Study Shows Rural US Not Buying High Speed Access

By Gary Kim June 02, 2014

With the caveat that it is Internet service providers happy with their supplied services, the latest study from NCTA: the Rural Broadband Association reports that small ISPs (telcos) have take rates of about 72 percent.

About 34 percent of customers buy access at speeds between 3 Mbps and 4 Mbps. Some 8.5 percent of customers buy connections at 10 Mbps.

About 8.2 percent buy service at rates between 6 Mbps to 10 Mbps, while six percent buy access at speeds between 4 Mbps and 6 Mbps.

Though 66 percent of households have a choice to buy service at 10 Mbps or faster, only about half choose to do so.

The U.S. Census Bureau separately estimated that 74 percent of rural households could buy 10 Mbps Internet access service in 2010.

Nearly 28 percent of households report they do not buy high speed access from the local telco. What is unclear is whether such households do not use high speed access, or choose to buy from another service provider (cable TV, satellite or fixed wireless, for example).

In 2005, for example, about six percent of rural households reported buying satellite Internet access, according to one study. Another study suggested satellite broadband penetration was about three percent in 2011.

The average NTCA survey respondent serves 4,565 residential and 1,649 business voice grade access lines. A few larger companies skew these numbers upward; hence the median respondent serves 1,921 residential and 500 business lines.

About 42 percent of survey respondents’ service areas are 500 square miles or larger. Some  20 percent of rspondents serve areas of at least 2,000 square miles.

Nearly 65 percent of respondents have customer densities of 10 residential customers per square mile or less.

Approximately 26 percent of respondents have customer densities of two residential customers per square mile or less.

Typical prices charged range from $34.95 to $44.95 for cable modem service, $29.95 to $49.95 per month for DSL service, $39.95 to $49.95 for wireless broadband service, and $39.95 to $59.95 for fiber-based broadband service, NTCA says. 




Edited by Maurice Nagle

Contributing Editor

SHARE THIS ARTICLE
Related Articles

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More

Putting the Flow into Workflow, Paessler and Briefery Help Businesses Operate Better

By: Cynthia S. Artin    9/14/2018

The digital transformation of business is generating a lot of value, through more automation, more intelligence, and ultimately more efficiency.

Read More

From Mainframe to Open Frameworks, Linux Foundation Fuels Up with Rocket Software

By: Special Guest    9/6/2018

Last week, at the Open Source Summit, hosted by The Linux Foundation, the Open Mainframe Project gave birth to Zowe, introduced a new open source soft…

Read More

Unified Office Takes a Trip to the Dentist Office

By: Cynthia S. Artin    9/6/2018

Not many of us love going to see the dentist, and one company working across unified voice, productivity and even IoT systems is out to make the exper…

Read More

AIOps Outfit Moogsoft Launches Observe

By: Paula Bernier    8/30/2018

Moogsoft Observe advances the capabilities of AIOps to help IT teams better manage their services and applications in the face of a massive proliferat…

Read More