The Cost Of Broadband In Every Rural Home
dave562 writes "In an analysis of the effectiveness of the the 2009 stimulus program (American Recovery and Reinvestment Act of 2009 or ARRA), one of the programs that was investigated was the project to bring broadband access to rural America. Some real interesting numbers popped out. Quoting the article: 'Eisenach and Caves looked at three areas that received stimulus funds, in the form of loans and direct grants, to expand broadband access in Southwestern Montana, Northwestern Kansas, and Northeastern Minnesota. The median household income in these areas is between $40,100 and $50,900. The median home prices are between $94,400 and $189,000.' So how much did it cost per unserved household to get them broadband access? A whopping $349,234, or many multiples of household income, and significantly more than the cost of a home itself.'"
So how much did it cost per unserved household to get them broadband access? A whopping $349,234, or many multiples of household income, and significantly more than the cost of a home itself.
Why don't they just run a single line into the center of the trailer park and install a switch for distribution?
Trolling is a art,
Keep in mind that this study was conducted by Jeffrey Eisenach (former head of Newt Gingrich's political action committee and longtime conservative activist) and Kevin Caves of Navigant Economics (a bunch of professional "experts" who spend most of their time testifying in favor of various pro-big oil, pro-energy concerns). The article that cites it is by Nick Schulz, of the conservative think-tank American Enterprise Institute.
And it also includes some data that I'm highly skeptical of, to say the least--like asserting that all but 1.5% of users in Montana had wired broadband access and all but 7 households in the whole state had access to 3G broadband prior to this funding. Those numbers are better than my own state, and we're not nearly as rural or mountainous as Montana.
SJW: Someone who has run out of real oppression, and has to fake it.
Your idea will get broadband to trailer parks, but what about farmland where there are a few homes per square mile? I would think that satellite or other wireless access would be more cost effective than wired Internet access in sparsely populated areas.
What a fool believes, he sees, no wise man has the power to reason away.
Is it really that necessary? Really?
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This is what happens when you send a government to do a man's (or woman's, or group of private citizens') job. We could stand to learn something from the successful, small WISPs and other small-time broadband providers (one of which I am a happy subscriber to).
Check this out for more information about how it's getting done Europe.
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I live in Canada, but we also have this same sort of pledge to bring high speed internet (not broadband specifically) to rural areas. I've been looking at rural homes, and to be honest, it's a real pain.
As someone who torrents heavily, games a lot, and generally uses about 300gb/month at least in traffic, I need a fast connection. There is literally nothing in most parts of rural Ontario that exceed 3mbps down / 1mbps up, and with unlimited (or at least, overage charges that won't make you go broke) caps. If you go the 3G/4G route (which I would love to), many areas don't actually have coverage even if they claim they do, and the caps are 5gb if you're lucky. If you go satellite.. well, it sucks. Latency is awful. And if you go Xplornet or something (wireless antenna), they all block torrents, are known to be highly unreliable, have low caps, and the speed is 3/1 at best.
It's kind of sad, because I don't want to live in the city, yet there's no real options out there either.
Hang on city boy, that's not true at all. My brother has been paying high fees for a satellite feed out on the farm so that he can get weather and market reports and trade commodity futures in a timely fashion. An internet connect is as important to progressive farmers as it is to any other business these days. The sad thing is that his satellite feed out in an area with less that one family per square mile is a better connection than my DSL connection here in the middle of Silicon Valley in an area of $1M+ homes.
I am sure that the resident of montana really appreciated it.... both of them
"I opened my eyes, and everything went dark again"
1) Comcast/ATT/Cablevision/COX/etc all get their lobbyists push for this in the bill.
2) The Gub-ment pays these mega corps billions to build out in the mountains.
3) The people in these areas now have "access" to broadband... for only $79/month.
4) They don't sign up... Comcast/ATT/cablevision/etc don't care. They already made $300K per house passed in the build out already.
5) PROFIT!
I have to return some videotapes...
I'm moderately liberal, but ultimately, why shouldn't people who want to live in rural areas have to pay more for services? It costs more to provide services to them.
If people choose to live out in the sticks, they should be forced the understand and pay for their services. The reality is that it's a hell of a lot more efficient and less expensive to provide services (water, power, Internet, phone, cable, etc) to people in high density urban areas. That's what we need to be moving towards - not making it easier for people to live out in the middle of nowhere and subsidizing their services to prevent them from knowing the true costs of living out there. Country people talk about how expensive cities are - well living out in the sticks would be more expensive as well if they had to pay the true costs of obtaining phone and other services.
