Houston expert: Three steps community organizations can take to close the digital divide

Guest column

In times of crisis, communities are disproportionately affected and access to tech is limited. Here's what one organization is doing to bridge that gap. Photo courtesy of Medley Inc.

The pandemic has had a devastating impact on low-income communities. On top of job losses and a greater risk of exposure to COVID-19, people in disadvantaged neighborhoods face another significant hurdle: access to technology.

In communities like Houston's Fifth Ward, owning a device with internet access can be an almost insurmountable challenge, as residents are 53 percent more likely to lack access to basic technology than the greater Houston area.

Technology has the power to help level playing fields, providing information and resources and even programming and socialization to all who have access, but for communities where the median household income is roughly $18,308, or less than half of Houston's median income, organizations must bridge the gap and support residents' access to and adoption of technology.

Here are three steps the Julia C. Hester House, a community center serving the greater Fifth Ward in Houston, has taken in order to provide successful virtual programming and services to ensure that everyone from children to seniors can benefit.

Provide greater access

The first barrier disadvantaged communities face is access: both to devices and to the internet. A 2019 study from the Pew Research Center found that nearly half of low-income adults lack a computer, and a majority are not tablet owners. However, many residents have access to landlines and smartphones, offering a starting point for virtual engagement. Community centers can start with partnerships with tech companies to help bridge the gap by securing and distributing tablets and internet-ready devices to provide an initial step toward connectivity.

On top of low device adoption rates, the recurring cost of home broadband internet creates another hurdle. When the City of Houston used a portion of CARES act funds to provide one-year internet vouchers to 5,000 low-income households, Hester House worked to spread the news quickly to the Fifth Ward. Hester House also recently partnered with the Fifth Ward Redevelopment Corporation, which has taken on a leadership role in this regard, to get internet service into the homes of local seniors and families with young children. Public-private partnerships and policies that provide free or low-cost internet services across communities can enhance connectivity and improve outcomes for families and neighborhoods.

About 4 percent of Fifth Ward residents possess a college degree, and while that's not required to browse the web, it suggests a lack of exposure to technology, particularly among seniors who came of age before widespread adoption of the internet.Beyond securing greater access to broadband, new approaches to providing computer training and teaching tech fundamentals such as how to access and participate in Zoom meetings go a long way toward increasing new technology adoption rates. Zoom program participants may be reticent at first, but practice and support offer opportunities for greater community adoption.

Innovate program models

As internet, hardware and software access has increased in the community, the next step requires adjusting programming to meet new virtual parameters. Hester House moved many of their programs online and developed new programs to replace what was offered in person prior to the pandemic. Shifts to virtual programming can include virtual tutoring and youth classes, mental and social support programming, exercise and activity based video programming and purely social engagements such as group dinners and games.

The acclimation to virtual programming at Hester House has been a challenge, particularly for youth, however program managers continue to make adjustments to program models to strengthen engagement. Recurring programs that make use of music, guest speakers and pre-planned topics of conversation can help strengthen engagement and encourage participant retention, providing more shared experiences that uplift communities.

Measure and iterate results

As virtual programming continues to grow and find its cadence, program managers must continue to survey participants and make adjustments. Understanding the experiences and needs of participants will help guide planning and execution of changes that ensure participants will not only come back but will bring friends. Utilizing appreciative inquiry to improve programming benefits attendees and ensures that mission-oriented goals are met with regard to service to the community. For example, recent virtual gardening and food preservation classes, aimed at teaching healthy food growth and storage practices, has been so popular that the Hester House is assessing ways to expand the program and dive more deeply into specific topics.

Feedback from the community through surveys and qualitative data collection through individual interviews offer the space to understand the experience from members of the community, allowing organizations to focus on testing and iterating new approaches to foster successful engagement, continuing to meet the needs of the community.

It's no surprise that during difficult times, there's an even greater squeeze on nonprofits serving at-risk communities, which is why Hester House launched its Technology and Innovation Access Campaign in December. Campaign goals include funding long-term internet access, computer training, tech education classes and support, real-time tech support, helping residents navigate online applications for local, state, and national resources, and more. Community centers are focused on a successful continuation of service in these changing times, and the steps above offer a model for technology innovation for other organizations looking to provide continuity of service in difficult times.

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Lis Harper is a strategist and account executive at Houston-based Medley Inc.

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Elon Musk's SpaceX is about to make its debut on Wall Street

Money Moves

Elon Musk's rocket company SpaceX will make its debut on Wall Street Friday, June 12, and both institutional and retail investors are expected to gobble up the 555.6 million shares going up for sale at $135 apiece. Musk, already the world's richest man, could become its first trillionaire.

SpaceX is likely to become the biggest IPO ever, with proceeds of around $75 billion. SpaceX hopes to become the first company to send people to Mars. In fact, part of Musk’s future compensation depends on SpaceX eventually establishing a colony of at least 1 million people on the red planet.

Why SpaceX is going public now

In a video conference on Musk's social media platform X, he told JPMorgan CEO Jamie Dimon that people have suggested for the last 10 years that he take SpaceX public. He's doing it now because the company plans to put 100,000 next-generation Starlink satellites into orbit. Deploying AI data centers in space is a “massive new growth base and you need capital for that,” he said.

