NESTA: Increased broadband penetration could stimulate economy

Plans to increase broadband penetration to 90 per cent by 2017 could stimulate the economy to the tune of £18 billion, according to the National Endowment for Science, Technology and the Arts (NESTA).

According to the body, improving internet infrastructure is directly connected to economic growth as it allows businesses in different parts of the country to communicate with each other more easily.

While fast broadband services can result in quicker download times, technology such as VoIP solutions can enable businesses and private users to use the internet to carry out cheaper phone calls.

Jon Kingsbury, programme director of NESTA's creative economy team, said: "Businesses which rely on niche products and services that were not viable in a local community become feasible when global markets are opened up."

He added that greater connectivity could deliver more entertainment and learning options, while medical patients could be treated at home.

Nearly two million more homes have gained access to the internet through the course of 2009, according to figures from the Office for National Statistics.