Bridging the digital divide would lead to jobs, opportunity

Illinois’ plans to expand broadband internet access could create thousands of jobs, higher wages and a bridge between social divisions, according to researchers with the Illinois Economic Policy Institute and the Project for Middle Class Renewal at the University of Illinois at Urbana-Champaign. Their study,  “The Economic, Fiscal, and Social Effects of Public Investments in Broadband Internet Access in Illinois,” released last month, says improving internet access would better connect rural and urban residents, economic classes, and those who have high-speed internet access for business, education, etc., and the millions who don’t.

“Access to reliable high-speed internet has become an essential part of commercial activity and daily life, the study says. “Ultimately, historic public investments in broadband internet access are expected to increase labor income, create jobs, promote business activity, generate tax revenues, and address rural and racial divides in communities across Illinois.”

Rural areas have always struggled for service, from getting transportation and mail delivery to electricity and, now, broadband access.

It’s not as easy as clicking some On switch

Generally, broadband refers to high-capacity transmission lines or techniques using a variety of frequencies capable of sending and receiving more and faster communications.

“Only 83% of Illinois residents have broadband internet access,” the study adds, “  – 82% in the City of Chicago, 88% in the Chicago suburbs, and 76%  Downstate.”

That 83% means that 17% don’t have internet service: 2.1 million Illinoisans, many in rural areas. Almost 13% of Illinoisans live in rural areas (populations of less than 2,500 people). That’s about 1.6 million.

Besides geographic separation, economic class divides those with and without access. Last year, Pew Research found that 34% of low-income households in the country struggle to pay for home broadband service, and Broadband Now says 42 million Americans lack access.

It matters beyond convenience. Reliable, affordable high-speed internet service ensures people’s ability to more fully participate in civic and business activities. A coalition of progressive groups, including the League of United Latin American Citizens, the National Rainbow/PUSH Coalition, and People for the American Way decades ago issued a joint comment to the Federal Communication Commission urging support for rural, isolated and high-cost areas.

“Citizens without access are citizens without voices and ears,” their statement argued. “They are unable to engage in these fundamental new forms of speech and new means to participate in society.”

An additional 238,000 households, businesses and farms would have new internet accessibility as a result of the state initiative.

Today, even with access, quality can be slow or have connection interference. Many still can’t get 4 megabits per second (Mbps) download and 1 Mbps upload speeds – the federal standard set in 2011.

“The technology is there,” said study co-author Robert Bruno, “ – but it’s paying dividends for only certain people.”

One obstacle is “the marketplace,” which is often inadequate to meet society’s needs. Frequently, what should be done isn’t profitable for companies.

“They simply do not have the incentives," says Tom Rowley, a Community Planning and Development representative at the U,S, Housing and Urban Development who formerly worked at the Rural Policy Research Instiute and the University of Kentucky's Rural Studies Program. "Instead, smaller phone companies, electric utilities, cable television companies and municipalities are often in the best position to ensure the communities get what they need."

A private-public partnership seems the best approach, although corporations’ involvement has been sporadic.

With state government leading, Illinois' effort could also mean an additional 25,000 jobs in construction and the supply sector, the study says. About 38% of the building-trades jobs would be covered under Prevailing Wage rates, and more than 11,000 jobs would continue after the buildout. Also, researchers say additional jobs in local retail, restaurant and small businesses would happen due to an estimated increase of $843 million in wages statewide, boosting consumer spending power. (See sidebar.)

Also, bridging the “digital divide” would increase tax revenues, according to study co-author Frank Manzo IV, who adds that the increased revenues would offset the state’s investment within four years of its completion.

Nationally, the Communications Workers of America’s “Broadband Brigade” has an ongoing campaign to ensure that the federal broadband buildout funds from the bipartisan infrastructure bill are used to support good jobs for union members.

“I’ve never been prouder of the work of this union than what I’ve seen this kick-ass group of members do,” said CWA President Chris Shelton. “I urge you to work closely with them as we move forward with making sure that we take full advantage of this opportunity presented to us to secure good, union jobs and make a real difference for our country by bringing true high speed broadband to every community.”

The idea is to use some funds from Illinois’ $400 million Rebuild Illinois program enacted in 2019, supplemented by federal dollars from the Infrastructure Investment and Jobs Act. However, previous proposals over decades have been disappointing:

* 1996- the Telecommunications Act established regulations to expand the definition of universal service to make broadband telecommunications available to schools, libraries and medical centers at affordable rates funded in part by the federal tax line item on phone bills – which have changed dramatically with the advent of cell phones.

* 2000- Illinois Gov. Ryan in his budget called for spending $1.9 billion over five years to improve the state’s technological infrastructure.

* 2012- the Federal Communications Commission (FCC) started a Connect America Fund program that hoped to connect every American by 2020.

* 2020- the FCC launched a Rural Digital Opportunity Fund. (FCC officials say the agency’s intention is to provide support to rural areas. FCC chair Jessica Rosenworsel told the Wall Street Journal, “It’s clear we need to fix what came before and make changes.”)

* 2021- Congress enacted the bipartisan infrastructure act, which included $42.5 billion for a rural broadband program.

* 2022- This May, President Biden announced an agreement with 20 internet providers covering 80% of the nation to provide households eligible through the FCC’s Affordable Connectivity Program, which provides discounts of up to $30 per month toward internet service. However, fewer than 13 million households have enrolled as of July 5.

            So, the ambitious plan will have challenges. Even after the program wraps up in 2026, about 13% of Illinoisans still won’t have service, and achieving 100% connectivity will require another $3 billion, the study says.

            Organized labor is optimistic, but some rural residents are skeptical

In some rural areas, even new connections can be better but still slow.

            Talking to the Wall Street Journal, John Powell of Heavener, Okla., said, “It’s like getting left behind.”