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Wealth Beat News > Small Business > The Digital Divide Limits Opportunities—And How Businesses Can Help
Small Business

The Digital Divide Limits Opportunities—And How Businesses Can Help

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Last updated: 2023/11/29 at 8:27 PM
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Ryan is the President and Chief Operations Officer of GeoLinks, a leading Internet and Digital Voice Provider.

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The digital divide limits business opportunities for low-income communities.The divide is further perpetuated by bias in funding.Business leaders can play a vital role in making broadband accessible.

In urban America, where opportunities are often met with challenges, the digital divide has been a long-standing barrier to progress. As technology and the internet continue to impact every aspect of life in the U.S., the gap between those who do and don’t have access to these resources becomes more pronounced.

Coined as the “digital divide,” the pandemic further highlighted repercussions as humanity collectively became forced to rely on the internet for work, school and daily means of communication. However, I believe factors such as technology mistrust and misconceptions about connectivity issues being confined to rural areas have left low-income urban communities at a severe disadvantage.

As a Vox article explained, telecommunications companies and internet service providers essentially have a “natural monopoly.” This can give them the ability to increase rates, but with little negotiating power and few alternatives, residents are left with minimal choices. From my perspective, carrier competition is needed to maintain affordable rates and offer consumers access to a variety of options. Without such competition, consumers might continue to suffer from limited access to vital resources and remain at a disadvantage in the digital age.

As the president and chief operating officer of a company that provides internet and digital voice services, I’ve observed the considerable challenges businesses often face when trying to access essential digital resources. It is both my professional and personal mission to address and eradicate these inequalities and empower every individual with the digital tools needed for success in today’s digital age. This mission begins with educating business leaders on the severity of the problem and addressing how to work together to remove the connectivity barriers in urban communities across America.

The digital divide limits business opportunities for low-income communities.

One of the most significant impacts of the digital divide in urban America is the limitation it imposes on business opportunities for low-income communities. Although Americans often associate connectivity issues with rural populations, the reality is that the digital divide also disproportionately affects low-income urban communities across the country.

Prior to the pandemic, these communities already faced numerous systemic disadvantages, but the reliance on digital technology for education and businesses has only intensified these issues. As a result, small businesses operating within these communities can face setbacks in their ability to operate effectively in the digital age. Research from the U.S. Chamber of Commerce and Amazon shows that poor internet or cell phone connectivity negatively impacted 66% of rural small businesses. For many, the cost of establishing a reliable internet connection and maintaining online operations is simply too high, which prevents them from reaching potential customers and competing with larger companies.

Furthermore, education has taken a serious hit as a result of the digital divide. In 2021, research by Common Sense and Boston Consulting Group found that up to 16 million K-12 public school students lacked “adequate internet or devices to sustain effective distance learning at home” during the pandemic. Nine million lacked both. With remote and digital learning persisting, students without adequate internet access can fall further behind. This not only affects the students but also the parents who have to navigate childcare and find ways to ensure their children have access to the necessary resources.

The divide is further perpetuated by bias in funding.

Recent years have witnessed a surge in federal and state-level funding programs aimed at expanding network infrastructure and connecting under-connected or unconnected consumers. For example, the Biden administration’s Bipartisan Infrastructure Law provides about $65 billion for improving broadband access. Programs like Broadband Equity, Access and Deployment (or BEAD) aim to help expand high-speed internet access. However, some have critiqued its focus on fiber-only solutions.

In my experience, fiber is not always practical or cost-effective for every location. I’ve also observed that alternative technologies like fixed wireless, though proven successful, can face resistance due to misconceptions about their quality. Eliminating funding allocation bias and adopting inclusive technologies are essential to ensuring equal access to broadband services for all.

Business leaders can play a vital role in making broadband accessible.

Within the telecom industry, business leaders can drive access and fair competition by adopting price and speed transparency and spearheading public-private partnerships, such as collaborative investment projects with governmental entities. Participating in programs designed to extend broadband services to underserved areas provides companies with the necessary resources to stay competitive and innovative. These partnerships empower midsize carriers to enter the market, expanding their capacity to deliver services effectively and increasing accessibility for businesses in underserved communities.

Beyond the telecom industry, the general business community can contribute substantially toward achieving widespread access to broadband services. To do so, leaders should first become educated on what bandwidth and redundancies their unique business requires to operate. From there, understanding what different broadband technologies are capable of providing such services precedes researching what options are actively available in their local region. Informed purchasing power can immediately impact the market and overall agnostic technology adoption.

If, through this process, leaders discover their community lacks access or choice, communicating with local politicians and elected officials can be another effective way to promote future network deployment. They can also discourage anti-competitive practices, such as having only one or two broadband providers available, internet service providers who lobby to block new competitors and a lack of infrastructure plagued with high costs. This could help level the playing field and encourage a wider variety of competitors to enter the market.

Broadband access alone is not enough; it must be of good quality, but many low-income communities lack the necessary speed for basic online activities. To address the digital divide comprehensively, a combination of technological solutions and funding models prioritizing equitable access to digital technologies is necessary.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

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News November 29, 2023 November 29, 2023
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