Tag Archives: infrastructure

Has The Internet Become A Utility? No, But It Is Close

 Opportunity has power over all things. — Sophocles

I have constantly made the argument that just because you put someone on a nuclear submarine does not mean they will innately figure out how to pilot it. In fact, disaster is more likely to happen. Just giving someone access to information does not mean they will automatically know how to better themselves unless that portal is strictly designed to do so. However, the internet is filled with as much junk (if not more) than useful information. People will therefore gravitate to what they have learned to comprehend. There is the argument that having water in your home is better than not, but what if that water is more toxic than clean. The faucet becomes deadly, not helpful.

What is a utility? The dictionary defines a public utility as “a business enterprise, as a public-service corporation, performing an essential public service and regulated by the federal, state, or local government.”

Based on this definition, the internet does not quite fit the criteria of a public utility—at least, not yet. While the internet has certainly become an essential service in modern society, it lacks the same level of regulation and universal accessibility that defines traditional utilities like electricity, water, and gas. These utilities are tightly controlled to ensure consistency, affordability, and access for all, regardless of socioeconomic status. The internet, by contrast, is still largely managed by private corporations that set their own prices, establish service areas, and determine the quality of the connection users receive. This has led to disparities in access, with high-speed broadband readily available in affluent urban areas while rural and lower-income communities often struggle with slow or unreliable connections.

One of the biggest distinctions between the internet and traditional utilities is the role of regulation. Electricity and water services are heavily regulated because they are deemed necessary for survival and public welfare. In contrast, the internet operates in a more laissez-faire environment. While governments have attempted to introduce regulations such as net neutrality—intended to ensure equal access to all online content—these efforts have faced pushback from major telecommunications companies. The debate over whether the internet should be classified as a public utility is an ongoing one, with proponents arguing that universal access is a fundamental right in an increasingly digital world, while opponents fear overregulation could stifle innovation and increase costs.

Despite these challenges, the internet has become nearly indispensable in daily life. It is the backbone of modern communication, education, commerce, and entertainment. Job applications, telehealth services, remote work opportunities, and access to government resources all depend on a reliable internet connection. The COVID-19 pandemic underscored just how vital internet access is, as schools transitioned to online learning and businesses adopted work-from-home models. Those without reliable internet were left at a severe disadvantage, further exacerbating existing inequalities.

Another factor to consider is infrastructure. Traditional utilities operate on a centralized infrastructure model, where a single provider (often a government-regulated entity) manages distribution to all consumers. The internet, however, consists of a decentralized network of private providers, each controlling different segments of the infrastructure. While this decentralization has allowed for rapid innovation and expansion, it has also led to fragmentation, where service quality and pricing vary widely based on geographic location. In areas with limited competition, internet providers can charge high fees for subpar service, leaving consumers with little recourse.

Cost is another key element in the utility debate. Utilities like water and electricity are subject to price regulations to prevent excessive charges. The internet, however, remains largely unregulated in this regard, with broadband costs in the United States being some of the highest in the world. Many low-income households cannot afford high-speed internet, effectively locking them out of opportunities that require online access. This digital divide reinforces socioeconomic disparities, as those with consistent internet access gain educational and economic advantages over those who are disconnected.

Moreover, the quality of the internet experience is not uniform. Unlike water, which is expected to be safe to drink regardless of where you live, the internet experience varies widely based on available bandwidth, provider policies, and regional infrastructure. Some communities suffer from data caps, throttling, and unreliable service, while others enjoy ultra-fast fiber-optic connections. This inconsistency highlights another major difference between the internet and true public utilities.

If the internet were to become a public utility, significant changes would need to occur. Governments would have to step in to ensure equitable access, set fair pricing standards, and improve infrastructure in underserved areas. Public broadband initiatives, such as municipal networks, have already been proposed and implemented in some areas, offering lower-cost, high-speed options as an alternative to private ISPs. However, these efforts are often met with legal and political challenges, as existing providers fight to maintain their market dominance.

