Broadband is becoming so vital for businesses and offers such competitive advantages that it is being compared to utilities such as water and electricity, says the Information Economy Report, issued by the UN Conference on Trade and Development (UNCTAD).
It notes large differences between developed countries, where broadband is growing rapidly, and developing countries, where dial-up Internet connections are still prevalent, when there are any connections at all.
In rich countries, broadband subscribers increased by almost 15percent in the last half of 2005, reaching 158 million.
Business broadband connectivity grew most significantly - in the European Union, for example, from 53 percent of enterprises in2004 to 63 percent in 2005.
Broadband enables companies to engage in more sophisticated e-business processes and to deliver a greater range of products and services through the Internet, thus maximizing the benefits of information and communication technology.
The use of broadband directly increases competitiveness and productivity, the report says, and that, in turn, has an impact on macroeconomic growth.
It estimates that broadband can contribute hundreds of billions of dollars a year to the Gross Domestic Products of developed countries over the next few years.
Availability of broadband in developing countries is difficult to estimate, according to the report. Only 71 of 151 developing nations submitted date on the subject.
But 48 of those 71 said broadband penetration rates were under 1 percent.
The highest penetration rates among developing countries providing data were in Asia, led by the Republic of Korea at 25.5 percent. China's broadband penetration rate was only 2.9 percent.
Although there is virtually no data on the value of online sales in the developing world, it is apparent that e-commerce accounts for a very small percentage of the overall sales of domestic firms there, and other e-business activities such as extranet usage, e-government, e-learning and remote work, are almost non-existent, the report says.
According to the report, expanding access to broadband is vital in the poorer regions of the world or firms in those countries will face a growing competitive disadvantage and whole nations may lose out on significant economic growth.
In some cases, wireless technology and satellites can help to make up for the missing infrastructure needed to make broadband available, the report says.
Quelle/Source: People's Daily Online, 17.11.2006
