Impact of broadband on the economy
Regulatory & market environment
impact of broadband
on the economy
Broadband Series
APRIL
2012
Telecommunication Development Sector
The Impact of Broadband on the Economy:
Research to Date and Policy Issues
April 2012
This study on the impact of broadband on the economy was prepared by Dr. Raul Katz, Director, Business Strategy Research, at the Columbia Institute for Tele-Information (CITI) at Columbia University, under the direction of the BDT Regulatory and Market Environment Division (RME). The author would like to acknowledge the support of Javier Avila, Giacomo Meille and Julian Katz-Samuels, all researchers at the Columbia Institute for Tele-Information, and Fernando Callorda, consultant at Telecom Advisory Services, LLC. ITU wishes to express thanks to Jim Holmes, Incyte Consulting and Denis Villalobos from ICE, Costa Rica for their comments and advice. This report is part of a new series of ITU reports on broadband that are available online and free of charge at the ITU Universe of Broadband portal: itu.int/broadband.
Please consider the environment before printing this report.
ITU 2012 All rights reserved. No part of this publication may be reproduced, by any means whatsoever, without the prior written permission of ITU.
Impact of broadband on the economy
Table of Contents
Preface ..........................................................................................................................................
Foreword ......................................................................................................................................
1 Introduction ........................................................................................................................
2 Economic Impact of Broadband: A Review of the Literature................................................. 2.1 Contribution to economic growth .................................................................................... 2.2 Impact on productivity ..................................................................................................... 2.3 Impact on job creation...................................................................................................... 2.3.1 Broadband construction effects and their counter-cyclical importance ............... 2.3.2 Broadband positive externalities on job creation.................................................. 2.4 Creation of consumer surplus........................................................................................... 2.5 Impact on firm efficiency .................................................................................................. 2.6 Conclusion.........................................................................................................................
3 Economic Impact of Broadband in Developed Countries: Case Studies................................. 3.1 United States: employment creation as a result of the economic stimulus programme. 3.2 Germany: The impact of the national broadband plan on employment and economic growth ..............................................................................................................
4 Economic Impact in Developing Countries: Case Studies ...................................................... 4.1 Latin America: Contribution to regional economic growth .............................................. 4.1.1 Multivariate Regression Analysis: .......................................................................... 4.1.2 Case studies ........................................................................................................... 4.2 Assessment of Broadband Economic Impact in Arab States ............................................ 4.2.1 Multivariate Regression Analysis: .......................................................................... 4.2.2 General Impact Model ........................................................................................... 4.2.3 Case Studies ........................................................................................................... 4.3 Asia Pacific ........................................................................................................................ 4.3.1 India: the impact of broadband on employment and economic growth .............. 4.3.2 Malaysia: The contribution of broadband to economic growth ............................ 4.3.3 China: The relation between broadband and economic growth ........................... 4.3.4 Indonesia: The contribution of broadband to employment growth......................
5 Analysis of Case Study Results .............................................................................................
6 Estimation of Broadband Gaps and Investment Requirement .............................................. 6.1 Methodology .................................................................................................................... 6.2 The National Broadband Plan in Germany ....................................................................... 6.3 The National Broadband Plan in Brazil ............................................................................. 6.4 Conclusion.........................................................................................................................
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