Four times the speed would boost Egypt’s GDP by USD1bn

INTERNET

-
Image: By BiztechAfrica
Four times the speed would boost Egypt’s GDP by USD1bn

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.




Share the News

Get Daily Newsletter

comments powered by Disqus

MORE INTERNET NEWS

DRC builds 34 000 km fibre optic cable network

The Democratic Republic of Congo (DRC) is currently building a 34 000 km fibre optic cable network that will connect the whole country to the Muanda landing station. Read More

Teraco connecting to 54 countries

Teraco reports that its Africa Cloud Exchange, launched two years ago, now provides access to 54 African countries. Read More

Cheki.com Ghana shows auto dealers the benefits of the web

Amoako Twum Online specialists Cheki.com.gh have hosted a special session for auto traders to motivate them to promote their cars online. Read More

MTN Cameroon transfers WACS landing station to state

MTN Cameroon has transferred ownership of the WACS submarine fibre optic cable landing station at Limbe to the State of Cameroon. Read More

DEG launches Easy School Find in Ghana

Digital Education Group (DEG), an academic consulting firm specialising in classroom technology, has launched a new search engine for schools called “Easy School Find”. Read More

Kenya Defence Forces Twitter account hacked

The Twitter account of the Kenya Defence Forces (KDF) has been infiltrated by hacking group dubbed #Anonymous. Read More

Malawi to run 1st online recruitment site

Malawi has launched an online recruitment site, ‘Myjobo.com’, providing free job ads and job searching.   Read More

SEACOM plans continent-wide initiatives for its Foundation Day

On 23 July 2014, Pan-African telecom enabler SEACOM will celebrate the fifth anniversary of its commercial launch, by donating time and providing support to communities that need assistance across the countries where it does business. Read More

NAPAfrica celebrates new peak at 15Gbps

Michele McCann NAPAfrica, describing itself as Africa’s most successful neutral peering exchange, has reached a record-breaking peak of 15Gbps. Read More

BICS POP in SA to increase reach into Africa

BICS, global provider of international connectivity and interoperability services, has established a point-of-presence (POP) in Johannesburg to offer its operator customers assured quality of interconnect for traffic exchange in Africa. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

Widening ICT skills gap: Cause for concernWidening ICT skills gap: Cause for concern

Nigeria's FDI gains could be eroded by the widening gap in indigenous skilled ICT manpower, writes Kokumo Goodie.

IN DEPTH

Kenya rolls out e-extension to improve agricultureKenya rolls out e-extension to improve agriculture

In a bid to curb the overwhelmed number of agricultural extension officers in Kenya, the ministry of agriculture is embracing technology with their introduction of E-Extension services, which are aimed at reaching out to over 7 million farmers annually.