Superfast broadband to add billions to the economy

Superfast broadband to add billions to the economy

Economic research by Regeneris Consulting, has found that the rollout of so-called ‘superfast’ broadband across the UK could contribute up to £19.8 billion to our economy over the coming 15 years.

Much of the cash injection will come as a result of new business creation, while a significant proportion will be created off the back of the increase in people’s ability to work from home. The researchers found that new businesses will contribute some £11 billion over the period, while working from home will improve the economy in the region of £1 billion.

Some £7.3 billion is expected to be generated through improved business practices, such as improved productivity that will emerge due to the simple fact that the networks will be faster and will perform better, with less downtime.

Regeneris has claimed that faster broadband can help businesses to work more efficiently, thus allowing them to launch new products and services and expand – taking on new staff and boosting the economy as a whole. Currently, it claims, there are some barriers to entry into certain markets, as a result of some regions having to deal with slow connection and narrow bandwidth.

Cloud computing will offer a major route to efficiency for many, claims Regeneris, which explained that cloud technology helps to reduce expenditure at the beginning of a project, as well as reducing ongoing support costs.

Business creation is expected to add some 26,200 jobs over the coming 15 years, with 6,600 new businesses being created as a result of the proliferation of cloud computing, according to the report. It also concluded that in terms of return on investment, for every £1 spent on superfast broadband, the government can expect to see a £10 increase in gross value added.

Businesses looking to move services into the cloud, should evaluate the performance of their existing network and consider setting up a leased line or MPLS network.