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Importance of Broadband for Economic Growth and Development

Broadband connectivity is crucial for economic productivity and job creation. Countries like Denmark and the US rank high in e-readiness, with broadband impacting sectors such as education, healthcare, and commerce. Disparities exist between urban and rural areas, affecting business growth and services. The commercial sector relies on dedicated broadband connections for high service levels, but rural areas face higher costs and limited providers. Broadband access is key for global competitiveness and attracting businesses.

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Importance of Broadband for Economic Growth and Development

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  1. Why Broadband Matters

  2. Broadband Diffusion and Adoption • International • National • State • Rural

  3. Broadband Penetration/100 Inhabitants (ITU) • US Broadband penetration/100 inhabitants • 2005 – 16th • 2002 – 11th • Canada • 2005 – 5th • 2002 – 3rd US is falling behind - Potential loss of $1 trillion in economic productivity and more than 1.2 million jobs over next decade -Brookings Institution

  4. 2005 e-Readiness Rankings Denmark 1 US 2 Sweden 3 Switzerland 4 United Kingdom 5 Hong Kong 6 Finland 6 Netherlands 8 Norway 9 Australia 10 Economist Intelligence Unit www.eic.com

  5. Pew/Internet – February 2006

  6. Consumer Broadband There is a divide – It matters • Unavailable in some communities • Bandwidth limits applications • Education/training • Tele work • Telemedicine • eCommerce • Entertainment • eGov services • Brain Drain • Economic development

  7. Commercial BroadbandBusiness, schools, government, etc. • Higher service level requirements (99.99999%) • BIG Pipes • Dedicated connections • Higher cost in rural vs. urban/suburban areas • Limited providers in rural areas

  8. Commercial Broadband Matters • Global economy driven by broadband • Businesses less likely to locate or grow without broadband • Geographic penalty • Rural business, governments, schools, hospitals pay more than urban and suburban counterparts

  9. Southern Rural Development Center Connecting Rural Communitieswww.ConnectingCommunities.info Connecting Rural Communities

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