Report Questions Economic Impact of Rural Broadband
A new report from the American Action Forum questions the economic impact of rural broadband. The report draws on an econometric model of Federal Communications Commission data that, “suggests that the presence of broadband does little to explain the unemployment rate, median household income, the change in employment or the rate of population change in rural regions.” The report states that broadband adoption measures are “far better at explaining these trends.” While the report in some ways seems to be splitting hairs – clearly, you can’t have broadband adoption without broadband – it does break some new ground in terms of rural broadband research by looking at rural broadband availability in a granular manner.
What to takeaway? The author’s statement that the econometric model shows that “the percentage of the population with access to 25/3 [Mbps] broadband doesn’t explain the unemployment rate, median household income, the change in employment or the rate of population change in rural regions” tells only part of the story. The author goes on to state that broadband adoption explains economic trends four times better than broadband availability – a finding that would seem to highlight the importance of making broadband not just available but also affordable and of supporting it with broadband adoption programs.
Report Questions Economic Impact of Rural Broadband (telecompetitor) A Look At Rural Broadband Economics (read the report)