Federal Reserve Bank Report on Broadband Digital Divide

The Federal Reserve Bank of Kansas City released its report Disconnected: Seven Lessons on Fixing the Digital Divide on July 31st at a State Broadband Leaders Network Meeting.

CONCLUSION: THREE OPPORTUNITIES FOR ACTION

The digital divide is wide and complex. No one group can bridge the divide alone—not government, banks, businesses or community organizations. Each of these groups, however, must play a role if the divide is to be narrowed.

This report identified three specific opportunities for action, which align with the three legs of the digital 1inclusion stool:

1. Research and evaluate the impact of policy on broadband expansion.

Good policy requires good data. Throughout this project, we found research related to the economic affect broadband has on communities. The studies documented the correlation between broadband and economic opportunity, but questions remain as to what policies best encourage broadband expansion. Policies vary greatly from one state to the next, especially as it relates to which types of entities—large carriers, small independent for-profit providers, municipalities and cooperatives—are allowed to build and operate networks. Elected officials would find it easier to make informed decisions if they had access to research on the effectiveness of these policies on boosting broadband deployment and improving affordability. Broader research on improving affordability and adoption would also help inform the field.

2. Support and expand workforce development programs focused on digital skills training.

Digital skills are a must for the in-demand jobs of today and tomorrow. Innovative approaches to preparing workers can provide a pathway to living-wage jobs that don’t require a four-year degree, or, in many cases, even a two-year degree. Simply training workers on basic office-related programs like email and word processing can boost their employability. Registered apprenticeship programs can further expedite the process of developing and onboarding qualified workers. Workforce development programs targeting LMI individuals may also attract interest from banks seeking CRA-related activities, as outlined in Engaging Workforce Development: A Framework for Meeting CRA Obligations by the Federal Reserve Banks of Dallas and Kansas City.

3. Support computer donation programs targeting those in need.

Businesses, government agencies, universities and other anchor institutions frequently replace computers in two-year to four-year cycles. Surplus computers have little monetary value, typically just pennies on the dollar. When donated, though, they can make a significant difference—whether the computer goes to a low-income mom pursuing her education, or a student learning to code. A donated computer can be a low-cost, high-impact way to change one’s economic trajectory. Such initiatives, particularly when targeting LMI populations and combined with workforce training programs, could also attract interest from banks seeking CRA-related activities.

The full report, with a long section on rural broadband, including a sidebar on mapping issues, can be downloaded HERE.

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