New research claims that the UK Government’s gigabit broadband could give the economy a £13bn boost by 2025
New research from the Internet Association, which was prepared by Public First, has claimed that the UK Government’s ambition to achieve universal coverage of “gigabit-capable broadband” (1Gbps+) ISP networks by 2025 could produce an economic boost equivalent to £217 per person per year or 0.7% of GDP (£13bn total).
On top of existing investment programmes, the current Government has recently committed to ensure that the whole of the UK can access 1000Mbps+ capable broadband services by 2025, which includes an extra investment of £5bn in order to help cover those in the hardest to reach (final 20%) of mostly rural areas.
According to the Internet Association, which is a trade group that counts lots of major brands like Amazon, airbnb, Facebook, Google, PayPal, reddit and a number of others amongst its membership, there are two primary drivers for an economic and productivity boost to occur.
The report then adopts models from several other research papers in order to conclude three “plausible scenarios” for the impact of universal gigabit broadband in the UK.
Daniel Dyball, IA’s UK Executive Director, said, our new research shows how the internet can be at the forefront of driving growth in the 2020s. Ensuring access to high speed broadband will allow the UK economy and wider society to reap the benefits of the internet. IA member companies fully support the UK government’s objective to deliver this roll out and help make the UK a digital powerhouse.
It is vital that we nurture the ‘virtuous circle of innovation’ in which new internet applications and services increase the demand for advanced broadband. That increased demand drives network improvements, which in turn leads to further innovative network uses. IA member companies are keen to play their part through providing attractive products and services that can be widely accessed – further stimulating demand for high-speed broadband, he said.
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