Expanding Rural Electric Member Coop broadband coverage in Indiana could mean benefits of $12 billion

Purdue University just released a report that looks at the quantitative benefits of investing in broadband – they look specifically at extending/expanding networks deployed by Indiana’s Rural Electric Member Cooperatives (REMCs) – but expanding the network ubiquitously across the state. Here’s what they found…

We estimate the net benefits of broadband investment for the whole state of Indiana is about $12 billion, which is about $1 billion per year annuitized over 20 years at six percent interest rate. Year after year, added government revenues and cost savings would amount to about 27 percent of net benefits in the seven REMCs each year. If the rest of rural Indiana is like these seven Cooperative service areas, then 27 percent of the $1 billion per year would be government revenue and health care cost savings, or $270 million per year. In terms of total net present value of benefits, 27 percent of $12 billion is $3.24 billion in added government revenue and health care cost savings.

It’s interesting to see that 27 percent of the net benefits would be government revenue and health care cost savings. That’s a number taxpayers can use to determine the return of public investment in broadband. Last fall, I looked at community return on public investment in broadband – which came to about $1,850 per household. Taking it a step farther, figuring out how much benefit is there in government revenue and health care savings make it even easier to balance cost with benefit.

This entry was posted in economic development, Government, Healthcare, Research by Ann Treacy. Bookmark the permalink.

About Ann Treacy

I have a Master’s Degree in Library and Information Science. I have been interested or involved in providing access to information through the Internet since 1994, when I worked for Minnesota’s first Internet service provider. I am pleased to be a part of the Blandin on Broadband Team. I also work with MN Coalition on Government Information, Minnesota Rural Partners, and the American Society for Information Science and Technology.

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