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ITU quantifies impact of digitisation on economies

The ITU has published a study, “The economic contribution of broadband, digitization and ICT regulation” which finds that an increase in both fixed and mobile broadband penetration has a positive impact on the economy. The economic impact of fixed broadband is found to be higher in more developed countries than in less developed, while the economic impact of mobile broadband is found to be higher in less developed countries. Overall, an increase of 1% in fixed broadband penetration yields a 0.08% increase in gross domestic product (GDP), while an increase of 1% in mobile broadband penetration yields a 0.15% increase in GDP (this translates into an increase of 10% in fixed or mobile broadband penetration yielding an average increase of 0.8% and 1.5% respectively in GDP). According to the study, achieving broadband penetration is only one aspect of required policies; maximising the economic impact of digitisation can only be achieved through the adoption of a holistic set of policies ranging from internet access and computing to electronic commerce. It also recognises that the digital ecosystem has an economic impact on productivity. The study provides further evidence of the importance of regulatory and institutional variables in driving growth in the digital ecosystem. It states that connectivity for digital services is significantly correlated with the level of advancement of ICT policies and regulations, as well as the competition and market power regulatory set-up. Further, investment in the digital ecosystem is directly and positively influenced by the maturity of ICT regulatory frameworks and by ICT competition frameworks. Read more

  • Tuesday, 23 October 2018

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