Broadband contribution to GDP stands for 3.5 billion Euro

The contribution of broadband to Romanian GDP is estimated at 3.5 billion Euro and may reach 6 billion euro by 2018 while maintaining the present broadband adoption rate and to 8 billion euro by accelerating the present rate, according to a study presented recently.

2014-06-24 13:59:00

Romania is one of the countries with the highest Internet speeds, but ranks last for the broadband penetration degree, the study shows.

There were 3.8 million broadband connections in Romania at the end of 2013, with an annual 8% increase from 300,000 connections in 2005. According to estimates there will be 4.5 million broadband connections in 2018.On the other hand, the broadband penetration rate among individual consumers was 56% in 2013, under the European average of 76 per cent. This places Romania 26th among 28 EU member states, before Greece and Bulgaria, which had 55 per cent and 54 per cent.

In case of companies the penetration rate is 63 per cent, under the EU average of 90 per cent, the difference coming from the level of small and medium size companies, Florean showed.

The results of the study show that an increase of the broadband adoption rate of 10 per cent adds 1.2 per cent to the annual per capital GDP increase rate. The 1,2 per cent was adapted to Romania taking into account the GDP structure and the use of Internet to obtain in the end an impact of 0.6-0.8% on the economic increase rate.

In Romania, the contribution of broadband to economy is estimated at 3.5 billion euro and should reach 6 billion euro while maintaining the present penetration rate. Two billion euro could be added in case Romania recovers the difference to the European penetration average by 2018.