Faster Web = Higher Household Income

Sept. 17, 2013
Ericsson (NASDAQ:ERIC), in conjunction with Arthur D. Little and Chalmers University of Technology, has released results of a joint study on the economic effects of broadband access speed on households. The household-level study indicates thresholds for the m...
Ericsson (NASDAQ:ERIC), in conjunction with Arthur D. Little and Chalmers University of Technology, has released results of a joint study on the economic effects of broadband access speed on households.The household-level study indicates thresholds for the minimum speed upgrade needed to provide a statistically significant impact on household income. These thresholds are different for OECD (Organization for Economic Cooperation and Development) and BIC (Brazil, India and China) countries.Absolute levels of return were found to be higher for OECD economies, which tends to support the idea that gains from broadband increase if more advanced services are available via the broadband access.Key findings, after controlling for factors known to influence income (i.e. age, sex/gender, education, household size, skills and type of occupation):


  • The average increase in household income for a broadband speed upgrade from 4 to 8 Mbps is $120 per month in OECD countries.


  • BIC households benefit most by upgrading from 0.5 to 4 Mbps, at $46 per month.