December 2011 Bandwidth: The Year in SNG Research

Its the end of the year – and that means “Best Of” list. We’ve had some great research findings and article submissions this past year – in this year-end edition of Bandwidth, we’re sharing our favorites…

Broadband and Revenue Growth Increasing Internet utilization dramatically increases corporate revenues and job creation

An SNG study of nearly 600 businesses revealed a direct correlation between revenue growth and the adoption and use of e-solutions. Higher levels of utilization generate higher revenues and greater benefits for businesses. The most significant impacts on a firm’s bottom line are more sophisticated e-solutions such as teleworking, selling goods or services online, etc. – which means that firms that are not ‘fully online’ are missing out on significant potential revenue. In some cases they could grow by up to 30%.

By measuring over 17 activities classified as “e-solutions,” or Internet enabled applications, SNG has developed a Digital Economy index (DEi) which measures the utilization of broadband as a platform for innovation.  DEi scores range from 1 to 10 (10 being highest), with higher scores reflecting the greater the number, scope and sophistication of the Internet activities deployed in an organization.

Businesses with a high DEi, meaning higher levels of adopting and using e-solutions, experience larger percentage increases of revenues (between 27 and 31%).
Read More on the SNG Blog>>

New Dimensions in the Digital Divide

The digital divide has long been commonly understood to mean unequal access to the Internet and its accompanying resources and services. Earlier this year, we showed how when connectivity expands to more households, as we look at how people use and benefit from the Internet, another dimension to the digital divide emerges. SNG’s research (below) shows:

  • Computer and Internet skill levels affect broadband utilization, but more interestingly:
  • The lower your income, the lower your utilization.
  • The older you are, the lower your utilzation.

Click on chart for a larger version.

SNG’s proprietary Digital Economy index (DEi) was used to develop this chart. Measuring how households use thirty distinct Internet activities yields a DEi score. The higher the DEi, the more Internet activities a household engages – 10 being a household at 100% utlization. As utilization is impacted by income and age – the lower a household income or the older the household, the lower its Internet utilization. The differences (or divide) is most pronounced for those over 55 and those making less than $30,000. So the digital divide is actually expanding as younger, higher income households best leverage e-solutions. Read the full article >>


Broadband and Job Creation

The Internet Innovation Alliance (IIA)  released its 10 ways broadband contributes to job creation and serves as a connector of job seekers, employers and employees. Sources for the research include the American Library Association, the Federal Communications Commission, and SNG.  Click here for the top 10 list.



Our two contributions show the multiplier effect broadband investment has, as well as how many NEW jobs in North Carolina were created as a direct a result of broadband.



Broadband and Small Business

Using SNG’s Digital Economy Analytics Platform (DEAP), containing data from regions across the U.S. and the globe, SNG revealed the top 5 impacts broadband has on small business:

Broadband and the Unemployed

One out of four unemployed individuals are using the Internet to start a home business. While another 25% are relying on the Internet for education and training to help them get their next job. Even the retired are using the Internet for both of these purposes.

n= 229 unemployed, 868 retired
Visit SNG’s research library for more findings >>

Our Favorite Bandwidth Articles of 2011

In case you mised it, each month SNG provides insights and research into the world of broadband. In case you missed them, here are a few articles we thing you should take a minute to review…

Change is Hard… and So is Utilization
Are you focusing on simply providing broadband and waiting for people to adopt… and ultimately utilize e-solutions (the tried and failed build it and they will come mentality) or are you driving utilization? Focus on driving sophisticated use of broadband and you’ll see your region’s economy reap the benefits. Read Article>>

Making the Most of Your Broadband Investment
Broadband is critical infrastructure, a means to an end – not the finish line. Neither broadband coverage alone nor adoption is sufficient to achieve your goals and outcomes. Only broadband utilization leads to desired economic and social benefits. Read Article>>

What Steve Jobs Taught Us About Driving Broadband Utilization
Broadband has the ability to radically change our entire world in orders of magnitude more than it already has. But we need to get past the utilitarian view of broadband – looking at what it enables and instead what it empowers. At the advent of broadband, Apple’s campaign challenged us to push the world forward. Is what we’re doing enough to drive the complete transformative power of broadband… or do we need to Think Different? Read More>>

Creating an Action Plan for Broadband Utilization
Broadband availability alone is not enough to realize its social and economic benefits.  An understanding of how to effectively use of broadband for commerce, citizen services and the positioning of rural counties as attractive areas for 21st century business and living will play a critical factor in their long-term success of your broadband investment and  your ability to impact the lives of the citizens and businesses already located in the regions. Read More>>

The State of the Divide in 2011
More than a decade into our broadband revolution, the knowledge economy, and e-everything, it’s a bit discouraging to find that, even today, geography can still dictate individual or organizational potential for success. Read More>>

Uncovering the Value of Rural Broadband
SNG’s research shows that broadband strongly influences locational decisions by both businesses and households about whether to stay or where to move. Our research also shows that consumers consider the speed and reliability of their broadband in making these decisions. Read More>>

Don’t Let Your Region be a “No Place”
Without compelling reasons, applications, and e-solutions for your constituents to utilize your broadband network – the hopes you have for its transformational power are sure to come up short. Read More>>

SNG Announces Industry’s First and Only Hands-On, Comparative Database
Digital Economy Analytics Platform from SNG enables SNG clients to compare regions and industries to uncover actionable information and insights. With this new solution from SNG, regional leaders can leverage the best practices from each region and industry across their territory. Read More>>


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