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Faster economic growth with fast mobile networks

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Faster economic growth with fast mobile networks

The numbers speak for themselves: Faster mobile networks mean faster economic growth. This is the result of the new Ericsson research that demonstrates the close correlation between mobile broadband speed and work productivitycalculated after one year.

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“Today – the researchers explain – the significant slowdown in terms of global economic growth reminds us that it is essential not to lose sight of the importance of productivity. Growing economic difficulties affect everyone, but hit vulnerable populations in low-income countries hardest. According to the International Monetary Fund, current supply chain shortages and rising commodity prices contribute to inflation projections of 5.7% in advanced economies and 8.7% in emerging and developing economies for 2022 “.

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As part of a recent research project, supported by Ericsson, Harald Edquist examined the historical association between labor productivity in 116 countries and the speed of mobile broadband in each of these markets. The results, published in the research paper “The economic impact of mobile broadband speed”, imply a sharp increase in productivity in the national economy one year after the introduction of bandwidth networks. large mobile faster. In quantitative terms, a 10% increase in mobile broadband speed corresponds to a 0.2% increase in labor productivity the following year. The results therefore indicate that investments in mobile broadband speed become effective within a year.

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To study the relationship between the speed of the mobile broadband and work productivity, Harald Edquist combined statistical tools and economic theory (i.e. econometric methods). The study includes, and is based on, Ookla’s Speedtest Intelligence data processed by Ericsson. Speedtest is an app service used to test the speed of a particular mobile device. The Speedtest Intelligence® database presents data from millions of tests and readings collected through the app.

The results suggest that the speed of mobile broadband is related to productivity growth. Therefore, investing in the speed of mobile broadband offers hope for a path of continued productivity growth in many developing countries. With the global roll-out and introduction of 5G mobile technologies, the downlink and uplink speed of mobile networks will increase dramatically, along with other benefits, including greater resilience, capacity and energy efficiency. A new platform for innovation and economic growth has emerged, but it remains to be seen which innovations will drive this new era and whether they will live up to the great inventions of the past.

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