TAILIEUCHUNG - The Economic Impact of Stimulating Broadband Nationally

Conventional project evaluation also tends to undervalue public transportation service quality improvement benefits (Litman 2007b). High quality, grade separated public transit attracts people who would otherwise drive on congested roadways, which reduces the point of congestion equilibrium (the level of congestion at which travelers reduce their peak-period trips). Although congestion never disappears, it is not nearly as bad as would occur without such transit services. Since transit services experience economies of scale, service quality and cost effectiveness tend to increase as demand grows, providing additional user benefits. . | The Economic Impact of Stimulating Broadband Nationally A Report from Connected Nation Inc. Feburary 21 2008 CONNECTED N ATI B N. Contents Key Findings 1 Affirmations 2 Executive Summary 4 Introduction 9 Broadband Adoption in Kentucky 11 No Child Left Offline Program Accelerates Adoption 13 Kentucky Outpaces National Averages for Broadband Adoption 15 Economic Impacts of Increased Access Adoption in Kentucky 17 Estimating the Economic Impacts of a Connected Nation 20 Policy Recommendations 22 Key Findings Kentucky s broadband adoption rate is higher than the national trends due to Connected Nation s first statewide broadband expansion program ConnectKentucky. Adopting a national policy to stimulate the deployment of broadband in underserved areas of the . could have dramatic and far-reaching economic impacts. For instance just a seven percentage point increase in broadband adoption could result in o 92 billion through million jobs created or saved annually o 662 million saved per year in reduced healthcare costs o billion per year in mileage saving from unnecessary driving o 18 million in carbon credits associated with billion fewer lbs of CO2 emissions per year in the United States o billion in value from billion more hours saved per year from accessing broadband at home o 134 billion per year in total direct economic impact of accelerating broadband across the United States If Congress passes legislation such as S. 1190 . 3627 . 3919 or S. 1492 to empower every state to implement programs modeled after ConnectKentucky and experience an increase in the growth rate of broadband adoption over what should be expected without a broadband focused program the estimate of direct economic stimulus is more than 134 billion per year for the nation. In 2007 the . House of Representatives voted unanimously to pass such legislation and the . Senate passed a similar proposal as part of a renewal of the Farm Bill. The Senate and the House .

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