Broadband- A lifeline of Modern Society

By:- Ajay Kumar Kadel

Senior Engineer

Backbone Transmission Directorate, Nepal Telecom, Babarmahal, Kathmandu

1. Background

In today’s age Broadband is arguably one of the major infrastructures of the knowledge
economy. As per the generic definition Broadband can be defined as any high-speed Internet
access that is always on and faster than traditional dial-up access. The definition of Broadband is
like a moving dynamo. It differs from country to country and often gets revised with time. For
instance, in 2015, FCC (The Federal Communications Commission) in the United States revised
its broadband definition of broadband internet. The FCC revised downloads at a speed of 25
megabits a second and uploads of 3 megabits a second while the previous standard for a
broadband was at download speed of 4 megabits a second and an upload speed of 1 megabit a
second.

2. Broadband and Socio-Economic Development

Many countries have already realized the importance of broadband as a critical driving factor in
achieving the internationally-agreed development goals. GDP is an indicator of country’s degree
of prosperity and development. World Bank study found that low-income and middle-income
countries experienced “about a 1.38 percentage point increase in GDP for each 10 percent
increase in broadband penetration” between 2000 and 2006. This study further found that the
development impact of broadband on emerging economies is greater than in high-income
countries, which “enjoyed a 1.21 percentage point increase in per capita GDP growth” per 10
percent increase in broadband penetration. McKinsey & Company estimated that “a 10 percent
increase in broadband household penetration delivers a boost to a country’s GDP that ranges
from 0.1 percent to 1.4 percent.”

In the similar fashion, a 2003 study conducted by Criterion Economics found that $63.6 billion
investments in broadband technologies will directly impact economic growth by $179.9 billion
increase in GDP and creation of 116,000. The study also projected that 1.2 million jobs can be
created as a result of next generation broadband deployment.

Through the use of Broadband technologies, Banks and Financial institutions (BFI’s) will be able
to reach to larger communities in rural areas to foster economic growth. Broadband access will
enable farmers to get accurate information on weather, technology and market to improve their
productivity. Small Entrepreneurs and start ups will be able to access global markets through
broadband access which may eventually turn up into viable companies. In addition to this,
students get connected in the global, digitized, and knowledge based economy through
broadband. Broadband plays a major role in providing the platform for tele-medicine and Health

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