Broadband Brings Varied Economic Impacts to Local Areas, States

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Broadband companies can improve regional economic development, though positive effects vary depending on local and state contexts, said experts during a National Telecommunications and Information Administration webinar. Lauren Mathena, director of economic development and community engagement with the Mid-Atlantic Broadband Communities Corporation (MBC), spoke on how MBC allows Internet service providers to connect to its 1,900-mile fiber network in southern Virginia. Mathena said this open access approach is a “proven strategy to reduce costs of broadband expansion,” as ISPs — be they companies or electric cooperatives — only have to worry about last-mile buildouts. An open access network can also help a region or state attract industry. Mathena said MBC was a key reason why Microsoft built an advanced data center in Mecklenburg County (VA).

Indraneel Kumar, principal regional planner for the Purdue Center for Regional Development, described broadband as an economic “catalyst.” Kumar shared a recent study, titled Job Creation From Rural Broadband Companies, that he coauthored with researcher Roberto Gallardo. The study found that in 2017, its sample of rural broadband companies “created and supported 77,000 jobs across different industries” in 44 states. The jobs were in fields as diverse as engineering, accounting, law and retail. The total economic impact was $10 billion.


Broadband Brings Varied Economic Impacts to Local Areas, States