Governments not brave enough to capture $1.4 trillion broadband opportunity – analyst
Originally published: June 21, 2012
Last updated: June 21, 2012 - 8:40pm
Governments globally could be missing out on tax revenues worth $1.4 trillion per year as a result of their lack of action when it comes to driving the rollout of fixed broadband networks, one analyst predicted.
"[There is] a $6.9 trillion per year increase in GDP that we're not getting because we don't have broadband everywhere," said Oliver Johnson, CEO of Point Topic, speaking at CommunicAsia. That translates into $1.4 trillion in lost tax revenues for governments, he explained, the equivalent of seven complete space shuttle programs, 150 hadron colliders, or 614 Manchester Uniteds. But there is a reason that many governments are not pushing the broadband agenda, despite the huge potential revenue increase. "They don't understand it," said Johnson, explaining that many politicians, including former U.K. prime minister Tony Blair, are known to prefer not to use computers. "They are not brave enough to make that decision," he said.
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