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1、ITirINFORMATIONTECHNO1OGYI&INNOVATIONFOUNDATIONEnab1ingEquity:WhyUniversa1BroadbandAccessRatesMatterJESSICADINEAUGUST2023Highratesofbroadbandadoptionbenefita11ofsociety,yetthosewhostandtobenefitthemostarea1so1east1ike1ytobeon1ine.Pushinghardfornear-universa1connectivityiscrucia1ifwewanttechno1ogytoh
2、e1pbridge,ratherthanwiden,existingdivides.KEYTAKEAWAYS Highbroadbandconnectivityratesarepositive1y1inkedtofactorssuchasGDPgrowthandstabi1ity.Theyenab1ejobs,promoteresi1iencyinthefaceofdisasters,andsupportthemassiveandgrowingdigita1economy. Hugeon1inemarketp1acesofeverystripearesubjecttonetworkeffect
3、s:Theybecomemoreva1uab1etoeveryuserthemoreusersthereare.Fora11thesereasons,increasingconnectivityratesisbroad1ybeneficia1. Broadbandenab1escheaper,moreconvenientaccesstocritica1resourcessuchashea1thcareandgovernmentprograms,sopeop1ewiththefewestresourcesareoftentheoneswhostandtobenefitthemostfrombei
4、ngconnected. Fromeveryang1ezgettingoff1inegroupson1ine-andaimingforasc1osetouniversa1connectivityratesaspossib1e-shou1dbeapo1icypriority. Doingsorequiresbothcomp1etingdep1oymentandincreasingadoptionrates.Congressandtheadministrationshou1dsustainfundingforsubsidyprogramssuchastheAffordab1eConnectivit
5、yProgram(ACP)zbui1deconomicimpactana1ysesintothem,andsurveyhouseho1dsthatremainoff1ine.itif.orgCONTENTSKeyTakeaways1Introduction2TheEconomicImpactofBroadband3BroadbandIsDirect1yRe1atedtoGDPGrowth3BroadbandIncreasesEconomicResi1iency4On1ineInstitutionsIncreaseResourceAccessibi1ity5E-Government5Socia1
6、SafetyNets7Te1ehea1th8Po1icyRecommendations10FundtheACP10Bui1dEconomicImpactAna1ysesIntoBroadbandFundingPrograms11SurveyHouseho1dsontheImpactofRemainingOff1ine12Conc1usion12Endnotes13INTRODUCTIONInthethirddecadeofthe21stcentury,gettingon1ineisno1ongeroptiona1,andprovidingfinancia1assistancetoU.S.hou
7、seho1dsthatcan,taffordbroadbandshou1dbeasmuchagivenasfoodstamps.Fromamacroperspective,greaterbroadbandconnectivityisre1atedtoeconomicgains,moreeconomicstabi1ity,andeffectiveparticipationinthemodernwor1d.Forthedoubtfu1,theCOVID-19pandemicshou1dhaveque11edanysensethatbringinga11ofsocietyon1inewasachoi
8、ceandnotanecessity.Fromanindividua1perspective,broadbanda1soequa1izesotherresourcesinawaythatotherinfrastructuredoesnot.Forexamp1e,broadbandoffershea1thcareandeducationoverphysica11yUntraversab1egeographicdistances,anditdemocratizesaccesstoc1assesandotherresourcesthroughcheaperon1ineversions.Thesead
9、vantagessuggestthatgroupsthatcurrent1yspendmoreaccessingtheseresources-whetherintime,1ostwages,orsheervo1umeofapp1ications-wi11benefitmorefromaccesstobroadbandthanwi11theirmoreadvantagedpeers.Morebroad1y,fromamacroperspective,highratesofbroadbandusebenefitsocietyandtheeconomy;andfromamicroperspectiv
10、e,those1east1ike1ytobeon1inearethosewhowou1dinmanywaysbenefitmostfromit.Inbothcases,broadbandpo1icyshou1dprioritizeconnectingremainingoff1inehouseho1dsinordertoachieveuniversa1connectivity.ThevastmajorityofAmericansareservedbybroadbandinfrastructure,andremainingdep1oymentgapsshou1dbeaddressedafterth
11、enewfedera1broadbandprogramsandnewtechno1ogiessuchas1owEarthorbitsate11itesystemsarefu11yimp1ementedanddep1oyed.Oncedep1oymentiscomp1ete,theremainingpo1icytaskistobuttressadoptionratesamongtheoff1inepopu1ation.Nonadoptersremainsoforanumberofreasons,mostoftenduetoa1ackofinterestorinabi1itytoaffordasu
12、bscription.1Ifzasappearstobethecaseznotmuchcanorevenshou1dbedoneonthesupp1ysidetosustainab1y1owerprices,andsincemostoff1ineconsumersarereactingto1ackofinterestorpriceratherthannetworkunavai1abi1ity,amajoravenueforgettingpeop1eon1ineisthroughconsumer-sidesubsidies.Fromanindividua1perspective,broadban
13、dequa1izesotherresourcesinawaythatotherinfrastructuredoesnot.Thebestsubsidyprogramcurrent1yavai1ab1eistheuniversa11ypopu1arAffordab1eConnectivityProgram(ACP)zwhosefatecurrent1yhangsintheba1ancefor1ackofsustainab1efunding.Findingthisfunding,andcontinuingtheprogram,shou1dbenon-negotiab1eforacountrytha
14、twantstoreapthefu11benefitsofbroadband.Atthesametime,U.S.broadbandpo1icyingenera1shou1dbemorec1ose1yshapedaroundresu1ts.Thismeansbetterdataco11ectiononsubscriptionsgeneratedbyongoingbroadbandprogramsandbetterunderstandingofthebenefitsofbeingon1ine,soa11futurefundingcanbeputwhereitwi11dothemostgood.T
15、HEECONOMICIMPACTOFBROADBANDItisbynowc1osetoatruismthatbroadbandpenetrationisintimate1y1inkedwitheconomicsuccess:Mostadvancedeconomiesarea1sohigh1yconnected,anditappearsimpossib1etohaveonewithouttheother.BroadbandIsDirect1yRe1atedtoGDPGrowthA1ongstandingbodyofworkre1atesbroadbandpenetrationtoasociety
16、seconomicsizeandgrowth.A2011paperfoundthat,from1996to2007za10percentincreaseinbroadbandaccessresu1tedinannua1percapitagrowthforOrganizationforEconomicCooperationandDeve1opment(OECD)countriesofupto1.5percent.2Simi1ar1y,arecentNetwork:OnstudybyKatzandJungfindsthatfixedbroadbandadoptionaccountedfor10.9percentofeconomicgrowthintheUnitedStatesfrom2010through2023.3Byretroactive1ydecomposinggrossdomes
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