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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."

30 of 586 comments (clear)

  1. Ounce of Prevention by everphilski · · Score: 5, Insightful

    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 ... )

    1. Re:Ounce of Prevention by glop · · Score: 5, Insightful

      I have moderation points at the moment and thought of rating you as a troll. But I thought better of it and will just state a few points that you seem to have missed :
        1) the guy has solved the problem by shelling some money.
        2) the money he is paying is only 100$ more than my commute costs. And I guess his house is much bigger and cheaper than anything I could find in NY. So he probably was wise to pay that price.
        3) he offered to pay all the connnection costs for the cable company and they refused.

      So, I really can relate to this guy and think he really is the good guy here.

    2. Re:Ounce of Prevention by walt-sjc · · Score: 5, Informative

      I agree, but also want to point out some other facts here...

      Now he has a T1 so he can get plenty of static IP's without massive surcharges, he has upstream bandwidth that is better than most people can get outside of FIOS, He won't run into the "we will cut you off for exceeding our unpublished and secret cap" problem, and he has an SLA on the circuit. He uses the internet for his business, and the internet IS his business. A T1 is quite reasonable. Unless he is underpricing himself, he is probably making at LEAST $10K / month off that $500 T1.

      Just to keep things in perspective...

    3. Re:Ounce of Prevention by Bemopolis · · Score: 4, Informative

      The key is should of.

      No, the key is should HAVE.</pedantic>
      --
      "I guess the moral of the story is, don't paint your airship with rocket fuel." -- Addison Bain
    4. Re:Ounce of Prevention by walt-sjc · · Score: 4, Insightful

      Some of us have tried it and found that it SUCKS. Latency is 600ms AT BEST. In practice, it's worse. It's also slow, and inconsistent. It a connection of last resort. Since the guy's BUSINESS is the Internet, it's a non-option. $450/month for a T1 is a VERY reasonable and realistic price to pay for something your business depends on. As I said in another comment, that $450/month enables him to make $10K+/month (if he is competent.) Without it, he makes $0. He also gets to write off 100% of the cost, so in reality it doesn't cost quite that much. Like power, heating / cooling, space, advertising, equipment and software, it's a cost of doing business.

    5. Re:Ounce of Prevention by Lemmy+Caution · · Score: 5, Funny

      I encourage the use of malapropisms such as "should of," and the use of the word "less" when "fewer" is correct.

      It's a class marker, like the distinction in American speakers between "drapes" (déclassé) and "curtains". When people use these expressions, they reveal themselves. It isn't a judgmental thing: our world needs working class and lower-middle class people. But it helps sort out who gets invited to which events.

      Trying to get everyone on the same page for language usage reveals a delusional faith in egalitarianism.

    6. Re:Ounce of Prevention by Lemmy+Caution · · Score: 4, Funny

      I encourage it in the way that I encourage rivals for a job post to dress like clowns and smell of wee.

  2. They don't have hookers on every corner by Harmonious+Botch · · Score: 5, Insightful
    They don't have hookers either. OMG!! A hooker crisis! They probably don't have a decent symphony orchestra either. An orchestra crisis! Sorry, not meaning to flame, but this is what it means to live in rural America. You have elbow room, privacy, lots of fresh air, and cheap housing costs. In return, you do without some things.

    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.
    1. Re:They don't have hookers on every corner by mbradshawlong · · Score: 5, Insightful

      Would you say the same if this were about phone service? How about water? Electricity? Many rural residences don't have water service either. They install their own wells with electric pumps for their water needs. My parents who live in rural Minnesota only recently received cable and broadband internet and will likely never have "town" water.
    2. Re:They don't have hookers on every corner by chill · · Score: 4, Insightful

      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.

      While definitions of "broadband" may vary, you may find that availability of a DSL or cable connection is on par between Western Europe and Big City America, levels are different.

      You can get 100 Mbps connection in Sweden and a few other European countries for what a 5 Mbps one costs in the U.S. Want it weighted by population density? Fine. Pick a big U.S. city -- any one. Just ignore the rural part and compare it to Europe on a country-by-country basis, including their suburban and rural parts.

      I used to think like you do, that it was population density that curtailed U.S. broadband in comparison to places like Korea and Europe. Then someone pointed out that U.S. broadband is crappy-to-mediocre in the largest U.S. cities with high population densities. What is the excuse for New York, Los Angeles, Chicago, Atlanta and Washington D.C.?

      --
      Learning HOW to think is more important than learning WHAT to think.
    3. Re:They don't have hookers on every corner by pla · · Score: 4, Insightful

      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.

