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.
Sonti, Nancy Falxa (author), Campbell, Lindsay K. (author), Johnson, Michelle L. (author), Daftary-Steel, Sarita (author), and Baltimore Field Station, USDA Forest Service, Baltimore, MD, USA
New York City Urban Field Station, USDA Forest Service, New York, NY, USA
Food Dignity Project, Brooklyn, NY, USA
Format:
Journal article
Publication Date:
2016-09
Published:
USA: Sage Publications Inc.
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 164 Document Number: D08243
24 pages, The popularization of social media and an increased interest in local food has led to the need for an online presence of direct-to-consumer agricultural producers. The COVID-19 pandemic quickly pushed the transition from traditional marketing practices to digital marketing practices, further emphasizing the importance of an online presence for small businesses. To better understand the perceptions of direct-to-consumer agricultural businesses, this study sought to understand the current use of social media and online communication and the challenges faced, related to social media and online communication, among these producers. Ten direct-to-consumer agricultural business personnel were interviewed to examine their social media and online communication use. Direct-to-consumer agricultural businesses are using Facebook as a primary social media platform and finding time to focus on social media and online communication is a challenge for agricultural personnel. A website is important to direct-to-consumer agricultural businesses, however many do not currently have a website. Direct-to-consumer agricultural businesses believe social media and an online communication are important to the growth and success of the business and are interested in educational materials and professional support to improve their online presence.