Why does the digital divide matter?

It is particularly important to address the digital divide in order to meet the European Commission’s DAE, which proposes ambitious targets for high-speed broadband services.

Analysys Mason conducted the most comprehensive literature survey of the economic benefits of broadband for the European Commission4 and there is a growing consensus that a 10% increase in broadband penetration results in an increase in GDP growth of between 0.9% and 1.5%; therefore, broadband is important for Europe’s economic growth and development. Our study also highlighted the role of broadband in communities in improving education and skills, increasing employment opportunities, saving money by shopping online, reducing crime, and in improving general well-being.

Low-income groups in affordable housing are a target group towards which interventions can be targeted. Affordable-housing providers may therefore consider subsidising broadband infrastructure or service provision to encourage take-up among tenants.

UK statistics5 show that almost half of the UK’s adult population who do not use the Internet live in social housing6 and are in lower socio-economic groups. Although this statistic will vary across Europe, affordable housing tenants present an easily identifiable target group towards which interventions can be targeted. For providers of affordable housing, it has become increasingly important to make a channel shift in how they communicate with tenants and receive payments electronically, in order to increase efficiency and protect rental income. Affordable housing providers may therefore consider subsidising broadband infrastructure or service provision to encourage take-up among tenants.

Without a robust digital inclusion strategy to address the digital divide, lower socio-economic groups will face increased marginalisation and social exclusion. However, with an ever-increasing reliance upon high-speed broadband communications in our daily lives, addressing the digital divide could be the opportunity to develop future-proofed fibre solutions targeted to lower-income groups.

Source:http://www.analysysmason.com/About-Us/News/Insight/Bridging-digital-divide-Jul2013/