Cynthia Marshall, president of AT&T North Carolina introduced Dr. Goodnight to an audience of telecom executives at the North Carolina Telecommunications Industry Association’s 78^th annual convention. AT&T has joined Dr. Goodnight in supporting his 1-to-1 computing initiative and Ms. Marshall asked the audience members to also join this worthy cause. Dr. Goodnight presented discouraging statistics about the drop-out rates among our high-school students and the negative consequences for our economy. He attributes much of this problem to schools that do not engage students because schools are not using today’s technology, but still offer a 20^th century curriculum. The telecom executives responded enthusiastically to Dr. Goodnight’s demonstration of SAS Curriculum Pathways, both because they want to help improve our schools but also to benefit their business.

Not only is The United States losing ground to our global competitors in education, we are also losing ground in broadband. In 2001 the United States ranked 4th in the world in per capita broadband lines. Today the US ranks 19th, with only 56 lines per 100 people, compared to 89 in Japan, 86 in Sweden, 81 in The Netherlands, and 79 in Italy. Not only does the US have fewer lines, but also slower access speeds.

The problem is not a lack of broadband infrastructure. More than 90 percent of North Carolina’s households can get broadband from at least one provider. The problem is low adoption rates among middle and low-income households, particularly in rural areas. Many consumers don’t see the value in home broadband, particularly in today’s difficult economic climate. Telecom companies are searching for applications that will drive higher adoption rates so they can recoup their investments and fund new investments.

Another problem for telecom companies is that the economic recession is accelerating the number of American households that are abandoning their home land line phone. The process has been underway for some time, but now 700,000 American households a month are cutting the cord. Smaller CSPs, those serving rural areas and small towns need another revenue generating option. Not only is their business under threat, their communities have been hard-hit by jobs in manufacturing, agriculture, and textiles.

The American Recovery and Reinvestment Act allocates $7.2 billion for broadband related projects. Private investment is only about $4B annually so the stimulus is very significant. There is general agreement that broadband providers would bypass rural areas for several years without the government incentives. Most of the companies present at the conference have or soon will be applying for broadband grants. The stimulus directs most of the funds to unserved and underserved rural areas. To qualify, applicants must address how they are providing service to schools and libraries.

North Carolina’s communications service providers now have another good reason to expand broadband service, to lower the costs, and increase speeds. Giving our kids access to broadband technology, computers and SAS Curriculum Pathways is a win-win for everyone concerned. It keeps kids interested in schools, and prepares them to join into the 21^st century economy upon graduation.