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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Broadband link to U.S. jobs exaggerated: experts Fri Jan 30, 2009 4:21pm EST Email | Print | Share | Reprints | Single Page [-] Text [+] By Kim Dixon WASHINGTON (Reuters) - A co-author of a widely cited forecast that nearly 300,000 U.S. jobs would be created for every percentage point rise in high-speed Internet use said on Friday these and similar estimates are "a gross overestimate." "There is a great deal of overstatement in most of these studies," said Robert Crandall, a Brookings Institution economist and co-author of the frequently-cited paper with that estimate. U.S. lawmakers are proposing grants between $6 billion to $9 billion and tax credits to encourage investment in high- speed Internet, as part of an economic stimulus plan winding its way through Congress costing up to $900 billion. The 300,000 jobs estimate has been used in newspapers and cited by other publications advocating investment in high-speed Internet, or broadband. The Brookings Institution study, published in July 2007, is not particularly relevant now because of differing employment and related migration trends at the time of the study, Crandall said. Attempting to extrapolate it nationwide at this time is a "gross overstatement," he said. Most the data on jobs and broadband is not relevant because it doesn't apply to underserved, mostly rural and high cost areas targeted in the stimulus package, said Shane Greenstein, a professor at Northwestern University's Kellogg School of Management. "The experience of Manhattan in 2005 has no relationship to the experience in West Texas," Greenstein said. Chris King, an investment analyst at Stifel Nicolaus said the proposals targeting unserved rural areas are not enough to propel rural providers to invest in any event, largely because they do not address ongoing operating costs. "We believe the current plans are unlikely to stimulate private sector investment in unserved areas," King said. King, concurring with several Wall Street analysts, said tax credits for ultra-fast Internet speeds for underserved areas would likely only benefit Verizon Communications Inc and perhaps some cable companies. To see the Brookings study, go to: www3.brookings.edu/~/media/Files/rc/papers/2007/06labor_crandall/06labor_crandall.pdf (Editing by Andre Grenon) © Thomson Reuters 2009 All rights reserved Share: Del.icio.us Digg Mixx My Web Facebook LinkedIn Next Article: Hitachi warns of $7.8 billion loss, to restructure Also on Reuters Slideshow Slideshow: Flying through life -- from birth into adulthood Full Coverage: The Year in Review 2008 Blog: So many ways to say goodbye...to your job More Technology News Ex-Fannie Mae programmer says not guilty of virus Hitachi warns of $7.8 billion loss, to restructure Dell plots smartphone foray, eyes Apple: report Businesses risk $1 trillion losses from data theft: study RIM's Storm costlier to make than iPhone: report More Technology News... Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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