broadband

Because existing evidence points to the presence of broadband as having a positive connection to the economic health in rural areas, numerous states and the federal government have made increasing broadband in these places a top priority. In particular, many rural areas view broadband as an important tool in attracting entrepreneurs and other creative-class employees. Although this tactic is well intentioned, new research suggests that the association between expanded rural broadband availability and the proliferation of entrepreneurship and creative-class employees may not be as strong as one might think, and that the relationship may actually be negative.

The Court of Appeals for the Sixth Circuit ruled against the Federal Communications Commission’s (FCC) plan that would allow municipalities to build their own broadband network – superseding state laws in Tennessee and North Carolina that explicitly prohibit such projects. The FCC claimed that the Telecommunications Act of 1996 granted it implicit power to preempt state laws that are intended to support open markets for private-sector utility companies.

A month after a federal court ruled that high-speed Internet service can be defined as a utility, four states have announced commitments to expand high quality, reliable broadband services to rural areas and other underrepresented groups. Two Midwest states, Wisconsin and Minnesota, will provide funding to help support projects that improve access to broadband and spur economic prosperity.

Throughout the United States, innovation districts have been proposed with varying degrees of emphasis on inclusivity and opportunity.

The United States Department of Agriculture (USDA) announced last month the availability of more than $11 million in grants to support rural broadband through its Community Connect grant program, which seeks to help fund broadband deployment into rural communities where it is not yet economically viable for private sector providers to deliver service. For FY 2016, the minimum grant amount is $100,000, while the maximum award is $3 million.

This week, the White House announced the ConnectAll Initiative, an effort to reform federal communications programs to focus on bringing more Americans online. The focus of this effort will be on lower-income families who often lack access to affordable service and the devices to make use of them. Under the proposed plan, low-income families could be eligible for a monthly broadband subsidy.

AT&T has announced a new partnership with three U.S. metros to establish a Smart Cities Framework using Internet of Things (IoT) innovations to create solutions for cities. In the first stage of the effort, Atlanta, Chicago, and Dallas will showcase the potential use of sensors and other Internet-connected technologies to improve municipal services. In addition to existing services offered by AT&T, the new framework adds several new services in four categories: infrastructure; citizen engagement; transportation; and, public safety.

Tennessee Gov. Bill Haslam recently announced a new fund to support economic development in rural parts of the state. While most of the $8 million (approximately $7 million) is designated for shovel-ready economic development sites and tourism projects, the state will commit $600,000 for economic development grants to support entrepreneurship in small towns across the state including $300,000 to support a Main Street Business Incubator Program for downtown business districts.

Earlier this week during a keynote address at the United Nations, a U.S. Department of State official unveiled an initiative to bring 1.5 billion people around the world online by 2020. Global Connect, the new initiative, will be a cross-agency effort to make Internet access a top priority in foreign policy. The State Department announcement explicitly states that Internet access is being made a priority because of its role in entrepreneurship, innovation, knowledge flows and market creation.

For many states, broadband connectivity is becoming an increasingly important tool used to improve the economic well-being of residents, especially in rural areas. While some have paved the way for publicly funded municipal broadband providers, others, such as North Carolina and Tennessee, have filed suit with the Federal Communications Commission and joined the telecommunications industry in their opposition.