Businesses and the need for speed: The impact of broadband speed on business presence

• Models estimated to examine the linkages between broadband speed and firms.
• Both geographic and sectoral variations in relationship of interest examined.
• Linkages between broadband speed and agricultural and rural establishments.
• Broadband likely substitutes for agglomerative disadvantages of more remote locales.
• Infrastructure quality critical to economic vitality of rural communities.

Despite the widespread attention devoted to broadband and its anticipated impacts, surprisingly little is known regarding the linkages between broadband provision and establishment location. This is particularly true with respect to broadband speed. Given the understudied nature of this relationship, this study estimates econometric models to examine the linkages between broadband speed and firms using Ohio as a case study. Models results indicate broadband speed is most important to agricultural and rural firms. These findings provide case study support for policy and funding initiatives designed to improve the quality of broadband infrastructure in rural locations.