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Universal 2Mbps UK Broadband Rollout Could be Worth GBP1.4 Billion

Posted: 25th Feb, 2010 By: MarkJ
uk internet moneyThe Institute of Practitioners in Advertising (IPA) has estimated that plans by the UK government, which aims to make a minimum broadband speed of 2Mbps available to everybody in the country by 2012 (i.e. Universal Service Commitment), could be worth £1.4 Billion through additional online sales alone.

The report claims that consumers with a broadband connection are 37% more likely to buy products and services online than those living in broadband not-spots, many of which are often forced to use a dated and incredibly slow dialup connection.

The IPA told Allmediascotland:

"This figure is based on extrapolations from existing statistics by the Office of National Statistics. These show that while there were website sales totalling £104.7 billion in 2008, 4.9% of UK internet users were still relying on slow dialup connections."

Of course 2008 was a long time ago now and dialup connections have continued to decline since then, which makes the IPA's estimate seem somewhat unreliable. The additional costs of getting a new broadband connection hasn't been weighted against this increase, neither has the loss of sales from high-street stores to online equivalents.
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