic product. The report by Chalmers University of Technology of Gothenburg, Sweden, international consulting firm, Arthur D. Little, and Mobile giant Ericsson, looked at broadband speeds in 33 developed OECD nations. This may not sound like much, but in the wealthy countries this amounted to an average $126 billion, or one-seventh the average growth rate.

This confirms what we have stressed since our founding: Speed Matters. According to Erik Almqvist, director at Arthur D. Little, "This unique empirical study may help governments and other decisions makers in society make more correct tradeoffs and policy choices."

The growth comes, said the analysis, from direct, indirect and induced effects. "The induced effect," said one news story, "which includes the creation of new services and businesses, is the most sustainable dimension and could represent as much as one third of the mentioned GDP growth."

"Broadband has the power to spur economic growth by creating efficiency for society, businesses and consumers," says Johan Wibergh, head of Business Unit Networks, Ericsson. "It opens up possibilities for more advanced online services, smarter utility services, telecommuting and telepresence. In health care, for instance, we expect that mobile applications will be used by 500 million people."

This growth must include not only services and profits, but also high-wage jobs for millions of workers. The power of broadband in the economy has to benefit the people who make it work, not just those who own it.

Increasing broadband speed boosts national GDPs, Ericsson says (techjournalsouth.com)

Doubling broadband speed leads to 0.3% GDP growth in OECD  (telecompaper.com)