Survey: Iowa businesses pay $61.79 on average for broadband

A new survey shows that 72 percent of Iowa businsses have broadband Internet connections, paying an average of $61.79 per month for them.

Connect Iowa released the survey results on Tuesday, June 7 in cooperation with the Iowa Department of Economic Development, arguing that the findings show companies with broadband connections enjoy higher revenue than those without.

Surveyed businesses with broadband connections had annual revenues averaging $570,000, the report said, or $259,000 more than the surveyed businesses without broadband connections.

The revenue gap was even greater between businesses that have a web site and broadband connection and those that lack a broadband connection.  About 43,000 Iowa businesses, or 52 percent of the total, had a web site. Their median annual revenues were double the average among businsses statewide.

The average download speed among the surveyed businesses having broadband was 7.2 megabits per second. The average monthly price paid for broadband service was $61.79.

Broadband prices were at the lower range of broadband costs in nine states surveyed by the Connected Nation organization, which is a partner in Connect Iowa. The group said the average monthly broadband charges paid by businesses nationwide was $71.92, and the average download speed was 6.7 megabits per second.

About 12 percent of Iowa businsses with broadband connections said they need more bandwidth.

A total of 23,142 Iowa businsses lack broadband Internet connections. That was not a statistic state leaders were proud to report. The largest concentration of businsses without broadband was in the retail sector, with 7,180 business lacking broadband.

Iowa Department of Economic Development Director Debi Durham said the availability of “robust Internet infrastructure” critical to the success of businsses and the overall Iowa business climate in a prepared statement.

Connect Iowa is a public-private partnership working on Internet expansion.