Broadband, Firms, and Employment

Abstract

In the last few years, spurred by the economic crisis, many governments around the world have implemented programs aimed at deploying broadband in order to stimulate employment growth (see Table 7.1). Table 7.1 Counter-cyclical government programs Country Broadband focus United States Launched the $7.2 billion Broadband Stimulus program focused on providing and improving service to unserved and underserved areas Australia Government plans to spend A$11 billion of total A$43 billion required for construction of the National Broadband Network. Aims “to deliver broadband at speed of 100 Mbps to 90 % of Australian homes, schools and business through fiber-optic cables connected directly to buildings.” The remaining 10 % “would get a wireless upgrade.” Germany Government has announced a National Broadband Strategy with the objective to have nationwide capable broadband access (1 Mbps) no later than the end of 2010 and provide 75 % of German households access to a broadband connection of at least 50 Mbps by 2014 (estimated investment: Euros 36 billion) Sweden Broadband government promotion provides financial incentives to municipalities to fund 2/3 of total NGN investment (Euros 864 million) Colombia $290 million ($160 m for universal telephony, $50 m for ICT education, $30 m for Broadcasting, $30 m for computing education and $20 m for e-government) Portugal Government announced an 800-million-euro credit line for the rollout of NGAN. This is part of the first step in a 2.18-billion-euro plan to boost the country’s economy. The investment should allow country to reach 50 % home broadband penetration by 2010. Aims to connect up to 1.5 MN homes and businesses to the new fiber networks and improve high-speed Internet, television, and voice services Ireland The government will invest 322 million in a National Broadband Scheme aimed at completing country coverage Canada Has relied on four programs to promote broadband development resulting in an overall investment of C$300 million. Focus on extension of broadband coverage to all underserved communities Finland Government funds one-third of the NGN project cost (S$130.73 m). The 7 years plan will “provide ultrafast speeds of at least one Mbps by 2010, with a ramp up to 100 Mbps by 2016. Includes households in rural areas” New Zealand Government funds S$458,12 m investment to boost fiber over the next 5 years France Estimated 10 years investment of US $13 billion. The plan will create 400 cyber bases in schools by 2012 and modernize schools that already have access. 4 million households will have ultra-broadband through FTTH access. By the end of 2010, affordable broadband Internet will be available throughout the country Japan Approximate US $370 million project. “Broadband infrastructure rollout plan for the rural areas, in order to address the digital divide, and to enable broadband access for use by cable TV, telecenters, disaster prevention programs, etc” Singapore The government announced a US $14.5 bn (6 % of GDP) stimulus plan in 2009, with US $650 MN dedicated to funding the Intelligent Nation Master plan, which includes NGN initiative. Aims (a) to connect homes and offices to the country‘s ultra high- speed and pervasive Next Generation National Broadband Network by 2013 and (b) for 60 % of homes and offices to have access to this all-fiber network in 2 years Republic of Korea Won US $25 bn, US $940 MN from government. “High-speed Internet services to be upgraded to 1 Gbps by 2012; existing communications networks to be enhanced to Internet Protocol (IP)-based systems; subscriber capacity on 3G broadband services to be increased to 40 million.” Expected to create 120,000 jobs Spain US $118 MN to be spent on infrastructure measures. Aims to expand broadband in rural and isolated areas by focusing on centers with dispersed populations and extending the reach of trunk fiber-optics networks Source Compiled by the author, and Qiang, Christine Z. Broadband Infrastructure Investment in Stimulus Packages: Relevance for Developing Countries. Rep. N.p., 2010. Web. 12 Mar. 2013. http://siteresources.worldbank.org/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/282822-1208273252769/Broadband_Investment_in_Stimulus_Packages.pdf