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FINANCIAL NEWS
Enhancing broadband speed in Saudi can increase GDP by 0.6%
06 Sep 2012
(MENAFN) According to a research conducted by Ericsson, Arthur D. Little and Chalmers University of Technology, quadrupling the speed of broadband in Saudi would lead to an increase of 0.6 percent in the country’s gross domestic product (GDP), reported Arab News.
The research showed that the increase in GDP is equal to a gain of USD3.460 billion.
The study also revealed that GDP goes up by 1 percent for every 10 percentage point gain in broadband penetration.
Ericsson Region MENA’s president, Anders Lindblad, said that broadband availability and speed play a vital role in boosting economic expansion worldwide, adding that the significance of internet is clearly reflected in the joint efforts by the Saudi government and the telecom operators to achieve higher penetration across the Kingdom via fixed and mobile broadband solutions.
It is worth noting that as of 2011; more than 9 million broadband users were recorded in Saudi, according to Business Monitor International (BMI), the analyst firm, which added that in 2016, the number is forecasted to grow by 6.26 million users to 15.272 million.
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