RISE ICT stories: Fiber – a good investment for society

RISE Acreo has carried out a pre-study to evaluate the socio-economic return of FTTH investment in Sweden, on behalf of the Swedish government’s Broadband Council (Bredbandsforum). The study has investigated the effects of fiber-based broadband on economic growth, at a national level, based on data from municipalities and regions. The result demonstrates that a fiber investment generates economic gain in three to four years.

30-50% lower costs for the public sector

The greatest impact is found for the public sector where telecommunications-related costs can be cut by 30-50% thanks to the availability of fiber. The study also shows that the municipalities that have invested in fiber are set to see a positive growth in the form of increased employment, as well improved population trend.

ROI is expected to be greater

The study first estimates the investment needed to connect the remaining households that do not have access to fiber. It then performs a statistical analysis that links fiber penetration to specific socio-economic factors (data from Statistics Sweden, SCB, and the Swedish Post and Telecommunications Authority, PTS). This is complemented with meta-analysis, as well as data collected by Acreo through surveys and in-depth interviews with local governments, telecom operators and network owners, to obtain a first estimate of the return of investment year by year, up to five years after the investment. The actual return is expected to be greater than what is calculated in the study, due to effects currently not quantifiable; and besides, indirect and induced economic effects are likely to increase over time.

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Broadband Technology at RISE Acreo

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