By Alex Kuffner
Journal Staff Writer

PROVIDENCE -- Cox Communications contributed $354.3 million to the Rhode Island economy through direct spending and its support of other business in 2010, according to a report from the University of Massachusetts Donahue Institute.

The report, released Wednesday, found that Cox weathered the recession well; while total employment in the state dropped by 7 percent from 2006 to 2010, the cable company increased its workforce slightly, from 1,196 employees to 1,202.

"That's proven to be pretty typical," said Marty Romitti, director of economic and policy research at the Donahue Institute, which looked at other states too. "People have become so dependent on having Internet access and cable programming. Some people view it as discretionary spending, but it's something they don't want to give up."

The institute was hired by the New England Cable & Telecommunication Association, an industry group, to look at the economic impacts of wired cable companies in all six states in the region. Although other companies provide cable television in Rhode Island, they use wireless or satellite services. Cox was the only wired cable company in Rhode Island considered in the report.

"At a difficult time for Rhode Island, Cox was making significant investment in technology, infrastructure and people," Paul Cianelli, president and CEO of the industry association said in a statement. "Not only did these investments create economic activity when Rhode Island needed it most, but they laid the foundation for future economic growth."
Much of Cox's spending came through infrastructure improvements, such as installing broadband lines throughout the state. From 2006 to 2010, that spending totaled $322.6 million, according to the report.

In general, Rhode Island is served well when it comes to high-speed Internet connections, ranking fifth in the nation in terms of percentage of households with access to multiple broadband service providers.

That means there is a lot of competition in the state. Although Cox is active in the market, other companies, including Verizon, are also doing a lot.

"It certainly is a market that is growing," said Romitti. "A company like Cox's market share is not guaranteed."