A modest increase in broadband adoption could add $134 billion annually to the U.S. economy according to research released today by Connected Nation, a national non-profit. The 30-page report titled “The Economic Impact of Stimulating Broadband Nationally” provides new information on the positive economic effects of increased broadband penetration should legislation currently under Congressional consideration pass.
“At a time of $100-per-barrel oil prices, economic stagnation and rising inequality, Connected Nation offers a chance to address our nation’s greatest challenges,” said Larry Irving, IIA Co-Chair. “Greater broadband deployment can restore economic growth, reduce our dependence on foreign oil and expand opportunities for those who have been left behind.”
The report analyzes the success of ConnectKentucky, a public-private partnership that has significantly increased broadband access in the Bluegrass State, and extrapolates the potential direct economic stimulus for the nation. Findings suggest that by leveraging the model of ConnectKentucky into a national policy, the U.S. could hedge $134 billion annually.
“We applaud Connected Nation’s efforts to extend the overwhelmingly positive model of ConnectKentucky to the rest of the nation,” said Bruce Mehlman, Internet Innovation Alliance Co-Chair. “Initiatives mapping broadband demand are proven to accelerate deployment and adoption, especially to rural and underserved areas, and this study shows the significant economic benefits that follow.”
Surveying the impact of its first state-based program, the Connected Nation report indicates a higher rate of growth in broadband adoption (i.e. the number of households subscribing to high-speed broadband service) in Kentucky, 83%, versus the national trend of 57%. Calculating consumer savings in time, miles driven and health care and by assessing the impact on job creation/retention, the report approximates the annual economic benefit for Kentucky.
Using the state-specific data, the study estimates the direct economic stimulus of Congress passing legislation that would enable every state to implement programs similar to ConnectKentucky. Connected Nation finds that a seven percentage point increase in national broadband adoption could lead to:
The creation of 2.4 million jobs
$662 million savings in healthcare costs
$6.4 billion annual mileage savings
3.2 billion fewer pounds of carbon dioxide emissions annually
3.8 billion hours of time saved for American consumers
“It is gratifying to have the support of the Internet Innovation Alliance in this common goal of nationwide broadband expansion,” said Brian Mefford, CEO of Connected Nation. “In light of our country’s current economic state, it is extremely apparent that Congress needs to pass pending legislation that would improve access to and use of broadband, such as provisions currently in the Farm Bill.”
The Internet Innovation Alliance and Connected Nation are committed to widespread usage and availability of broadband to improve people’s lives.
About The Internet Innovation Alliance
Larry Irving and Bruce Mehlman founded the Internet Innovation Alliance (www.internetinnovation.org) in 2004. The IIA is a broad-based coalition of non-profit organizations, businesses and trade associations committed to Universal Broadband.
Irving is president and CEO of Irving Information Group, a consulting firm providing strategic advice and assistance to international telecommunications and technology companies. He is the former Assistant Secretary of Commerce for the Clinton Administration.
Mehlman is co-founder of Mehlman Vogel Castagnetti Inc., a bipartisan public affairs consulting firm based in Washington, D.C. He is the former Assistant Secretary of Commerce for the George W. Bush Administration