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
1bn minutes through Nigerian interconnect exchange carriersWorld Telecom Labs (WTL) today announced that more than 1 billion minutes have passed through its specialist 2nd generation VoIP switches deployed by five of Nigeria’s interconnect exchange carriers. Read More
SEACOM introduces NAPAfrica Remote Peering serviceSEACOM has launched a NAPAfrica Remote Peering service that enables NAPAfrica members connected to at least one NAPAfrica exchange point to easily peer with all NAPAfrica exchange point members, across SEACOM’s South African IP/MPLS backbone. Read More
Scribes seek freedom in cyberspaceJournalists from the Southern African bloc were in Botswana for deliberations on the findings of an earlier survey on “Freedom of Expression in Cyberspace.” Read More
Demystifying LTEWhat is LTE really, how does it benefit the consumer and is there a downside to this technology? DCC explains. Read More
AccessKenya bullish on regional cloud marketAccessKenya Group has announced a new market push for Cloud Services in East Africa. Read More
Botswana wholesale internet pricing reducedBotswana Fiber Networks (BoFiNet) and Botswana Telecommunications Corporations Limited (BTCL) have reduced the wholesale internet pricing by up to 70% so far. Read More
Facebook hits 100m user milestone in AfricaFacebook has announced that as of June 2014, there are 100 million people coming to Facebook every month across the African continent, with over 80% on mobile. Read More
SEACOM launches direct presence in UgandaSEACOM has moved to strengthen its pan-African presence with the direct deployment of two Points of Presence (PoPs) in Uganda. Read More
Samsung to ride on Safaricom 3G to boost smart TV uptakeSamsung is partnering with Safaricom to reward buyers of Smart TVs with a free 3G dongle, to encourage usage of the product’s Internet-supported features such as Youtube and Skype, which will be available in the Kenyan market later this year. Read More
FEATURED STORYMFarmer SMS redefines market access for Ugandan farmers
Ugandan smallholder farmers are benefitting from an ambitious innovative ICT mobile phone initiative that offers weather reports and up-to-date market information about changes in prices for agricultural commodities, thus granting them lucrative returns from their farming ventures.
BEST READ NEWS
IN DEPTHNIG President speaks his mind
Bayo Banjo, CEO, Disc Communications and President, Nigeria Internet Group (NIG) says the proposed licensing of infrastructure companies by the Nigeria Communications Commission (NCC) will breed corruption and entrench monopolistic practices. Kokumo Goodie reports.
COMPANY NEWSVMware announces general availability of new solutions for building, managing and protecting softwar
VMware has announced the general availability of VMware NSX 6.1, VMware vCenter Site Recovery Manager 5.8, VMware vCloud Suite 5.8, VMware vRealize Operations Insight, VMware vRealize Suite ...