We live in a fast-evolving digital age, making a high-speed internet connection as essential as running water and electricity. But a lack of affordable internet options perpetuates what is known as the broadband divide -- the gap that divides those who can or can't digitally connect in meaningful ways. A lesser-known discussion point around the broadband divide goes beyond a lack of internet access. Lack of fast internet -- fiber internet, specifically -- negatively affects home values, hurting long-term wealth-building.
Economically, the broadband gap stifles growth in underserved areas by limiting access to online education, remote work, telemedicine and e-commerce. It hinders the development of a skilled workforce and prevents businesses from fully participating in the digital economy. Socially, it exacerbates existing inequalities, isolating communities from vital information, civic engagement and social connections, perpetuating a cycle of disadvantage.
"The economic and social consequences of being digitally invisible are real," said Nicol Turner Lee, senior fellow and director of the Center for Technology Innovation at the Brookings Institution and author of Digitally Invisible.
Locating local internet providers
Fiber-optic technology has substantially faster speeds than DSL and cable, the technologies it's replacing and has greater reliability and all-weather access than satellite and fixed-wireless solutions. It's widely considered the gold standard of internet connections. It is crucial for data-heavy activities. Fiber-connected neighborhoods are experiencing significant appreciation in property values, while already marginalized communities are left further behind.
A Fiber Broadband Association and The Brattle Group study shows homes with a fiber connection have an average 14% increase in home value compared with homes without fiber. This figure stuck out to me as someone who covers the housing market for a living. Homeownership is a widely accepted strategy for wealth-building and financial security in the personal finance community. When your home's value increases, whether due to general price appreciation or through upgrades like a fiber connection, your home equity growth accelerates, increasing your overall net worth. The higher your property's value, the bigger the profit when selling it.
Locating local internet providers
The broadband divide shouldn't hinder wealth-building through homeownership, but it does. The Federal Communications Commission shows only 46% of US households have access to fiber broadband, with low-income and rural communities disproportionately affected by the lack of internet service provider options.
Why fiber internet is best
When it comes to speed, fiber internet is a game-changer. It uses light to send data through glass, which is much faster than dated coaxial copper wires or latency-ridden satellite technology. It has the bandwidth to handle our country's increasing demand for higher speeds and more data. You have a few options for high-speed broadband, including wireless and (certain) satellite connections, fixed-wireless access, cable and fiber-optic technology.
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