Social and economic impacts of broadband- the importance of broadband investments PPP4Broadband days- Bled, Slovenia,14 November 2013

Social and economic impacts of

broadband-the importance of broadband investments

PPP4Broadband days- Bled, Slovenia,14 November 2013

22

2013

60-80%60-80%SI SI SKSKATAT

40-60%40-60%ROROELELHUHUMKMKSRSR


Digital Digital Agenda Agenda

Scoreboard Scoreboard 20122012

Internet Internet usageusageEU27EU27

BGBGROROELELSISI

HUHUSKSKATAT

IInclusionnclusion


33

Electronic interaction by citizens* with public authoritiesElectronic interaction by citizens* with public authorities (2012) (2012)

*Citizens aged between 25 and 54

e-e-GGovernmentovernment

EU27EU27

BGBGROROELELSISI

HUHUSKSKATAT

Source: Eurostat


44

eGovernmeneGovernmentt

Take-up of Take-up of eGovernmeneGovernmen

t by SMEs t by SMEs

20122012

EU27EU27BGBGROROELELSISI

HUHUSKSKATAT

While most large enterprises already use eGovernment services the take-up by SMEs While most large enterprises already use eGovernment services the take-up by SMEs is slowis slow

Source: Eurostat


55

Source: Eurostat


eCommerceeCommerce

SMEs selling SMEs selling online online

(% of all (% of all SMEs, 2012)SMEs, 2012)


HUHUSKSKATAT

66

Broadband Broadband and impact and impact through through four effectsfour effects


77

The Economic impact of broadband results in five areas:

1. Contribution to economic growth2. Contribution to productivity gains3. Contribution to employment and output of

broadband deployment4. Creation of consumer surplus5. Improvement of firm efficiencie

Broadband Broadband and and contributionscontributions


88

Broadband technology is a contributor to economic growth at several levels:

• improves productivity by facilitating the adoption of more efficient business processes

• accelerates innovation by introducing new consumer applications and services

• more efficient functional deployment of enterprises by maximizing their reach to labor pools, access to raw materials, and consumers

• increase of exports

Contribution Contribution to economic to economic growthgrowth


99

It is logical to assume that productivity of information workers, defined as the portion of the economically active population whose working function is to process information (administrative employees, managers, teachers, journalists) depends directly on the investment in ICT capital (and particularly broadband).

Therefore, the economic growth logically leads to increasing complex production processes, which in term leads to creation of “information workers”, whose primary function is organizing the production.

The development and adoption of ICT is aimed at increasing the productivity of information workers.

The availability of computing and communications allows firms (and their information workers) to be more productive in their manipulation of information. Broadband is a specific component performing this important productivity enhancement.

Impact on Impact on productivityproductivity


1010

•Broadband construction affects in three ways:

Network construction requires the creation of direct jobs (such as telecommunications technicians, construction workers, and manufacturers of the required telecommunications equipment) to build the facility;

The creation of direct jobs has an impact on indirect employment (such as upstream buying and selling between metal and electrical equipment manufacturing sectors);

The household spending based on the income generated from the direct and indirect jobs creates induced employment;

Impact on job Impact on job creationcreation


1111

•Broadband positive externalities on job creation :

New and innovative applications and services, such as telemedicine, Internet search, e-commerce, online education and social networking

New forms of commerce and financial intermediation.

Mass customization of products

Reduction of excess inventories and optimization of supply chains

Business revenue growth

Growth in service industries

Impact on job creation


1212

Technology has multiple effects on firm performance:

Business expansion - in the manufacturing and in service sectors firms with Internet access enabled by broadband generate more foreign sales than the rest

Product innovation

New business creation- This results from the network effects of connectivity

Micro-economic research concludes that broadband has impact on fostering efficiencies and value added opportunities at the firm level.

Impact on Impact on firm firm efficiencyefficiency


1313

Improved health care- high-speed data connections are becoming the technological base for e-health applications. These services will help close the social divide

Environmental sustainability- ICTs also directly aid in matters of environmental sustainability by accurately monitoring and more efficiently allocating resource usage

Better access to education and training – broadband networks create considerable benefits in the area of education and е-learning by leveraging access to digital assets and education programs; helping form communication and social networks among schools, teachers and pupils; encouraging professional education for teachers; and linking local, regional and national institutional frames for administrative purposes or supervision

Social impactSocial impact


1414

• Broadband requirements will continue to be driven by the availability of applications such as:

• high-definition and 3D on-demand TV

• video conferencing style facilities for social • networks such as Facebook and Google+

• e-learning and remote education services which use video content

• homeworking, as well as an increased prevalence of business and consumer cloud computing

• remote health consultations, including video services.

AppsApps


1515

• The socio-economic benefit

Three Three scenariosscenarios


1616


1717

BroadbandBroadband


HUHUSKSKATAT


1818

BroadbandBroadband


HUHUSKSKATAT


1919

BroadbandBroadband


HUHUSKSKATAT

BroadbandBroadbandEU27EU27•BGBG•RORO•ELEL•SISI•HUHU•SKSK•ATAT


2020

http://ec.europa.eu/digital-agenda/en

http://ec.europa.eu/digital-agenda/en/news/study-socio-economic-impact-bandwidth-smart-20100033

http://geography.oii.ox.ac.uk/2013/06/internet-population-and-penetration/

SourcesSources


2121

Dipl. Eng. Anelia Dimova-Information Society Policy ExpertReni Antonova- European Programs & Projects Expert

Information Technology & Electronic Governance Directorate Ministry of Transport, IT & Communications Sofia, Bulgaria

http://www.mtitc.government.bg

[email protected] [email protected]

Phones: + 359 2 949 2250, + 359 2 949 2104

Social and economic impacts of

broadband-the

importance of

broadband investments


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Social and economic impacts of broadband- the importance of broadband investments PPP4Broadband days- Bled, Slovenia,14 November 2013