The Economic Impact of Fixed and Mobile High-Speed Networks

EIB Papers, Vol. 16, No. 2, pp. 30-59, 2011

30 Pages Posted: 11 Jan 2012

See all articles by Jussi Hätönen

Jussi Hätönen

European Union - European Investment Bank

Date Written: December 21, 2011

Abstract

Europe is lagging behind other developed economies in the availability and use of very fast broadband services. The recently introduced Digital Agenda for Europe initiative sets forward ambitious targets for the development of super-fast broadband infrastructures in Europe to foster smart and sustainable growth. This paper presents estimates of the costs of meeting these targets through the deployment of next-generation networks. Furthermore, the magnitude of the financing gap is estimated and public support mechanisms are discussed to complement market investment in areas with low financial viability for the investment. The rationale of public sector support is discussed in light of the expected economic benefits of NGNs to consumers and businesses.

Keywords: Next generation networks, economic benefits, financing gap, Digital Agenda

JEL Classification: H54, R53

Suggested Citation

Hätönen, Jussi, The Economic Impact of Fixed and Mobile High-Speed Networks (December 21, 2011). EIB Papers, Vol. 16, No. 2, pp. 30-59, 2011. Available at SSRN: https://ssrn.com/abstract=1983383

Jussi Hätönen (Contact Author)

European Union - European Investment Bank ( email )

98-100 Boulevard Konrad Adenauer
L-2950
Luxembourg

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