Economic Benefits
Project Atlas has strategic objectives of trialling improved access to affordable, advanced broadband telecoms services on certain Scottishnbusiness parks, and positioning Scotland with a world-class e-business environment.
ATLAS represents a strategic investment in technology not currently available to SMEs – advanced broadband for delivery of high bandwidth
services. Its aims are concerned with the future needs of the economy, rather than short-term commercial gain.
Project ATLAS is aligned with the Scottish economic strategy, A Smart Successful Scotland, specifically enhancing digital connectivity to support more e-business at increasing levels of sophistication. Economic studies have quantified the impact of ICT (information and communications technologies) generally on economic growth:
UK: 20% of GDP growth (1989 – 1998)
USA: 23% of GDP growth (since 1995)
South Korea: 27% of GDP growth (1998 – 2002)
Within the South Korean figure, 5% of the GDP growth is attributable to broadband alone (i.e. 18% of all ICT-led growth) while in the US communications as a whole is estimated to contribute 12-20% to ICT-led growth.
A market and economic appraisal of Project ATLAS has estimated the benefits that the project would generate for businesses on the 6 parks as follows:
- Direct telecommunications cost savings of between £3 and £4.5 million
- Indirect overall business cost base savings between £97 and £150 million
- Increased financial turnover between £48 and £72 million
- The creation of 73 to 110 jobs
- The safeguarding of a significant number of jobs.
Economic appraisals of Project ATLAS have estimated the benefits that the project will bring to Scotland. The overall GVA (Gross Value Added) benefits to SMEs have been independently estimated by economic consultants at £25 million by Year 15. GVA, or Gross Value Added, is the difference between the value of goods and services produced, and the cost of raw materials and other inputs which are used up in production. Additional identified benefits to SMEs have been independently estimated by economic consultants at £25 million by Year 15. Additional identified benefits include cost savings to business of about £100 million, the creation of about 100 jobs and the safeguarding of many more jobs.
