Broadband's Economic Impact Remains Unclear, Contested

Internet access is a critical concern across the United States. Countless news reports chronicle a trend of states and local areas working to expand broadband Internet for unserved and underserved populations. One assumption driving these efforts is that improved broadband coverage will lead to better economic outcomes. Here’s the complication: Research on broadband doesn’t necessarily confirm that assumption, even though certain pieces of research seem to suggest the case is closed. The literature on the relationship between broadband and the economy often focuses on two types of broadband: rural and municipal. Both types have distinct academic arguments associated with them, though observations about one type can sometimes be applied to the other. 

Given the mixed results on the association between broadband and economic growth, what can leaders do as they plan to bring broadband to their communities? Governments must consider the number of people who would receive broadband in a given scenario versus the cost of the effort. Spending taxpayer dollars could be more difficult to justify when fewer people receive service. And broadband adoption must be a “key component” of any government initiative.