Center on Rural Innovation Releases Study on Rural Broadband and Economic Growth

A study released by the Center on Rural Innovation (CORI) makes the claim that fiber-fed broadband experiences enabled by local providers in rural communities “significantly boost income, entrepreneurship, and business investment.”

The study was sponsored by Calix, Inc. (NYSE: CALX), NTCA–The Rural Broadband Association, and the Fiber Broadband Association.

"Beyond Connectivity: The Role of Broadband in Rural Economic Growth and Resilience" compares economic data from three types of rural communities: underserved communities, communities with access to basic broadband services, and communities served by smaller fiber broadband providers offering access to experiences that go beyond fast internet.

According to the researchers, there is a more significant economic impact in communities that are better connected and have access to additional services that allow users to effectively leverage that connection, while comparable underserved communities experience economic stagnation.

Findings

Researchers analyzed data from 2020-2022 for the study, primarily post-pandemic.

The study finds that rural counties with high broadband adoption rates of over 80% have “significant advantages" over those with low usage, including 213% higher business growth, 10% higher self-employment growth, 44% higher GDP growth, and 18% higher per capita income growth. 

"Notably, we find evidence that existing residents are the primary beneficiaries of these economic gains (rather than new arrivals)," concludes the study, authored by economist Amanda Weinstein, director of research at CORI. "In stark contrast, areas with the lowest levels of broadband utilization have lower income growth rates and are more likely to experience business closures and population decline. These findings highlight the critical importance of both expanding broadband access and fostering its effective utilization to drive economic growth, enhance resilience, and build a more prosperous future for rural communities."

Sponsors of the study, including the Fiber Broadband Association, weighed in on the research. "CORI’s economic study underscores the positive impact that reliable, high-quality, fiber-based connectivity can have on the success of our families, businesses, and communities," said Gary Bolton, president and CEO of the Fiber Broadband Association.

 "Every community — especially those in rural environments — needs access to reliable, high-speed broadband services to compete in today’s digital economy and access modern applications for health care, education, employment, and more. When those services are connected by fiber, we know they are backed by the most reliable, sustainable, long-lasting, and high-performing broadband technology available. When fiber leads, the future follows."

The full report can be accessed here.