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States Should Embrace Broadband in Digital Economy

A broadband-fueled digital economy is critical to US innovation and sustained economic competitiveness, according to the Information Technology and Innovation Foundation (ITIF), a Speed Matters Partner.

With new rankings released by the ITIF in the State of the New Economy report, states across the US were assessed based on their readiness to participate in the digital economy. The broadband rankings were based on two indicators: broadband penetration and broadband speed — the speed data came from the 2009 Speed Matters Speed Test report.

East Coast states, with high population density and access to reliable service providers, received the highest scores. Meanwhile, top "movers" in the ratings scale included larger states like North and South Dakota, Pennsylvania, Nevada and Texas. According to the report:

The number of residential high-speed lines increased by 19 percent between 2007 and 2009, and, between 2008 and 2009 alone, the average broadband download speed nearly doubled.

A stronger digital economy would not only help individual states' e-commerce initiatives, but also help advance the US in the international rankings for economic innovation and competitiveness. ITIF focused on five indicators of a growing digital economy:

  • The percentage of the population online;
  • The use of IT to deliver state government services (e-government);
  • The percentage of famers online and using computers;
  • The deployment of broadband telecommunications; and,
  • Health IT.

Many of these indicators directly correspond to the FCC's National Broadband Plan, including connecting more individuals to broadband, bridging the digital divide by providing rural populations with Internet access, and creating greater access to government and medical records through the web.

Ultimately, the broadband goals of the US should match its economic aspirations. Greater broadband proliferation offers citizens greater access to commerce online, new virtual business models, and links customers to a global market.

Interested to see how your Internet connection speed measures up to others in your state and throughout the US? Take the Speed Matters speed test.

The 2010 State New Economy Index (ITIF)

2009 Report on Internet Speeds in all 50 States (Speed Matters)

Test Your Speed (Speed Matters)