      New England (and this article refer to NH) does have a population density, including distribution of urban-vs-rural areas, comparable to Western Europe.

      Face it, "We're number 17!". Broadband availability in the US sucks, and the mono/duopolist providers have no interest in improving coverage (quite the opposite, they've actively fought changes in the way they can report availability statistics that would paint a more accurate picture).

    4. Re:They don't have hookers on every corner by GeckoX · · Score: 4, Insightful

      I'm confused, you don't like the government mandated regulations on providing phone and electricity service as it allows monopoly entrenchment.

      But the result being that everyone has phone and electricity, and at a reasonable price.

      And the internet providers have been given government backed monopolies, but AREN'T required to provide service to everyone...but this is somehow better?

      Can you fill in the blanks please?

      These services should either be totally open to competition with no government backed monopolies, or the services should be REQUIRED to be provided to all. One or the other. Anything else is just a license to skim the barrel...which is exactly what we have right now.

      --
      No Comment.
    5. Re:They don't have hookers on every corner by AeroIllini · · Score: 4, Interesting

      Those are all natural monopolies because physical items need to travel along the lines from provider to customer, and cannot be mixed with other customer's items (with the possible exception of phone, which I'll get to later). When you order water from the water company, it has to physically travel from the reservoir controlled by the utility to your house, and the water company owns all the lines in between. The water you order can't be mixed with water your neighbor orders, if your neighbor orders from a different water company. Water, electricity, and natural gas don't have routing addresses.

      The difference with internet is that only the last mile is a natural monopoly. Many different companies could plug their backbones into the last mile going to your house, and in fact many different companies could share the same backbone lines, and your traffic would not be "mixed" or confused with your neighbor's traffic like it would if many water companies were plugged into an analogous hub. The internet is a very unique utility in this way. In fact, the phone system works the same way, but only recently (since digital telephone transmission), and of course telephone providers still maintain their "natural monopoly" status along the whole length of the line, left over from the analog days.

      So the solution in this case is, I think, to separate the last mile providers from the connection providers. Allow the last mile providers to be a natural monopoly, either run by a city/town/village or heavily regulated, just like the rest of the utilities (but separate from the data providers). However, allow free market competition from companies providing Internet service to that last mile hub. This would be even further aided if the last mile providers created a universal standard for providers to plug into, which only requires a software change in order to change providers, instead of a truck changing a physical plug. All data (internet, phone, cable) would come into your home with the same type of cable, whether it comes from a telephone company, a cable company, or some other newcomer. When customers can switch Internet providers easily (as they could when the last mile is owned by the city and software switchable) there will be a real market at work, and all the wonderful pro-consumer effects of supply and demand would suddenly kick in.

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  3. Rural == Not A City!!!! by ColdWetDog · · Score: 4, Insightful
    I'm not sure just what part of the world "rural" people don't understand, but out here in the boonies (and I live on an isolated island in Alaska - that's rural) we don't have LOTS of thinks. Kentucky Fried Chicken, Wal-Mart, traffic jams, low prices.

    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!
  4. It isn't just rural economies affected by ednopantz · · Score: 4, Interesting

    It isn't just Rural economies that are affected by this.

    We have a couple of clients in the exurbs who do logistics: mainly deliveries into cities. The warehouses are in the exurbs where land is cheap.

    But they can't get broadband at the warehouses. Remote assistance means "bring the laptop to Panera so I can remote in."

  5. Re:Good argument for municipal-owned networks by MrMunkey · · Score: 5, Interesting

    I grew up in rural North Dakota. Our small town (population about 500) has the Northwest Communication Cooperative http://www.nccray.com/ They provide phone/dialup/DSL/cableTV access. The co-op seems to have worked fairly well back home. I don't know if that's not normal or not... I just grew up with it there.

  6. Re:why should broadband be a special case? by Scarblac · · Score: 5, Insightful

    ...its a luxury not a basic utility.

    Bullshit, this is 2007, not 1997.

    --
    I believe posters are recognized by their sig. So I made one.
  7. Or maybe a dash of creativity... by mortonda · · Score: 4, Insightful

    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.

    1. Re:Or maybe a dash of creativity... by krgallagher · · Score: 4, Informative

      I have a lot of family living in rural areas. They are all using wireless internet (read internet via cell phone.) It is not the best, but it blows dial up out of the water, and at $49.00 a month it beats any other high speed option.

