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The US Rural Broadband Crisis
Ian Lamont writes "Rural US residents don't have the same kind of access to broadband services as those who live in urban or suburban areas. According to the federal government, just 17% of rural U.S. households subscribe to broadband service. But the problem is more than a conflict between Wall Street and small-town residents wanting to surf the 'Net or play Warcraft — the lack of broadband access prevents many businesses from growing and diversifying rural economies, as it's expensive or impossible to get broadband. From the article: 'Soon after moving to Gilsum, N.H. (population 811), [Kim] Rossey learned that he couldn't get broadband to support his Web programming business, TooCoolWebs. DSL wasn't available, and the local cable service provider wasn't interested in extending the cabling for its broadband service the three-tenths of a mile required to reach Rossey's house — even if he paid the full $7,000 cost. Rossey ended up signing a two-year, $450-per-month contract for a T1 line that delivers 1.44Mbit/sec. of bandwidth. He pays 10 times more than the cable provider would have charged and receives one quarter of the bandwidth.' The author also notes that larger businesses are being crimped, from a national call center to a national retailer which claims 17% of its store locations can't get broadband."
Sucks, but seriously, do a little research before you move, if your business depends on it. Just reeks of irresponsibility. (Not to say not having broadband at 100% penetration doesn't suck, but I'm not gonna cry a river cause you didn't do your research ahead of time ... )
As population density drops outside of metropolitan areas, it's impossible for telecommunications companies or cable service providers to justify the tens to hundreds of thousands of dollars per mile it can cost to bring fiber to every rural community, let alone every home. It's easy to make a superficial comparison with other countries - particularly European - who have higher population densities. I'd like to see a study in which the figures for broadband access were weighted for density.
We do happen to have relatively good Internet via cable (1 mb) but you can't take anything for granted. Yes, the big, evil Telcos don't want to put stuff out here because it costs a lot. And yes, they should be soundly trashed because it was already "paid" for.
A crisis? Oh well. Caveat Emptor.
Faster! Faster! Faster would be better!
Seems like this is a great argument in favor of municipalities building their own fiber infrastructure like they do with roads, sewers and the like.
Or, like electricity, people could for a Co-Op and get their own broadband.
But it's expensive ($80 or more a month), slow (I had it for 2 years, best DL speed I ever got was only 5 times faster than a 28.8 modem), unstable (hard rain = No internet), unsupported (well...okay, they have people on the other end of the line, but they aren't very good, and they can't fix your problem), and high latency (1500 ms ping is quick. VPN doesn't work, and forget about gaming).
We need a Tennessee Valley Authority-like program to get Rural America on the net.
Unless the business has a strict need for high upload speed, why not satellite? My house and my studio are outside the reach of cable and DSL and I've been using Wild Blue's service at both locations for about 2 years. My brother's business uses it as well. Granted, costs aren't competitive with DSL or cable at a given bandwidth, but it is a lot less expensive than a $450/month T1. The package I have at my studio is advertised at 1.5Mbps down and 256kbps up. Overall it is just as reliable as the cable connection I had when I lived in the city. Wild Blue and a couple of other providers cover pretty much everywhere in the US, including Gilsum, New Hampshire. I do agree with the point of the article, that rural areas need better service. I wish BPL was available at my studio's location, just for its up/down parity, but isn't quite the dire straits it is made out to be. That is particuarly true if we are talking about 'households' that don't likely need a lot of upload bandwidth.
"Sacrifice for the good of The State" - The State
...its a luxury not a basic utility.
rural areas have always suffered from having limited access to luxury items when compared to more densely populated areas. i just don't see the logic in this complaint. i'm not saying its fair...but its nothing new.
if internet is really more important than living someplace that is sparsely populated then you pay a premium to get what you need...or you move. my in-laws live on a dairy farm and they still drive 45 minutes just to buy groceries.
dude.
In many rural areas, wireless broadband is making inroads. Find the nearest neighbor that *can* get cable, and set up a wireless bridge to them. If there's a few people around you, set up a good access point and resell it.
I know, some cable plans don't like that... but on the other hand, it's not like they were planning to sell it to those folks anyway. Also, in my area, you can pay for "enterprise cable" service which is very reasonable, and they won't complain about what you run on it.
If AT&T, Sprint, Verizon and ilk refuse to upgrade their rural networks then pull the subsidies and make them compete on their own merits. At the VERY least they would provide WiFi broadband at reasonable rates.
