30.10.12
Broadband benefits ‘overstated’ – EIU
While superfast broadband will bring long-term benefits to the UK, it is unlikely to deliver fast returns immediately, a new report has warned. The Government aims to achieve 24Mbps by 2015.
The Economist Intelligence Unit (EIU) has cautioned that expectations around growth, jobs and the impact on education and healthcare may be overstated.
The report suggests that existing networks are capable of delivering may of the anticipated new services over the next few years, and that obstacles include a shortage of digital skills and resistance to change.
The shift to superfast broadband will deliver growth and new jobs initially, but will not match the shift from dial-up to broadband, at least in the short-term. The longer-term indirect impact on job growth is more difficult to project and may be partly offset by job losses elsewhere.
Additionally, the report highlights that speed alone is not enough to bring about transformation in healthcare and education. It also states that access for all parts of society, including under-served rural areas, is just as important as speed.
Denis McCauley, director of global technology research at the EIU and editor of the report, said: “Over time, superfast broadband will undoubtedly provide a platform for numerous positive changes in the life of the nation.
“A dose of reality is in order, however, about the scale of the impact in the shorter term. For many anticipated benefits, it is less about building bigger pipes and more about the need for established systems, processes and skills to evolve.”
The report is at: www.managementthinking.eiu.com/superfast-britain
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