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.
Abbott, Eric A. (author), Korsching, Peter F. (author), and Hipple, Patricia C. (author)
Format:
Book chapter
Publication Date:
2000
Published:
USA
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Document Number: C29066
Notes:
Pages 277-291 in Peter F. Korsching, Patricia C. Hipple and Eric A. Abbott (eds.), Having all the right connections: telecommunications and rural viability. Praeger, Westport, Connecticut. 348 pages.
10 pages., via online journal., This paper investigates the impact of broadband access on agribusiness in rural Wales and the resulting implications on entrepreneurial activity. Despite attempts by Government and telecommunications providers to develop widespread broadband coverage in Wales, concerns remain in relation to an increasing digital divide between urban and rural locations. Broadband is a key enabling technology therefore connectivity is significant, not only in communication, but also in the ability for businesses to innovate and grow. Wales is a predominantly rural country with 84% of the total land area in Wales being used for agriculture (Welsh Government, 2013). The food and farming sector represents a significant part of the Welsh economy, and is dominated by small businesses. Connectivity and increased use of technology are vital for these businesses to overcome location constraints and various industrial challenges, notably Brexit. The research uses survey data from 738 farmers and 107 food SMEs in Wales, with 19 follow-up semi-structured interviews. The survey results highlight issues of technology adoption, with 19% of farmers in the survey having no access to broadband internet, with others reporting the speed of connection being a limiting factor. The consequences of poor connectivity point to limited computer skills and low levels of soft technology adoption, a lack of engagement with social media, limited scope for innovation and restricted business growth, with 55.1% of food respondents identifying poor broadband access as a barrier to internationalisation. This has led to agrifood businesses adopting a passive approach to growth opportunities. The findings suggest that rural areas remain at a disadvantage due to poor connectivity, an issue that must be tackled by the Welsh Government to readdress the balance in the economy and limit a brain drain of skilled people moving to urban areas, often outside Wales. Support for such businesses is vital, particularly given the pressures and uncertainty in the industry, as broadband access represents an important enabler for future innovation and entrepreneurial activity
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 199 Document Number: D09871
Notes:
Via website. 3 pages., Report of discussion at four E-Connectivity Listening Sessions organized by the Farm Foundation in collaboration with five other public agencies and related organizations.
