Four times the speed would boost Egypt’s GDP by USD1bn
INTERNET| Sept. 10, 2012, 8:19 a.m.
Quadrupling Egypt’s broadband speed would contribute 0.6% to the nation’s GDP, says a report released by Ericsson .
Research conducted by Ericsson, Arthur D. Little and Chalmers University of Technology confirms that increased broadband speed contributes significantly to economic growth
Positive effects come from automated and simplified processes, increased productivity as well as better access to basic services such as education and health
Quadrupling the speed of broadband in Egypt has the potential to contribute an additional 0.6% to the nation's Gross Domestic Product (GDP). The findings are based on research jointly conducted by Ericsson, Arthur D. Little and Chalmers University of Technology.
Significantly, while doubling the country's broadband speed would lead to a 0.3 percent increase in GDP worth almost USD688.59 million, quadrupling Internet access speeds would add approximately USD1.377 billion or a growth of 0.6%. The study also shows that additional doublings of speed can yield corresponding GDP growth stimuli.
According to analyst firm Business Monitor International (BMI), there were 4.430 million broadband users recorded in the country as of 2011, with the number projected to rise by 3.84 million to 8.276 million users in 2016.
"Broadband has emerged as a significant driver of economic growth even as we continue to evolve from an information society to what we, at Ericsson, call a Networked Society," said Anders Lindblad, president, Ericsson Region Middle East and North Africa. "There is no doubt in my mind that Broadband, whether mobile or fixed-line, is a vehicle for economic growth, innovation and productivity.
He added, "The government and telecom operators here in Egypt have clearly recognized the importance of broadband and this is reflected in their collective efforts to achieve higher penetration across the country through fixed and mobile broadband solutions."
Both broadband availability and speed are strong drivers in an economy. In 2010, Ericsson and Arthur D. Little concluded that for every 10 percentage point increases in broadband penetration, GDP increases by 1 percent.
This growth stems from a combination of direct, indirect and induced effects. Direct and indirect effects provide a short to medium term stimulus to the economy. The induced effect, 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.
This study is the first of its kind in that it quantifies the economic impact of increases in broadband speed in a comprehensive scientific method using publicly available data.
MORE INTERNET NEWS
iWayAfrica re-launches Ka-band service with exclusive no equipment contractsDandemutande Investments (Private) Limited, a licensed Internet Access Provider operating the AfricaOnline, iWayAfrica, Utande and uMAX brands in Zimbabwe, has announced the re-launch of its iWayAfrica Ka-band VSAT service with a new nationwide campaign targeting households and businesses. Read More
Terragon Group releases Digital Insights on the Nigerian banksTerragon Group has released its Research Report which highlights the use of digital media by Nigerian banks and what impact these activities have on their overall business. Read More
BOFINET concludes Sekoma-Tsabong optic fibre projectBotswana Fibre Networks has successfully concluded its 360km Sekoma-Tsabong route optical fibre project. Read More
MainOne extends cable to CamerounMainOne has announced the extension of its world-class submarine fiber optic cable network from its Cable Landing Station in Lagos, Nigeria to Kribi, Cameroun. Read More
PayPal, MallforAfrica join forces to give Kenyan shoppers more online payment optionsMallforAfrica, a global e-commerce company that enables African consumers access to over 8.5 billion items, is teaming up with PayPal, one of the world’s most-loved ways to pay and get paid, through internet and mobile, to make online shopping from key markets outside of Kenya as easy as ... Read More
Alan Knott-Craig Jr to launch new ventureFormer Mxit CEO Alan Knott-Craig Jr has announced the imminent commercial launch of HeroTel, a new venture seeking to consolidate Wireless Internet providers (WISPs). Read More
Click n Compare takes off AfricaCNC Group, parent company of the Click n Compare comparison website, is expanding its African footprint. Read More
Surfline Communications – one year of leading 4G LTE revolution in GhanaGhana’s leading 4G LTE network provider, Surfline Communications, is celebrating its first anniversary in grand style. Read More
MTN Business announces a partnership with Microsoft to offer a cloud solutionMTN Business has announced a strategic partnership with Microsoft to provide a pan-African cloud platform that offers customers a true hybrid cloud solution serviced from MTN’s data centres. Read More
FEATURED STORYYoung innovators shine during pitch sessions
Botswana saw an array of upcoming tech wizards selling their ideas during the Vendors’ Day pitch sessions this week.
BEST READ NEWS
IN DEPTHHigh tech homes: Just press play
High tech, digital homes where everything is automated and connected aren’t the stuff of science fiction any longer, says BNC Technology.