Increasing Broadband Internet Penetration
In the OIC Member Countries
15
The construction of broadband networks has three effects on job creation. First, network
deployment requires the creation of direct jobs (for example, telecommunications technicians,
construction workers and equipment manufacturing operators) to install these networks.
Second, direct job creation has an impact on indirect jobs (for example, metallurgical and
electrical product industries that supply inputs to the industries directly involved). Finally,
household spending resulting from direct and indirect jobs leads to induced employment.
There are six studies that estimate the impact of broadband network construction on
employment: Crandall et al. (2003), Katz et al. (2008), Atkinson et al. (2009), Katz et al.
(2009a), Liebenau et al. (2009), and Katz et al. (2010a). All of these studies estimate the
number of jobs created as a result of capital investment for the deployment of broadband
networks: 63 billion US$ required to deploy broadband services throughout the U.S. (Crandall
et al., 2003); 13 billion CHF to build a national fiber optic network in Switzerland (Katz, 2008);
10 billion US$ (Atkinson, 2009) and 6.3 billion US$ (Katz et al., 2009a) as part of counter-cycle
stimulus packages in the United States (Katz et al., 2009a); 7.5 billion US$ to complete the
deployment of broadband in the United Kingdom (Liebenau et al, 2009); and 47 billion US$ to
implement the National Broadband Plan in Germany (Katz et al., 2010a). All of these studies
have calculated multipliers, which measure the total employment change throughout the
economy resulting from the deployment of a broadband network (see table 4).
Table 4: Broadband construction impact on job creation
Country Study Objective Results
United States
Crandall et
al. (2003) Estimate the employment impact of broadband
deployment aimed at increasing household
adoption from 60% to 95%, requiring an
investment of US $ 63.6 billion
• Creation of 140,000 jobs per
year over ten years
• Total jobs: 1.2 million(including 546,000 for
construction and 665,000
indirect)
Atkinson et
al. (2009) Estimate the impact of a US $10 billion
investment in broadband deployment • Total jobs: 180,000
(including 64,000 direct
and 116,000 indirect and
induced
Switzerland Katz et al.
(2008b) Estimate the impact of deploying a national
broadband network requiring an investment of
CHF 13 billion • Total jobs: 114,000 over
four years (including
83,000 direct and 31,000
indirect)
United
Kingdom Liebenau et
al. (2009) Estimate the impact of investing US $ 7.5 billion to
achieve the target of the "Digital Britain" Plan • Total jobs: 211,000
(including 76,500 direct
and 134,500 indirect and
induced)
Source: compiled by Telecom Advisory ServicesBeyond job creation as a result of the construction of broadband networks, the impact of
externalities on employment, referred to as "innovation" or "network effects" (Atkinson et al.
2009) have also been quantified. By studying the externalities resulting from the adoption of
broadband, numerous effects have been identified: