A capitalist fix to the digital divide

Apjit Walia, the global head of technology strategy at Deutsche Bank, has a free market suggestion for ending the digital divide: Big technology companies should pay for millions of lower-income Americans to get what they need to go online. And not out of the goodness of their heart. In Walia’s view, it would be a smart business decision to reach new customers and repair Big Tech’s reputation. Walia penciled out a five-year plan for big tech companies to collectively spend about $15 billion on three things for millions of Black and Latino households with an annual income below $30,000: providing discounted internet service, supplying basic computers, and providing mentorship and education on technical skills.

Why would tech companies do this? Self-interest. This internet gap is an economic liability for these Americans and the country as more jobs have digital components, Walia said. It’s bad for tech companies, too. “This is about investing in a market that is going to be a large demographic group in a generation,” he said. Walia also said that by starting to tackle the digital divide, tech companies build good will among lawmakers and regulators, who are more closely watching how Big Tech uses its power.