Why Broadband Matters www.ConnectingCommunities.info Broadband Diffusion and Adoption • International • National • State • Rural Broadband Penetration/ 100 Inhabitants (ITU) • US Broadband penetration/100 inhabitants • 2005 – 16th • 2002 – 11th • Canada • 2005 – 5th • 2002 – 3rd US is falling behind Potential loss of $1 trillion in economic productivity and more than 1.2 million jobs over next decade -Brookings Institution 2005 e-Readiness Rankings Denmark US Sweden Switzerland United Kingdom Hong Kong Finland Netherlands Norway Australia 1 2 3 4 5 6 6 8 9 10 Economist Intelligence Unit www.eic.com Pew/Internet – February 2006 Consumer Broadband There is a divide – It matters • Unavailable in some communities • Bandwidth limits applications • • • • • • Education/training Tele work Telemedicine eCommerce Entertainment eGov services • Brain Drain • Economic development Commercial Broadband Business, schools, government, etc. • Higher service level requirements (99.99999%) • BIG Pipes • Dedicated connections • Higher cost in rural vs. urban/suburban areas • Limited providers in rural areas Commercial Broadband Matters • Global economy driven by broadband • Businesses less likely to locate or grow without broadband • Geographic penalty • Rural business, governments, schools, hospitals pay more than urban and suburban counterparts Connecting Rural Communities www.ConnectingCommunities.info Connecting Rural Communities Southern Rural Development Center