05

101520253035

2000 2001 2002 2003 2004 2005 2006

RuralUrban

Share of population with low broadband internet service provision for U.S. rural and urban areas 1

Percent

 Low broadband internet service provision is defined as zero, one, or two service providers within a ZIP Code area. The specific number of providers is not disclosed for low service provision areas to protect firm confidentiality.Source: Economic Research Service calculations based on Federal CommunicationsCommission and Census Bureau data.

 1

United States Department of AgricultureEconomic Research Service

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and, where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic 

nformation, political beliefs, reprisal, or because all or a part of an individual's income is derived from any public assistance program. 

Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program

nformation (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). 

To file a complaint of discrimination write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.

adoption by farm households. The Pew Internet & American Life Project hasalso conducted multiple, publicly available, nationwide surveys of householduse of the Internet. In addition, some States (e.g., North Carolina and Kentucky)collect data on broadband availability within their borders, affording more geographic detail than that provided in the FCC data.

Findings in Rural Broadband at a Glance are drawn from a larger body of

research currently underway. ERS is conducting a multi-disciplinary nationwidestudy of the economic issues surrounding broadband access and use in ruralAmerica. Ongoing research focuses on broadband use, broadband availability,and the effects of broadband Internet service on rural growth and prosperity, the provision of community public services, access to healthcare, and rural wellbeing. 

For additional information on this topic, please contact Peter Stenberg at

stenberg@ers.usda.gov or Sarah Low at slow@ers.usda.gov.

Background and Contacts . . .

Economic Research Service

Rural Broadband At A Glance

of slower, dial-up Internet access is that many content-dense applications anddocuments, and such critical services as anti-virus protections, are not readily usable via dial-up due to low transmission capability and speed.Broadband Internet access in rural areas is less prevalent than in more densely populated areas of the country. Circumstantial evidence suggests thatthe difference in access may lie in the higher cost and limited availability ofbroadband Internet in rural areas. As a result, rural residents depend more onInternet use outside of the home, relying on places like the library, school,and work, where broadband Internet access is available.

Economic Information Bulletin Number 47

February 2009
Broadband Availability

The growth in broadband availability since 2000 has been rapid. In 2000, land-based

broadband service provision was clustered in highly urbanized areas with service available only in a limited number of rural areas. By 2006, broadband availability wasfar more common in rural areas. Throughout this decade, broadband access has

ncreased, but is less likely to be found in rural areas. Today, clusters of lower service

exist in sparsely populated areas, such as the Dakotas, eastern Montana, northernMinnesota, and eastern Oregon. Other low-service areas have an aging population and are experiencing persistent population loss (e.g., the Missouri-Iowa border and Appalachia).

Government policies that encourage deployment of broadband services increased

availability and, in some cases, encouraged more competitive pricing. The UniversalService Program established by the 1996 Telecommunications Act funded broadbandInternet access for medical facilities and elementary and secondary schools. The 2008Farm Bill (Food, Conservation, and Energy Act of 2008) reauthorized USDA’s telemedicineand distance learning and rural broadband access grant and loan programs. The Distance Learning, Telemedicine, and Broadband provision of the AmericanRecovery and Reinvestment Act of 2009 provided $2.5 billion to USDA for loans andgrants to increase broadband provision in primarily rural areas.

Depending on the ultimate goal of universal Internet access, the distinction between

ndividual access and household access can be important. The gap in Internet use

between rural and urban households (9.3 percentage points) is wider than the gapbetween all rural and urban individuals (6.5 percentage points—underlying data availablefrom authors). Policies encouraging broadband access generally adopt either an implicit

ndividual or household approach, where the policy addresses one population directly

with only secondary efforts directed at the other. If, for example, the policy goal is to

mprove educational opportunities for school-age children, a program that improves inschool broadband access may be more cost effective than one designed to improve broadband access to households, although such a program may also spur household adoption.

Broadband Internet gives rural residents access to goods and services that may not

otherwise be available locally or via dial-up Internet. Online purchases now replace theonce common Sears and Roebuck catalog. Broadband Internet access can also affectpurchase decisions, however, facilitating price discovery and consumer informationgathering. Real estate and automobile purchases are examples of markets that have beensignificantly impacted by Internet-based consumer price discovery activities. BroadbandInternet also facilitates services, such as online banking, teleworking, and distance education, which would not be possible with dial-up Internet. Examples of how broadband Internet affects rural residents include the following:

Teleworking and increased marketing opportunities generate jobs and economicdevelopment.Government services can be more accessible and convenient.Telemedicine reduces patients’ time off work and out-of-pocket expenses.

