Broadband payback not just about subscriber revenues

When doing a cost/ benefit analysis on telecom infrastructure investment, it’s important to take into account not only the direct revenues that the infrastructure generates but also the dollars that flow into a community as a result of the investment.

Imagine trying to sell a home today that only had party line phone service and think about the impact that would have on the value of the home. Now apply that logic to broadband. With two-thirds of U.S. households accustomed to having broadband connectivity, I'm already hearing that homes in areas with inadequate broadband coverage are becoming more difficult to sell. And that situation is only going to get worse as young people who never knew a world without broadband begin to buy homes. It’s not easy to quantify the indirect benefits that flow from modern telecommunications infrastructure, but now and then someone takes a crack at it. Nokia Siemens Networks, for example, commissioned a study that found that the U.S. could increase its GDP by $100 billion with an increase of 10 additional broadband lines per 100 individuals. Another study, from the Internet Innovation Alliance, found that using broadband could save U.S. households an average of nearly $8,000 a year. And although some broadband benefits are difficult to quantify, most people recognize that modern telecommunications infrastructure can help communities attract and retain business and that broadband applications—such as telemedicine and distance learning--can save money and improve a community’s quality of life. Taking these factors into account, perhaps broadband payback periods aren't as long as they might seem.