New Study Quantifies Contribution of Fiber-fed Broadband to GDP in U.S. Communities
Washington, D.C. -- A new, first-of-its-kind study released today by the Fiber to the Home (FTTH) Council Americas finds that communities with widely available gigabit access have per capita GDP that is 1.1 percent higher than communities with little to no availability of gigabit services. The study examined 55 communities in 9 states, finding a positive impact on economic activity in the 14 communities where gigabit services are widely available.
“Gigabit communities are empowered communities,” said FTTH Council president Heather B. Gold. “The study results suggest that gigabit broadband communities exhibit a per capita GDP approximately 1.1 percent higher than the similar communities with little to no availability of gigabit services. In dollar terms, this suggests that the 14 gigabit broadband communities studied enjoyed approximately $1.4 billion in additional GDP when gigabit broadband became widely available. As we look at these study results, we can clearly conclude that every community should be a gigabit community.”
The study, conducted by the economic, financial and strategy firm Analysis Group found widespread gigabit availability contributes to the economies of communities in multiple ways, including through the direct effect of infrastructure investment and increased expenditures, as well as shifts in economic activity (e.g. job creation and occupational changes) and productivity gains. Communities with widely available gigabit access are gaining control over the factors that shape the lives of their residents, businesses and institutions.
Conversely, the 41 communities in the study that didn’t have widely available gigabit broadband likely experienced forgone GDP in 2012 of as much as $3.3 billion.
The Fiber to the Home (FTTH) Council Americas is a non-profit association consisting of companies and organizations that deliver video, Internet and/or voice services over high-bandwidth, next-generation, direct fiber optic connections - as well as those involved in planning and building FTTH networks. Its mission is to accelerate deployment of all-fiber access networks by demonstrating how fiber-enabled applications and solutions create value for service providers and their customers, promote economic development and enhance quality of life. More information about the Council can be found at http://www.ftthcouncil.org.