The argument that the internet should be classified as a utility stems from its necessity in modern life. Just as society determined that water, electricity, and gas are essential for a functioning household, the internet is increasingly seen as an essential service. Many believe that access to the digital world should not be a privilege but a right. However, until regulations catch up with this reality, the internet remains in a gray area—essential, but not yet universally protected and regulated like a true public utility.

To enhance the discussion on the internet’s status as a utility, it’s essential to examine the digital divide—the gap between those who have access to modern information and communication technologies and those who do not. Despite advancements in global connectivity, significant disparities persist both within the United States and worldwide.

Global Perspective

As of 2022, approximately 2.7 billion people, or one-third of the world’s population, remained without internet access. Additionally, 53% lacked access to high-speed broadband, limiting their ability to engage fully in the digital economy.

The divide is more pronounced between high-income and low-income countries. In high-income nations, internet usage stands at about 93%, whereas in low-income countries, only 27% of the population is online. This discrepancy highlights the infrastructural and economic challenges faced by developing regions in achieving digital parity.

Gender disparities also contribute to the global digital divide. Globally, 70% of men use the internet compared to 65% of women. Women account for a disproportionate share of the offline population, outnumbering male non-users by 17%. This gap underscores the need for targeted initiatives to promote digital inclusion among women.

United States Perspective

In the United States, while 95% of adults use the internet and 90% own a smartphone, only 80% have high-speed internet at home. This indicates that a significant portion of the population still lacks reliable broadband access, affecting their ability to participate fully in digital activities.

Income disparities significantly influence internet access. In 2019, 44% of adults in households earning below $30,000 annually did not have broadband services. This lack of access can hinder opportunities for education, employment, and access to essential services.

Educational attainment also plays a role in digital connectivity. Adults with higher education levels are more likely to have internet access, highlighting the intersection between education and digital inclusion.

Racial and ethnic disparities further exacerbate the digital divide. In 2021, 71% of White non-Hispanics used a PC or tablet, compared to 57% of African Americans and 54% of Hispanics. These differences can perpetuate existing inequalities in education and employment opportunities.

Implications

The digital divide has far-reaching consequences. Individuals without reliable internet access face challenges in job applications, accessing healthcare, and participating in educational opportunities. For instance, during the COVID-19 pandemic, students without home internet struggled with remote learning, exacerbating educational inequalities.

Addressing the digital divide is crucial for ensuring equitable access to information and opportunities. Potential solutions include investing in infrastructure to expand broadband access, implementing affordable internet programs, and enhancing digital literacy initiatives. Bridging this gap is essential for the internet to be considered a true utility, accessible and beneficial to all.

The digital divide—the gap between those with access to modern information and communication technologies and those without—profoundly affects various sectors, notably entrepreneurship and Historically Black Colleges and Universities (HBCUs).

Impact on Entrepreneurship

Entrepreneurs rely heavily on digital tools for marketing, sales, communication, and operations. Limited access to high-speed internet and digital technologies hampers business growth and innovation.

  • Rural Entrepreneurs: In the United States, rural small businesses face significant challenges due to inadequate broadband access. This deficiency restricts their ability to expand customer bases through online sales and reduces operational efficiencies. Research indicates that limited broadband access correlates with reduced business innovation in rural areas, as it impedes the adoption of cloud-based technologies essential for modern business operations.
  • Women Entrepreneurs in Developing Countries: The high cost of mobile data and unreliable internet connectivity disproportionately affect female entrepreneurs in developing nations. A survey across 96 countries revealed that 45% of women in business lack regular internet access due to expense and connectivity issues, hindering their capacity to market products, communicate with customers, and receive payments.
  • General Entrepreneurial Challenges: The digital divide limits access to digital finance, reducing diversified funding sources for disadvantaged groups. This constraint affects the ability to engage in open innovation processes, as individuals without access to information and communication technologies (ICT) cannot participate effectively in the digital economy.

Impact on HBCUs

Historically Black Colleges and Universities play a crucial role in providing higher education to African American communities. However, many HBCUs face challenges related to the digital divide.

