Building Broadband Bridges in Brazil

By Thomas Orthbandt

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Posted on October 19, 2011 in: Network

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Countries around the world are seeking to spur broadband development, recognizing direct benefits in the form of economic growth, national competitiveness and improvements in social and cultural development. Several studies highlight the potential economic impact of broadband. The World Bank found every 10 percentage point increase in broadband penetration accelerates economic growth by 1.38 percentage points in low- and middle-income countries. A McKinsey & Company study yielded similar results, showing a 10 percent increase in broadband household penetration delivers a GDP boost ranging from 0.1 percent to 1.4 percent. Booz & Company found 10 percent higher broadband penetration in a specific year is correlated to 1.5 percent greater labor productivity growth over the following five years.

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