Study: High-speed Internet the connection to greater Iowa revenues

Businesses with high-speed Internet connections have median annual revenues of about $600,000, nearly $300,000 more than businesses without broadband, said Connect Iowa, a group partnering with the Iowa Department of Economic Development to inventory and map broadband use. Their report shows that 72 percent, or about 60,000 Iowa companies, have broadband access; 22 percent, or 18,000 businesses, have no Internet access; 6 percent, about 5,000 companies, have either use dial-up or are unsure whether their Internet is broadband.

Findings from the 2010 survey show a significant correlation between high-speed Internet adoption and a business’s bottom line, the group said. Among the results:

• Fifty-two percent, or 43,000 Iowa businesses, have a Website. Median annual revenues among businesses that use broadband and have a Website are double the state average of $400,000.
• Thirty-one percent of Internet-connected businesses, about 21,000 statewide, say they earn revenues through online sales and transactions.
• Broadband can enable job creation and enhance quality of life. Eighteen percent, or 15,000 Iowa companies, let employees telework.
• Professional and financial services and manufacturing lead in broadband adoption, with 14,000 companies using high-speed Internet. Both sectors had adoption rates over 80 percent and exceed national rates. Only 62 percent of health-care service companies are using broadband, nearly equal the national rate.
• The median monthly cost that Iowa businesses pay for broadband is $62.