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story category Study: Broadband Brings Jobs
Carnegie Mellon & MIT research
(old news - 09:50AM Tuesday Jan 24 2006)
tags: coverage · stats
"For the first time, we can say unequivocally that broadband access does matter to the economy, just as common sense suggests it should", notes a new MIT and Carnegie Mellon study (pdf) on broadband's economic impact. "We estimate that between 1998 and 2002, communities in which mass-market broadband was available by December 1999 experienced more rapid growth in employment, the number of businesses overall, and businesses in IT-intensive sectors."

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Forums » Study: Broadband Brings Jobs
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garagerock
Premium
join:2002-06-14
Louisville, KY

well, Duh!

it's not like that new industrial park is going to keep filling high tech jobs on dialup. maybe it's just me.

Shack

join:2002-01-17
Bloomington, IN

Re: well, Duh!

Roll your eyes all you want, but until reliable studies are done you will not convince th powers that be that investment in technology is important. It is a part of reality. This is a good thing that a well respected University is stating what many of us already understand.
gpancner

join:2001-09-27
Nine Mile Falls, WA

Re: well, Duh!

Northeast Ohio has broadband and HIGH unemployment. So how reliable (slanted) is the study anyway?

Shack

join:2002-01-17
Bloomington, IN

Re: well, Duh!

I have no doubt that there are areas that will not meat the model. There is much more to it than simply offering broadband.

ronpin
Imagine Reality

join:2002-12-06
Nirvana
·AT&T Southwest


1 edit

May Krishna bless you very very much!


"Tank you - tank-you tank-you!!!
"Yes yes I scrape living til broad-a-ben come yes yes tank-you!"

Pirate515
Premium
join:2001-01-22
Brooklyn, NY

Re: May Krishna bless you very very much!

said by ronpin See Profile :

"Yes yes I scrape living til broad-a-ben come yes yes tank-you!"
Yes, and yo dauta kick my dog, now I'm going to get a loya and you ar going to go to jail'

Seriously, this is one of the reasons why I prefer OOL over Verizon DSL.
--
Ask me no questions, and I'll tell you no lies...
A MESSAGE to the RIAA and the MPAA: You shouldn't wound what you can't kill...

a

"For the first time, we can say unequivocally that broadband access does matter to the economy.

then go back to your dial up & we'll see about the economy.

a

this is not a "well, Duh" issue. it's a common sence issue.

TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast

Actual positive results statistically inconclusive


From the study


Other than rental costs(and is higher rental costs actually a positive??), the perceived deifference in broadband vs non-broadband areas is 1% or less. I don't know about you, but I find that those %'s are satistically insignificant.

I agree that broadband MAY have a positive affect on a communities prosperity, but I don't think that this study has actually proved that at all.
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ronpin
Imagine Reality

join:2002-12-06
Nirvana
·AT&T Southwest

Re: Actual positive results statistically inconclu

Statistics!!! -- like "Our economy has seen positive growth for 11 straight quarters" (precisely equal to length of Iraq War!)
--
"...lacking a [U.S.] military option, that leaves only a diplomatic option..."(Andrea Mitchell CNBC's Hardball 1/12/06 on Iran nuke buildup)

garagerock
Premium
join:2002-06-14
Louisville, KY

Re: Actual positive results statistically inconclu

»www.amazon.com/gp/product/039331···n=283155
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11
·AT&T Midwest

Well...

Their data is at least three years old, and predates the telecom/dotcom bust. It also assumes that the broadband chicken laid the employment egg and not the other way around. It may be equally true that "mass-market broadband" was first deployed in areas experiencing "more rapid growth in employment" since that's where the money is (was?) to be made.

The telecom landscape has drastically changed since 1999 (or even 2002 for that matter) and I doubt this study will provide much more than an interesting historical factoid snapshot.
--
Toolmaster of La Grange.

