The conclusion of a study from the Center of Rural Innovation (CORI) is fairly simple: Greater levels of fiber, delivered by local service providers, improves economic outcomes for rural communities.
The study, “Beyond Connectivity: The Role of Broadband in Rural Economic Growth and Resilience,” looked at three scenarios: underserved communities, those with basic broadband and those with broadband that offers “access to experiences that go beyond fast internet” and is offered by small service providers.
The study found that rural counties with “high broadband” have 213% higher business growth than similar counties with low bandwidth utilization. It found that greater broadband access can increase self-employment by 10% by linking startups to banks and sources of small business loans and venture capital.
The study also found that higher levels of broadband create a “chain reaction of growth and innovation” that is “synonymous with a stronger and more dynamic economy.” The study found that counties with greater than 80% adoption range predominantly from a small service provider had 18% per capita growth during the study period. This equates to almost $500 per person annually.
“Notably, we find evidence that existing residents are the primary beneficiaries of these economic gains (rather than new arrivals),” said CORI Director of Research Amanda Weinstein, Ph.D., who was the author of the report.
“In stark contrast, areas with the lowest levels of broadband utilization have lower income growth rates and are more likely to experience business closures and population decline. These findings highlight the critical importance of both expanding broadband access and fostering its effective utilization to drive economic growth, enhance resilience, and build a more prosperous future for rural communities.”
The research used data from 2020 to 2022. It was sponsored by vendor Calix, NTCA–The Rural Broadband Association, and the Fiber Broadband Association.
This study adds its voice to others that declare the primacy of fiber. In the wake of recent Broadband Equity, Access, and Deployment (BEAD) program requirements, NTCA and others argued for fiber as the best option, compared to satellite or fixed wireless.
