Telecommunications first principles assessment

First principles assessment
Why introduce telecommunications?
Demand impacts
Short and long run demand responses
Supply impacts
Financing requirements
Expected impact on key policy objectives
Expected impact on problems
Expected winners and losers
Barriers to implementation

Why introduce telecommunications?
Telecommuting is of great interest for its potential in transport demand management. The potentials are in general related to reductions in commuting and in particular related to reductions in peak hour congestion and improvements in air quality. Other potential benefits include reduced energy use and fewer accidents and less demand for transport infrastructure. It also can expand opportunities for those with impaired mobility or tied to home for other reasons. There are other advantages associated to telecommuting from the point of view of employers, employees and society in general, including:

Increased productivity of labour and increase in motivation of employees
Reduced facility space and expenses for employers
Access to a wide labour pool, recruitment and retention of valued labour for employers
Proximity to family and community and improved quality of life for employees

Demand impacts
While the expectation of telecommunicating is related to the reduction of work trips and the associated vehicle kilometres, the total travel behaviour of those who telecommute is expected to change. In some situations the indirect impacts are comparable to the direct impacts. Most discretionary trips such as shopping are usually chained to a work trip. This implies a potential decrease in number of trips chained together for those who telecommute. The household car could become available to other household members. Furthermore, there is a possibility to relocate residence further away from work, resulting in urban sprawl and longer trips to work and other destinations. From a first principles assessment, one would expect the following results from telecommuting:

Reductions in work trips.
Frequency of trips other than work should not increase.
Trip chaining is likely to be less among those who telecommute.
A reduction in peak period travel among those who telecommute.
Activities take place at destinations closer to home.
Those who telecommute are likely to shift travel mode from public transport and ride sharing.
Telecommuting makes the household car available to other household members and they might shift their travel mode to car.
Trips closer to home may shift to non-motorised modes.
A response to the reduced congestion during peak periods, especially where congestion is acute, is the appearance of latent demand. This will cause a reduction in benefits associated with telecommunication. The extent of the reductions in benefits depends on the existence of other demand management measures.
There is mixed evidence on impacts of telecommuting on residential location choice.

The transport and land use impacts of other tele-activities, such as e-commerce and e-government on travel behaviour are not strong. However the cumulative effects could eventually turn significant in the future.

Responses and situations

Response	Reduction in road traffic	Expected in situations
		Those who telecommute have greater potentials of shifting their commute travel outside peak periods.
		NA
		Those who telecommute concentrate their activities closer to home on both telecommuting and non-telecommuting days.
		Reductions in number of vehicle trips associated with commuting to work, and hence reduction in associated trip chaining. However, telecommuters may not increase the frequency of travel for other purposes. Hence an overall reduction in vehicle trips is achieved.
		Telecommuters are likely to shift travel mode to car for commuting to work. Meanwhile the availability of the household car affects other household members to shift mode to car. Shorter trips close to home can shift to non-motorised modes.

		There is mixed evidence on the impact of telecommuting on residential location choice.

Short and long run demand responses

Most projections of the forecasts in the growth of telecommuting are speculative in nature because of the complexities of the relevant factors. With a wider acceptance of telecommunication the number of average days per week allocated to home-based or centre-based telecommuting is very likely to increase in the future. This will enhance the medium- and long-term impacts of telecommuting.

Demand responses

Response	-	1^st year	2-4 years	5 years	10+ years
	-
	-
	Change job location
-	Shop elsewhere
	Compress working week
-	Trip chain
-	Work from home
-	Shop from home
	Ride share
-	Public transport
-	Walk/cycle
	-
	-

Supply impacts
The reduction in demand for travel, in particular during the peak period, might eventually decrease the infrastructure maintenance and the need for expansion.

Financing requirements
The cost of implementation of telecommunications includes:

Equipments costs such as PCs, telephone lines and terminals and office furniture
Costs for the setup of telework centres
Installation of enhanced communications facilities
Costs for training of employees and managers

The future growth of telecommuting and the use of ICT in activities other than work require efficient, high-capacity broad-bandwidth telecommunications infrastructure.

Expected impact on key policy objectives
Telecommuting can contribute to a number of key objectives through the reductions in congestion during the peak periods. There are further advantages through increased sense of community for employees and neighbourhood residents and positive impacts on local businesses.

