“The 3.1% increase which FTTH can bring equates to an extra $5,437 on a typical home,” Heather says. “That’s roughly equivalent to just under half the value of a bathroom or a quarter of a swimming pool!”
“The study adds to a growing list of others showcasing the consumer benefits from widespread access to fibre broadband Internet. There have been a number of studies linking broadband networks and new investments in such networks to improved economic
performance. And the speed and reliability fibre provides offer further benefits. Most recently, in 2014, the FTTH Council released a study finding higher per capita GDP in communities where gigabit Internet was available. Infrastructure
investment, job creation, entrepreneurship, and companies relocating or expanding to your city are all manifestations of this growth. Today’s study found that, for homes where 1 gigabit-per-second broadband was available, transaction prices
were over 7 percent higher than homes located where the highest speed available is 25 Mb/s or lower.”
“The evidence is mounting: investment in fibre improves the economic performance of a community as well as its quality of life,” said FTTH Council President and CEO Heather Burnett Gold. “Around the United States, leaders at the local level have started to think about how their community’s Internet infrastructure is a catalyst for economic, educational, and governmental innovation.”
The report, written by researchers from the University of Colorado and Carnegie Mellon University, shows that even where an actual gigabit service isn’t available yet, home values may increase by 1.8% if a local network operator has deployed fibre infrastructure that can support 100 Mb/s or higher. The study was based on data from 520,931 homes a nationwide sample of real estate transactions from 2011 to 2013 and used broadband availability information from the National Broadband Map.
This study follows earlier research funded by the council that suggests that the presence of gigabit fibre-optic broadband is associated with higher per capita GDP. The study examined 55 communities in 9 states, finding a positive impact on economic activity in the 14 communities where gigabit services are widely available. 41 communities in the study that didn’t have widely available gigabit broadband may have missed out on as much as $3.3 billion GDP in 2012.
Empowering communities
“Gigabit communities are empowered communities,” Heather says. “The study suggests that gigabit broadband communities exhibit a per capita GDP approximately 1.1 percept higher than the similar communities with little to no availability of gigabit services. In dollar terms, this suggests that broadband brought the communities studied approximately $1.4 billion in additional GDP. As we look at these study results, we can clearly conclude that every community should be a gigabit community.”
“Investment in fibre improves the economic performance of a community as well as its quality of life,” said FTTH Council President and CEO Heather Burnett Gold. “Around the United States, leaders at the local level have started to think about how their community’s Internet infrastructure is a catalyst for economic, educational, and governmental innovation.”
Communities are clamouring for all-fibre networks. What’s driving this steady march to and what’s motivating consumers to choose fibre to connect to the internet? Fibre is faster, more reliable, more sustainable, and provides great economic value to communities.
“One driver is clearly speed and capacity and how it lets consumers be more productive and experience more online. We spend about 5.7 hours online per day, have an average of 5.5 connected devices in our homes and have two screens going almost a quarter of the time. And consumers under 35 get about half of their audio and video entertainment online. But beyond high speeds, consumer surveys show FTTH is more reliable, requiring fewer modem reboots and calls to the service centre than other technologies.”
“The benefits of all-fibre, ultra-high bandwidth networks are clear to people in communities where it is deployed,” said Gold, “The findings further validate our mission as an organization: to promote investment in and adoption of FTTH services throughout the country creating value for service providers and their customers. We’re looking forward to working with more providers, communities and leaders to make that happen.”
Fibre and real estate
The benefits fibre can bring to real estate may play a vital role in selecting a business accommodation or house to buy or rent. In the real estate market, fibre can be a strong differentiator.
It appears that homes with fibre connections are easier to sell and rent. According to a survey by US market research and consulting firm RVA LLC, buyers are willing to pay a 2% premium for a fibre-connected house or apartment. Renters are prepared to pay a 15% premium. MDU property owners and property managers claim high-speed broadband is a key advantage in terms of occupancy and tenant satisfaction.
According to another recent report from the FTTH Council, FTTH networks consume up to 20 times less energy than HFC or VDSL when providing high-speed connections. Fibre brings the possibility to work from home, helping combat traffic congestion and pollution. Also, efficiency in the delivery of public services, including education and healthcare, increases significantly.
