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The economic impact of disruptions to Internet connectivity:

A report for Facebook

The Internet is essential to tasks performed across the world daily, from obtaining information to making mobile payments. Internet disruptions, however, have become more common. Read more about the widespread impact disruptions are having on productivity and the worldwide economy.

The Internet has become ingrained into the tasks that people across the world perform each day. From obtaining information on markets or health, to making mobile payments, the Internet has made each task that much easier. At the same time, disruptions to Internet-based services and infrastructure have become more common. These disruptions have widespread impacts on people and the economy with even partial disturbances affecting productivity, souring business confidence and leading to lost opportunities.

The impacts of a temporary shutdown of the Internet grow larger as a country develops and as a more mature online ecosystem emerges. It is estimated that for a highly Internet connected country, the per day impact of a temporary shutdown of the Internet and all of its services would be on average $23.6 million per 10 million population. With lower levels of Internet access, the average estimated GDP impacts amount to $6.6 million and to $0.6 million per 10 million population for medium and low Internet connectivity economies, respectively.

As the Internet is adopted more widely and used more intensely across countries, Internet services become crucial for businesses and people. Overall, the estimates produced in this study and the evidence available in the public domain suggest that disruptions to Internet ecosystems can have economic consequences, and ultimately costs for a country’s population. If disruptions become more frequent and longer-term in nature, the impacts are likely to be magnified. Learn more about the widespread impact disruptions are having on productivity and the worldwide economy in this report.

Deloitte have been commissioned by Facebook to explore how disruptions to Internet connectivity ordered by public authorities impact the economy, with an analysis that uses publicly available information.

Developments in the Internet and the services it supports have created an ecosystem around which people and businesses’ daily lives revolve. From connecting with friends and businesses, to obtaining information or making sales, the Internet has made carrying out different tasks much easier and efficient. For businesses, the Internet has made day to day activities such as selling or purchasing less stressful and costly. Disrupting the Internet ecosystem therefore limits the opportunities for people and businesses, and hampers the economy. On a personal level, Internet 

Online services provide extensive and timely access to information relevant to both businesses and individuals. This can reduce transaction costs and make businesses more efficient.

Connectivity across locations allows for businesses to reach new consumer markets through e-commerce and advertising platforms. The Internet facilitates cross-border trade and exports.

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