Kentucky’s broadband expansion could generate $71.5M in economic benefits
The presence of broadband in a state could incur various economic benefits.
Kentucky, for one, found through a new FarrPoint study that improving broadband connectivity infrastructure and driving adoption in Harlan County, Southeastern Kentucky, could generate over 70 million dollars in direct economic benefits.
In partnership with Kentucky’s Shaping Our Appalachian Region (SOAR) and the nonprofit impact fund Connect Humanity, the study illustrated the importance of investing in broadband connectivity in a county affected by depopulation and deprivation.
“In addition to infrastructure investment, the county also needs to address broadband affordability and adoption concerns to realize the full economic benefits,” says Andrew Muir, CEO of FarrPoint. “Our work has shown that increased digital adoption could result in an additional $5.6 million of economic benefits to Harlan County.”
Challenging economic factors
Several factors have compromised the county’s economic state.
For one, the coal industry's decline hit Harlan County’s economy hard. Over 30% of county residents have household income below the poverty line, significantly higher than the country’s 12.5% US average.
Also, Harlan County has seen substantial depopulation, losing more than a third (36%) of its population since 1980, and its current population is below 26,000.
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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Sean Buckley
Sean is responsible for establishing and executing the editorial strategies of Lightwave and Broadband Technology Report across their websites, email newsletters, events, and other information products.