Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 201 Document Number: D11768
Notes:
Report from Agri-Pulse received online via AgriMarketing Weekly. 6 pages., Report of a letter to Capitol Hill and the White House from a new American Connection Project Broadband Coalition calling for a "robust federal investment in broadband internet connectivity." Letter (attached) signed by 40 ag, tech, and healthcare groups.
13pgs, Sufficient access to and utilization of broadband is an ongoing concern for rural economic development. Using a rural region in Northern New York (USA), we consider the investment and operational costs of a broadband cooperative and determine service prices for which it is financially viable. Service prices need to increase 75%–131%, depending on grant restrictions, relative to existing market prices for a new broadband cooperative to become financially feasible. Put differently, the cooperative would not cash flow at market prices unless there was at least 14 potential subscribers per mile at a 62% take rate. For a cooperative, the grant restriction that providers offer a minimum level of speed at a maximum price results in a high level of subsidization by high-speed to low-speed members to support the business. Given grant funding and member equity investments, financial infeasibility has little to do with construction costs, than with annual operational and maintenance costs required to sustain the system long term. More reasonable feasibility scenarios occur for existing utility cooperatives expanding services into broadband, particularly areas with a high proportion of high-speed, year-round users and strong take rates. Consideration of public benefits of broadband arguably needs to be added to the equation, particularly surrounding access to healthcare and educational purposes, and as a prerequisite to supporting taxpayer-funded public-private partnerships to expand broadband services. Policy levers to eliminate or subsidize property taxes and pole rental costs reduce cash flow prices considerably; however, feasibility is highly sensitive to assumed take rates.
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 201 Document Number: D11769
Notes:
Online from BroadbandNow, a registered trademark of Centerfield BBN LLC. 3 pages., Whereas the FCC reports that broadband is unavailable to 21.3 million Americans, BroadbandNow Research analyzed FCC Form 477 data and estimated that 42 million Americans do not have the ability to purchase broadband internet. This is an additional 6.5 percent of Americans beyond FCC estimates.
Installing fiber-optic internet in sparsely populated places like western Kansas is extremely expensive, even with government subsidies. But some smaller, local broadband providers are finding ways to make it work where the big national companies have not.
