Great Expectations: Potential Economic Benefits to the Nation from Accelerated Broadband Deployment to Older Americans and Americans with Disabilities

This report by Robert E. Litan, released December 8, 2005 explores the impact of broadband internet access on future health care costs. Three types of benefits from continued broadband deployment and use are addressed: lower medical costs; lower costs of institutionalized living; and additional output generated by telecommuting seniors and those with disabilities. The aggregate benefits are projected to be $927 billion in cost savings over a 25 year period (2005-2030).

Policies designed to accelerate broadband diffusion and adoption could increase the benefits by creating network externalities that hasten the creation of software and devices to enable more efficient, effective telemedicine programs, better supported telecommuting programs, and improved medical information sharing through electronic medical records. Accelerated broadband penetration could generate and additional $532 to $847 billion over the 25 year term, bringing the total savings benefit near $1.5 trillion.