Socio-Economic Benefits of New Zealand’s Ultra-Fast Broadband and Rural Broadband Initiative Programs

September 09, 2015

A recent study by Bell Labs Business Modeling team analyzed the potential benefits of New Zealand’s UFB and RFI programs on both GDP and social welfare. Using an established macro-economic model, the study demonstrated that the incremental growth in GDP
stemming from the broadband infrastructure build will be about $5.5B over 20 years, far exceeding the Government’s $1.5B capital contribution. In addition, study quantified the end user benefits in terms of consumer surplus to be $32.8B over 20 years, 40% of which could be realized by the 7th year. Furthermore, the study breaks down these benefits by specific drivers so that insights from this study can be used to further enhance and accelerate these benefits for the New Zealand economy and society through specific policies and actions by the stakeholders.