For centuries the United States has relied on innovation and technological discovery to drive its dynamic economy. So, it may come as a surprise to many that the U.S. lags behind 18 other countries when it comes to broadband penetration.

 

Many economists and industry analysts have long argued that connectivity is a key driver in the American economy that can provide all types of goods and services necessary to fosters growth. In fact, argues research firm the Yankee Group (News - Alert), connectivity is at the heart of a broader economic recovery that can ultimately help expedite progress on health care, energy and community service agendas.

 

Now, Yankee Group President and CEO Emily Green is urging the Obama Administration to take steps to extend broadband reach throughout the U.S. pushing the country past 19th place in the world in broadband penetration.

 

In a letter addressed to President Obama, Green wrote: “Our data shows that the U.S. still only has roughly one broadband line for every two people. Meanwhile, countries like Japan, Sweden and Italy will all achieve one broadband line per person—a metric we call the Anywhere tipping point—this year. We forecast that the U.S. will take until 2011 to reach that goal.”

 

The research firm recommended 10 steps to advance the nation toward ubiquitous connectivity which included a government recommit to building a public safety broadband network and funding of the Rural Broadband Administration (RBA).

 

Analysts have long argued broadband services provide tangible benefit to the overall economy while noting a growing digital divide between rural deployment and its urban counterparts.

 

A study conducted by the Small Business Association (SBA) says an urban-rural digital divide exists in the provision and adoption of broad-band services. This difference in broadband use is significant because many of the benefits associated with the availability and adoption of broadband services are not being enjoyed by small businesses in rural areas.

 

That study concluded that broadband investment (and investment in information technology) appears to provide substantial benefits to both consumers and the overall economy.

 

Those findings correlate to the Yankee Group’s Anywhere theory that calls for the unification of wired and mobile broadband networks to create new capabilities for citizens, businesses and governments alike.

 

"Connectivity is like oxygen for Anywhere Consumers; we can't live without it," said Carl Howe, director in Yankee Group's Anywhere Consumer research group. "But today's connectivity is but a shadow of what is coming. In the next five years, consumers will move past wired and wireless access to Anywhere access, an immersive connected experience blending the best of both worlds.'

 

The letter to the president also hit on several other factors the Yankee Group believes could prohibit growth in the future. Those are: Stop delaying the transition to digital TV; Lead the public use of “white space” spectrum; Encourage the use of femtocell technology; Mandate fiber be built into new public housing and multitenant buildings; Optimize public transportation with wireless information; Make businesses more competitive by encouraging remote workers; Deliver medical diagnoses and basic health care over the Internet; Create a Community Service Geek Squad to help analog citizens.