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New Study Projects 500 Billion US Dollars Broadband Boost to US Economy
Broadband access to the Internet in all its forms -- ADSL, cable modems and various wireless services -- will bring enormous benefits to the US economy, according to a report released Monday.
In fact, said the report from consulting firm Criterion Economics, an acceleration of widespread broadband use could benefit US consumers and producers by as much as 500 billion US dollars.
The study suggests that the benefits to US consumers could eventually be upwards of 300 billion dollars per year and that producers could reap another 100 billion dollars per year if broadband were to be as prevalent as ordinary telephone service today.
The study assesses the consumer and producer gains from broadband use using several different lenses, assuming a low- estimate of 50 percent broadband penetration and a high-estimate of 94 percent penetration -- a number that mirrors the percentage of US households with telephone service.
At present, according to the report, fewer than 8 percent of US households have broadband service, and therefore, many of the valuable applications have not yet been developed. The study identifies five areas or activities that are likely to drive these consumer benefits: home shopping, reduced commuting, entertainment services, conventional telephone services, and telemedicine.
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