The faster your broadband, the higher your income

Gigaom

Boosting broadband speeds is correlated with a higher income in developed countries according to Ericsson(s eric), which makes telecommunications equipment. A bump from 4 Mbps, which is the U.S. definition of broadband to 8 Mbps is tied to an increase of $120 per month in OECD countries.

In Brazil, India and China — countries with a less developed broadband infrastructure — speeds boosts of 512 kbps to 4Mbps offers a $46 monthly increase in income. The greatest boost in those countries comes from going from no internet access to 512 kbps which is correlated with a $70 increase in household income per month.

ericssonspeedIn OECD countries the biggest benefit from a speed boost comes when homes go from no broadband to 4 Mbps, gaining about $322 per month. Importantly, the study notes that the benefits of broadband speed increases vary by country and also increase in a step progression…

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