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Making the connection
1.
© The Economist
Intelligence Unit Limited 20151 A report from The Economist Intelligence Unit Making the connection Groups aim to bring Internet access to all households Access and Empowerment For the first few months of Darriale Bradley’s junior year of high school in Macon, Georgia, her mother drove her to the parking lot of a local McDonald’s so that she could do her schoolwork. Without Internet access at home, the fast-food restaurant’s free wifi provided the only feasible way for Bradley to research English papers and watch the YouTube tutorials recommended by her maths teacher. “We went to the library sometimes, but there was always a wait time and a time limit—usually you’d only get half an hour. I didn’t want to go through all that,” says Ms Bradley. But later that fall, Ms Bradley noticed a flyer at school advertising a low-cost Internet service called Connect2Compete, and shortly after Thanksgiving she and her mother had high-speed Internet service at home for $10 a month. Not only did this enable Bradley to complete her schoolwork from home, she also had the time to research and eventually win scholarships and grants that covered two-thirds of her first-year college costs. The salutatorian of her 2014 high-school graduating class, Ms Bradley is currently a computer- engineering major at Mercer University in Macon. “I cannot say how important it was to have Internet in the 11th and 12th grades. Without it, I wouldn’t have had the chance to look at colleges or scholarships,” she says. Sponsored by Broadband becoming a graduation requirement— over 70% of teachers assign homework requiring an Internet connection
2.
© The Economist
Intelligence Unit Limited 20152 Making the connection From schoolwork to banking to job-hunting, most people in the developed world conduct their business online without giving it a second thought. But for the one in four Americans who don’t have Internet access at home, completing such tasks often involves long waiting times for computers and free networks. “We have talked to librarians in different cities and they consistently tell us that the moment they open up, there is already a line,” says Steven Renderos, National Organiser for The Center for Media Justice. “Up until the moment they close, their computers are always busy.” And even after patrons log on, short time limits often prevent them from completing tasks like job applications or searches, he says. As the world becomes increasingly digital, the challenge of living without home access only becomes greater. Mr Renderos notes that more and more tasks—such as obtaining a General Education Development (GED) or applying for government services—increasingly require online interaction. Similarly, applying for a minimum-wage retail job often means filing an online application at home or at an in-store kiosk—paper applications are increasingly rare. “You could hardly find a job opportunity that wouldn’t have you interacting with the Internet in some way, shape or form. As we become increasingly more digital, the folks who are not online become even further marginalised,” says Mr Renderos. The digital divide is also putting students from unconnected homes at a substantial disadvantage. A recent White House report states that students who don’t have broadband at home have lower standardised test scores, and 70% of teachers now assign homework that requires access to the Internet, says a Common Sense Media report. Zach Leverenz, CEO of EveryoneOn, a non-profit organisation that partners with Internet providers and communities to offer affordable broadband access, says that schools are increasingly transitioning to blended learning programs, in which students work independently using digital platforms. “We support these programs,” he says. “The problem is that they carry an assumption that the student has Internet access at home. For students who don’t, there is a potential deepening of achievement gaps, as we further marginalise those students who are already disadvantaged.” There is a strong correlation between income and one’s likelihood of having Internet at home: census data shows that 80% to 90% of households with annual incomes of $50,000 or more have home Internet, compared with less than 50% of those with annual incomes of $25,000 or less. Half of US homes with less than $25,000 in annual income do not have home Internet access
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© The Economist
Intelligence Unit Limited 20153 Making the connection While affordability is the primary barrier to home Internet access in most of the developed world, Rouzbeh Yassini, Executive Director of the Broadband Center of Excellence at the University of New Hampshire, notes that 30 million Americans live in areas where broadband service is unavailable. “They have no access to any shape or form or type of broadband,” he says. The lack of connection harms not just the individuals themselves but also the economic-growth potential of their communities. A Broadband Center of Excellence brief reports that rural counties in which more than 60% of citizens use broadband have more rapid income growth and slower unemployment growth than comparable counties with fewer residents online. Mr Yassini, who was part of the team that invented the cable modem, says the major broadband companies don’t consider many towns of 300 or 400 citizens economically worthwhile to build in. However, he says these communities could be connected via alternative means such as satellite technology or TV White Space, which uses the unlicensed VHF/UHF channels employed by television broadcasters in the mid-20th century. His organisation offers guidelines to help entrepreneurs bring high-speed Internet to unconnected areas profitably. A positive correlation between broadband access and economic growth can be found worldwide. A UNESCO/International Telecommunication Union report, Broadband: A Platform For Progress, notes that several studies have found increasing broadband penetration correlates with economic growth in countries that include Brazil, China, and Thailand. In particular, the report points to World Bank data stating that every 10% increase in broadband penetration raises GDP growth by 1.38% in low- and middle-income countries and 1.21% in high-income countries. Throughout much of the world, public and private entities have made significant progress in expanding broadband access: In Uruguay, every primary-school student has been equipped with a laptop and Internet access at school. The project cost less than 5% of the country’s education budget. In Sweden, one of the world’s most digitally connected countries, the government has committed more than Skr4.4 billion to municipalities and operators that provide broadband service in areas where there was no market incentive to do so. One successful program provides broadband to 95,000 low-income families in a public housing project. “The bottom line is that broadband access provides a lot of individual value for the families who come online for the first time, but there is also a macro-economic imperative here,” says Mr Leverenz. “Everyone has a stake in this game.” World Bank— every 10% increase in broadband raises GDP growth by 1.4% in low- and middle-income countries
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