1Gbps Broadband Boosts Economy, Home Prices

By

1Gbps services to the home—the new frontier of competition for triple-play providers—turn out to have a measurable economic benefit. A study from the Fiber to the Home (FTTH) Council Americas found that communities with widely-available gigabit access have per capita GDP that is 1.1 percent higher than communities with little to no availability of gigabit services.

The study examined 55 communities in 9 states, finding a positive impact on economic activity in the 14 communities where gigabit services are widely available. That plays out in multiple ways, including through the direct effect of infrastructure investment and increased expenditures, as well as shifts in economic activity (e.g. job creation and occupational changes) and productivity gains.

“Gigabit communities are empowered communities,” said FTTH Council president Heather Gold. “The study results suggest that gigabit broadband communities exhibit a per capita GDP approximately 1.1 percent higher than the similar communities with little to no availability of gigabit services. In dollar terms, this suggests that the 14 gigabit broadband communities studied enjoyed approximately $1.4 billion in additional GDP when gigabit broadband became widely available. As we look at these study results, we can clearly conclude that every community should be a gigabit community.”

Image via Shutterstock

Conversely, the 41 communities in the study that didn’t have widely available gigabit broadband likely experienced forgone GDP in 2012 of as much as $3.3 billion, the study claims.

There’s a personal benefit as well: having gigabit access can add more than $5,400 to the value of the average U.S. home, equal to adding a new fireplace, half of a new bathroom or a quarter of a swimming pool.

Also, sale prices for gigabit homes were 7 percent higher than for those where broadband speeds of 25Mbps or lower. Of course, this may be a product of the fact that ISPs are building out 1Gbps service to higher-end neighborhoods first—those most likely to pay for it and therefore help monetize the network investment.

Google Fiber arguably kicked off the 1Gbps competition when it announced its plans to deploy it in Kansas City in 2011. Since then, several broadband providers have announced new deployments, including AT&T, which in June announced the expansion of its “Gigapower” service to 12 communities, including Charlotte, North Carolina. And in the cable sphere, the DOCSIS3.1 rollout effort has been dubbed the “GigaSphere” initiative—Time Warner Cable notably has embraced the 1Gbps movement with a $25 million network investment to support the rollout in Los Angeles and other major markets.




Edited by Dominick Sorrentino

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More