Quadrupling broadband speeds in the UAE would give the local economy a $2.16 billion boost, according to Ericsson.
“Positive effects come from automated and simplified processes, increased productivity as well as better access to basic services such as education and health,” the Swedish firm said.
Research by Ericsson, conducted with the consultancy Arthur D. Little and Chalmers University of Technology, found quadrupling broadband speeds gives a 0.6 per cent increase to a country’s gross domestic product (GDP).
While the research was carried out in the Organisation for Economic Co-operation and Development (OECD) countries, Ericsson said it is “highly likely” that a similar boost would be witnessed in the UAE.
As a provider of telecommunications equipment, Ericsson clearly has a vested interest in talking up the benefits of improving the infrastructure.
But Anders Lindblad, the president of Ericsson in the Middle East and North Africa, insisted that faster internet brings genuine economic gains.
“In countries like Korea, Japan and the US [faster broadband] is boosting the economy very strongly,” he said.
Super-fast internet connections are already available in the UAE. Du, for example, this year launched its 100 megabits per second (mbps) connection, which costs a staggering Dh999 per month including a landline phone.
Mr Lindblad said that the economic benefits come when faster connections are offered at the same price. For example, Etisalat would have to offer a 4 mbps line for Dh249, instead of the 1 mbps available today, to achieve the positive impact.
The quadrupling of UAE broadband speeds is likely to occur before 2016, Mr Lindblad added.
