Kentucky’s broadband expansion could generate $71.5M in economic benefits

Broadband benefits

FarrPoint’s study found that improved digital connectivity across Harlan County could have significant economic benefits.

First, it would drive an estimated $8.7 million economic boost. Today, access to quality broadband infrastructure in Harlan County is far below the US average (16.1% of the county is unserved by broadband networks, compared to 3.8% nationally).

Increasing broadband adoption to levels seen in the rest of the country could lead to a further $5.6 million in economic benefit. Currently, the adoption rates of online services are nearly 9% below the US average.

However, better broadband would also improve the county’s population.  

“Improving broadband availability would result in more than 1,000 people relocating to or staying in the county, with an economic impact of over $57.2 million,” the authors wrote.

The study cited how Pedro Morgado, a manager in software development, relocated to Harlan County from Florida. He said that the lack of fiber broadband would have been a deal-breaker for him moving to this area, as he needs to be able to work from home.

“Working remotely, he knew reliable fiber broadband was essential, so he asked the real estate agency about it before committing,” according to the study. “If fiber internet wasn’t available, it would have been the deal-breaker. There was no cell coverage on-premises, but fortunately, the home had excellent fiber service, which sealed the deal.”

While Morgado saw his internet bill more than double from $55 to $114 monthly, the internet has been what the study’s authors said is “his lifeline, especially since cell reception in Harlan, both at his home and in the center of town, is notoriously poor.” He also uses the fiber service to connect his internet of things devices.

To tackle the county’s depopulation challenge, various programs, including those led by SOAR, have been launched in the region to attract people to relocate to Harlan County.

“Broadband is fundamental to efforts to bring jobs, businesses, and new residents to Eastern Kentucky. When I ask people what they need to relocate or invest in, high-speed internet consistently ranks top alongside housing, healthcare, and education,” said Colby Hall, Director at SOAR. “This report shows how transformative connectivity investments can be for rural communities like Harlan County.”

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