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.
Arnott, David (author), Chadwick, David R. (author), Wynne-Jones, Sophie (author), and Jones, David L. (author)
Format:
Journal article
Publication Date:
2019-10-18
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 206 Document Number: D12810
Notes:
8pgs, On the 23rd June 2016, the UK referendum on European Union (EU) membership resulted in a vote to leave the EU. This departure, should it occur, would see the implementation of a new agricultural policy within the UK which will most likely see the removal of direct financial support to farmers. In this study, we use combined agricultural survey and rural payments data to evaluate the extent of reliance upon Pillar 1 payments, based on a sample of 24,492 (i.e. 70%) of farm holdings in Wales. This approach eliminates some of the variation found in the Farm Business Survey through the delivery of a more comprehensive picture on the numbers and types of farm holding potentially facing economic hardship and the quantities of land and livestock associated with those holdings. We estimate ˜34% of our sampled Welsh farm holdings face serious financial difficulties and show ˜44% of agricultural land on sampled farm holdings in Wales being vulnerable to land use change or abandonment. Based on our results, we consider the potential social and ecological impacts that the removal of direct payments may have on land use in Wales. We also discuss the use of a more balanced approach to land management that could support governmental visions to keep farmers on the land, improve productivity and deliver high quality ‘Public Goods’.