Study estimates better broadband in 2020 meant $4000 more per year per American

Telecompetitor reports

Fixed broadband adoption drove 10.9% of the accumulated growth in the U.S. gross domestic product (GDP) between 2010 and 2020, according to a new economic study from Telecom Advisory Services published on the Network:On website.

More detail…

According to the analysis made by Katz and his research team, capital accumulation is the biggest contributor to GDP growth, accounting for more than half of total GDP growth between 2010 and 2020. Human capital and labor growth also were substantial contributors, accounting for a combined 21.3% of growth. But growth in broadband adoption, combined with broadband speed growth, had about the same impact as human capital and labor growth, accounting for a combined 22.4% of GDP growth.

As Katz explained at the Network:On event yesterday, the researchers used four different economic models to measure GDP growth and “we proved the point on all four models.”

The researchers also estimated that if broadband adoption and speeds had remained at the 2010 level, the 2020 U.S. GDP would have been $1.3 trillion lower, which is equivalent almost $4,000 less per year for the average American.

This entry was posted in economic development, Research by Ann Treacy. Bookmark the permalink.

About Ann Treacy

Librarian who follows rural broadband in MN and good uses of new technology (, hosts a radio show on MN music (, supports people experiencing homelessness in Minnesota ( and helps with social justice issues through Women’s March MN.

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