Superfast broadband ‘will narrow North-South divide’

THE massive boost to the UK economy through the roll-out of high-speed internet will be felt particularly keenly in the north of England and in rural areas, a new study has found.
..
.

A report published this morning by the Department for Culture, Media and Sport (DCMS) has concluded that 89 per cent of the benefits from superfast broadband will be felt outside London and the South East.

The study, commissioned by the DCMS and carried out by analysts SQW, looks at the economic, environmental and social benefits of superfast internet, and has been dubbed by Ministers as the “most in-depth and rigorous” examination of the impact of broadband in the UK ever undertaken.

Hide Ad
Hide Ad

It predicted that the roll-out of the new technology – which offers internet speeds of at least 25Mbs – will have boosted the economy by £6.3bn a year and created 20,000 extra jobs by 2024.

And it will serve as a partial replacement for the existing poor transport infrastructure in large parts of the North, so benefitting it disproportionately compared to the well-connected South East.

Culture Secretary Maria Miller said: “What this report shows us is that as well as superfast broadband being good for economic growth, it will make even more of a positive impact on the way we live – helping us work more productively and get online faster.

“Our broadband roll-out is one of the best in Europe, with almost three quarters of the UK able to access superfast speeds.

Hide Ad
Hide Ad

“This is making a real difference to people in communities across the UK, from small businesses able to expand, schoolchildren being able to log on to do their homework, or people being able to work from home.

“This investment in technology is vital for our future.”

The Government has set aside £840m to invest in superfast broadband by 2015, to ensure the technology is rolled out to more disparate areas where commercial operators such as BT and Virgin would otherwise deem it unviable.

The report states the economic return on the Government’s investment is “unusually high” for a publicly funded infrastructure project, at around £20 for every £1 invested.

In addition to “helping rebalance the economy”, the report found superfast internet will save households money by allowing people to work from home, cut carbon emissions by reducing car use, and would prove particularly beneficial to small businesses as it opens up new markets,

Hide Ad
Hide Ad

Dr Pantelis Koutroumpis, a research fellow at Imperial College London who served as an adviser for the report, said: “This study brings new insights into the impact of improved broadband access on the national and local economies.

“Notably, the added capacity particularly affects small and medium businesses across industries, while the intervention helps address a growing digital divide.”