ICT and Productivity

Today the Danish Productivity commission announced the 5th sub-report which from an ICT perspective is interesting, as it deals with 2 key infrastructures - transportation and digital infrastructure.

While the first might involve some digitalization in order to increase productivity (roadpricing to reduce congestion) the 2nd - digital infrastructure - is obviuosly filled with opportunities. 

But it seems like the macro economists at the board have forgotten to speculate or extend therory into practise. They do a fine work in examining the impact of economic studies and econometric analysis of broadband coverage and capacity on productivity, but:

- where is the theory that will help conclude that more broadband capacity will drive increased flexibility and life-work balance so that employees will become more productive?

- where is the theroy conclusions that more capacity (cheaper) will drive new services and product innovation? UHD streaming will require next generation broadband and so will in-home video conferencing in real-life feeling. What about real time remote operations utiling robots and UHD picture quality across countries? What about M2M of Big Data real time ? And production of parts using 3D printers - that will also boost productivity thru higher broadband capacity.

The conclusions are that the main telco ought to be split up and that people is not demanding the extended network capacity - but investments done today will first really come to fruitation in 5-10 years. And DK have recently been ousted from the Top 5 globally on broadband capacity per capita - we are almost not in Top 10.

My advise to the Danish Government: 

* Invest in bringing fiber out to the end-user by subsidizing those that want and use high capacities of broadband. This will improve work flexibility, productivity and 

* Give (more) tax exemptions to companies who invest in high fiber based capacity and who give employees fiberbased access.

* Ensure that broadband companies shall begin providing end-2-end fiber to citizens - first in big cities. Allowed to own the fiber for 5 years before the fiber becomes part of a free marked.

* Ensure that the marked of fiber is free - there should be the same system as with electricity - there is an infrastructure "cost" and a service "cost" but the service provide is free to choose.

This way we can regain our place in the globla top 3 - hopefully overtaking South Korea - and sure it will benefit our productivity.