27 Nov How the Superfast Broadband is all set to Boost the UK Economy
The government’s decision to invest in superfast broadband is poised to deliver significant and long term benefits to the UK economy given its far reaching impact on the quality of our lives. A report by UK Broadband Impact Study estimates that for every £1 that the government invests in broadband, it would mean a benefit of £20 for the UK economy.
The study examines the impact of broadband in the UK and analyses its benefits not only from its economic implications but also from social and environmental and virtual working perspectives.
Some of the important findings of the broadband investment by the government include:
• Excellent returns on tax payers money with an ROI of £20 for every £1 invested by 2014
• The network construction to enhance the UK economy by £0.5 billion and create 11,000 jobs in 2014 alone – delivering a good short term boost
• It would also lead to a huge long-term growth of the economy, as public investment would increase annual GVA by £6.3 billion thus creating a net increase of 20,000 jobs in the UK by 2024.
• As more and more people would be able to work from home, it would generate household savings worth £45 million/year by 2024
• The benefits would be evenly spread across the UK with the South East of England and the rural areas set to reap the maximum profits
• The implications of broadband like reduced commuting and cloud computing would save 0.4 million tonnes of CO2 /year
Maria Miller, the Secretary of State for Culture, Media and Sport added that the report conclusively shows us that along with enhancing economic growth, the superfast broadband will facilitate better productivity at work and lead to an overall improved quality of life. The super-fast speeds would be among the best in Europe and enable new entrepreneurs and small businesses to thrive and profit. It would prove instrumental for school children to get access to high quality internet speeds to help them log on to complete their homework as well as for all those people who work from home. Maria Miller believes that investing in technology is inextricably linked to a bright future for Britain and a superior quality of life for its citizens.
Dr Pantelis Koutroumpis, Research Fellow at Imperial College and Advisor of the Broadband Impact Report is of the opinion that the study has provided new insights into how exactly the access to high quality broadband impacts the economy – both at the local and national level. These insights could pave the way for further research into the influence of business speed on productivity.