Forum: Broadband Availability Means Growth (courtesy of the Record-Eagle)

Submitted by Nate on Fri, 03/19/2010 - 09:26

Economic Development

The relationship of broadband to economic growth is perfectly clear. Broadband, or high-speed Internet access, stimulates job growth, allows small businesses to expand their markets, creates educational opportunities and allows the creation of economic wealth to thrive.

A series of recent studies funded by Benzie, Grand Traverse, Kalkaska and Leelanau counties identified that fewer than 60 percent of households within the four-county region have access to high-speed Internet service. Well below the 2008 state average of 78 percent, it highlights a disadvantage of being competitive with other communities to attract economic growth opportunities.

Broadband at home may be used for leisure pursuits, but in today's 21st century knowledge economy, it's much more. For knowledge workers, a residential high-speed Internet connection is a prerequisite, enabling non-traditional working hours or remote employment.

With tourism being a major economic contributor, visitors may deter or limit their stay due to the lack of high-speed Internet access that would allow them to stay "connected." Simply extending the length of a visitor's stay within the Traverse Bay region could inject an estimated $52.2 million additional tourism spending per year.

Add in educational opportunities to children and the existing labor force, along with the expansion of home-based businesses, and it becomes apparent that broadband availability across the region is an economic development issue.

Assessment studies were the first steps in an overall Regional Broadband Initiative, which identified areas that lacked Broadband access, existing infrastructure assets and investment scenarios for a variety of wireless network models that can deliver high-speed Internet service.

This strategic effort by the chamber has been in motion for the past year and has fostered efforts with neighboring economic development organizations. This regional alignment is assisting a collaborative group of private-sector companies on their coordinated applications to obtain American Recovery and Reinvestment Act funding.

Under ARRA, $7.2 billion is allocated during two rounds of funding for "Last Mile" and "Middle Mile" projects. Last Mile is considered the delivery to homes and businesses. Middle Mile delivers broadband service to "anchor institutions" such as educational, health care and community organizations.

Merit Network Inc., a Middle Mile provider, was awarded $33.8 million in round one, which includes running fiber-optic cable through our region. Round two funding opportunities are under way, with applications due by March 29.

A primary element of this regional effort is support from local communities. A collaborative and coordinated effort supported by those living and doing business in our region can help the enablement of broadband across 10 counties of northwest Michigan.

If your home, business, or civic organization lacks adequate high-speed Internet service, we encourage you to submit a letter of support. Individual and organizational group letters are encouraged. Signed letters of support may be e-mailed to tbedc@tcchamber.org; faxed to 946-2565; or sent via U.S. mail to Traverse City Area Chamber of Commerce, 202 Grandview Parkway, Traverse City, MI 49684.

Visit the Traverse City Area Chamber of Commerce's Regional Broadband Initiative Web site at www.tcchamber.org

About the author: Tino Breithaupt is the senior vice president of economic development for the Traverse City Area Chamber of Commerce.