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“Broadband is today what the highways were years and years ago. You had to have highways to get anywhere. Broadband connections are digital highways, and they are absolutely necessary for us to participate in the global economy.” James Winningham, Chairman of the Arkansas Broadband Initiative, says in regards to understanding the importance of broadband access to all Arkansans.
Broadband access enhances economic growth and performance. Documenting various measures of economic growth and performance between 1998 and 2003, an Economic Development Administration study concluded that communities which had mass-market broadband, “…experienced more rapid growth in employment, the number of businesses overall, and businesses in IT-intensive sectors, relative to comparable communities without broadband at that time.” The positive impact of broadband was found to be robust even for areas that were economically distressed. In short, the report states that, “Broadband is clearly related to economic well-being and is thus a critical component of our national communications infrastructure.”
In 2006, almost three-quarters of adults were online and 46 percent of households, or 54.6 million, had broadband access throughout the United States (“Broadband Worldwide: 2005-2011”). The use of IT has virtually transformed all sectors of the U.S. economy. E-Commerce retail sales have grown six times faster than total retail sales. Farmers use the internet to sell crops, track market prices and purchase supplies. The government issues E-Z passes to automate toll collection. Parents are even able to communicate virtually with their children’s school teachers. All of these uses translate into significant productivity gains and an increased standard of living.
According to the 2007 State New Economy Index, which ranks states based on their ability to compete in the new economy, Arkansas is significantly behind the rest of the country, ranking 47th in the nation (Ewing Marion Kauffman Foundation). More specifically, the state has yet to catch up to the rest of the nation in regards to its competitiveness in today’s digital economy.
As the share of business and government transactions conducted through digital means continues to increase, it will become more crucial that Arkansas takes steps to retain and strengthen its digital infrastructure. The digital transformation has already revolutionized communities throughout the country and it can do the same for Arkansas. Although rural areas have been slow to join the global economy, the willingness of Arkansans to address these issues and embrace broadband deployment can help build the next generation communications infrastructure that will translate into job growth for Arkansans.
Connect Arkansas, a private, non-profit, is implementing a community-based initiative that will link all Arkansans, especially in rural areas, to the internet. The Connect Arkansas Broadband Act was signed into law by Governor Beebe on March 28, 2007, to ensure the creation of a competitive broadband, or high speed internet, infrastructure that will not only improve personal lives, but also the economic capabilities and of all Arkansans.
In economic development, education, and healthcare, broadband is a key strategic component.
Broadband in Arkansas. According to the 2008 State New Economy Index, which ranks states based on their ability to compete in the new economy, Arkansas ranks 47th in the nation. Arkansas also ranks 49th in deployment of broadband telecommunications.
In a recent survey of 608 registered Arkansas voters, 29% of the population have “never used the internet,” while another 7% were unsure of what broadband, or high speed internet access, meant. Even if broadband was affordable and was made available to every household in Arkansas, 30% of the population would not subscribe to the service. With regards to internet access, 51% do not have broadband service.
Capitol Recap: Broadband in Arkansas
http://www.talkbusiness.net/playvideo.aspx?document=395
Our Focus. To facilitate statewide broadband access, Connect Arkansas will focus on three major components:
> Determination of existing broadband infrastructure in Arkansas.
An important step in facilitating access is to create an understanding of local needs. By mapping the state’s existing broadband infrastructure, Connect Arkansas will provide a level of detail that is currently not available in Arkansas. These maps will show where access is available, and more importantly, where access is not available. With this information, broadband providers can strategically optimize their network deployment plans and communities can further their Information Technology (IT) planning initiatives.
> Education.
Connect Arkansas will work with community leaders to develop a strategic plan for IT deployment, while working with local communities to provide public internet access and computer training.
> Equipment and Access.
Through the Breaking Boundaries with Broadband Program, Connect Arkansas will work with existing community programs and create programs as needed to promote increased internet use and ownership of computer devices.
Creating Impact. At the Community Level.
The work of Connect Arkansas helps to build stronger communities. Through the creation of a competitive, local telecommunications infrastructure, communities will be able to sustain high-value jobs and provide a greater quality of life.
For the State
According to the CSE Freedom Foundation, full broadband deployment in Arkansas will create 8,200 new jobs and bring in over $2.6 billion annually in additional Gross State Product (GSP).