If the g'vt kept the data on you that google does you'd better believe you'd be calling it "doing evil"
So you want cheap land to have all the amenities that expensive land has? I'd love to buy a car at Kia prices that's as good as a Ferrari, but it isn't gonna happen.
I live less than 20 miles from Gilsum, and about a mile from a (relatively) major regional ISP with good SDSL. I did my research before moving here. But the crisis isn't someone moving to Gilsum blindly. The crisis is that there are lots of ways that solid broadband access can give advantage to a business. Good broadband is a strong advantage for economic development. So rural areas need to find ways to develop it. It can be profitable, evidently, even for the providers. The highest DSL penetration in the country is claimed by VTel in Vermont. Meanwhile the State of Vermont is looking at ways to subsidize extending wireless access to the remotest valleys - with the Republican governor's strong support.
The crisis is that what's good for business and economic development on the whole is often not taken care of by the incumbent carriers, who have discovered ways to make more profits elsewhere without delivering particularly good or advanced services, just by squeezing customers they already have. It's not that they couldn't make real profits in rural areas, but that they'd have to do some actual work to earn them, rather than just live off the legacy of the networks they've already built.
"with their freedom lost all virtue lose" - Milton
This problem would appear to be hampering the economic development of rural areas, specifically in regard to things like call centers or other "warm body" like enterprises that korporate America could take advantage of. The cost of doing business in rural areas would be significantly lower than in metro areas, especially where wages are concerned. Commute times and quality of life would factor in also. Why aren't our rural areas leveraged for their labor?
You would think that rural economic development entities would be trying to encourage broadband...
Perhaps states and counties could encourage broadband expansion into rural areas via incentives.
We play the game with the bravery of being out of range
AT&T was founded on Theodore Vail's vision of "universal service." There were good and bad things about Ma Bell, but one good thing about it was that it united the nation with a uniform, uniformly priced, highly reliable service.
Exactly the same thing is true of the post office. It costs the postal service more to mail a letter to Alaska than to mail it across town, but the price of the stamp is 41 cents.
Universal service is only possible if the service provider is allowed to cross-subsidize the areas that are expensive to service with revenues from the areas that are cheap to service. Competition and the free market will always produce wildly varying prices and cream-skimming (in which the most profitable markets get service from multiple suppliers and the least profitable get no service at all).
If the Internet is now as fundamentally important as the telephone or the postal service, then--just as with the interstate highway system, or the system of air traffic control which enables airline service to be nationwide--there will need to be national policy to that effect. Otherwise it won't happen.
"How to Do Nothing," kids activities, back in print!
Hey, its your food these guys ship...
The point being that this isn't just an issue for a couple of hicks in cabins.
Anyone else think that maybe, JUST MAYBE, our attitude towards the lax customer service portion of corporations have allowed them to grow lazy and fat as hell? I mean, it's sad when in Asia and the netherlands, most of their people have broadband (and most of the intro packages are cheaper and much faster than the crap we offer in the US). Yet, they're cool with keeping us underdeveloped because it would cost them an extra buck or two (even though it would eventually earn itself back). But nooo, they want to make the money now. And you allow them to continue with the short sighted business model, which in turn hampers our development.
Keep it up, man. Keep making America great. I mean, who needs to be on the leading edge of service anyway?
Parent is in no way "offtopic", furthermore he is correct in his info. In many rural areas your lucky if the lines will support 33.6kb dialup and the telco's aren't even required to give anywhere near that on even metropolitan lines. No DSL provider or cable supplier will "guarantee" their traffic in any form. Furthermore, going beyond what he said, the local telco here in this "rural city" refuses to provide even local offices of mega-corporations T1 connections, they also refused the local police department. The same is likely true in many other rural areas.
Well, yes, one always should do one's research beforehand. But that's like only seeing the tree in front of you, and missing the entire forest.
The basic problem here, and throughout the U.S., is that the so-called "last mile" lines are tightly controlled by the local monopoly, and closed off almost completely to any competition. When you don't have competition, you have no incentive to offer better service.
The only way we'll ever see either wider deployment, or 100 Mbs to the house in the next 10 years, is if the Telephone companies are divested of the Central Offices. That is, these are spun off into businesses which sell the lines to competing companies. Only then will you have motivation to upgrade the last mile with better services and speeds.
What I find amusing is that there's always someone who will say "but there won't be any interest in upgrading the rural areas". They always fail to realize that there is no interest right now, and isn't any on the horizon.
