New Connected Texas Report Reveals Broadband Key to Higher Business Revenue
Survey confirms opportunities for technology growth and innovation among business sectors
Austin, TX. (August 2, 2011) — A new report by Connected Texas confirms Texas businesses with a broadband connection are likely to generate more revenue and jobs. Businesses with high-speed Internet connections report having median annual revenues $200,000 greater than businesses without broadband. Currently, 73% of Texas businesses use broadband, but the research estimates that approximately 140,000 Texas businesses still do not use broadband technology today.
"Broadband connectivity is a job creator, opening the doors to the global economy by allowing communities to attract new businesses,” said Texas Agriculture Commissioner Todd Staples. "High-speed Internet access improves educational and health care opportunities, and allows families and businesses to live and work in rural areas while staying connected to urban populations and the rest of the world. Private investment in broadband connectivity and infrastructure can lead to a more prosperous Texas."
The Business Technology Assessment is the first of its kind and takes an in-depth look at all sectors of the state’s economy. A new interactive application is available on the Connected Nation website where the public, local planners and broadband providers can use it to see the impact on specific sectors of the state’s economy, from health care and manufacturing, to tourism and education.
“In the digital economy, businesses must embrace broadband, and other transformative technologies like it, in order to survive,” said Brian Mefford, CEO of Connected Nation, Connected Texas’ parent organization. “The Internet is driving products and services to the marketplace in an environment where creativity and innovation are both reinforced and rewarded.”
Connected Texas is a statewide public-private partnership working to expand broadband. The Business Technology Assessment reveals how technology is being used by businesses and where gaps still remain across the state. Connected Texas will work with local leaders and broadband providers, applying the data to expand the availability and use of reliable and affordable broadband through market-based initiatives.
Findings from this survey illustrate a significant correlation between high-speed Internet adoption and a business’s bottom line. Specific examples extrapolated from the data include:
• Businesses with high-speed Internet connections report having median annual revenues $200,000 more than businesses without broadband.
• One-half of all Texas businesses (approximately 261,000 businesses) have a website. Median annual revenues among broadband-connected businesses with websites are $300,000 higher than those without.
• Approximately 95% of Texas businesses using broadband today report that they are satisfied with their broadband service, with 64% answering that they are “Very Satisfied” with their broadband.
• Rural Texas businesses report needing more bandwidth at greater percentages than their urban or rural counterparts.
• Approximately 27% of all businesses – and 28% of small businesses with fewer than five employees – do not use broadband for their daily business needs.
• Roughly one-quarter of state businesses allow employees to telework, allowing workers more flexibility and job opportunities, and helping businesses operate more efficiently.
The National Telecommunications and Information Administration (NTIA) under the State Broadband Data and Development Grant Program (SBDD) funds the program. Connected Texas’ broadband mapping efforts are in compliance with NTIA’s Notice of Funding Availability (NOFA) for the SBDD and are reflected in the national broadband map.