New Business Broadband Study Highlights Challenges and Opportunities for the Capital Region

Broadband for Business: A Path Forward for the Capital Region

For too long, businesses in the Sacramento region have struggled with broadband and Internet deficiencies. It hurts business operations, workers, bottom lines, and the overall economy. 

In a first-ever assessment of these conditions, Valley Vision has documented on-the-ground digital hardships and realities for businesses in the four-county region. The new report, “Broadband for Business: A Path Forward for the Capital Region,” identifies connectivity challenges and gaps for businesses in Sacramento, Yolo, Yuba, and Sutter counties, and provides recommendations and resources for solutions. 

While the research is specific to the Sacramento Capital Region, the findings and recommendations have relevance statewide and nationwide. Usually, research into digital inequities focuses on household and residential connectivity. This study extends those inquiries and concerns to the business community and identifies business-centric needs, challenges, opportunities, and solutions.

The work was supported by a grant from the U.S. Economic Development Administration. The project was designed to improve broadband Internet access and usage for businesses in the Capital region. It focused particularly on smaller minority-owned and women-owned businesses, farming operations and businesses in rural communities, and businesses in aging commercial corridors as well as newer developments.

The need for the project was spotlighted by the COVID-19 pandemic, which showed that businesses did not have uniform access to reliable and affordable broadband service, nor the digital skills and training needed to thrive. The work of the project is an outgrowth of the Greater Sacramento Region’s Comprehensive Economic Development Strategy for 2020-2025, known commonly as The Prosperity Strategy. 

The project’s findings and recommendations were based on survey results, data and mapping research, literature reviews, and interviews and case studies. Data and mapping research included a first-ever overlaying of local data for areas zoned for business uses with data from the California Public Utilities Commission showing locations with inadequate broadband service. The maps developed by this project provide a new and granular level of data and information not previously available, and a roadmap for where solutions should be focused. 

Key findings include:

• Conditions vary widely.
• Getting accurate information about available services can be difficult.
• More choices and competition are needed among broadband providers.
• Service is often unreliable and speeds are often too slow for business needs.
• Much of the need is hidden.
• Businesses need more digital training and education.
• Promising strategies, tools, and resources are available. 

The report provides recommended strategies, tools, and resources for all who have a role in remedying the situation, including:

• Governments
• Businesses
• Groups that serve businesses such as Chambers of Commerce, Farm Bureaus, and Property and Business Improvement Districts
• Internet service providers

Valley Vision worked with many partners on the study, and is grateful for their inputs and support. Valley Vision is a nonprofit civic leadership organization that has managed many projects to advance economic vitality in the Sacramento Capital Region over three decades. Valley Vision manages the Connected Capital Area Broadband Consortium, which is funded by the CPUC and serves as a resource hub and catalyst for broadband solutions.

For more information, contact Navreet Hundal, navreet.hundal@valleyvision.org.