The Economic Benefits of Ubiquitous Broadband: Why Invest in Broadband Infrastructure and Adoption?

[Commentary] How much is being lost in economic benefits because fixed broadband connectivity is not ubiquitous? A 2017 study by Ohio State University Swank Program on Rural-Urban Policy estimated the economic benefits of providing broadband access to unserved households in Ohio. To calculate these estimates, the Ohio State study used customer surplus – what a consumer is willing to pay for a service compared to what they are actually paying. In other words, consumer surplus is the average amount of value a consumer receives from Internet service above and beyond the price.

The most conservative of scenarios, which assumes full access but only 20 percent adoption, would generate an impact of $4.5 billion per year or $43.8 billion over fifteen years in the US. In non-metropolitan counties, this same scenario would yield $2.3 billion annually or $22.7 billion over fifteen years.

[Dr. Roberto Gallardo is Assistant Director & Community & Regional Economics Specialist of the Purdue Center for Regional Development at Purdue University.
Dr. Mark Rembert is the Graduate Research Associate at the Swank Program on Rural-Urban Policy at the Ohio State University.]