This Way to the Remote Spots
The Pew Research Center found that 63% of Americans have broadband Internet connections in their homes, up from 55% the year before. They are paying on average $39 monthly from this service, up from $34.50 the prior year. The fact that they are paying more suggests the value that they attach to this service. In this difficult economic environment, consumers reported that they were more likely to cut back on cable television or cell phone service to budget for Internet access. However, the news was not all good, as 37% of Americans remain without access to broadband. Income was the largest barrier to access; 82% of those who don’t use the Internet earn less than $40,000 annually. Almost half earn less than $20,000 annually. Only 25% of those without Internet access live in rural areas, where low population density is often a disincentive to building broadband systems. The question is: does lack of broadband access hinder economic development? The Organization for Economic Cooperation and Development reports that the U.S. ranks 15th in per capital broadband deployment, well behind faster-growing Asian economies, such as South Korea. Certain of the $7.2 billion in economic stimulus funding is targeted for expanding broadband access, which may help those in rural areas, where it is not economically efficient for private providers to expand access. But this may result in low returns for the investment, given the survey findings. However, for rural areas in the Gulf Coast, expanded broadband access would almost certainly be welcome, as they need fast Internet access for remote operations, particularly during the hurricane season.