Objective	Scale of contribution	Comment
		By reducing congestion during peak periods and hence decreasing delays and improving reliability. The contribution will be greater where other demand management measures are in place to restrain latent demand.
	/	By improving sense of community and positive impacts on local businesses and hence improvements in quality of life in neighbourhoods. However telecommuting could stimulate urban sprawl and other adverse impacts on land use.
		By reducing air and noise pollution associated with the decrease in commuting trips.
	/	Telecommuting can increase education and employment opportunities and improved access to different e-services for mobility-limited or handicapped. However, low income, less-educated households may end up with a lower access to different services offered by governments and businesses exclusively on the Internet.
		By reducing traffic levels.
		Directly, by freeing up productive time currently lost in congestion. Furthermore there are economic growth potentials associated with the development of extensive ICT infrastructures for both urban and rural areas.

Expected impact on problems

Contribution to alleviation of key problems

Problem	Scale of contribution	Comment
Congestion-related delay		By reducing congestion during peak periods and hence decreasing delay. The contribution will be greater where other demand management measures are in place to restrain latent demand.
Congestion-related unreliability		By reducing congestion during peak periods and hence improving reliability. The contribution will be greater where other demand management measures are in place to restrain latent demand.
Community severance		By positive impact on local businesses.
Visual intrusion		-
Lack of amenity		-
Global warming		By reducing traffic-related CO₂ emissions
Local air pollution		By reducing emissions of NO_x, particulates and other local pollutants
Noise		By reducing traffic volumes
Reduction of green space		-
Damage to environmentally sensitive sites		By reducing traffic volumes
Accessibility for those without a car and those with mobility impairments	/	Telecommuting can increase education and employment opportunities and improved access to different e-services for mobility-limited or handicapped. However, low income, less-educated households may end up with a lower access to different services offered by governments and businesses exclusively on the Internet.
Disproportionate disadvantaging of particular social or geographic groups	/	See above
Number, severity and risk of accidents		By reducing traffic volumes
Suppression of the potential for economic activity in the area		By positive impact on local businesses.

Expected winners and losers

Winners and losers

Group	Winners / losers	Comment
Large scale freight and commercial traffic		There is a positive impact through reductions in congestion, especially during the peak periods.
Small businesses	/	By improving sense of community and positive impacts on local businesses. However telecommuting could stimulate acceleration of downtown abandonment.
High income car-users		These journeys will benefit from reduced congestion during peak periods.
People with a low income	/	While telecommuting can increase education and employment opportunities, households with low income may end up with a lower access to different services offered by governments and businesses on the Internet.
People with poor access to public transport		By increasing access to different services offered on the Internet and education and employment opportunities.
All existing public transport users		Those who telecommute shift mode from car and free the household car for the other household members to use. This could result in a decrease in public transport patronage and possible decrease in the level of services.
People living adjacent to the area targeted		By improving sense of community and positive impacts on local businesses.
People making high value, important journeys		By reducing congestion during peak periods and hence decreasing delay. The contribution will be greater where other demand management measures are in place to restrain latent demand.
The average car user		See above

Barriers to implementation
There are a number of barriers to telecommuting. Among the most important of these are liability issues, tax laws, labour union concerns and occupational health and safety issues. Even though the present telecommunications services appear adequate for most situations, a more advanced telecommunications infrastructure can accelerate telecommuting.

Scale of barriers

Barrier	Scale	Comment
Legal		Liability considerations, zoning restrictions and planning regulations, tax and labour law are among the legal issues that need to be resolved with further growth in telecommuting.
Finance		There are costs associated with the setup of a telework centre as well as costs related to equipments such as PCs,
Political		There has been negative response form labour unions based on concerns related to negative impacts on vulnerable employees, occupational health and safety issues.
Feasibility		Implementing a telecommuting programme requires careful management and planning, including selection and training of employees and managers, link to the office, liability concerns and practical details. Employers should accept that telecommuting is desirable and provide the necessary support. The employee should feel comfortable with telecommuting in terms of personal work habit and style and must have a workplace to be able to perform work without distractions. Telecommunications services should be cost-effective for work at a distance from the office. It should also be noted that it is difficult for transport planners to influence the level of development.

Text edited at the Institute for Transport Studies, University of Leeds, Leeds LS2 9JT