Three years ago, our economy came crashing down. At the time, no one seemed to know what to expect and how long it would take to recover. As of now, the economy has recovered from a recession, but it certainly does not feel like a recovery for the middle class. The official unemployment rate stands at a little over 9%, with many Americans being out of work for periods of months. The unemployment rate for African Americans is over 16%, and is much higher amongst African American youth.
The economic reality has not just hurt individuals; it has hurt small and mid-size businesses as well. Slumping demand has affected the ability of the private sector to create jobs and restore the economy to full employment. To begin to correct the situation, businesses need the tools to innovate and develop new ideas and products.
Historically, technology has been the spark to ignite our stagnant economy. Over the past few decades, recessions have been followed by periods of new technology and better forms of communication like personal computers, laptops, lower telecom costs, Internet, and new mobile devices. Following this trend, we have the opportunity to realize the latent potential in the economy.
Broadband has become the new way to communicate and connect in the digital age. While it is not “new” technology, low levels of access have not allowed individuals and businesses to realize the benefits and potential that high speed Internet access brings. Currently, only two thirds of the country has affordable and regular access to broadband, and rural areas and inner cities have lower subscription rates than their more affluent urban and suburban counterparts. African Americans in particular have particularly low subscription rates to home-based broadband. Thankfully, President Obama and Congress have made broadband access a priority, and have a goal in which every American has affordable access. Broadband access is not just a social good, but translates into better education, economic opportunities, and higher digital literacy.
The benefits and potential of broadband are not restricted to wired or in-home access. New technology like 4G LTE has limitless potential to boost economic growth and prosperity. 4G LTE enables users to have extremely fast access to the Internet on mobile devices and to connect to the outside world in new ways. One of the most important features outside of its use for mobile devices is that it can reach individuals in traditionally underserved areas like rural areas and inner cities. Those in rural areas can connect to high speed Internet without the more expansive infrastructure needed for home based service. Additionally, inner cities and minorities directly benefit from mobile broadband service as they have been early adopters to cell phones which will help to fill the void of low subscription rates to wired broadband. Without greater use of broadband services, these underserved groups will lag in digital literacy rates which will put them in a disadvantaged position in the labor force.
AT&T’s merger with T-Mobile will ensure that 4G LTE technology is available to individuals and businesses in our underserved communities. Through the merger, AT&T has announced that they will bring 4G services to 97% of America, which will allow 55 million more Americans to have access to mobile broadband. This represents a significant development in bringing the access to the digital age to all Americans.
Bringing 4G LTE to underserved groups will require a significant investment. AT&T has already announced that they plan on spending $8 billion over seven years to enhance, expand, and improve their network as a result of this merger. At a time when our economy is struggling, $8 billion in new investments is very significant. The investment will provide opportunities for our nation’s businesses through contracting and procurement. AT&T has been a strong supporter of small business in their procurement network and they place an important focus on minority owned businesses. As a result, I am confident that small and minority businesses will benefit directly from AT&T’s purchase of T-Mobile.
Beyond the benefits to small businesses, the acquisition of T-Mobile will benefit the workforce. AT&T has a record of allowing employee choice, offering competitive salary and benefit packages to its workforce, and creates thousands of career opportunities for all skill and experience levels. Independent observers have ranked AT&T the top wireless company in hiring diversity, training, promotion, and retention of minority workers.
Dr. Robert M .Spooney is the President of the African American Chamber of Commerce of Central Florida. Dr. Spooney has over 25 years of experience in the telecommunication industry.
Tmbile has deteriorated rapidly over the past two years. Its unfortunate, maybe the ATT deal will make a difference.