A HIGHER BROADBAND speed can contribute to a higher income level, according to a new report from Ericsson.
The report, entitled Measuring the Impact of Broadband on Income, analyzed data from several Organization for Economic Co-operation and Development (OECD) countries, as well as Brazil, India and China (BIC), investigating the similarities and differences between them. It measured the impact of broadband speed on household income by analyzing whether leveraging the benefits of faster broadband can improve competitiveness in the labour market.
Key findings from the report include:
– The benefits of increasing broadband access speed are nonlinear and stepwise, with a minimum level required that is likely to rise over time;
– Broadband access affects development:
- In OECD countries, gaining 4 Mbps of broadband increases household income by US$2,100 per year;
- In BIC countries, introducing a 0.5 Mbps broadband connection increases household income by US$800 per year.
– Broadband speed upgrades affect development:
- In OECD countries, upgrading from 0.5 Mbps to 4 Mbps increases income by around US$322 per month;
- In BIC countries, upgrading from 0.5 to 4 Mbps increases income by US$46 per month.
