Technology news and Jobs 
VIRTUALISATION NZ research questions the value of high speed broadband
VIRTUALISATION NZ research questions the value of high speed broadband | NZ research questions the value of high speed broadband |
|
| by Stuart Corner | |
| Monday, 02 November 2009 | |
|
Page 1 of 3   
Featured Whitepaper
5 Best Practices for Smartphone Support
New Zealand's Motu research institute has issued a report entitled 'The Need for Speed: Impacts of Internet Connectivity on Firm Productivity' . It claims that despite huge investment budgets associated with broadband (especially fibre) rollouts, "there has been little rigorous supporting evidence indicating that such connectivity brings material productivity benefits." Motu claims that its study "Is the first, internationally, to estimate the productivity impacts of connectivity upgrades using firm level data after controlling for firms' connectivity choices based on their characteristics." Other studies, as been done has been at a macro level - an industry, country or region. Motu's headline conclusion: "We determine that the productivity benefits that arise from a switch from no broadband to broadband access are material; we do not find evidence for productivity differentiation based on the type of broadband connection (ie cable versus other)." Naturally the report was far too good an opportunity for shadow communications minister, Nick Minchin, to pass up, He used the findings to once again demand "full-cost benefit analysis of Labor's reckless $43 billion NBN Mark II proposal." But Motu's key finding comes with a number of caveats, none of them insignificant. The authors warn: "The finding that a move to fast broadband (cable) from any other form of broadband has no estimated effect should be interpreted with care. At least four explanations (other than an actual nil effect) could account for this result." It is worth stating all these in full. CONTINUED
This article first appeared in ExchangeDaily, iTWire's daily newsletter for telecommunications professionals. Register here for your free trial.
 |
| < Next story in category | Previous story in the category > |
|---|
