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‘Benefit to Society’

Broadband Access Needed to Support Michigan Businesses, Grow Local Economy, Say Industry Experts

Broadband access has the potential to significantly grow the economy and provide new jobs to the state of Michigan and its residents, said speakers at the Michigan Broadband Conference Thursday. In order to get connectivity, local governments need to be proactive in working with service providers, said Blair Levin, Aspen Institute fellow and Gig.U president. Gig.U is working with 36 university communities that collected information and applied to get Google Fiber, but were ultimately unsuccessful, said Levin. “Getting access to a high speed network is doable by any community, but it ultimately an organizing problem,” said Levin. “Communities need to have local leadership that will take the process through the necessary steps."

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Home broadband access needs to be looked at as a benefit to society, not charity work, said Levin. “We need to think about adoption from the society’s point of view and then figure out the revenue flows,” he said. Underperforming sectors such as schools and libraries also need to be examined because they often don’t have the connectivity they need, said Levin. “The E-rate program and healthcare reforms show how the FCC is starting to address these problems,” he said.

Networks such as Google Fiber that provide gigabit connectivity speeds drive an atmosphere of innovation, said Levin. The overbuilding of the network gives no limits to bandwidth and innovation, he said. The biggest sectors driving innovation are healthcare, energy, transportation, education and government, said Johannes Bauer, Michigan State University telecommunications department chair. “These sectors work systemically, and they need to collaborate to be successful,” said Bauer. “Innovations in digital technology will continue to significantly contribute to the economy during continuous experimentation and ongoing feedback."

Innovation provides tremendous potential for the state, said Michigan Lt. Gov. Brian Calley (R). “People all over the state need to get connected with the same capacity for information, and we need the systems to get information from here to there,” said Calley. Companies of the future are not just going to rely on connectivity, said John Summersett, Comlink vice president-business development. “We are building an ecosystem to assemble bits of information in new ways, and we need to think about this as we create new companies in the future,” said Summersett.

Broadband access is also important to help businesses grow, said Michigan Economic Development Corporation CEO Michael Finney. “A one percentage point increase in broadband penetration would create 12,000 jobs in the state of Michigan, which is creating jobs the easy way,” said Finney. “Companies with 20 or fewer employees have huge opportunities for growth, but they have severe shortcomings in terms of broadband right now.”

Libraries have also changed over the years to meet the needs of Michigan residents, said Kristin Shelley, East Lansing Library director. “Libraries have always worked to fill in the digital gap with computers, Wi-Fi, online resources and books all for free,” said Shelley. “We have realized over the past four years that we need to work outside the four walls and we keep retooling ourselves to embrace new ideas and innovations."