  • Infrastructure Limitations: A significant number of HBCUs are located in areas with limited broadband access, often referred to as “broadband deserts.” This lack of high-speed internet hampers the institutions’ ability to offer digital learning resources and affects students’ educational experiences.
  • Funding and Resources: HBCUs have historically been underfunded, limiting their capacity to invest in necessary digital infrastructure and technology. This financial constraint exacerbates the digital divide, affecting the quality of education and the institutions’ competitiveness.
  • Digital Literacy and Inclusion: Despite these challenges, HBCUs are actively working to bridge the digital divide by fostering digital literacy and inclusivity. Initiatives include collaborative assignment designs and amplifying student voices to enhance digital learning experiences.

Efforts to Bridge the Gap

Addressing the digital divide requires concerted efforts from governments, private sectors, and educational institutions.

  • Investments in Infrastructure: Allocating funds to improve broadband infrastructure in underserved areas is crucial. For instance, federal agencies have directed significant financial support towards technology initiatives in HBCUs to enhance digital equity.
  • Public-Private Partnerships: Collaborations between corporations and educational institutions can lead to substantial improvements in digital infrastructure. Such partnerships aim to enhance technology access and digital literacy among students and the broader community.
  • Policy Initiatives: Governments can implement policies to reduce the cost of mobile data and internet services, making them more affordable for entrepreneurs and educational institutions. Such measures are vital in developing countries where the cost remains a significant barrier.

The digital divide significantly impacts entrepreneurship and HBCUs by limiting access to essential digital tools and resources. Addressing this issue is critical for fostering economic growth, innovation, and educational equity.

Ultimately, the question of whether the internet should become a utility comes down to societal priorities. If we agree that digital access is fundamental to education, employment, healthcare, and civic engagement, then steps must be taken to ensure it is available to all, regardless of income or location. This may mean rethinking current regulatory frameworks, expanding public broadband initiatives, or enforcing stricter oversight of internet service providers. Until then, the internet remains on the verge of utility status—vital, but not yet universally accessible or regulated in the way that other essential services are.

The Lessons of Harvey: Businesses Need To Be Integrated Into City’s Emergency Plans

“As cities have grown rapidly across the nation, many have neglected infrastructure projects and paved over green spaces that once absorbed rainwater.” –  Charles Duhigg

By William A. Foster, IV

One of my favorite shows is Star Trek and one of the most memorable characters was from the Voyager series, Seven of Nine. She was a former Borg, a species that strived for perfection and efficiency. Despite being separated from the Borg, she remained rooted in their values of striving for perfection and efficiency. Humanity often is very reactive at times in its striving for efficiency. This is especially true when it comes to natural disasters. Often times when we think we are prepared for the absolute worse, Mother Nature says, “Hold my drink.” and proceeds to exceed even our expectations of just what is possible from her. Worst case scenarios by municipalities have been time and time again blown out of the water (no pun intended) over the past few decades as climate change appears to be bringing about more volatile natural disasters.

Over the past decade, Houston has seen a population boom since the Great Recession. While the rest of the country struggled Houston thrived and expanded almost 22 percent over the period thanks to triple digit oil prices. A construction boom inside Houston’s inner loop, historically a place most Houstonians avoided, took root. To the point, developers could not build fast enough for the population influx coming in from around the country. In the process though some serious infrastructure problems have started to arise. Houston was already notorious for flooding, now as developers took lots where once a single-family residence stood and put three to four townhouses on them, green space drastically reduced and the notorious flooding has become even worse with water having virtually nowhere to go. Enter, Harvey.

To be fair, Harvey is an unusual beast of spectacular fashion, although Irma may prove to be the start of a trend. Somewhere between 10-15 trillion gallons are what is expected to have dropped into the city of Houston after Hurricane and Tropical Storm Harvey was done. It is an unprecedented event for the fourth-largest city in the United States. To put it in perspective, imagine the entire state of Delaware which is comparable to Greater Houston’s almost 2300 square miles of geography, with six times the population being submerged under water. Greater Houston’s population is well over six million and the last time a mass evacuation was tried twelve years ago, more people died in the evacuation than in the actual storm. It would likely require Houston a week or two to have a calm organized evacuation that did not overwhelm the city and state’s highways and roads. And perhaps at this point, trying to evacuate people is just the wrong idea. There are so many logistical and socioeconomic problems with trying to do so, all one needs is to look back on Hurricane Katrina for a reality check of why it is nearly impossible to do so.

