Cable's Impact on NJ Economy Continues to Grow
2008 report shows increased job creation and community investment
A 2008 analysis of the contributions made by the member companies of the New Jersey Cable Telecommunications Association (NJCTA) to the state’s economy reveals that the industry’s impact has been significant and is continuing to grow.
Despite a challenging global economic environment, NJCTA member companies - Comcast, Cablevision, Time Warner, US Cable, and Service Electric - have added more New Jersey-based jobs, generated more revenue for the state and its municipalities, and provided more community investments since the 2007 report.
“These are tough times for everyone,” observed NJCTA Chairwoman and Comcast Senior Director of Regulatory Affairs Elizabeth Murray. “But New Jersey’s cable companies are committed to providing great products, cutting-edge innovation, and significant community investments so that we can continue to connect New Jersey residents to their friends, family, work, and government. That commitment has helped us grow through a difficult environment.”
Expanding Business Outreach
Thanks to the continued success of cable’s Triple Play of services (digital video, high-speed Internet, and digital voice) cable has expanded its presence in more parts of New Jersey. For example, an increasing number of small businesses are turning to cable for their telecommunications needs.
Cable’s competitive voice and high-speed Internet products are helping lure more business customers by improving business connectivity and providing an affordable, high-speed alternative to traditional phone and slower DSL service. As the number of business customers using cable has increased, cable has expanded its business products to meet the unique needs of small to medium sized companies.
Hiring More Employees
What’s more, as cable has grown, it has hired more employees to provide crucial customer service and support, both by phone and in person.
The industry’s innovative Triple Play product line and service improvements have allowed it to increase the number of New Jersey-based employees from more than 6,800 at the start of 2007 to more than 9,200 to start 2008. In addition, cable’s use of New Jersey-based contractors has expanded from more than 1,200 at the start of 2007 to more than 1,600 at the start of 2008.
Providing More to State and Municipalities
Cable’s contributions to state and municipal revenues have also increased.
For the tax year 2006, New Jersey’s cable companies provided $23.5 million in revenue to the state and local municipalities in the form of state and local business taxes and payroll taxes. In tax year 2007 that number had grown by $2 million to $25.5 million. (Tax data for 2008 will not be available until 2009.)
In addition, New Jersey’s cable industry provided more than $27 million in franchise fees paid directly to New Jersey municipalities in 2007, up from $26 million in 2006.
Providing More Community Contributions
New Jersey cable’s contributions to New Jersey aren’t limited to just taxes and fees, either. In fact, the member companies of the NJCTA provided more than $11.2 million in community contributions as of the 2008 report.
Cable’s community contributions include charitable giving, free wiring and service for local schools and libraries, community programming, and public, education, and government (PEG) access channels.
“Over the last 10 years, New Jersey’s cable companies have spent more than $3.3 billion in technology investments to ensure that we are providing the best, most innovative products,” said NJCTA board member and Vice President of Government and Regulatory Affairs for Cablevision Adam Falk. “That’s what allows us to continue to grow in New Jersey and increase our already significant economic impact.”