Home Broadband Speed Impacts Household Income

STOCKHOLM, Sweden, Sept. 17, 2013 (GLOBE NEWSWIRE) --
  * First study to quantify impact of broadband speed on household income  * Upgrade from 4 to 8 Mbps increases income by USD 120 per month in OECD    countries  * Increase from 0.5-4 Mbps gives a USD 46 per month increase in income in    Brazil, India and China (BIC)  * Principle holds for both OECD and BIC countries, however returns are    correlated to country GDPEricsson (NASDAQ:ERIC), in conjunction with Arthur D. Little and ChalmersUniversity of Technology, today releases results of a joint study on theeconomic effects of broadband access speed on households.This household-level (microeconomic) study reveals thresholds for the minimumspeed upgrade needed to provide a statistically significant impact on householdincome. These thresholds are different for OECD  (Organization for EconomicCooperation and Development)and BIC (Brazil, India and China) countries.Absolute levels of return*, were found to be higher for OECD economies, whichsupports the idea that gains from broadband increase if more advanced servicesare available via the broadband access.Key findings, after controlling for factors known to influence income (i.e. age,sex/gender, education, household size, skills and type of occupation):  * The average increase in household income for a broadband speed upgrade from    4 to 8 Mbps is USD 120 per month in OECD countries  * BIC households benefit most by upgrading from 0.5 to 4 Mbps, at USD 46 per    monthSebastian Tolstoy, VP Radio Business development and Strategy, Ericsson, says:"Results are in line with our previous study that quantified the impact ofbroadband speed increases on the gross domestic product of 33 countries, as wellas a slew of other studies we reviewed. All indicate that broadband access has apositive effect on the economy. We know that speed matters and that upgradingbroadband speed has a positive impact. Now we have shown this quantitativelyusing large data samples in both OECD and BIC economies, even at the householdlevel."Martin Glaumann, Partner at Arthur D. Little, says: "The evidence is buildingfor broadband speed as a driver of economic growth. Yet in many countries, notleast in the EU, regulatory developments are holding back the full growthpotential. Regulators need to rethink and recognize high-speed broadband as anational imperative for BIC countries. Broadband gives households the means toimprove skills and productivity through e-learning and business services, butalso to gain access to new venues for consumption."Erik Bohlin, professor at Chalmers University of Technology, says: "This is oneof the first studies to address impacts from broadband speed on householdincome. Based on rigorous scientific methods and comprehensive data, the studycan show that increased broadband speed increases income, which has a number ofimportant policy and strategy implications."There are several key sources to this study, including Ericsson ConsumerLabsurvey data from 2010, covering more than 19,000 households from 8 OECDcountries (UK, France, Germany, Italy, Spain, Sweden, Japan and the US), as wellas Brazil, India and China.*All results have been adjusted for Purchasing Power Parity (PPP), to reflectabsolute level of returns.NOTES TO EDITORSPress release from September 2011: New study quantifies the impact of broadbandspeed on GDPThis research will also be included in the Broadband Commission State ofBroadband Report, published on Sept 21Upcoming events: Social Good Summit in New York Sept 22-24.Download high-resolution photos and broadcast-quality video atwww.ericsson.com/pressEricsson is a world-leading provider of communications technology and services.We are enabling the Networked Society with efficient real-time solutions thatallow us all to study, work and live our lives more freely, in sustainablesocieties around the world.Our offering comprises services, software and infrastructure within Informationand Communications Technology for telecom operators and other industries.Today40 percent of the world's mobile traffic goes through Ericsson networks and wesupport customers' networks servicing more than 2.5 billion subscriptions.We are more than 110,000 people working with customers in more than 180countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericssonis listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.www.ericsson.comwww.ericsson.com/newswww.twitter.com/ericssonpresswww.facebook.com/ericssonFOR FURTHER INFORMATION, PLEASE CONTACTEricsson Corporate CommunicationsPhone: +46 10 719 69 92E-mail: media.relations@ericsson.comEricsson Investor RelationsPhone: +46 10 719 00 00E-mail: investor.relations@ericsson.com  Household income press release PDF: http://hugin.info/1061/R/1729555/577851.pdfPhoto Sebastian Tolstoy: http://hugin.info/1061/R/1729555/577850.jpg[HUG#1729555]

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