The Economic Impact of a Competitive Market for Broadband

A cebr report for The Broadband Industry Group November 2003

This report is published by the Broadband Industry Group to raise awareness of the economic benefits that can accrue to the UK through a competitive wholesale broadband market. This report has been produced by cebr, an independent economics and business research consultancy established in 1993 providing forecasts and advice to City institutions, government departments, local authorities and numerous blue chip companies throughout Europe. The contributors to this report are Richard Greenwood, Sukhy Kullar, Douglas McWilliams, Mark Pragnell and Dominic Walley. Whilst every effort has been made to ensure the accuracy of the material in this report, the authors, cebr and the Broadband Industry Group will not be liable for any loss or damages incurred through the use of this report. London, November 2003

CONTENTS
1. Executive Summary............................................................... 1 1.1. Forecasting demand for broadband....................................... 2 1.2. The impact of information and communications technology (ICT) on the economy ......................................................................... 4 1.3. How broadband affects the wider economy ............................. 6 2. Broadband overview.............................................................. 8 2.1. Adoption trends .............................................................. 8 2.2. Business use of broadband ................................................. 9 3. Future broadband demand ..................................................... 11 3.1. Demand forecasts ........................................................... 11 3.2. Modelled demand ........................................................... 11 4. Microeconomic Impacts ......................................................... 15 4.1. 4.2. 4.3. 4.4. 4.5. 4.6. 4.7. 5. Wider effects of