      --

      Insert Generic Sig Here:

  8. NO! Do NOT say "they should move to the city" by keraneuology · · Score: 4, Insightful
    Given the extraordinary public subsidies, law exemptions and bypasses given to the telecommunication companies they need to get their butts in gear and make broadband as available as the original POTS networks. The various states are to blame as well - if they had mandated back in the 80s/90s that new subdivisions couldn't be built unless they had provided for gas, electric, water, sewer AND modern communications then we wouldn't have this problem today.

    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"
  9. Customer owned fiber networks by Brian+Stretch · · Score: 4, Informative

    CANARIE (Canada) has many interesting articles and presentations on cracking the last mile problem. In short: municipalities contract someone to build dark fiber networks to the home, homeowners buy a strand of fiber, and competing service providers plug their electronics into the fiber. There are variations on the theme of course but with a neutral party owning the fiber it makes it very easy for new service providers to set up shop.

    I'd insist that ISPs peer all local traffic at full speed, or at least 100Mbps symmetric, but let competition sort everything else out.

  10. Research, yes, but by wytcld · · Score: 5, Insightful

    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
  11. The virtues of regulated monopolies by dpbsmith · · Score: 5, Insightful

    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.

  12. Yes, it makes sense. by C10H14N2 · · Score: 4, Informative

    You're not even guaranteed 56kbps on your residential "broadband" line. Hell, you're not even guaranteed it will work AT ALL on any given day. When you pay for a T1, what you're paying for is getting every single goddamned one of the 1.544M bits every second of every day in both directions--and the right to do whatever the hell you want with them.

    1. Re:Yes, it makes sense. by walt-sjc · · Score: 4, Informative

      Note to mods, that is 100% on topic, and 100% correct.

  13. So What? by linuxwrangler · · Score: 5, Interesting

    Where I grew up (Mojave Desert) there was a Beach Access Crisis. It was far harder for us to enjoy water activities than those people in urban areas like Los Angeles and San Francisco. But the smog and traffic in LA was hideous. In California, we have better access to fresh fruit and vegetables than people in many parts of the country.

    Broadband is not "unavailable", it is merely more expensive. Wherever you live, some things will be more available and others will be less available. Get over it. The fees that were (stupidly, I believe) tacked on to all phone bills to fund rural access are still there - just a big pot of cash that the telco's squabble over even though routing phone service to rural areas is no longer a real issue.

    Whenever I hear talk of rural access fees, I wonder why the same people aren't championing an urban affordibility fee. Tacking a huge additional fee onto transfer and property taxes in rural areas to help fund the ability to live in San Francisco or Silicon Valley makes about as much (non)sense.

    --

    ~~~~~~~
    "You are not remembered for doing what is expected of you." - Atul Chitnis
  14. Not seeing the forest for the trees by btarval · · Score: 5, Insightful

    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.
  15. Re:why should broadband be a special case? by walt-sjc · · Score: 5, Insightful

    I think the issue is that you are taking the term "luxury" too literally. The only things you NEED to live is food, water, and some sort of shelter.

    Modern life / business / education / etc however has added many other things to the list of "basic needs".

    Can you get by without transportation, electricity or phone? Sure. Can you participate in modern society without those items? Not effectively.

    It's perfectly reasonable to come up with strong arguments that say that broadband Internet access will soon become a "basic need" in order for our society to effectively compete in the global market. In fact, our government (despite total incompetence) has identified this need as real.

  16. Is it a real 100mbps connection? by Sycraft-fu · · Score: 4, Informative

    In my experience, Europe, in particularly the Scandinavian countries, and the US sell connections differently. In the US you usually don't get as high a signaling rate. 10-12mbps is generally the max you get. However, the rate you pay for is one that is properly supported by upstream. Your 6mb DSL will get 6mb to any site that can support it. The Scandinavian countries offer much faster pipes to your house, but don't back that up further up the chain. It's a big WAN in effect. You'll get great transfers to anyone on that ISP (at least on that ISP in your country) but you get much slower transfers to the rest of the world.

    Now maybe that's changed, but if it has I certainly don't see it in my experience.

    Also, for what it's worth as a given datapoint. Speedtest.net shows North America as having the fastest aggregate connections, above Europe. Of course there's problems with the way a test like that works, but it does indicate that perhaps the rest of the world isn't as blazing fast as people on Slashdot like ot make it out.

  17. Re:For starts... by hb253 · · Score: 4, Informative

    According to Wikipedia

    Seoul http://en.wikipedia.org/wiki/Seoul has a population density of 17,108 people/sq km

    New York City http://en.wikipedia.org/wiki/New_york_city has a population density of 27,083 people/sq km

    I would say you are wrong.

    --
    Self awareness - try it!