WSIS Lab posted on August 31, 2010 14:56
WSIS Lab team received from Ms Ranjula Senaratna Perera representing LIRNEasia a contribution to the WSIS Lab discussion about economic impact of broadband.
LIRNEasia would like to add the research paper: ”Measuring the Impact of Decline in Leased Line Prices for the Indonesian Economy " by Professor Rajat Kathuria, 2008.
Some key findings:
The analysis by the Confederation of Indian Industry National Broadband Economy Committee shows that the total present value (2004) of benefit to the Indian economy due to growth from broadband is expected to be US$90 billion for the years 2010 – 2020, with an 11% additional growth in labor productivity. Broadband growth is, inter alia, contingent upon availability and price of infrastructure. According to CII this activity is expected to launch new business lines and increased efficiency in existing businesses, leading to direct employment of 1.8 million and total employment of 62 million by 2020.
In addition, IPLC prices in India fell by 84% in 2002; the benefits of lowered leased line prices have been felt in other industries, especially ITES which was projected to be 5.2 per cent of GDP in 2008. Communication services have an output multiplier of 3.15 and an employment multiplier of 2.63. The ratio of Indonesian to Indian price is 3.3:1; therefore, Indonesia still has potential to lower prices and reap benefits.
The study -”Measuring the Impact of Decline in Leased Line Prices for the Indonesian Economy” is available on:
lirneasia.net/wp-content/uploads/2008/11/kathuria_ver5.pdf
Please download updated document on Economic Impact of Broadband: Global Review of Evidence.
Best regards,
Anna Polomska
WSIS Lab team