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The tyranny of distance prevails: HTTP protocol latency and returns to fast fibre internet access network deployment in remote economies

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  • Mark Obren
  • Bronwyn Howell

Abstract

Public policies to deploy enhanced local broadband access infrastructure in locations physically very far removed from the firms and customers with whom they transact are frequently justified by claims of increased competitiveness arising from the elimination of the ‘tyrannies of distance’. Yet relative distance-based disadvantages remain in respect of time-dependent applications and those hosted on distant infrastructures or requiring data sourced from distant locations. Trading off the effects of faster local access and latency on the time taken to load a Web page based on the HTTP Web protocol, we demonstrate that the increasing returns to distance rapidly overcome the effect of faster local access bandwidth as the distance the data must travel increases. We conclude that claims that investment in ultra-fast local broadband access will unconditionally facilitate a step-change in national economic performance are without foundation. In the absence of some compelling underlying competitive advantages, the ‘transformational’ economic benefits will be local rather than international in nature. At best, government investment in nationwide fast fibre networks is a defensive strategy that enables ongoing participation in the international economy, but at relatively higher costs than those faced by larger economies in closer proximity to end markets. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Mark Obren & Bronwyn Howell, 2014. "The tyranny of distance prevails: HTTP protocol latency and returns to fast fibre internet access network deployment in remote economies," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 65-85, January.
    • Handle: RePEc:spr:anresc:v:52:y:2014:i:1:p:65-85
    DOI: 10.1007/s00168-013-0574-0
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    References listed on IDEAS

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    1. Quah, Danny, 2002. "Technology Dissemination and Economic Growth: Some Lessons for the New Economy," CEPR Discussion Papers 3207, C.E.P.R. Discussion Papers.
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    9. Quah, Danny, 2002. "Technology dissemination and economic growth: some lessons for the new economy," LSE Research Online Documents on Economics 2118, London School of Economics and Political Science, LSE Library.
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    2. Alizadeh, Tooran & Grubesic, Tony & Helderop, Edward, 2020. "Socio-spatial patterns of the national broadband network revealed: Lessons from greater Sydney, Melbourne, and Brisbane," Telecommunications Policy, Elsevier, vol. 44(5).

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    More about this item

    Keywords

    O18; O33; R11; R12;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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