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While the source of this data is obviously biased, I wonder where the stimulus money was actually spent. Think what a trillion dollars actually is. A new aircraft carrier costs ~10 billion dollars, planes double that cost, meaning that the country could have purchased 50 with the stimulus (we currently have 11). In todays dollars the Apollo program cost 150 billion meaning that we could duplicate it six times with a trillion dollars. A highway bridge near where I live is being replaced for a cost of 300 million, thus a trillion dollars could have replaced that bridge 3000 times. It could have paid the 14 million unemployed, $35000 a year for two years. Where did it go, and what did it do?
Broadband does describe the bandwidth. However, I'm pretty sure congressional lobbying has changed the meaning a few times.
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Broadband should be considered as an infrastructure and not as a luxury. Good infrastructure leads to economic development. The cost of providing infrastructure might be high initially but in the long run it has tremendous benefits for the economy of the area where that infrastructure was provided. Providing broadband in rural areas will attact outside businesses, help local businesses grow, make easier to provide education. The benefit will far outweigh the cost in the long run. Oh and what about steaming HD pr0n? Don't people in rural areas have needs?
So, how did the roads get built? How is the mail delivered? How is power transmitted? How about Plain Old Telephone Service? There used to be some bonafide investment in infrastructure in the US, so where did all that go?
Granted, I understand that water and sewer isn't too common in rural areas, but it's not like it's a backpacking adventure through the rainforest we're talking about.
More Twoson than Cupertino
How do you think they got those phone lines out there? It wasn't the invisible hand.
There were probably people saying "Can't those things be done through the mail?" when they got wired up for phone service.
So... then you get interwebs to that 1 power plant (if it doesn't have it already) and leverage the existing power transmission system.
Then you're not running wire for every address that you want to deliver to.
You need to connect 500 houses.... you can run 500 wires, or 1 wire.
We all appreciate your offer to raise your share of food for your neighborhood, but right now we have a more pressing need for minerals. Please let us know when your quota of copper ore is ready for shipment to the smelter.
Lacking <sarcasm> tags,
Maybe someone could invent some kind of a routing box that would take traffic from one broadband network and send it on to another one, and vice-versa.
cat
I wonder where the stimulus money was actually spent.
Not exactly hard to find out (per Wikipedia):
http://en.wikipedia.org/wiki/American_Recovery_and_Reinvestment_Act_of_2009#Provisions_of_the_Act
Almost half ($288B) went to tax cuts, about half of that went to direct aid to the States ($144B), the rest in dribs and drabs to other things.
Lacking <sarcasm> tags,
First of all they're dirt poor and not going to pay for broadband or own a computer. The critical part is the ratio of income to house price. Somewhere around 1:2 is OK but not ideal, 1:4 means extreme poverty, like 99% of your legally declared income must be going toward the house and you never eat anything but ramen, at least until the inevitable foreclosure and bankruptcy. Even commissioned cheerleaders for the home sales/building industry don't have the guts to ask for more than a ratio of 1:3.
Umm. That's wrong. 1:2 is great, 1:4 is still good. It is certainly not extreme poverty. I don't know if you realize this, but those in extreme poverty generally don't own homes at all.
A good explanation of ratios based on interest rate
I own a home and my income:home price ratio is 1:3.2 I comfortably pay for expanded cable and a 20/3 fiber-to-the-home internet connection, and I live in a rural community. Most of the community has access to 3 broadband choices -including fiber from an independent/non-big-telco - which are not payed for through subsidy or tax credits.
I'm not sure where you are from, but $40-50k / year is certainly a livable, comfortable, not-anywhere-near poverty condition for most of the country.
Well, living in a country with more than 80% of it's area being mountains, I can only wonder. The normal expectation is that I have HSPA mobile access anywhere, no matter if I'm sitting in the subway in the city, or skiing somewhere crazy. I mean how do you keep your kids quiet if they cannot surf youtube while you drive?
So if you have no highspeed mobile access on some mountain in the Rockies, your mobile providers are cheapskates. Or more correctly your politicians are better bought. Our carriers not only paid a ghastly sum for the UMTS frequencies, the license also included a condition that they have to bring coverage to 95% of the population (after a number of years for sure), or loose the license and forfeit the license fee. Guess your politicians did not think about including such a condition, right?
(The expectations are so that my daughter's school for her last school trip explicitly noted that the shelter on the mountain where they will be staying has no mobile coverage. That's kind of a definition that they'll be going to the end of the world and beyond, ..., here around.)
you do know what subsidies are for, right? They're to ensure a steady and affordable food supply and prevent starvation. Unless you're really, really rich, you want this.
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Seriously. People think they can have it all these days.
Why should you get to live in the country, pay super low taxes, and have someone else in the city pay super high taxes to subsidize YOUR high speed?
