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
IoT connected devices to top 38.5bn in 2020New data from Juniper Research has revealed that the number of IoT (Internet of Things) connected devices will number 38.5 billion in 2020, up from 13.4 billion in 2015: a rise of over 285%. Read More
OPIC, Microsoft begin financing discussions with Kenya’s Mawingu NetworksThe Overseas Private Investment Corporation (OPIC), the U.S. Government’s Development Finance Institution, have signed a mandate letter to begin financing discussions with Mawingu Networks, a provider of solar-powered wireless Internet across rural Kenya. Read More
African internet pioneer wins ICANN awardThe Chairman of the Internet Society Ghana Chapter and Africa Internet pioneer, Prof. Nii Narku Quaynor, has been awarded the 2015 ICANN Multi-stakeholder Ethos Award. Read More
ICANN to resume evaluation of DotConnectAfrica Trust application for .AFRICAThe Internet Corporation for Assigned Names and Numbers (ICANN) will resume evaluation of DotConnectAfrica Trust's (DCA's) application for the .AFRICA new generic top-level domain. Read More
Safaricom launches internet-ready commercial and residential addresses initiativeSafaricom has announced that it will be partnering with real estate developers in an initiative that will see the launch of new smart and internet ready addresses in different parts of the country. Read More
Airtel gives Kisii students free internet connectivityAirtel has connected Kamagambo Teachers training College in Kisii County to the Internet for free. Read More
CEOs, CIOs laud Smile for fast broadband connectivityCEOs and CIOs of corporate organisations have commended Smile Communications for providing high speed 4G LTE broadband services in Nigeria. Read More
Ugandan developer creates directory for Kampala Service ProvidersA creative Ugandan developer has created an online service provider directory that provides vital contacts for major service providers around Kampala city. Read More
SEACOM Stockholm PoP goes liveSEACOM has gone live with a new point of presence (PoP) for its IP/MPLS network in Stockholm, Sweden. Read More
FEATURED STORYBatswana dragging feet in digital migration
More than a month after the deadline for the digital migration from analogue television, few people have shown any pronounced enthusiasm in entering the new digital TV realm.
BEST READ NEWS
IN DEPTHAs curtain falls on MDGs, what next?
Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.
COMPANY NEWSMTN Business App of the Year submissions closed
Entries for the annual MTN Business App of the Year Awards taking place on 13 August in Johannesburg have closed, and an expert panel of judges that is adjudicating ...