Broadband Deployment Fueling Economic Growth Worldwide

Investment in broadband positively drives economic development worldwide, according to a new report by the Broadband Commission for Digital Development.

The report reviews nearly a hundred research reports and case studies on the economic effect of broadband Internet access, and concludes that the outcomes are overwhelmingly positive. The impact on the national GDP is particularly striking, as broadband increasingly accounts for a greater percentage of yearly GDP.

According to the study:

"In China, every 10% increase in broadband penetration is seen as contributing an additional 2.5% to GDP growth. In Thailand, where in 2010 only some 3% of households and 12% of individuals had broadband, it has nevertheless been forecast that if broadband is promoted, it could add 2.4% per cent to the country's GDP growth rate."

In both developing and developed nations, broadband expansion can be a key driver of economic growth, and can touch upon a myriad of economic sectors. The health industry could cut costs dramatically by implementing telehealth and businesses could gain a new lease on markets, no longer constrained by geographic location.

The buildout of broadband networks is not only a benefit in the long term, but can also creates thousands of new jobs during the construction phase. Linking towns across America could create employment opportunities in economically depressed regions, while creating a lifeline for connectivity and prosperity.

Overall, the report concluded that universal broadband access in the United States would generate more than $500 billion a year.

As the global race to reap the benefits of broadband ramps up, the US needs to lead the charge by connecting more homes and businesses to the Internet.

Broadband: A Platform for Progress. The Broadband Commission for Digital Development