Rural-urban broadband access gap grows; telcos rely on wireless, maybe not the answer in the hills

The U.S. faces a growing broadband gap between rural and urban markets, and narrowing that gap could improve the overall economic health of the country, according to a new Hudson Institute report. Very few rural areas have access to high-speed Internet, and things could get worse if large telecommunications companies like Verizon back out of expanding digital subscriber line services, reports Karl Bode of Broadband DSL Reports.

The report says improved broadband infrastructure in rural areas would lead to improved medical care, increased opportunities, stronger businesses and a healthier economy. It concludes by saying the broadband gap means "a loss of opportunities for those who live where technology is used less and a loss of economic potential for those who make the products and service that would close the gap." It continues: "Because communication technology continues to advance, the gap can only grow unless investment continues in the places where the capabilities are furthest behind."

Companies aren't investing in rural broadband because the rate of return is slower there, Bode writes, and the report offers no possible solutions to remedy that problem. Meanwhile, he writes, AT&T and Verizon "are letting unwanted DSL users flee to cable, empowering a new, bolder cable monopoly," and regulators are placing "all their hopes on wireless broadband -- which may be an egregious error," because there are wireless coverage gaps across the country, which are harder to fill in rural areas. (Read more)