Ever wondered that a broadband connection could really boost your household income.
It is true, according to a recent study conducted by telecom company Ericsson with management consulting firm Arthur D Little and Chalmers University of Technology.
The study, ‘socioeconomic effects of broadband speed: a microeconomic investigation’, says in emerging countries like India, setting up a new broadband connection of speed 0.5 Mbps could lead to an increase in household income by $800 a year, which means Rs 50,168, according to the latest currency conversion rate (a dollar was Rs 62.71 as on Friday).
This is equivalent to Rs 4,400 a month.
The study measured the impact of broadband speed on household income by analysing whether the benefits of faster broadband could improve competitiveness in the labour market across various economies, including emerging ones like India, Brazil and China. However, other relevant factors affecting household income levels were also taken into account such as education, skills and socio-economic variables.
“Broadband gives households the means to improve skills and productivity through e-learning and business services, but also to gain access to new venues for consumption,” said Martin Glaumann, partner at Arthur D Little.
An upgradation in the broadband connection speed also leads to higher income in households. The study says increasing the broadband speed from 0.5 Mbps to four Mbps leads to an additional income of $46 a month, equivalent to Rs 2,900.
Also, upgrading the speed from four Mbps to eight Mbps leads to a rise in household income by Rs 620