The current study presents the impact of the development of the broadband infrastructure on the economical development. An economic growth of 0.7% can be expected, if a fast broadband infrastructure is consistently built in Germany and the other EU-countries.

1. CITI's Annual Conference on the State of Telecom:
National Next-Generation Broadband Plans
Friday, 23 October 2009, Columbia University, New York
The economic impact of
broadband on EU countries
Stadttor 1 · D – 40219 Düsseldorf
phone 0049 (0)211 – 3003 420 ·
fax 0049 (0)211 – 3003 200
www.micus.de · info@micus.de
© 2008 MICUS Management Consulting GmbH – page 1

2. The most important economic impact of broadband
is not in the telecommunications sector
Broadband 23%
77%
Public
services enterprises Broadband impact (turnover),
telecommunications sector
individuals Broadband impact (GDP increase),
rest of the economy
© 2008 MICUS Management GmbH – page 2

3. The analysis of the impact of broadband on employment
is a combination of three effects
Impact on employment (jobs creation, jobs loss), absolute values
„Real growth“:
Innovation 31%
Change in business structures
43% (mostly substitution effects)
Direct improvement
of labour productivity
26%
Innovation is more important than productivity improvement
© 2008 MICUS Management GmbH – page 3

4. Case Study in Cornwall: the strongest impact
occurs in the business services sector
Gross Value Added, Employment and Productivity growth
in Cornwall and in the UK, in the business services sector
Cornwall 2001-2005, with broadband project
Cornwall 1998-2001
GVA growth
GVA growth Employment growth
Employment growth Productivity growth
Productivity growth
UK 1998-2001 UK 2001-2005
GVA growth GVA growth
Employment growth Employment growth
Productivity growth Productivity growth
© 2008 MICUS Management GmbH – page 4

5. Real growth: Broadband is all about innovation
The impact of broadband is stronger in the most advanced and innovative countries.
Broadband impact, %GDP
+ 1,00%
+ 0,89%
EU27:
+ 0,80% +0.71% + 0,70%
+ 0,63%
+ 0,60%
+ 0,47%
+ 0,40%
+ 0,20%
+ 0,00%
Less Quickly Large Advanced
developed developing industries knowledge
broadband societies
70% of net jobs creation related to broadband is directly due to innovation!
5 © 2009 MICUS Management Consulting GmbH

6. Scenarios: best case, base case and worth case
More than 1.5 million jobs can be created until 2015
Employment, EU27, 1000s jobs, cumulative 2006-2015
2.000
Best Case: make broadband
development a priority
Employment growth, 1000s jobs,
1.500
+1.5Mio jobs until 2015!
year 2005 =0
1.000 Base Case: continue with no
Best case
change in broadband policy (2007)
Base case
500 +1Mio jobs until 2015
Worst case
0 Worst Case: do not matter about
broadband
-500 - 400.000 jobs until 2015!
2006 2008 2010 2012 2014
Innovation drives the economy:
staying behind innovation is not a sustainable option.
© 2009 MICUS Management GmbH – page 6

7. Broadband is not just a technology. It is an opportunity.
The two hands of broadband development projects:
Foster the development of area-wide broadband
telecommunications infrastructure.
Actively support small enterprises, public services and
individuals in using broadband internet technologies.
Successful projects rely on those two hands; both are necessary.
Broadband development has short-term positive effects
and generates structural improvement:
it is the best stimulus against the economic crisis!
© 2008 MICUS Management GmbH – page 7

8. MICUS: who we are and what we do
a consulting partner for private companies and the public sector in Germany and Europe.
Market research and strategy development for public services and private companies
Information and communication technologies
Modernization of the public administration
(the following studies can be downloaded free of charge from our website)
• Global Navigation Satellite Systems (GNSS) applications in public services
On behalf of the German Ministry of Circulation, Building and Urband Development, 2009
• Assessment of the Re-use of Public Sector Information (PSI)
On behalf of the European Commission, 2008
• The impact of broadband on growth and productivity
On behalf of the European Commission, 2007
8 © 2009 MICUS Management Consulting GmbH

9. Thank you for your attention
Do not hesitate to contact us:
Dr. Martin Fornefeld
fornefeld@micus.de
http://www.micus.de
© 2008 MICUS Management Consulting GmbH – page 9