A country’s telecoms infrastructure and technology can play a role in shaping its economy.
A study by the World Bank and the McKinsey Global Institute found that countries with the best telecom infrastructure, including China and India, have the lowest rates of inflation and lowest corporate taxes.
But, the study warned, it could also have a significant impact on growth.
“The most successful countries have the strongest and most innovative telecoms,” said Michael Krieger, head of global research at McKinsey.
“These countries are the ones that can create a new paradigm.”
The report, titled “The Future of Telecom Infrastructure,” was released on Wednesday and is based on a survey of about 1,500 people in 36 countries.
“What’s really important to look at is where the network is and how much it can be transformed,” said Kriegers.
“If it’s not a high-speed infrastructure, it’s going to be difficult for it to grow.”
In the United States, for instance, the average cost of an average broadband connection was $4.90 per megabit, according to the report.
In India, it was $6.70 per megabyte.
In China, it is $10.00 per megabits.
And in India, the United Kingdom and France, the cost of a broadband connection is around $6, the report found.
In the US, a high speed broadband connection can save the average household about $200 annually in the long run.
But in China, the savings are likely to be even greater, because the country’s overall per capita GDP is around 30 times that of the US.
“In China, we think that the government should provide the infrastructure that is required to keep the Chinese people mobile,” said Shuo Chen, an analyst at the McKinley Global Institute.
“This will mean they will have more time for other activities.”
The country is also one of the world’s largest mobile markets, with more than 150 million mobile phone subscribers, according the report, and a high penetration of smartphones.
But the country has also become increasingly reliant on broadband.
A report from McKinsey earlier this year said that a growing number of Chinese households were being forced to rely on data services, which cost around 30% of their monthly income.
A McKinsey study from 2014 found that a quarter of households in China had been cut off from basic internet access due to a lack of affordable broadband.
China has also been slow to build out its own broadband infrastructure, with the government only building a handful of new high-capacity broadband lines in 2015.
It has also invested heavily in data centres in an attempt to accelerate broadband adoption.
China’s government has also stepped up subsidies to the telecommunications industry, which can now be up to $1,500 per month for a household.
“China has been very aggressive in terms of subsidising telecoms companies,” said Chen.
“We’re seeing an acceleration of that now.”