Going public provides access to the capital that SpaceX needs. But it also exposes it to more scrutiny from shareholders and more regulatory oversight. That includes filing quarterly financial reports, which critics say incentivizes short-term thinking over longer-term planning and creates unnecessary costs for a company. Securities regulators are currently soliciting public comment on a proposal to require public companies to file the financial reports only twice every year.

How the IPO impacts the company

Musk will hold the majority of a special class of shares, giving him control over decisions related to company strategy, finances and personnel. On the latter, because of his ownership of most of these Class B shares, the only person who can fire Musk as CEO is Musk.

The company credits Musk with being the “driving force” behind its growth, innovation and success. But what happens if Musk is no longer in the picture? SpaceX warns that the loss of Musk could disrupt its ability to execute its strategy as well as hurt its “reputation and relationships with customers, partners and other stakeholders.”

The company also warns that finding a replacement with the same skills and experience as Musk would be time-consuming, if not nearly impossible. As Wedbush Securities analyst Dan Ives wrote Wednesday, “At the end of the day Musk is SpaceX and SpaceX is Musk.”

What could make or break SpaceX

Currently in the test phase, the gigantic reusable Starship rocket is key to SpaceX realizing Musk's ambitions. Much of the commercial space business hinges on SpaceX developing Starship’s capability to be fully reusable and hearty enough for a quick turnaround between flights. If that doesn't happen, SpaceX warns that putting data centers and satellites in space will take longer and cost more money, meaning it risks customers bailing on the company.

Analysts say that by pioneering reusable rockets, SpaceX has established a clear lead on competitors such as Blue Origin, led by Amazon founder Jeff Bezos. The Starlink satellite business competes with, among others, AST SpaceMobile – which is relying on a SpaceX rocket to send its latest generation of satellites into orbit next week.

The prospectus filed last week says SpaceX’s biggest potential market is the sale of business-oriented artificial intelligence products designed to transform how people get work done. It’s an opportunity SpaceX predicts would be worth $22.7 trillion if it could somehow dominate rivals like Anthropic, OpenAI and Microsoft in a highly competitive industry. But the prospectus shows no clear path to profitability for the xAI business, which merged with SpaceX earlier this year.

Why Wall Street is paying attention

If the SpaceX IPO is as successful, the stock could quickly join the Nasdaq 100, a widely followed index that tracks the 100 largest non-financial companies in the composite. That's important because some popular funds, such as the $460 billion QQQ exchange-traded fund, mimic the index and will automatically buy whatever is listed in the index.

Nasdaq recently changed its rules to allow select companies to enter the Nasdaq 100 after just 15 trading days.

S&P Dow Jones Indices, on the other hand, is sticking to established and more traditional thresholds that will not allow SpaceX or other companies with gargantuan IPOs faster entry into its S&P 500 index. That means even high-profile companies will still need to wait for their stocks to trade a full 12 months before they can enter the index.

Companies want to be in the S&P 500 in particular because it's arguably the most important index on Wall Street, with trillions of dollars either mimicking it exactly or benchmarked against it. Vanguard's VOO fund that tracks the S&P 500 has roughly $950 billion invested in it, for example.

NASA unveils Artemis III astronauts at Johnson Space Center in Houston

To the moon

NASA on Tuesday, June 9, revealed the crew for its Artemis III mission, the next step in the space agency's plan to eventually land astronauts on the moon.

The announcement came two months after Artemis II's record-breaking trip around the moon that surpassed the distance record of Apollo 13.

NASA's Randy Bresnik, Frank Rubio, Andre Douglas and the European Space Agency's Luca Parmitano won't fly to the moon or land on the surface. Instead, they’ll orbit Earth while practicing docking their Orion capsule with two lunar landers.

“To the Artemis III crew, we wish you Godspeed on the journey ahead,” said NASA administrator Jared Isaacman.

Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin are racing to deliver the lunar landers. The two-week demo is targeted for 2027. Blue Origin suffered a recent setback when its massive rocket exploded during an engine-firing test on the launch pad in Florida, shaking nearby homes and illuminating the sky with an orange fireball.

NASA's Jeremy Parsons said the setback is a learning opportunity and that the space agency is confident Blue Origin's rocket will be ready in time.

NASA's Artemis program aims to return astronauts to the moon's surface for the first time since the 1970s. A recent revamp of the program announced by Isaacman aims to fast-track it similarly to the Apollo era, adding the upcoming spaceflight around Earth before eyeing a lunar landing in 2028.

“We are certainly humbled as a crew to be able to be your crew that executes this Artemis III mission in space,” said Bresnik, Artemis III commander.

Added Douglas, mission specialist: “My brain — it is going a mile a minute right now. But my heart, it is so warm. It is so full."

In May, NASA awarded hundreds of millions of dollars in contracts to four companies, including Blue Origin, to build landers, rovers and drones for a future moon base. Isaacman said the goal of the moon base is to lay the foundation for a Mars expedition.

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