High Speed Bits: March 20, 2014
New economic impact data for broadband
Broadband & E-Commerce Education Center | broadband...
U.S. Technology Adoption Rates
(10% Penetration)
Broadband & E-Commerce Education Center | broadband.uwex.edu
Broadband Economic Impact
http://www.itu.int/ITU-D/treg/broadband/ITU-BB-Reports_Impact-of-Broadband-on-the-Economy.pdf
Br...
Wisconsin Broadband Dashboard (WIPSC)
Broadband & E-Commerce Education Center | broadband.uwex.edu
http://wisconsindashboa...
What is the Return for $1 Billion+ Investment?
Broadband & E-Commerce Education Center | broadband.uwex.edu
Estimated Annual Cost of Digital Exclusion
(-) $55 Billion U.S.
(-) $1 Billion Wisconsin
http://www.econsult.com/articles/...
A little fuzzy math
Broadband & E-Commerce Education Center | broadband.uwex.edu
$55.2 billion/316,128,839 = $175 per citi...
“If it were a national economy,
the Internet economy would rank
in the world’s top five, behind
only the U.S. China, Japan...
What is it worth to consumers?
Source: http://www.bcg.com/documents/file100409.pdfBroadband & E-Commerce Education Center ...
IDEC Survey 2012
Fewer than 10% believe 4 Mbps is
sufficient for advancing their local
economies.
Broadband & E-Commerce E...
Next Generation Networks
http://broadband.uwex.edu/blog/2014/01/much-gig-cost/
Broadband & E-Commerce Education Center | b...
High Speed Bits 3.20.14
Broadband & E-Commerce Education Center
Broadband.uwex.edu | Twitter @WI_Broadband
Presenter: Andy...
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003.020.2014 UWEX High Speed Bits New Broadband Economic Data

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March 2014. New data on the impact of broadband internet on economic development, UW Extension Broadband & E-Commerce Education Center

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  • How Does broadband investment impact local economies:- First, there is the direct investment in deployment. When you spend money on installing and operating broadband infrastructure….income and employment are created (ARRA grant: Divide by $92,000 = 1 job year, Presidents Council of Economic Advisors)
  • ~$1.4 billion for wired over 5 years (construction and operations)/$290 million = 4.8 year pay back (After that you would only have the annual operating expenses of ~$89 million with an annual return of $290 million.~$2.6 billion for wireless over 5 years (construction and operations)/340 million = 7.7 year pay back
  • 2010 study
  • Not really new (new to me) ….2012
  • $2,528 per person per year./12 months = $211 per year (huh….about the average cost of a 1 Gbps connection)“In our analysis, we took into consideration the value derived from communication, content (entertainment, news, and socia media), search, commerce, and job searches,. We used a “loss aversion technique” to avoid anchoring the data to the current prices of goods and services – many of which are free – and to determine the true value that people place on them.”Loss aversion = people's tendency to strongly prefer avoiding losses to acquiring gains. Loss aversion implies that one who loses $100 will lose more satisfaction than another person will gain satisfaction from a $100 windfall.
  • The Reedsburg municipal utility recently announced and published their monthly rate of $274.99 per month. That is very close to the national average for the 20 communities that we have identified that have a published rates on the web. These prices range from $34.95 – $999.95 with an average of $211.55 per month.
  • 003.020.2014 UWEX High Speed Bits New Broadband Economic Data

    1. 1. High Speed Bits: March 20, 2014 New economic impact data for broadband Broadband & E-Commerce Education Center | broadband.uwex.edu
    2. 2. U.S. Technology Adoption Rates (10% Penetration) Broadband & E-Commerce Education Center | broadband.uwex.edu
    3. 3. Broadband Economic Impact http://www.itu.int/ITU-D/treg/broadband/ITU-BB-Reports_Impact-of-Broadband-on-the-Economy.pdf Broadband & E-Commerce Education Center | broadband.uwex.edu
    4. 4. Wisconsin Broadband Dashboard (WIPSC) Broadband & E-Commerce Education Center | broadband.uwex.edu http://wisconsindashboard.org/
    5. 5. What is the Return for $1 Billion+ Investment? Broadband & E-Commerce Education Center | broadband.uwex.edu
    6. 6. Estimated Annual Cost of Digital Exclusion (-) $55 Billion U.S. (-) $1 Billion Wisconsin http://www.econsult.com/articles/030810_costofexclusion.pdf Broadband & E-Commerce Education Center | broadband.uwex.edu
    7. 7. A little fuzzy math Broadband & E-Commerce Education Center | broadband.uwex.edu $55.2 billion/316,128,839 = $175 per citizen $175 x 5,742,713 (WI Pop)= > $1 billion
    8. 8. “If it were a national economy, the Internet economy would rank in the world’s top five, behind only the U.S. China, Japan, and India and ahead of Germany” Broadband & E-Commerce Education Center | broadband.uwex.edu
    9. 9. What is it worth to consumers? Source: http://www.bcg.com/documents/file100409.pdfBroadband & E-Commerce Education Center | broadband.uwex.edu
    10. 10. IDEC Survey 2012 Fewer than 10% believe 4 Mbps is sufficient for advancing their local economies. Broadband & E-Commerce Education Center | broadband.uwex.edu Economic Development Marketing & Attraction
    11. 11. Next Generation Networks http://broadband.uwex.edu/blog/2014/01/much-gig-cost/ Broadband & E-Commerce Education Center | broadband.uwex.edu
    12. 12. High Speed Bits 3.20.14 Broadband & E-Commerce Education Center Broadband.uwex.edu | Twitter @WI_Broadband Presenter: Andy Lewis Broadband and Economic Development Specialist Andy.Lewis@ces.uwex.edu 608-890-4254 Broadband & E-Commerce Education Center | broadband.uwex.edu

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