Superfast broadband delivering £225m a year online shopping boost
Figures published by the Royal Mail have quantified the benefits of superfast broadband to online retailers in the UK, calculating that the speedy infrastructure leads directly to an additional £225m being injected into the online economy each year.
What’s more the research suggests this figure is in line for further significant expansion, hitting as much as £740m by 2017, when as much as 95 per cent of the population are expected to be accessing faster broadband speeds – up from just 1m homes and businesses which can access such services today.
The uptick is particularly stark in Edinburgh which has seen the biggest increase in online spend of any UK city since superfast broadband was rolled out, splashing out an additional £4.4m overall. The Scottish capital was closely followed by Birmingham in the stats with Glasgow rounding out the top three.
On an individual level each broadband user now spends an average of £23 a year more online courtesy of its ease and convenience.
Royal mail’s managing director of parcels, Nick Landon, said: ‘Our study shows that the investment in superfast broadband networks is having a positive impact on spending online.
“Superfast broadband is acting as a catalyst, encouraging people to spend more online and the further roll-out of networks across Britain over the coming years can only benefit the online retailing market. To support the online retailing market, we are continuing to explore ways to improve our flexibility and provide more options for people to receive items they have ordered online.”
The analysis was conducted by the Centre for Economic and Business Research.