Broadband spurs growth

By DOUG ADAMS

Our nation’s broadband economic stimulus plan — part of the America Recovery and Reinvestment Act — is placing a bet our economy will improve with the expansion of high-speed Internet.

Of course, there are the jobs created just through basic construction, such as the building of broadband networks including fiber and towers. This is no different from jobs created through construction of a building. But if a region builds an office building with no use — with hardly any potential tenants — the economic impact will be short-lived and limited to the building project itself.

Promise of broadband

So what will we do with all of this broadband once we have it? The promise of broadband is much more significant than opportunities a new office park might provide. Faster and more pervasive Internet service provides a platform for innovation, research, and development for all citizens — bringing with it new products, services and most importantly, revenue streams.

What kinds of products and services? Well without broadband, there would have been no impetus for the iPod, Kindle and digital cameras — and no explosive growth in the electronics market. Without broadband, there would be no way to communicate with your doctor over Internet-enabled video conferencing, potentially leaving health care costs to skyrocket even more than they already have. And without broadband, there would be no way to watch your favorite shows from anywhere on your laptop or smart phone — and along with that, there would be no growth in online advertising revenues.

To understand the economic benefit of massive broadband expansion, you need to appreciate the benefits known and unknown, seen and unseen. Early in the decade as broadband became more common, there was no way to predict the economic impact each development would have. We wanted faster access to Web pages. The iPod and Kindles weren’t even ideas yet.

Economic growth

In a 2006 study funded by the U.S. Department of Commerce, researchers from the Massachusetts Institute of Technology and Carnegie Mellon University concluded broadband access “does enhance economic growth and performance, and that the assumed economic impacts are real and measurable.” Looking at a cross-section of communities across the nation, the study found that between 1998 and 2002, communities that had mass-market broadband experienced more rapid growth in employment and in the number of businesses, especially in technology-intensive sectors, compared to communities without broadband.

X Doug Adams oversees public information efforts for the Knight Center of Digital Excellence, operated by Cleveland-based technology nonprofit OneCommunity, in partnership with The John S. and James L. Knight Foundation. Distributed by McClatchy-Tribune Information Services.