By
September 10, 2018
Here we share some recent research into the impact of the internet to kick-start discussion on what ultra-fast broadband could mean for New Zealand. We will continue to up date this page with more recent research as it comes to hand.
Building the benefits of broadband - Bell LabsInternet matters: The Net's sweeping impact on growth jobs and prosperityThe value of internet services to New Zealand businesses - Sapere Research
Building the benefits of broadband - Bell Labs
Alcatel Lucent’s Bell Labs forecasts that Ultra-Fast Broadband could deliver $32.8 billion in economic benefits to New Zealand over 20 years, based on better outcomes for the agricultural, health, education and business sectors.
Alcatel Lucent's 'Building the Benefits of Broadband' report analyses the economic impact of UFB and RBI on New Zealand's gross domestic product (GDP).
The Bell Labs report makes it clear that fibre infrastructure is a fundamental enabler, assuming 40% uptake of UFB in 6.4 years. However New Zealand also needs to see a high level of application and service adoption to capture the economic opportunities.
Internet matters: The Net's sweeping impact on growth jobs and prosperity
The internet is a significant contributor to global wealth, with three quarters of the economic benefits coming from traditional businesses that use it to improve productivity or drive market opportunities.
This is the finding from a McKinsey study 'Internet matters: the Net's sweeping impact on growth, jobs and prosperity.' McKinsey studied the world's richest economies and five other countries at various levels of development (Brazil, China, India, South Korea, and Sweden). The global consulting firm used public data and its own interviews to examine the internet ecosystem and measure its impact on GDP and growth.
The study found that the internet accounts for:
- 3.4 percent of GDP in the 13 countries covered
- 21 percent of GDP growth in the last 5 years
- 2.6 jobs created for every 1 job lost
- 75 percent of Internet impact arises from traditional industries
- A 10 percent increase in productivity for small and medium businesses through internet usage. The small and medium companies that use web technologies the most grow and export twice as much as their peers.
The value of internet services to New Zealand businesses - Sapere Research
Greater use of the internet by New Zealand businesses could generate $34 billion in productivity gains, with web-savvy businesses six percent more productive than their peers, according to Sapere Research Group.
Sapere Research Group, researched the value of internet use for New Zealand businesses outside of the technology sector. It compared the results of a Statistics New Zealand survey with the actual financial performance of 5,589 firms. Sapre found that firms that make more extensive use of the internet are generally six percent more productive than the average firm in their industry. The study then modelled the potential impact of low internet use firms becoming more like their more internet-intensive peers and found it could generate an additional $34 billion in productivity gains.