Valuing Broadband Benefits: A Selective Report on Issues and Options

Hayes, Richard D.; Turpin, Simon

doi:10.2139/ssrn.1856378

Cited by 2 publications

(6 citation statements)

References 37 publications

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“…Furthermore, they both claim to quantify the incremental effects of high-speed broadband on top of existing infrastructures. Although this seems to be the case for New Zealand, the meta-study of Hayes (2011) showed that the baseline for Seattle is no broadband at all. We will therefore compare the results of New Zealand with the incremental effects of FTTH found in this study, and the results for Seattle with the total effects of this study (from traditional broadband and FTTH combined).…”

Section: Comparison With Other Bottom-up Studiesmentioning

confidence: 96%

“…Hayes, 2011) and interviews with experts, in eBusiness, the most important services that create indirect effects are teleworking and (distance) training of employees, see Table 3. A highspeed broadband connection (preferably over fibre) will allow people to access their files at home as quickly as at the office, or enable employees to discuss with colleagues all over the world through real-time HD videoconferencing.…”

Section: Egovernment: From Physical Contact To Electronic Formsmentioning

confidence: 99%

“…This study claims to evaluate the benefits of high-speed broadband on top of traditional broadband, but a metastudy by Hayes (2011) shows that these assumptions do not hold.…”

Section: Bottom-upmentioning

confidence: 99%

“…In the discussion on the "real" benefits of broadband infrastructure for economic growth (Katz, 2010;Kenny & Kenny, 2011), rarely any agreement has been reached with respect to common methodologies and appropriate data sources to measure and evaluate these benefits. Having identified the clear need for the identification and quantification of these effects, as well as the discrepancy in previous evaluation studies, this paper investigates the indirect benefits using a bottom-up approach by concentrating on two specific sectors where most indirect benefits can be expected in the near future (Hayes, 2011): eBusiness and eGovernment. This bottom-up approach allows to more clearly link the monetary results to the individual effects (Damart & Roy, 2009), while top-down methods only evaluate the overall effect using aggregated macro-economic data.…”

Section: Introductionmentioning

confidence: 99%

“…As described above, this paper will focus on the bottom-up modelling of the indirect effects of two sectors: eGovernment and eBusiness, because these sectors conceal the most important effects for the near future (Hayes, 2011). Electronic Government utilizes the ICT environment in an integrated manner to offer public services to all, at any moment of the day.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Identifying and quantifying the indirect benefits of broadband networks for e-government and e-business: A bottom-up approach

Wee

Verbrugge

Sadowski

et al. 2015

Telecommunications Policy

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Response to reviewersDear editor, dear reviewer, Thank you to take the interest in reviewing this paper for the second time. Again, we appreciate the comments and suggestions, and adjusted the paper accordingly, so that it becomes more clear and better underpinned. Our response to the comments and the changes in the paper are indicated below. We focused in our responses first on the general comments. A short reaction to the more detailed comments follows afterwards.The authors made great strides in revising the manuscript. There are three primary concerns and several specific questions that need to be addressed before this piece could be considered publication worthy. First comment:The first concern is the need for specific citations to back up the assertions made by the authors. Citations should be added to Table 3 or noted that this is the authors' creation if this is the case. Several blanket statements are also made throughout the piece without referencing the relevant literature. For example, on pg. 10 the authors state: "They however did not assign the right benefits to the right actors, but only calculated an overall economic benefit." What are the right benefits? Who are the right actors? How is this grounded in the literature? Some instances where clarification is needed are listed in the specific comments below, but it is recommended the authors go through the text and add citations to the piece where necessary, above and beyond those instances mentioned below. Ghent and Eindhoven (FOD Financiën, 2013;Belastingsdienst, 2013) Second comment (a):A second area of concern is the discussion and conclusion. The authors present case study evidence about the value of their bottom-up approach for computing indirect benefits. Are these indirect benefits likely to be the same in other places? Ghent and Eindhoven are relatively small cities with a specific economic and cultural context. Isn't it likely that the magnitude of indirect benefits will vary by region, as demonstrated in recent broadband work by Mack et al., 2011 andMack and Rey, 2013, as well as classics such as Forman et al., 2005a? Another item that merits more thorough treatment is the industry specific nature of this impact. Looking at e-business across all companies does not deal explicitly with the potential for industry specific variation in indirect benefits related to the importance of agglomerative forces and industry specific business processes. Prior work by Forman et al. (2003Forman et al. ( , 2005b finds industry specific variation in dial-up adoption by firms, and this is likely the case for broadband and the indirect impacts associated with e-business. The authors mentioned this in the introduction of the original manuscript and should include it in a more thorough discussion of future work. Second comment (b):Finally, what is the impact of the assumptions of the values chosen for the innovation and imitation coefficients of the Bass Curve? Does increasing or decreasing these values change the results or are they relatively robust? A...

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Section: Comparison With Other Bottom-up Studiesmentioning

confidence: 96%

Section: Egovernment: From Physical Contact To Electronic Formsmentioning

confidence: 99%

“…This study claims to evaluate the benefits of high-speed broadband on top of traditional broadband, but a metastudy by Hayes (2011) shows that these assumptions do not hold.…”

Section: Bottom-upmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Identifying and quantifying the indirect benefits of broadband networks for e-government and e-business: A bottom-up approach

Wee

Verbrugge

Sadowski

et al. 2015

Telecommunications Policy

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The social surplus of broadband initiatives in compulsory education

Parsons¹

2016

AJIS

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In 2010, the New Zealand government embarked upon an ambitious programme of broadband infrastructure investment, a process that will continue until at least 2019. Part of this investment is specifically targeted at compulsory education, with initiatives that include bringing fibre connections to the school gate, supporting on-site network upgrades (including wireless) and providing teaching, learning and support services delivered through these networks. Such investments are not made without some projections of the likely rate of return, but calculating return on investment (ROI) in educational broadband is complex, as it encompasses a range of factors. This article reports on an interview-based study engaging a range of stakeholders in educational broadband provision. The study utilises a research model that considers the various elements of social surplus, namely; producer surplus (savings), producer surplus (profit) and consumer surplus (perceived value over and above cost), to explore the elements of social surplus that have been used to define educational broadband ROI calculations and justify the scale of investment. The results indicate that all three components of social surplus are relevant, though the concept of profit can only be seen in the broader context of long term contributions to the economy. A note of caution is that projections of ROI based only on positive returns fail to acknowledge the potential for some innovations to actually increase costs. Further, purely quantitative models do not properly take into account qualitative components of consumer surplus.

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Valuing Broadband Benefits: A Selective Report on Issues and Options

Cited by 2 publications

References 37 publications

Identifying and quantifying the indirect benefits of broadband networks for e-government and e-business: A bottom-up approach

Identifying and quantifying the indirect benefits of broadband networks for e-government and e-business: A bottom-up approach

The social surplus of broadband initiatives in compulsory education

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