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Social and economic impacts of broadband- the importance of broadband investments

Social and economic impacts of broadband- the importance of broadband investments. PPP4Broadband days- Bled, Slovenia,14 November 2013. 2013 60-80% SI SK AT 40-60% RO EL HU MK SR. PPP4Broadband days- Bled, Slovenia,14 November 2013. I nclusion. Digital Agenda Scoreboard

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Social and economic impacts of broadband- the importance of broadband investments

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

  2. 2013 60-80% SI SK AT 40-60% RO EL HU MK SR PPP4Broadband days- Bled, Slovenia,14 November 2013

  3. Inclusion Digital Agenda Scoreboard 2012 Internet usage EU27 BG RO EL SI HU SK AT 3 PPP4Broadband days- Bled, Slovenia,14 November 2013

  4. Electronic interaction by citizens* with public authorities (2012) e- Government EU27 BG RO EL SI HU SK AT *Citizens aged between 25 and 54 Source: Eurostat 4 PPP4Broadband days- Bled, Slovenia,14 November 2013

  5. While most large enterprises already use eGovernment services the take-up by SMEs is slow eGovernment Take-up of eGovernment by SMEs 2012 EU27 BG RO EL SI HU SK AT Source: Eurostat 5 PPP4Broadband days- Bled, Slovenia,14 November 2013

  6. eCommerce SMEs selling online (% of all SMEs, 2012) EU27 BG RO EL SI HU SK AT Source: Eurostat 6 PPP4Broadband days- Bled, Slovenia,14 November 2013

  7. Broadband and impact through four effects 7 PPP4Broadband days- Bled, Slovenia,14 November 2013

  8. Broadband and contributions 8 PPP4Broadband days- Bled, Slovenia,14 November 2013 The Economic impact of broadband results in five areas: 1. Contribution to economic growth 2. Contribution to productivity gains 3. Contribution to employment and output of broadband deployment 4. Creation of consumer surplus 5. Improvement of firm efficiencie

  9. Contribution to economic growth 9 PPP4Broadband days- Bled, Slovenia,14 November 2013 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

  10. Impact on productivity 10 PPP4Broadband days- Bled, Slovenia,14 November 2013 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.

  11. Impact on job creation 11 PPP4Broadband days- Bled, Slovenia,14 November 2013 • 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;

  12. Impact on job creation 12 PPP4Broadband days- Bled, Slovenia,14 November 2013 • 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

  13. Impact on firm efficiency 13 PPP4Broadband days- Bled, Slovenia,14 November 2013 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.

  14. Social impact 14 PPP4Broadband days- Bled, Slovenia,14 November 2013 • 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

  15. 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. Apps 15 PPP4Broadband days- Bled, Slovenia,14 November 2013

  16. The socio-economic benefit Three scenarios 16 PPP4Broadband days- Bled, Slovenia,14 November 2013

  17. Broadband EU27 BG RO EL SI HU SK AT 17 PPP4Broadband days- Bled, Slovenia,14 November 2013

  18. Broadband EU27 BG RO EL SI HU SK AT 18 PPP4Broadband days- Bled, Slovenia,14 November 2013

  19. Broadband EU27 BG RO EL SI HU SK AT 19 PPP4Broadband days- Bled, Slovenia,14 November 2013

  20. Broadband EU27 • BG • RO • EL • SI • HU • SK • AT 20 PPP4Broadband days- Bled, Slovenia,14 November 2013

  21. 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/ Sources 21 PPP4Broadband days- Bled, Slovenia,14 November 2013

  22. Thank you! Social and economic impacts of broadband- the importance of broadband investments Dipl.Eng.Anelia Dimova-Information Society Policy Expert Reni Antonova- European Programs & Projects Expert Information Technology & Electronic Governance Directorate Ministry of Transport, IT & Communications Sofia, Bulgaria http://www.mtitc.government.bg adimova@mtitc.government.bg rantonova@mtitc.government.bg Phones: + 359 2 949 2250,+ 359 2 949 2104 22 PPP4Broadband days- Bled, Slovenia,14 November 2013

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