Rural Gigabit Broadband in Cornwall May Deliver Big Economic Boost

Research group Curia, which was commissioned by rural broadband ISP Wildanet, has today published a new report that predicts how the deployment of gigabit-capable broadband across rural parts of Cornwall in England could deliver £615m and an additional £111m per year for the economy up to 2030.

At present Wildanet is investing £50m to deploy their own gigabit speed broadband service across Cornwall, although their precise coverage targets and timescales remain unclear (previous mentions have indicated a desire to reach 60% of properties over the next c. 3 years). Suffice to say, they have a vested interest in reports like this one.

The related report – ‘Demonstrating the Value of Improved Connectivity‘ – claims to be the first one ever to quantify the economic, social and environmental value of digital gigabit capable communications to rural and hard-to-reach areas.

According to Curia, digital connectivity would generate an economic impact amounting to £615 million Gross Value Add (GVA), and delivering an additional £111 million year-on year-until 2030. Alongside the economic impacts, the report states that gigabit broadband could also produce £101m of equivalent carbon taxation between 2020-2030 – this refers to the amount an individual or business may have paid in carbon tax, but which has been avoided as a result of the new network.

The report adds that investment in gigabit infrastructure could also have a positive impact on household finances and social wellbeing, citing the figure of £16.5 million per year for citizens in Cornwall as a result of digital inclusion, and savings of over £222.25 per household per year.

Wildanet’s CEO, Helen Wylde, said:

“The impact of the pandemic has brought into sharp focus the need to improve connectivity across the country, especially in areas outside the commercial build of large broadband providers. Altnets, such as Wildanet, have been stepping up to provide these more complex connections to level up rural communities.

I have witnessed first-hand the positive impact reliable local connections can have on individual residents, businesses, and the local economy. I am delighted that this research provides a clear quantitative analysis of this impact, which I hope will reenergise efforts to increase connectivity, and provide new industries with the confidence to invest in the South West.”

As we always say when such reports surface – trying to accurately gauge the economic impact of deploying faster broadband is notoriously difficult, not least since most premises won’t be starting from a point of zero connectivity (e.g. broadband at 30Mbps+ is now available to c.95% of premises in Cornwall).

We are all naturally very different in our requirements, and not all businesses benefit from having access to significantly faster speeds than are currently available. Meanwhile, in homes, the biggest economic drivers often stem from your ability to smoothly conduct online shopping, job hunting, banking and similar tasks, which don’t strictly require ultrafast or gigabit connectivity. Not to mention the negative impacts of issues like slow WiFi.

In short, any study that claims to show a huge economic boost should be taken with a pinch of salt, as they’re often overly optimistic and few forecasts are ever tested at a later date to see if they were accurate – partly because it’s so hard to do. Nevertheless, few could disagree that there does tend to be a strong positive relationship between broadband investment and growth, even if there is an issue of diminishing returns.