Broadband and Household Income

[Commentary] Both broadband access and broadband speed positively affect household incomes, according to an analysis by Ericsson in conjunction with Chalmers University of Technology in Gothenburg, Sweden. The researchers found that household benefits don’t increase smoothly along with broadband speed. Instead, they rise in steps, and a minimum speed level is required to make any difference at all. This minimum level is itself likely to rise over time.

The study also found:

• In Organisation for Economic Cooperation and Development (OECD) countries – the most developed economies – the threshold level for broadband to have an impact is 2 Mbps; gaining 4 Mbps of broadband increases household income by $2,100 per year.
• In the less developed economies of Brazil, India and China, the threshold level is 0.5 Mbps, which increases household income by $800 per year.