A study highlights the transformative economic potential of broadband investment in Southeastern Kentucky and urges infrastructure upgrades and digital adoption efforts. Broadband connectivity is more than a utility—it’s an economic driver. In Harlan County, Southeastern Kentucky, a new study by FarrPoint has revealed that improving broadband infrastructure and driving digital adoption could generate over $70 million in direct economic benefits. The study, conducted in partnership with Kentucky’s Shaping Our Appalachian Region (SOAR) and the nonprofit Connect Humanity, explores the transformative potential of broadband investment in a region grappling with depopulation and economic challenges.
Economic Potential of Connectivity
Like many rural areas, Harlan County faces barriers to connectivity that hinder economic growth. According to the study, upgrading the county’s broadband infrastructure could attract businesses, create jobs, and enable residents to access education, healthcare, and e-commerce opportunities. Andrew Muir, CEO of FarrPoint, stressed the importance of digital adoption alongside infrastructure investment. “In addition to infrastructure investment, the county also needs to address broadband affordability and adoption concerns to realize the full economic benefits,” Muir said. “Our work has shown that increased digital adoption could result in an additional $5.6 million of economic benefits to Harlan County.” The report underscores that broadband connectivity facilitates economic activity and empowers residents to engage with a rapidly digitizing world.
Breaking Down the Numbers
The $70 million economic benefit forecast includes direct impacts such as job creation, business growth, and increased household incomes. This figure also reflects the potential for improved productivity across industries, driven by better access to high-speed internet. Increased broadband adoption could unlock an additional $5.6 million in benefits, addressing challenges like affordability and digital literacy. These efforts would ensure residents have the means and the skills to leverage connectivity.
Partnerships Driving Change
The study is part of a broader initiative by SOAR and Connect Humanity to revitalize Kentucky’s Appalachian region through strategic investments in broadband. SOAR, a nonprofit focused on advancing economic development in Eastern Kentucky has long recognized the transformative power of digital infrastructure. “Broadband is the foundation for economic opportunity in the modern age,” said Colby Hall, Executive Director of SOAR. “This study highlights the urgency of investing in infrastructure while also tackling the barriers that prevent residents from fully utilizing these technologies.” Connect Humanity, a nonprofit impact fund provided additional resources and expertise for the study. The organization focuses on bridging the digital divide by supporting community-driven connectivity projects.
“Access to affordable, reliable broadband can change lives,” said Christopher Mitchell, Director of Community Broadband at Connect Humanity. “This partnership demonstrates how targeted investments in connectivity can create lasting economic benefits for rural communities like Harlan County.”
Addressing Affordability and Adoption
While the infrastructure improvements are crucial, the report highlights the need for parallel efforts to make broadband affordable and accessible. Many households in Harlan County still need help with the cost of internet services or need more digital skills to benefit from connectivity. To boost adoption rates, the study recommends local initiatives to provide subsidized broadband plans, digital literacy programs, and community outreach efforts. These steps are essential for ensuring that all residents can benefit from expanded infrastructure.
Broader Implications
Harlan County’s story symbolizes the challenges and opportunities faced by rural America. Broadband investment in similar regions could yield significant economic and social benefits, helping to bridge the urban-rural divide. A 2022 Federal Communications Commission (FCC) report estimates that full broadband access across the United States could generate $1 trillion in economic value over the next decade. For communities like Harlan County, these investments are not just about connectivity but economic survival and growth.
With the insights from this study, Harlan County has a roadmap for leveraging broadband as a catalyst for economic transformation. However, realizing these benefits will require coordinated efforts among local governments, private providers, nonprofits, and residents. “Broadband is the key to unlocking economic potential in rural America,” Muir concluded. “Harlan County’s future depends on taking decisive action now.”
Read the Entire Report Here – FarrPoint Study