An increase in broadband Internet penetration in Romania could improve GDP by 5 percent in four years but despite low prices and high internet speeds, Romania still ranks among last in the EU on broadband internet penetration, according to a recent study by Roland Berger Strategy Consultants.

Its impact into the economy is currently limited by the low penetration, and by the main structure of the country's GDP, mainly based on industry, agriculture and constructions, and to a little extent on services.

But with support form the authorities, broadband internet could go up to 5 or 6 percent of the GDP by 2018, or in absolute terms, up to EUR 9 billion. This would be generated by activities directly related to the internet – such as e-commerce, telecom investments, but also by fostering innovation, increasing productivity, access to new markets, among others, according to the consultancy firm.

A higher broadband internet penetration would bring benefits to businesses, as it could ease remote working and recruiting, as well as help citizens and public institutions. Three quarters of users would like to manage their relationship with the authorities online, the study reveals.

Broadband internet comes cheap in Romania, with an average subscription fee of EUR 11 for speeds of up to 30Mbps, compared to the EU average of EUR 18. Suppliers have also expanded their networks, to cover more of Romania, but the adoption rate is still low: 50 percent of Romanian households in 2012, the lowest in the EU, where the average is of 73 percent.

Romanian authorities would have to offer offer support with legislation, such as pro-investment measures, lower bureaucracy, or stimulation of broadband internet use – such as infrastructure in schools, hospitals, public services, and campaigns to promote the use of internet, according to Roland Berger Strategy Consultants.

editor@romania-insider.com