High-speed Internet access has been promoted as a catalyst for rural economic development, and more than $7 billion is written into the stimulus package to provide broadband to areas where it would otherwise be unprofitable for broadband companies to invest. But economists are divided over whether broadband really is the solution to rural America's economic woes. "You can't just drop an Internet line and expect jobs growth," says Larry Irving, former head of the National Telecommunications and Information Administration, the government agency administering most of the broadband stimulus money. "Getting broadband access is only the first part," he told Cecilia Kang of The Washington Post.
Critics of the plan point to two towns in Appalachian Virginia: Lebanon and Rose Hill. The former has been promoted as the future for rural broadband access. After the community received state-supported broadband, two major companies came to the area, creating 700 jobs with average salaries of $50,000. In Rose Hill, however, only a third of 140 potential customers signed up for the service, and few jobs were created.
Analysts offer a number of possible reasons for the disparity between the two communities. John Horrigan, director of the Pew Internet & American Life Project, says "Skills and relevance still remain a barrier." King reports that one of Lebanon's new businesses, software maker CGI, "said it was attracted by Lebanon's willingness to train workers and by higher levels of education than in other parts of the region." The way the community approaches possible job creation may also affect their success. Lebanon "took a holistic view of its workforce with support programs, and they see it as a long process," says Karen Jackson, director of the state's Office of Telework Promotion and Broadband Assistance. (Read more)
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