Stimulus Spending Won't Help 49 Percent of US Rural and Urban Households Currently Without Broadband, Says Insight Research

BOONTON, N.J., Dec. 10 /PRNewswire/ -- Analysis of most recent FCC data (Jan. 2008) reveals that about 45 million of the more than 117 million US households have no Internet service and when "no Internet" households are added to those households using dial-up to reach the Internet, the number of non-broadband households approaches 58 million, according to a new market research study from The Insight Research Corporation. These 58 million non-broadband households represent 49 percent of the households in the US.

According to Insight Research's market analysis study, "Rural Versus Urban Telecommunications in the US: Changes in Markets and Technologies, 2009-2014", projecting the FCC 2008 data to year-end 2009 and taking into account further broadband penetrations it is estimated that 40 million households will still lack broadband access at the close of 2014. Current Federal Stimulus spending of $6.4 billion would allow for an investment of $164 per household to provide broadband access to the non-broadband households. The availability of such a small investment amount per household casts serious doubt that any significant expansion of broadband access will result from this government action. This position is further bolstered by the argument that, at the current estimate of $1,500 per household, at least $60 billion would be needed to deploy universal broadband access.

"Certainly the current administration recognizes the direct relationship between extending broadband access to all Americans and the future health of our economy, but the current allocation of funds is just not going to get the job done," says Robert Rosenberg, President, Insight Research. "Our analysis found that a substantial portion of the 49 percent without broadband had no computers in their homes. There is a chicken and egg problem here that needs to be considered by our policy makers," Rosenberg concluded.

An excerpt of this study, "Rural Versus Urban Telecommunications in the US: Changes in Markets and Technologies, 2009-2014," table of contents, and ordering information are online at http://www.insight-corp.com/reports/rural09.asp. This 98-page report is available immediately for $3,995 (hard copy). Electronic (PDF) reports can be ordered online.

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SOURCE Insight Research Corporation

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