Economic implications of introduction of new telecommunication services

The economic implications of introducing broadband and advanced telecommunications services are presented. It is based on the research work performed within the RACE program. The economic implications are analyzed by comparing the estimated cost with the expected benefits and are used to forecast the demand for broadband connections. It has been possible to make detailed estimates of costs, though it necessitates some reservations as the subject technologies has yet to develop fully. Expected benefits have proven more difficult to estimate. These benefits may be realized mainly through a reorganized economic environment, which currently is vaguely conceived. The approach to these potential benefits is discussed using the results from application pilots within RACE and other existing studies of the financial and transport sectors. These studies will serve as illustrations of the potential benefits rather than forecasts of the total benefits of IBCN.