Connect Ohio Report Proves Broadband Is Key to Higher Business Revenues

Media Contact: Amanda Murphy

amurphy@connectohio.org, (614) 220-0190

For Immediate Release

May 13, 2011

Download: Business Technology Adoption Overview

Access the Findings

Survey of state businesses establishes link between high-speed Internet use and bottom line

Columbus, OH — A new study by Connect Ohio shows businesses with broadband have a clear advantage in revenue and thus potential job creation over businesses without it. The groundbreaking research, which can be found at http://connectohio.org/mapping_and_research/, involved surveys of more than 802 businesses across the state and shows that businesses using high-speed Internet connections report median annual revenues $200,000 more than businesses without broadband. However, the research estimates that approximately 88,000 Ohio businesses still do not use broadband technology today.

“The Internet opens a world of opportunity, not only for consumers, but for businesses," Connect Ohio Executive Director Tom Fritz said. "One-third of Ohio businesses are not utilizing the digital opportunities of the Internet. Connect Ohio wants to ensure all Ohioans have access to the Internet's many benefits."

The new survey 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 now available on the Connect Ohio website that allows you to see the impact on specific sectors of the state’s economy, from healthcare 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, Connect Ohio’s parent organization. “The Internet is driving products and services to the marketplace in an environment where creativity and innovation are both reinforced and rewarded.”

Connect Ohio is a statewide public-private partnership working on broadband expansion. The new Ohio Business Technology Assessment reveals how technology is being used by businesses and where gaps still remain across the state. The assessment is designed to measure technology adoption and the awareness of available broadband service among state businesses, and establish benchmarks for these metrics.

The findings demonstrate a significant correlation between high-speed Internet adoption and a business’s bottom line, and provide a groundbreaking overview of business uses of technology. For instance:

• Businesses with high-speed Internet connections report having median annual revenues $200,000 more than businesses without broadband.

• Across the state, approximately 33% of businesses do not use broadband for their daily business needs. This includes 36% of small businesses, or approximately 34,000 businesses with five to nineteen employees.

• Only 53% of businesses in the Healthcare sector use broadband, meaning about 13,000 Healthcare-related businesses do not subscribe.

• 4 out of 5 businesses that do not subscribe to broadband say that either they do not need broad¬band or they do not know why they don’t subscribe. This is by far the most often-cited barrier to broad¬band adoption, followed by the lack of a computer, perceived security risks, and expense.

• 22% of state businesses let employees telework.

• Statewide, 29% of businesses (approximately 59,000 businesses) earn revenues from online transactions. 

• $67.36 - Median monthly cost for broadband for state businesses. This is slightly lower than the median price of $71.92 paid by all businesses in the states/territories served by Connected Nation.

Increasing broadband capacity among businesses is just one area that Connect Ohio is focused on. Connect Ohio’s Every Citizen Online program collaborates with over 200 libraries, community colleges, and career centers to provide free basic computer and Internet training to Ohio adults. The two-year program is a statewide initiative to introduce new computer users to a wide range of conveniences available online in an effort to increase broadband adoption rates. For more information on the Every Citizen Online program, visit http://connectohio.org/consumer_training/.

###

About Connect Ohio: Connect Ohio, a division of Connected Nation, is a nonprofit, technology-neutral public-private partnership that works with telecommunications providers, business and community leaders, information technology companies, researchers, public agencies, libraries and universities in an effort to help extend affordable high-speed Internet service to every Ohio household. For more information about what Connect Ohio is doing to accelerate technology in Ohio's communities, visit http://www.connectohio.org.


About Connected Nation: Connected Nation is the broadband mapping agent in twelve states and territories under the NTIA’s State Broadband Data and Development grant program. This work comprises approximately 42 percent of the country’s landmass and encompasses approximately 39.5 million households. Connected Nation is a national nonprofit 501(c)(3) organization that expands access to and use of broadband Internet and the related technologies that are enabled when individuals and communities have the opportunity and desire to connect. Connected Nation effectively raises the awareness of the value of broadband and related technologies by developing coalitions of influencers and enablers for improving technology availability and use. Connected Nation works with consumers, community leaders, states, technology providers and foundations, including the Bill & Melinda Gates Foundation, to develop and implement technology expansion programs with core competencies centered around a mission to improve digital inclusion for people and places previously underserved or overlooked. www.connectednation.org.