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Broadband penetration pushes growth


Several leading Consultancy firms have produced studies that show a clear connection between the broadband dissemination and growth in GDP.


The World Bank has found that in low- and middle-income countries every 10 percentage point increase in broadband penetration accelerates economic growth by 1.38 percentage points—more than in high-income countries and more than for other telecommunications services. In a similar study, McKinsey & Company estimates that ―a 10 per cent increase in broadband household penetration delivers a boost to a country‘s GDP that ranges from 0.1 per cent to 1.4 percent. Booz & Company found that ―10 per cent higher broadband penetration in a specific year is correlated to 1.5 per cent greater labour productivity growth over the following five years. Booz also suggests that ―countries in the top tier of broadband penetration have exhibited 2 per cent higher GDP growth than countries in the bottom tier. These studies are the latest in the already extensive work estimating broadband‘s economic impact.