If you make this market truly competitive, then there will be interest. Now, granted the price will necessarily be higher, and that's where the main objection from people living out in the rural area comes from. But at least there will be service for a price. And that's what is needed to get the infrastructure ball rolling to deploy better solutions than just a T1 (which really looks rather pathetic these days).
It's also amusing that America is facing internation pressure on this front (while doing nothing about it). Other countries are deploying high-speed internet (100+ Mbs), while the best we've got being rolled out is a pathetic 6 Mbps.
Silicon Valley in particular is extremely lacking here.
Unless this is changed, and soon, there will be a lot of other countries which are in a better position to compete than the U.S.. The next 10 years will be interesting.
The best way to predict the future is to create it. - Peter Drucker.
The issue is broadband is becoming required infrastructure for business and rural areas don't have it. Areas of the country with less population density now have reliable power, roads and telephone service because the infrastructure was universally built out. Because of programs like the TVA (Tennessee Valley Authority) that electrified rural areas and the Interstate Highway system and regulation in industries like railroads and telephones, factories can reasonably be located in rural areas. Recent census data indicates urban and suburban areas are growing faster that rural areas which could be an indication that urban job growth is drawing people in. The question we have to ask ourselves as a nation, is do we want to return to a situation where production is centered on large urban areas or make the investment in infrastructure to make rural areas viable.
but once the cable company lays the line, it's obligated to charge him the same price it charges all the other customers
Golly gee shucks. The original poster talks about crying a river, but I guess the cable company shouldn't have contracted with the government to guarantee a monopoly if the terms were just so damn onerous.
If I have been able to see further than others, it is because I bought a pair of binoculars.
I'm largely libertarian (I know, I know, I've surrendered my credentials with this post alone) but some things, like mail service, phone service, water service, and yes, internet, aren't profitable enough on the small scale for the greed factor to make it worth providing service to houses scattered across the prairie, or even in small towns. So we have to choose between no internet at all or cries of encroaching socialism. The question is whether the economic benefits of internet access are enough to warrant the problems caused by government involvement.
Were the benefits of phone or mail access enough to warrant government involvement? Anyone want to speculate on the economic life of a town with no phone or internet or public roads? The phone system may not have been government-supplied, but they did guarantee the monopoly that made it sufficiently profitable. The distinction isn't that important, in this context.
Gore was right. The "internet superhighway" is just as if not even more important than the national superhighway system. It should be a national priority to insure high bandwidth broadband everywhere in the country and both wired and wireless. The boon to business, innovation, entertainment, communication, access to information and computational resources makes it more than worth it.
That's exactly what happened. They took the money, rolled out broadband for a small percentage of their customers, and the rest went to the shareholders. Now they're bitching that its too expensive to service everyone.
Those tax breaks are probably paying for someone's yacht right now.
The government should sue them for the total cost, plus interest, of the breaks/benefits they gave those companies, or some kind of pro-rated amount. Can't pay it? Tough. And no you aren't going to raise rates to make the consumers pay for it.
Job? I don't have time to get a job! Who will sit around and bitch about being broke and unemployed then?
At this point I have to believe somebody is paying you guys to present these density and last mile arguments.
In sleepy little towns less than pop. 5000 across rural washington you can get fiber to the premises and 100mbps service for less than $40/mo.
The problem is that the incumbent monopolies are milking the market for far more than they should be able to get away with. That is the only reason. All of these logistic and practical reasons are nothing but industry propaganda. I post this in every broadband thread and will continue to do so.
Muni broadband. The incumbents won't build us a bridge to the modern market so the People must.
Help stamp out iliturcy.
I am tired of reading about people who move to the sticks and are surprised they don't have { broadband | fire department | police | medical | cable TV | trader joes | etc }
I moved to Shasta County, California from Santa Cruz. I know all about this and at least I took the time to research it before moving.
People should take some responsibility for their decisions.
I live in a rather poor very rural area and I have to go ahead and say this, but the infrastructure in these areas is horrible! DirectTV is THE ONLY provider for high speed internet in our area, and their (when I checked) $500 setup fee was rediculous even to me! The nearest place that gets cable is 15 miles northeast and is actually a "town." The phone line quality is utterly horrendous. Even when talking on the phones there is a horrible buzzing sound 45% of the time. I have internet access through People PC now (local ISP went out of business), and I connect at a constant 21.6k with them and I did about the same with my old local ISP. So, before the information superhighway can be extended properly to rural customers like myself, it first needs to be prepared for it, a washed out dirt road is NOT acceptable. Summary; our information network needs overhauling FIRST before we can get high speed to rural areas. Dont even get me started on the state of the ACTUAL roads...