Estimating Digital Infrastructure Investment Needs to Achieve Universal Broadband
IMF Working Papers, February 10, 2023
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- Estimating Digital Infrastructure Investment Needs to Achieve Universal Broadband
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Bibliographic details
- Authors: Edward Oughton
- Published: February 10, 2023
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400233623.001
Summary findings
- Approximately $418 billion needs to be mobilized to connect all unconnected citizens globally (targeting 40-50 GB/Month per user with 95 percent reliability).
- The bulk of additional investment is for emerging market economies: 73 percent.
- Low-income developing countries account for 24 percent of the additional investment.
- If the data consumption level is lowered to 10-20 GB/Month per user, the total cost decreases by up to about half.
- Raising data consumption to 80-100 GB/Month per user leads to a cost increase of roughly 90 percent relative to the baseline.
- Varying the peak hour quality of service level from the baseline 95 percent reliability to only 50 percent reliability results in a 40 percent cost decrease.
Investment breakdown and scope
- Global total mobilization required: $418 billion.
- Target data consumption in baseline: 40-50 GB/Month per user.
- Baseline quality of service (peak hour reliability): 95 percent.
- Share of investment by country group:
- Emerging market economies: 73 percent.
- Low-income developing countries: 24 percent.
Sensitivity analyses and scenarios
- Data consumption scenarios:
- Lower consumption scenario: 10-20 GB/Month per user → total cost decreases by up to about half.
- Higher consumption scenario: 80-100 GB/Month per user → cost increases by roughly 90 percent relative to the baseline.
- Quality-of-service scenario:
- Reducing peak hour reliability from 95 percent to 50 percent → 40 percent cost decrease.
Policy implications and recommendations
- Broadband policy assessments should be explicit about:
- The quantity of data provided to users (GB/Month per user).
- The reliability of service provided to users (peak hour quality/reliability).
- Failure to specify data quantity and reliability will lead to inaccurate estimates and, ultimately, to poor broadband policy decisions.
Content in this bundle
- Working Paper