Combat Chuck
Too Many Cannibals
Premium
join:2001-11-29
Erie, PA

Re: Well...

said by RadioDoc See Profile :

It also assumes that the broadband chicken laid the employment egg and not the other way around. It may be equally true that "mass-market broadband" was first deployed in areas experiencing "more rapid growth in employment" since that's where the money is (was?) to be made.
My thoughts exactly.
--
Asking those who disagree with you to find support of your arguements is like asking an assailant if you can borrow his gun.

richardpor
Fur it up

join:2003-04-19
Portland, OR

Bingo We have a winner
You are correct. I believe the data was molded to fit the hypothesis. I can give two examples of the opposite. I live in Hillsboro Oregon which was the epicenter of the State of Oregon’s “investment” I.E. throwing more tax dollars tax abatements into infrastructure. For me personally I was in the thick of it as a Tech at ADC Kentrox., a maker of telecommunication equipment needed to build the high speed networks needed to fuel the dot “con” boom. As a result rents did rise and there was growth in broadband and economy due to the area attracting a more sophisticated customer base with more discretionary income to afford broadband. Broadband usage was fueled by increase of the economy and not the other way around.
The big problem was the growth in high tech masked serious problem cause by government. Economy grew in spite of high taxes and excessive regulation, here in Oregon. While high tech grew other areas floundered including the spectacular flop by Portland’s investment in a floating dry dock.
Eventually the bottom dropped out form the high tech economy. Many company were sold, moved out or went bankrupt. ADC Kentrox had downsize and relocated in 2000. I was laid us off in 2000. Eventually what left was sold to private equity firm.
The end result in the city’s and state’s folly was we have one of the highest unemployment rates in the country and lag in economy growth compared to other states. Even today one can drive around Intel’s campus and see the rows empty office and industrial spaces some built with government money still remain unoccupied even with the growth of Broadband in Portland.

Another that broadband doesn’t bring economic growth is Ashland Oregon municipal fiber network. It cost $9,000,000 and while it did bring $20 internet it, the city now must grapple with $180,000 of debt that t will balloon to $450,000 next year and can reach thee million by 2011. This is a big hit for a small rural town that is known for its Shakespeare festival. The city is already discussing tax increases.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast


1 edit

Re: Well...

said by richardpor See Profile :

Another that broadband doesn’t bring economic growth is Ashland Oregon municipal fiber network. It cost $9,000,000 and while it did bring $20 internet it, the city now must grapple with $180,000 of debt that t will balloon to $450,000 next year and can reach thee million by 2011. This is a big hit for a small rural town that is known for its Shakespeare festival. The city is already discussing tax increases.
<sarcasm>
Wait a second... if you read BBR you would know that socialist broadband is the panacea for every town's problems! Got a drinking problem in your town? Implement socialist broadband! Got a drug or gang problem in your town? Implement socialist broadband! Your schools stink? Your football team needs a new stadium? Implement socialist broadband! Yup... these networks involve NO risks whatsoever to individual taxpayers and will ALWAYS pay for themselves forever and ever because telegraph and cable companies are EVIL!
</sarcasm>

Someone should give that city government a big, fat "SEE I TOLD YOU SO" award.
--
Rove / Rumsfeld 2008!

FightingBlue

@direcpc.com

Re: Well...

Right, 'cause all of the hundreds of cities and towns that have deployed municipal broadband with positive results are a figment of people's imaginations. The same with all the studies which show that when internet access goes up, education goes up, and when education goes up, so does the economy. What we really need to sort out the situation is the opinion of some upper-middle-class suburbian ideologue whose idea of reasoned discourse is Fox News' latest list of reasons why anyone to the left of the Kaiser hates America, somebody who's so tight-fisted that they're unwilling to spare a dollar out of their pocket to help out the less fortunate, somebody who thinks that paying their fair share of the bill for roads, schools, and a national defense is the same thing as the government "stealing" their money. Yeah, that's what we need.
Forums » Study: Broadband Brings Jobs


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