Guest Blog by Jamal Simmons, Co-Chairman of the Internet Innovation Alliance (IIA)
I recently participated in a roundtable discussion with Debra Berlyn on the benefits of high-speed broadband to consumers and minority communities. I want to thank Debra for allowing me to weigh in here too.
The Internet is a place of opportunity. It saves consumers money; helps small businesses grow; students learn; and the elderly get better health care. In an economy where wages are stagnate and jobs are scarce, providing access to high-speed broadband helps ease the burden on families’ pocketbooks. According to a report released last month by the Internet Innovation Alliance, the average American can save about $7,695 a year by using high-speed Internet access.
The ability to compare prices online and find deals through websites like Groupon allows families to save on -
• The necessities of life. With access to broadband, Americans can save 9.8% on housing every year; 26% on food; 6.19% on gas; and 30% on non-prescription drugs. Consumers can save about $1,000 each year comparing apartments online and $438 by comparing prices for cars.
• The luxuries of life. Access to broadband saves Americans about 37% on their clothing each year, $640 for the average consumer; 52%, or $2,747, on entertainment; and 20%, $1,532, on travel.
The Internet also cuts the cost of paying bills, saving consumers $47 annually in postage stamps and late fees. Finally, the average American can save $193 a year by getting their news online.
In addition to helping consumers broadly, improvements in broadband access help minority communities.
Nearly two-thirds of African Americans and Latinos access the Internet through a mobile device. For the Latino small business owner, this means instant access to online marketing tools that will help them find new customers. For young African-American students it means easy access to online classes at far away universities. For the elderly, it means their doctors can consult with specialists all over the country and can more effectively keep track of health care records.
While it’s wonderful the Internet can save shoppers money on new jeans, for disadvantaged groups, these tools sometimes mean the difference between just surviving and really thriving.
Which is why we must close the digital divide by -
• Rigorously pursuing full implementation of the FCC’s National Broadband Strategy. This will not only help close the divide, but will help keep the U.S. competitive globally.
• Reforming the Universal Service Fund. Modernizing USF to effectively deploy high-speed broadband is necessary to achieving 100 percent broadband access.
• Approving the pending merger between AT&T and T-Mobile. This merger will create jobs and it will allow AT&T to invest an additional $8 billion in its next-generation 4G wireless Internet system over the next seven years. All told this merger would mean 97 percent of Americans would have access to wireless broadband.
The Internet has the ability to transform daily life, giving Americans opportunities we could not have dreamed of a generation ago. Sadly too many are left behind – we need to find a way to bring the promises of the Internet to them.
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