Move to the country and pay for your own broadband hookup. Or live with satellite access. Or stay in the city. But don't ask for my tax dollars to pick up the bill for your personal choice to live in an inefficient location.
Having hispeed data for your kids while you drive seems to imply you were on a road. Even the major (and some minor) roads in Vermont get coverage. The problem is serving the small town of 5-600 residents, when it's 12 miles off the main highway. Even in Europe this may not be as common as you seem to be claiming, but I'll look for your assessment of that.
And ski areas have surprisingly good access. Again, look for service 30 miles away, in the woods, in those very small towns.
In Montana, some ranches are more than 60 miles apart. No cell tower reaches that far, and probably not WiMax. There are clever ways to leverage WiFi, but that requires creativity and cooperation amongst the locals.
And true, our government fails to elicit coverage commitments from carriers when they auction off spectrum. We are aware of this shortcoming.
deleting the extra space after periods so i can stay relevant, yeah.
If that were true why was there parts of downtown Nashville with No cable or DSL when I was there a few years back? is the middle of music row in a cornfield?
No friend it is called 'cherry picking" and something the teleco duopoly has done for years. When my mom built her home more than 20 years ago the cable stopped exactly 2 blocks from her house. Now more than 30 households live on this small 2 mile stretch and how far is that cable now? Exactly 2 block from my mother's door, same as it was more than 20 years ago. They haven't moved a single inch in ANY direction in more than a decade here, despite ever more houses being built, because that would mean they would have to invest rather than put the money into their pockets and in the USA it is "damn everything but the quarterly report!" and has been for ages.
No we are gonna have to open up the last mile to competition and we are gonna build it ourselves if the companies won't, just as they refused to run electrical lines and water to most of the rural areas. And how much of that "cost" is private contractors and no bid contracts? If one would let the cities and the states build instead of having them buried in teleco lawsuits which is ironic since they are suing for customers they refuse to serve even if they win, well then I bet you'd see that price plummet.
The problem is the current system like the "stimulus" bullshit was done classic government style, which means it doesn't get done if Sen Porkus and Congressman Kickbackus don't get to throw some to their cronies who promptly raise their bids by 600% and act like they won the lotto. We should do it ourselves and demand that the 200 billion we gave the telecos back in 96 for nationwide broadband (who said "Gee thanks! and then gave us the finger, just like GE who took a bailout and used it to send another factory to India) be paid WITH interest in 90 days or we seize the last mile.
The ONLY way we are ever gonna catch up with the rest of the world is to stop tying the hands of the local and state governments and bust up the teleco monopoly on lines. They want a monopoly? Fine we'll give you 20 years for every currently underserved or unserved neighborhood you give FTTH. Make it 15 for every large city you change out, 20-25 for every small town. Otherwise all we are gonna get is ever nastier caps while the CxOs get extra hookers to snort blow off of while we get the short bus to the information superhighway.
ACs don't waste your time replying, your posts are never seen by me.
There are a crapload of people who were BORN in rural areas who don't make enough money to MOVE to the city.
And even if they did move to a city, are there jobs there?
I'm in a suburb (not a rural area!) with no wired broadband. I'd love to move somewhere else. But it's just not financially feasible.
Yet they pretty much all have telephone cables leading right to their homes. And electricity. And possibly water, sewage and gas pipes. How come that is affordable, and broadband not? It's not that the cables are that more expensive, and you guys tend to have most of it above ground anyway. Just hang another cable on those phone poles.
Oh you want to hear a story that'll piss you off? In early 00 I had a decent amount of money from a settlement (rich asshole playing with his cell instead of watching where he was going, took the entire side out my car and laid me up for a couple of months) so I decided "fuck this I'm gonna help my mom and these folks out". So I went down the road and got EVERY house to sign they would be happy to have service, in fact most wanted the full boat, all the channels and every package they had.
So I march down there to the cableco with this petition and the knowledge of how much it would cost to run the line, as I talked to a linemen that actually went out and measured and the cost was $12,000 to run the entire length at the time. so I tell them "Here is the list of people that want it, i'll pay for the line, just hook it up" and you know what I got? They wanted $30,000 just to consider it and contracts for FIVE YEARS with a 25% markup. They said unless I could "guarantee the profit potential of the area" then they couldn't do it!
So I say it is time We, The People, whose land their wires cross, take back what is ours. it is time to seize the last mile and open it up to REAL competition! sadly if we don't those like you and my mom will NEVER EVER get service, just the finger while they raise rates on those of us that have it and give the CxOs more bonuses for hookers and blow.
ACs don't waste your time replying, your posts are never seen by me.