Study: Rural Broadband Take Rates on the Rise

Regulatory uncertainty threatens continued deployment

ARLINGTON, Va., Jan. 13, 2011 /PRNewswire-USNewswire/ -- Broadband take rates in rural communities continue to rise, but regulatory uncertainty surrounding the national broadband plan (NBP) poses a severe threat to future deployment in rural America, according to a survey by the National Telecommunications Cooperative Association (NTCA).

NTCA's "2010 Broadband/Internet Availability Survey Report" found that members' overall broadband take rate was 55%—up from 38% last year.  One hundred percent of respondents offer broadband to some part of their customer base.  Yet an overwhelming majority expressed concern about the impact of the NBP on their operations—noting the uncertainty about the NBP's potential changes to the existing regulatory framework will take is affecting their current decision-making process and impeding their ability to obtain necessary funding for broadband deployment.  

Nearly all (94%) of those who offer broadband serve some portion of their customer base via DSL, with 68% deploying fiber to the home or fiber to the curb. Despite the inherent challenges and significant costs associated with fiber deployment, particularly in high-cost rural areas, the 2010 survey revealed a 15% net increase in deployment (up from 59% one year ago).  

Seventy-three percent of respondents offer video service to their customers.  More than eight in 10 respondents expect to have a video offering in place by year-end 2012.  Nearly all (96%) indicated that the main barrier to providing video service is access to reasonably priced programming.

"This survey confirms that despite the uncertainty surrounding the FCC's national broadband plan recommendations, small rural telcos are working hard to deploy broadband services in their communities," said NTCA Chief Executive Officer Shirley Bloomfield.  "Policy-makers must ensure that support for continued deployment is predictable and sustainable if the country is to truly accomplish the goal of universally available broadband."

The 2010 survey was sent electronically to all NTCA telco members and 115 companies (23%) responded.   Forty-seven percent of survey respondents' service areas are 500 square miles or larger, 31% have customer densities of two residential customers per square mile or less.

View the report at: http://www.ntca.org/2010broadbandsurvey

The National Telecommunications Cooperative Association is the premier association representing more than 570 locally owned and controlled telecommunications cooperatives and commercial companies throughout rural and small-town America.  NTCA provides its members with legislative, regulatory and industry representation; meetings; publications and educational programs; and an array of employee benefit programs.  Visit us at www.ntca.org.

Contact: Caitlin Colligan, 703-351-2086, [email protected]

SOURCE National Telecommunications Cooperative Association