Study Shows Rural US Not Buying High Speed Access

By

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

TikTok on the Chopping Block in US as Chinese Tensions Increase

By: Laura Stotler    7/8/2020

U.S. Secretary of State Mike Pompeo said he is looking at banning Chinese apps including social media platform TikTok this week. The move comes after …

Read More

How Can I Tell If a Website Is Safe? Watch for These Important Signs

By: Special Guest    6/30/2020

It seems we spend the bulk of our time on devices these days, and many of us depend on the internet to help us complete our jobs, communicate with fam…

Read More

Using Data Analytics and Technology to Combat the Impacts of the Global Pandemic

By: Arti Loftus    6/25/2020

The Coronavirus pandemic has driven leaders to rethink the way that we do things, and although the threat to our health has placed many obstacles in o…

Read More

Cloud computing - can it be the key to the future of our society?

By: Special Guest    6/24/2020

Cloud computing is far from being a novelty technology, but it's only recently that we've started to really use it to its full potential. The global c…

Read More

Cryptocurrency Trading Strategies: Complete Guide

By: Special Guest    6/24/2020

Today we get to the heart of the matter, that is, we will study all the most interesting and productive strategies for investing in cryptocurrencies a…

Read More