Research Finds $3.24 Trillion Economic Benefit From Fiber Deployment To Unserved Areas

WASHINGTON, September 23, 2024 — A new Brattle Group economic analysis quantifies the massive benefits of deploying fiber to America's 56 million unserved households, finding a net present value of $3.24 trillion over thirty years.

The study, commissioned by the Fiber Broadband Association and Frontier Communications, projects 380,000 new jobs and $1.64 trillion in increased housing values from universal fiber deployment. Key findings challenge current federal broadband policy approaches and funding priorities.

Researchers Paroma Sanyal, Coleman Bazelon, Yong Paek, and Dan Beemon, economists at Brattle Group, argue that targeting fiber deployment to unserved areas generates far greater economic returns than funding underserved locations that already have some broadband connectivity. Their economic modeling demonstrates significant benefits across multiple sectors, including healthcare, education, and remote work capabilities.

The analysis suggests federal programs like Broadband Equity Access and Deployment should prioritize fiber infrastructure for completely unserved areas over upgrading underserved locations to maximize return on federal investment.

The study models economic impacts across rural, suburban, and urban unserved areas, finding consistent positive returns despite varying deployment costs.

The authors recommended policymakers shift from underserved-area targeting toward unserved-area prioritization to maximize economic development benefits from federal broadband investments.