STATEMENT
Congresswoman Nydia Velazquez, Ranking Member
House Committee on Small Business
"Digital Divide: Expanding Broadband Access to Small Businesses"
Wednesday, July 18, 2012

Thank you, Chairman Graves.

Today's hearing will offer an opportunity to examine the benefits and challenges of broadband deployment. The technology and telecommunications sectors are substantial contributors to the U.S. economy and an engine for growth. Opportunities for growth in this industry are likely to expand as the build-out of broadband and new wireless networks continues. Collectively, investments are projected to generate between more than 300,000 jobs, and contribute over $70 billion in GDP growth. Our nation's small firms stand ready to capture many of these economic gains.

Innovation is leading the way in today's economy and small companies are at the forefront. Not only does broadband facilitate innovation by small firms, it allows them to use the most cutting-edge products available. More small businesses are embracing broadband than ever before and it's rapidly changing the way business is conducted.

Innovative applications and services, such as video conferencing, are helping small companies reduce costs, increase productivity, and expand their business into new competitive markets. Firms can save more than $16,000 in start-up costs, just by conducting activities online.

We have seen the benefits broadband technology can bring to our daily lives in a variety of ways. Those fortunate enough to have access to broadband know how it improves efficiency and reduce costs. Because of a lack of network infrastructure, rural and low-income community access is being outpaced by the rest of the country. Unfortunately, the adoption gap may further widen without adequate support for broadband deployment.

Eliminating the digital divide is vital not only to assisting rural and low-income communities, but also helping our nation's job creators. By making the virtual marketplace more accessible, more entrepreneurs can grow their companies and invest in hiring.

Recovery Act loan and grant benefits are two-fold. As disadvantaged businesses are building their networks and expanding their services, small businesses and communities gain access to high-speed Internet. In the long term, this results in attracting more businesses, lower unemployment rates, and skilled workers.

However, these programs have not been enough to completely overcome the cost issues small businesses face. As we learned during the Committee's February hearing, broadband availability continues to be a challenge in some communities, both rural and urban. We even heard how recent USF and ICC reforms have proven difficult for many of the nation's small rural carriers.

Today's hearing will focus on improving broadband access in order to strengthen the small business economy. The insights gathered today will ensure that policies coming out of Congress are effectively supporting network deployment without burdening small telecom providers. This Committee will also make certain that the needs of small firms are taken into account in upcoming spectrum auctions and in moving forward with USF reform.

In advance of the testimony, I want to thank all the witnesses for being here today.

Thank you and I yield back.

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