Telecom Trends

The 5 main objectives are visionary in scope and are definitely worthy of any government's attention and action if it wants its citizens, businesses and country to be competitive in the post recession/depression world. This is something Obama and his people have learned and come to accept and is reflected in his recovery plan. Unfortunately, Mr. Harper and his cohorts can't see past the ends of their noses and so all they do is focus on one small part of the 5 objectives of Digital Britain: the availablitity of or access to broadband. So much for Canada's future!
 

The lobbing an extra investments in the broadband, probably is not a so bad idea. Everyone is happy: Customers, because have the access anywhere and any time, and companies, because the government invests in infrastructure. But the main question has never appeared: How does the Universal Broadband specifically affect on economy growth? Does the increased competition and flow of on-line service export POSITIVLY affect on economy?
 

In response to Anonymous' question about the impact universal broadband would have on economic growth I have the following to offer.

I’m not aware of any Canadian studies or research on this specific question (which doesn’t necessarily mean that there isn’t any), but there is plenty of evidence contained in U.S. studies and reports that demonstrate the significant positive impacts major investments in broadband or IT – digital infrastructure - would have on jobs, the economy as a whole, innovation and productivity.

Just last month the Information Technology and Innovation Institute (ITIF) (http://www.itif.org/index.php) released a report entitled “The Digital Road to Recovery: A Stimulus Plan to Create Jobs, Boost Productivity and Revitalize America” (http://www.itif.org/files/roadtorecovery.pdf). The report contains a detailed analysis and estimate of the short-term jobs impacts of spurring investment in three critical digital networks: broadband networks, the smart grid (making the electric distribution system intelligent) and health IT, and outlines policy steps to spur this investment.

The ITIF estimates that spurring an additional investment of $30 billion in America’s IT network infrastructure in 2009 would create approximately 949,000 U.S. jobs. With respect to broadband networks alone, the report indicates that a properly designed stimulus package that spurs or supports $10 billion of investment in 1 year in will support an estimated 498,000 new or retained U.S. jobs for a year. (If you were to apply the 10:1 U.S./Canada factor to just the broadband network portion, that would mean a $1 Billion investment in 1 year would support almost 50,000 new or retained Canadian jobs for a year).

The report goes on to say that investments in America’s digital infrastructure will lead to higher productivity, increased competitiveness, and improved quality of life in the moderate to long term. The report accepts as a truth that IT is central to economic growth by pointing to the facts that between 1995 and 2002 in the U.S., IT was responsible for two-thirds of total factor growth in productivity and virtually all of the growth in labour productivity.

Back in December, the U.S. Chamber of Commerce (http://www.uschamber.com/default) released two studies showing the economic benefits of broadband. The studies recommended policies that the federal government should adopt to spur investment in broadband infrastructure. The Chamber's VP for Environment, Technology, and Regulatory Affairs was quoted as saying "An estimated $60 billion has been invested in broadband infrastructure by the communications industry this year (2008). Given these turbulent economic times, federal policy must continue to support this high-level of investment. This will spur job growth, innovation, and consumer choice. We cannot afford to reverse course."

The U.S. Chamber of Commerce, along with other organizations, recently led the formation of an organization called the TeleCONSENSUS coalition which today has more than 190 member organizations representing trade associations, chambers of commerce, telecommunications providers, equipment manufacturers, businesses, and consumers (http://www.teleconsensus.com/portal/teleconsensus/default). It is concerned about innovation, jobs and economic growth and its mission is to educate policymakers, the business community, and the public about the importance of broadband to the U.S. economy and to advocate for federal policies that encourage private investment in telecommunications infrastructure.

TeleCONSENSUS maintains that between 1995 and 2004, advances in telecommunications and information technology were responsible for as much as 75% of U.S. labor productivity gains and, in order to remain competitive in the world, the U.S. must have the most advanced telecommunications technologies and services.

