The Vernonburg Group’s Digital Opportunity Index is designed to offer a broadband industry-specific alternative to traditional environmental, social and governance (ESG) indices used in evaluating potential investments. The most important factor (45 points out of 100) aims to quantitatively assess how well broadband providers are serving rural, low-income, and Tribal areas.
According to Vernonburg Group, traditional ESG indices are “misaligned” with the broadband industry’s core business activities.
The Digital Opportunity Index uses five indicators (with 14 sub-indicators) to assess 15 publicly traded broadband providers in the United States: broadband availability in rural, low-income, and Tribal areas (45 points); affordability and quality of low-cost plans (25 points); digital skilling resources (15 points); community outreach and accessibility (10 points); and support for affordable devices (5 points).
The index provided letter grades and associated number scores for the 15 providers. The distribution: Three providers received AAA ratings (87-100 points; none received 100 points), 3 received AA (73-86 points), 2 received A (59-72 points), 2 received BBB (45-58 points), 3 received BBB (30-40 points), 2 received B (15-29) points and none received CCC (0-14 points).
The study found that the top-scoring six companies are Xfinity (Comcast), Verizon, AT&T, Optimum (Altice), Sparklight (Cable One) and Spectrum (Charter).
The Digital Opportunity Index suggests three ways in which broadband providers can get “quick wins” to improve their service to these constituencies and improve their ranking:
- Add links to free digital training and low-cost device resources, provide digital opportunity support at libraries, state digital opportunity asset inventories, and national nonprofits that offer databases of resources.
- Enable website translation for non-English speakers.
- Conduct accessibility assessment of their website and materials to ensure compliance and positive user experience for those with disabilities.
“The Digital Opportunity Index is a tool for action. ISPs can use their scores to benchmark and improve their performance, investors can direct capital toward those driving real-world progress, and policymakers will have a clearer, more comprehensive picture of ISPs’ progress on broadband availability and adoption,” Paul Garnett, the CEO and Founder of the Vernonburg Group, said in a press release. “It’s about aligning business performance with broadband expansion and adoption.”
Joan Engebretson contributed to this report
