Gigabit Internet access is becoming a reality in the Triangle, and a first-of-its-kind report about the economic impact of ultrafast networks shows that communities where fiber-optic access is deployed are enjoying a “positive impact on economic activity.”

The report, released today, was compiled by the Fiber to the Home Council Americas, or FTTH.

According to its study of 55 different areas spread across nine states, gross domestic product is 1.1 percent higher in the 14 communities where gigabit capabilities are available.

“The 14 communities with widely available gigabit broadband that we studied enjoyed over $1 billion in additional GDP when gigabit broadband became widely available, relative to communities where gigabit broadband was not widely available,” the study says.

Gigabit Internet is some 100 times faster than standard cable and other Internet access options.

So what can other communities such as the Triangle expect?

  • More jobs
  • Economic investment
  • Infrastructure investment

The report predicts:

“Looking at 14 communities in nine states, we conclude that next generation broadband is likely to have a substantial impact on economic output and, consequently, consumer welfare.


“Fiber Transforms the Triangle” Event is Oct. 13 at SAS

WRAL TechWire is hosting a conference in partnership with host SAS and sponsors AT&T and MCNC to discuss the looming impact of gigabit Internet access on the Triangle.

For details about the event and other recent WRAL TechWire coverage see:

  • N.C. Next Generation Network to discuss plans, capabilities
  • N.C.’s top AT&T executive to address fiber event
  • AT&T already begins permitting for NC Next Generation Network

Event registration information is available at: https://www.eventbrite.com/e/wral-techwire-executive-exchange-fiber-transforms-the-triangle-tickets-12640352635


 ”These gains are likely due to numerous factors, including the direct effect of infrastructure investment and increased expenditures, as well as early shifts in economic activity (e.g., job creation and occupational changes) and productivity gains.

“For example, recent reporting on gigabit broadband service in Chattanooga, Tennessee has attributed 1,000 new jobs, increased investment, and “a new population of computer programmers, entrepreneurs and investors” to gigabit broadband.8 As more communities adopt gigabit broadband and the economy adapts to this new technology, economists will be able to extend the research on the economic impact of gigabit broadband.”

“Gigabit Community”

The Analysis Group, a research firm, conducted the study.

“Gigabit communities are empowered communities,” said FTTH Council President Heather Gold. “The study results suggest that gigabit broadband communities exhibit a per capita GDP approximately 1.1 percent higher than the similar communities with little to no availability of gigabit services. In dollar terms, this suggests that the 14 gigabit broadband communities studied enjoyed approximately $1.4 billion in additional GDP when gigabit broadband became widely available. As we look at these study results, we can clearly conclude that every community should be a gigabit community.”

Coming to Triangle

The Triangle and parts of the Triad are working with AT&T to deploy the North Carolina Next Generation Network, a fiber-based network that is intended to offer gigabit-speed Internet access and entertainment services. The network also will include Wi-Fi wireless capabilities. Additionally, some 100 community centers will receive high-speed access at no charge.

First deployments are expected to begin later this year.

Google Fiber also has the Triangle under consideration for its own service. RST Fiber, a North Carolina-based company, is targeting the Triangle as well.

The City of Wilson already operates its own fiber network.

No More “Skepticism”

David Sosa of the Analysis Group, and Gold said in a blog that “the time for skepticism” about the benefits of networks “is over.”

The report, titled Early Evidence Suggests Gigabit Broadband Drives GDP, says communities where such networks are deployed “enjoyed approximately $1.4 billion in additional GDP when gigabit broadband became widely available.”

The authors also noted that the ratings agency Fitch “upgraded Kansas City, Missouri’s bond ratings” due in part to Google Fiber, which is being deployed there. Fitch noted that the network “has the potential to make a significant economic impact.”

Sosa and Gold wrote that widespread gigabit access “contributes to the economy in multiple ways. Investment in physical infrastructure and labor creates jobs and increases expenditures into inputs like electronics and fiber optic cable. But next generation broadband infrastructure can also shift economic activity, sparking local tech scenes and the relocation of businesses. Claris Networks moved its data center operations from Knoxville to Chattanooga to take advantage of its fiber network. Lafayette’s [Louisiana] network attracted Hollywood special effects company Pixel Magic to the community, because the high performance gigabit network lets Pixel Magic move computer files back and forth between Lafayette and California quickly. And from the Hacker House in Kansas City to Fargo’s Startup House in Fargo, North Dakota, local entrepreneurs are using gigabit networks to develop new applications and services, bringing in new investment and talent along the way.”

The full report can be read online.

Fiber to the Home Council Americas is a non-profit association that includes companies which deliver video, Internet and/or voice services over high-bandwidth, next-generation, direct fiber optic connections and other organizations “involved in planning and building FTTH networks.”