Brookings Institution Research Shows Broadband Penetration Aids U.S. Job Growth.

Internet Innovation Alliance Highlights Key Findings; Supports Universal Broadband Access 

WASHINGTON -- Each percentage point of broadband adoption adds roughly 293,000 private sector jobs a year to the U.S. economy, according to new research released by the Brookings Institution. The 17-page report titled, "The Effects of Broadband Deployment on Output and Employment: A Cross-sectional analysis of U.S. Data," provides new information on the positive economic effects of increased broadband penetration.

For the nation's six largest states, non-farm employment growth from a one percentage point increase in broadband adoption ranges from 13,000 in Pennsylvania to 32,400 in California. Broadband-related job growth occurs in both the manufacturing and services sector, with especially strong impacts in finance, education, and health care.

The Internet Innovation Alliance (IIA), a broad-based coalition of non-profit organizations and businesses committed to universal broadband access, cites the study as another example of the importance of investment in and access to broadband technologies to the U.S. economy.

"The Brookings Institution findings demonstrate that broadband is critical to the growth of the economy," said Larry Irving, co-chair of the IIA. "Innovative internet applications are not only redefining business, but they're changing the way we live and learn through applications like Voice over Internet Protocol (VoIP), video file sharing and distance learning."

New applications consume more internet capacity than their predecessors -- web page downloads and email. For example, YouTube uses as much bandwidth today as the entire internet consumed in the year 2000. The infrastructure needed to meet this growing demand is substantial.

"We must foster a commercial, tax and policy environment that encourages investment and innovation in internet infrastructure and applications," said Bruce Mehlman, co-chair of the IIA. "This important analysis shows that all Americans benefit from faster broadband deployment and adoption, and policy makers should take heed and take actions."

The IIA has outlined the following steps to properly prepare for the exaflood, which is the explosive growth of video applications and downloads straining internet capacity:

* Promote investment in content, upgrades of infrastructure and innovation in internet technologies and applications;

* Protect consumers through market competition to ensure lower prices and broadband access for all communities;

* Maximize competition among service providers and technologies, through policies such as video franchise reform;

* Limit government control through permanent extension of the internet tax moratorium and by reducing exorbitant taxation of service providers.

To read the Brookings Institution study in its entirety visit: www.brookings.org/views/papers/crandall/200706litan.htm

For more information on the Internet Innovation Alliance visit: www.internetinnovation.org