According to a study by the World Bank, Israel’s rapid and extensive deployment of fiber-optic internet infrastructure will boost the economy.
Israel is doing a bang-up job in expanding its high-speed fiber internet network, according to an international study presented to Communications Minister Yoaz Hendel by the World Bank’s Vice President and Head of Global Infrastructure, Riccardo Puliti on Monday morning.
The study – which investigates the effects of advanced communication technologies on economy, employment, households and business – has found that high-speed Internet access increases the chance of finding a job by 13% -7%, and that every percentage increase in high-speed Internet use increases GDP by up to 0.4%.
“Israel ranks first in the world in the rate of fiber deployment, so it is natural that the World Bank chose to present here the study on the benefits of advanced infrastructure,” said Hendel.
“We‘ve shown the world how to bring advanced infrastructure even to places where there is no economic viability.”
Communications Minister Yoaz Hendel
“This government has advanced the periphery more than any of the previous governments. We proved that what they did not do was possible, and we brought fiber to every corner of the country at record speed.”
Indeed, the ministry has expanded fiber-optic’s availability from 18% of households at the beginning of 2020 to over 60% today, and the ministry expects to reach 70% by the end of the year. In September the ministry is expected to meet with the World Bank again in order to share its fiber-optic deployment model with other countries.
“High-speed Internet means rapid growth, opening up employment opportunities and quality of life,” said Hendel. “It will reach everywhere in Israel: from Dimona and the Jordan Valley, to Amirim in the north to the Ayelot region in the south. The revolution will reach everyone.”
The World Bank’s study
The World Bank’s study examines how expanding Internet accessibility and adopting digital technologies correlates to macroeconomic effects such as GDP growth and productivity growth, as well as how they impact households, the employment market and businesses in general.
The study describes the effects of fiber optic accessibility on the economy and among other things suggests that it is a tool to reduce disparities. Thus, the chance of an educated population finding a job increases by 7-13% when it has access to fiber optics. In Israel, this is particularly relevant to the Arab and ultra-Orthodox populations, which have large workforce potential but suffer from low access to fiber optics.
According to the study, an increase of just 1% in the use of fixed (non-mobile) communications infrastructure can increase a country’s GDP by 0.08%, and a similar increase in the use of mobile communications infrastructure can increase a country’s GDP by 0.4%. The business sector also benefits from cost reduction and increased efficiency by transitioning to advanced communication technologies.
“The research establishes what we know well,” said Director-General of the Communications Ministry, Liran Avisar Ben-Hurin. “High-speed Internet in the periphery is the most effective tool for reducing gaps and integration in the Israeli economy and society.”