So how can a city like Houston and others learns from the lessons of Harvey? Often times, what we need is right in front of our face. In the case of Harvey, the case is no different. Having to drive throughout the city during the storm where virtually every business was closed something striking occurred to me. Office buildings that were over ten stories were ghost ships, while most shelters are assigned to schools and churches that are usually no more than two stories. The office building ghost ships,  that is to say that there was absolutely no one in them are an untapped asset in the city’s emergency infrastructure. As of 2015, Houston had 50 office buildings under construction totaling almost 18 million square feet of space. The locations of these buildings are widespread like Houston covering areas like downtown, the Energy Corridor/West Houston, the Woodlands (north), and others around the city creating a virtual net of buildings that if properly prepared with their owners could have been used at emergency shelters far above the flooding waters and much shorter distances to travel for Houstonians than what was comprised. The city’s major convention center, George R. Brown Center, was turned into the central hub of evacuation. Unfortunately, Houston’s geography is expansive. The city at its widest points can easily take almost two hours to get to the city center by car when traffic is not impaired. Couple that with low storied churches and schools and it is easy to see why office buildings which are more plentiful throughout the city could be a vital addition to emergency planning. What obstacles could be holding them back?

I suspect three main issues. One, the city’s planning department would need to ensure future buildings include potential emergency use in the developer’s plans. It would also require these buildings, their owners, and their tenants to be part of any emergency planning committee that would go into action should it be required. Almost the equivalent of a volunteer emergency force. Second, the additional cost that could be associated with fitting current and future buildings for such a task must be shouldered somehow. These costs that could certainly be offset by favorable tax credits for a period of time, municipal subsidizing, etc. The third issue would be security of sensitive information. I can not stress how vital this would be in considering which office buildings to consider given the sensitivity of identity theft both on a individual and institutional level. Again, all three of these things are logistical things that can be handled accordingly.

Every time we think we have seen the worst that Mother Nature has to throw at us, the ante seems to be upped just a little (or lot) more. We are continuing to change the dynamics by which we interact with our environment and in turn how the environment interacts with us. The burden of just how we handle future stresses that the natural disasters may pose will take a more broad minded and efficient strategy than what we currently use. Moving and evacuating large bodies of people will only get less and less likely in cities where density is increasing. One of the key to taking on a lot of weight is to spread out the weight so that it is properly balanced. The same goes for cities when it comes to disasters.

 

 

The Finance & Tech Week In Review – 8/12/17

Every Saturday the HBCU Money staff picks ten articles they were intrigued by and think you will enjoy for some weekend reading impacting finance and tech.

Iran has opened possibly the world’s biggest bookstore / WEF wef.ch/2vfXAUU

Stocks dominated by short-run fluctuations in volume have returns abnormally higher vs. similar stocks / NBER bit.ly/2vKAuGI

How to Help Colleges Teach Financial Literacy / WSJ ow.ly/JJG230emoTX

Welcome to China’s urban forest / WEF wef.ch/2ulBHVv

This is when a robot is going to take your job, according to Oxford University / WEF wef.ch/2wqaiPi

Not just a headache: How migraine changes your brain / New Scientist bit.ly/2uwYbik

A look at the infrastructure needs of the nation’s treasured sites / Pew Trusts ow.ly/BDUW30emoBt

Are German Automakers Facing Their iPhone Moment With Tesla? / Clean Technica ow.ly/agpA30emoz7

How the Infamous Kunlun Fishing Ship Met Its Demise / Pew Trust ow.ly/LhEF30emovI

A look at Rwanda’s genocide helps explain why ordinary people kill their neighbors / Science News ow.ly/gx6D30emotv