New Study Compares U.S. Rural and Urban Provider Broadband, Access Line Trends

A new market report offering insight into broadband growth across the U.S. reveals rural service providers are enjoying slightly better sequential broadband growth in 2008 than their urban counterparts.

 

With the broadband stimulus portion of the American Recovery and Reinvestment Act of 2009 as a backdrop, the new report from Pivot Media offers insight into broadband growth and access line loss trends among leading rural and urban telecom carriers.

 

"The data within this report allows readers to put rural broadband growth and access line loss trends into context with more reported urban service provider trends. This analysis may prove helpful as the broadband stimulus program begins in earnest," said Bernie Arnason, managing partner of Pivot Media.

 

While growth in broadband slowed dramatically in 2Q08 for both rural and urban providers, rural providers enjoyed roughly a two-to-one sequential rate of growth over their urban counterparts in the period, primarily because it has more opporuntiy than a saturated urban market.

 

"Even though broadband growth slowed overall in 2008, rural service providers consistently led urban service providers in broadband growth on a percentage basis," said Arnason.

 

In fact, ongoing growth in broadband is increasingly important to the business of service providers operating in all regions, given ongoing access line loss and increased competition from alternative providers, according to analysts.

 

As TMCnet recently reported, Yankee Group (News - Alert) President and CEO Emily Green has urged the Obama Administration to take steps to extend broadband reach throughout the U.S. pushing the country past 19th place in the world in broadband penetration.

 

In fact, a study conducted by the Small Business Association (SBA) says an urban-rural digital divide exists in the provision and adoption of broad-band services. This difference in broadband use is significant because many of the benefits associated with the availability and adoption of broadband services are not being enjoyed by small businesses in rural areas.

 

That study concluded that broadband investment (and investment in information technology) appears to provide substantial benefits to both consumers and the overall economy.

 

Those findings correlate to the Yankee Group’s Anywhere theory that calls for the unification of wired and mobile broadband networks to create new capabilities for citizens, businesses and governments alike.

 

"Connectivity is like oxygen for Anywhere Consumers; we can't live without it," said Carl Howe, director in Yankee Group's Anywhere Consumer research group. "But today's connectivity is but a shadow of what is coming. In the next five years, consumers will move past wired and wireless access to Anywhere access, an immersive connected experience blending the best of both worlds.'

 

At the same time, providers in rural markets have an opportunity to strengthen broadband capacity with access to $7.2 billion in funds available via the broadband stimulus portion of the American Recovery and Reinvestment Act of 2009. As the rate of access line loss accelerates, the business of all telecom service providers is dependent on broadband expansion through the deployment of next-generation technology which can be used to deliver cost effective, fast and reliable broadband services.