The rural broadband debate has been in the news a lot lately. Yesterday, DSL Reports ran a story sharply criticizing a report released by the US Internet Industry Association (an ISP lobbyist firm). But as Ars pointed out, the report actually offers some facts revealing that broadband availability in the U.S. isn’t nearly as bad some have suggested.
79 % of homes with a phone line can now get DSL, and 96 % of homes with cable can get broadband. Considering just about every home has a phone line, and most people have cable, these numbers suggest the main reason for the lack of rural broadband users isn’t the lack of availability, but the lack of adoption. Of course, rural areas have slower speeds and higher prices than urban areas. This makes sense, because building out a network in low-density areas costs more per subscriber versus urban areas, where a single apartment complex can house hundreds of users.
Still, groups argue that massive government subsidies are needed to promote broadband deployment in rural areas. ConnectedNation (a Washington-based non-profit) released a report a couple weeks ago, “The Economic Impact of Stimulating Broadband Nationally”, which concluded that accelerating broadband could pump $134 billion into the U.S. economy.
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