Quantifying the Value of an Open Internet for India

Abstract

It is now widely acknowledged that Information and Communication Technologies (ICTs) have positive impacts on overall economic growth and within ICTs, high speed Internet produces the most pronounced growth dividend. Thus, among all ICTs, the elasticity is highest for broadband connectivity followed by internet (narrowband), mobile and fixed lines in that order. The Internet has come to be regarded as a "general purpose technology" or GPT that serves as an input to different sectors of the economy resulting in productivity improvements and inspiring cycles of innovation. A key characteristic of the Internet is that it delivers “network effects” – i.e. its value increases as more people are connected. This happens because the value of economic activity expands as increasing numbers of consumers and producers connect and cooperate on the Internet, enhancing efficiency, content, services and market opportunities.