The Chairman and CEO of another group, Connected Nation (www.connectednation.org ), was quoted back in October as saying, “Never before has the United States had such an opportunity for an economic return on investment as is available when we make broadband an infrastructure priority. Together, we have to elevate the understanding of the transformative power of broadband...(and thereby)...allow for an economic impact of proportions never before possible in the history of our nation”. Connected Nation is a national non-profit organization that is about expanding access to and use of broadband Internet and the related technologies by raising the awareness of the value of broadband and related technologies. Connected Nation works with community stakeholders, states and technology providers to develop and implement technology expansion programs with core competencies centered around a mission to improve digital inclusion for people and places previously underserved or overlooked.

This is just a sampling of the information on this topic that has been published in the U.S. I hope it helps to answer your question about universal boradband's potnetial impact on economic growth.
 

Brian G :

Thanks for the comment. Unfortunately I have lost yesterdays reports which show a lot of evident that the broadband has not positive affection on labor force.

Lets try to be logical. In one hand it is stimulate a bulk of job in IT and Web services, but an another hand it is a great opportunity for any company to reduce their labor cost by outsoaring and implementing no-human requirement IT system. The proportion of gain and lost in employment is so different !

Another question is how does it affect on the economy ? Then you look something in the Internet, probably you use Google or Yahoo. It is American companies! It means all revenue from adv comes to US. What does it mean for Canadian economy? It means that on-line services rocket the EXPORT ! Now image the country has only export.

Both this issues must be solved before the Universal broadband will be provided.

Canarus
 

http://uk.reuters.com/article/technologyNews/idUKTRE50T6IP20090130

Broadband link to U.S. jobs exaggerated: experts

"Most the data on jobs and broadband is not relevant because it doesn't apply to underserved, mostly rural and high cost areas targeted in the stimulus package, said Shane Greenstein, a professor at Northwestern University's Kellogg School of Management"
 

For all the doubting Thomas', I urge you to read a document entitled "The Promise of Broadband and the ICT Industry: Bridging Gaps, Boosting Economies" that was submitted by the Telecommunications Industy Association (TIA)(http://www.tiaonline.org/index.cfm) to the Obama transition team that can be found by connecting to the following link:
(http://www.tiaonline.org/gov_affairs/docs/The_Promise_of_Broadband_and_the_ICT_Industry-FINAL.pdf) and an open letter the TIA sent to Obama after the election and prior to his inauguration that can be found at the following link:
(http://www.tiaonline.org/gov_affairs/docs/TIA_Letter_to_President-elect_Obama-2009_FINAL.pdf)

In the TIA’s submission to Congress on December 11, 2009, its President highlighted the benefits that broadband technology brings to Americans: "Broadband networks directly impact the productivity of our industries and our economy, and pivotally affect public safety, education, health care, and countless other functions in Americans' daily lives. Like any other infrastructure project, the deployment and use of broadband will significantly increase and maintain job growth well beyond the initial investment in the infrastructure, laptops and computing devices themselves. Broadband incentives are a necessary component of a 21st century stimulus package."
(http://www.tiaonline.org/news_events/press_room/press_releases/2008/PR-1211_TIA_Recommends_Specific_Broadband_Incentives_for_E.cfm)

TIA's letter commended and built upon a proposal by the Communications Workers of America (CWA) that would create 97,500 direct jobs and 2.5 million jobs throughout the economy in the near-term with every $5 billion investment, according to CWA estimates. TIA's approach recognizes that a ubiquitous broadband infrastructure has four critical and complementary components: fixed broadband, wireless broadband, satellite broadband and broadband core and backbone transport.

If you still have any doubts after reading all this then just sit back and let the world pass you by.
 

Brian G:

Thanks for the data. But nobody argued that the broadband would add new jobs; for sure it will. The main point how many jobs will be lost at the same time and what will be value of added jobs. But anyway, employment rate is not only one and not the main economic ratio which affect on economy growth.

Nobody say it is not right statements: “Broadband impacts the productivity of our industries and our economy, and pivotally affect public safety, education, health care, and countless other functions in Americans' daily lives.” But as you can see, the broadband it is just a part of systems! But do you know the system which could provide all of these services? Or you still believe the health care could be provided through Internet?

Broadband to the Internet doesn’t affect on economy POSITIVLY, rather than increase the piracy, illegal businesses and probability of cyber-terrorism. To really capitalize this initiative, the government has to provide the broadband TOGETHER with new national digital-service network.

Canarus