Internet access is recognized as an important tool for many different aspects of

social life. Experts fear that areas without broadband Internet access are beingsystematically segregated from activities in their region. Research shows that broadband Internet facilitates greater contributions to community vitality through civic engagement and community participation.

The gap between rural and urban household broadband use suggests broadband

availability and cost presents more of a challenge for rural households. As such, the percentage of households with broadband increases as household income rises.Broadband providers now offer tiers of service speeds so that users can match theirneeds and affordability, but these options may not be available in rural areas.

Rural Broadband At A Glance

Rural Broadband At A Glance
Broadband Availability

The growth in broadband availability since 2000 has been rapid. In 2000, land-based

broadband service provision was clustered in highly urbanized areas with service available only in a limited number of rural areas. By 2006, broadband availability wasfar more common in rural areas. Throughout this decade, broadband access has

ncreased, but is less likely to be found in rural areas. Today, clusters of lower service

exist in sparsely populated areas, such as the Dakotas, eastern Montana, northernMinnesota, and eastern Oregon. Other low-service areas have an aging population and are experiencing persistent population loss (e.g., the Missouri-Iowa border and Appalachia).

Government policies that encourage deployment of broadband services increased

availability and, in some cases, encouraged more competitive pricing. The UniversalService Program established by the 1996 Telecommunications Act funded broadbandInternet access for medical facilities and elementary and secondary schools. The 2008Farm Bill (Food, Conservation, and Energy Act of 2008) reauthorized USDA’s telemedicineand distance learning and rural broadband access grant and loan programs. The Distance Learning, Telemedicine, and Broadband provision of the AmericanRecovery and Reinvestment Act of 2009 provided $2.5 billion to USDA for loans andgrants to increase broadband provision in primarily rural areas.

Depending on the ultimate goal of universal Internet access, the distinction between

ndividual access and household access can be important. The gap in Internet use

between rural and urban households (9.3 percentage points) is wider than the gapbetween all rural and urban individuals (6.5 percentage points—underlying data availablefrom authors). Policies encouraging broadband access generally adopt either an implicit

ndividual or household approach, where the policy addresses one population directly

with only secondary efforts directed at the other. If, for example, the policy goal is to

mprove educational opportunities for school-age children, a program that improves inschool broadband access may be more cost effective than one designed to improve broadband access to households, although such a program may also spur household adoption.

Broadband Internet gives rural residents access to goods and services that may not

otherwise be available locally or via dial-up Internet. Online purchases now replace theonce common Sears and Roebuck catalog. Broadband Internet access can also affectpurchase decisions, however, facilitating price discovery and consumer informationgathering. Real estate and automobile purchases are examples of markets that have beensignificantly impacted by Internet-based consumer price discovery activities. BroadbandInternet also facilitates services, such as online banking, teleworking, and distance education, which would not be possible with dial-up Internet. Examples of how broadband Internet affects rural residents include the following:

Teleworking and increased marketing opportunities generate jobs and economicdevelopment.Government services can be more accessible and convenient.Telemedicine reduces patients’ time off work and out-of-pocket expenses.

Internet access is recognized as an important tool for many different aspects of

social life. Experts fear that areas without broadband Internet access are beingsystematically segregated from activities in their region. Research shows that broadband Internet facilitates greater contributions to community vitality through civic engagement and community participation.

The gap between rural and urban household broadband use suggests broadband

availability and cost presents more of a challenge for rural households. As such, the percentage of households with broadband increases as household income rises.Broadband providers now offer tiers of service speeds so that users can match theirneeds and affordability, but these options may not be available in rural areas.

Rural Broadband At A Glance

Rural Broadband At A Glance
Broadband Availability

The growth in broadband availability since 2000 has been rapid. In 2000, land-based

broadband service provision was clustered in highly urbanized areas with service available only in a limited number of rural areas. By 2006, broadband availability wasfar more common in rural areas. Throughout this decade, broadband access has

ncreased, but is less likely to be found in rural areas. Today, clusters of lower service

exist in sparsely populated areas, such as the Dakotas, eastern Montana, northernMinnesota, and eastern Oregon. Other low-service areas have an aging population and are experiencing persistent population loss (e.g., the Missouri-Iowa border and Appalachia).

Government policies that encourage deployment of broadband services increased

availability and, in some cases, encouraged more competitive pricing. The UniversalService Program established by the 1996 Telecommunications Act funded broadbandInternet access for medical facilities and elementary and secondary schools. The 2008Farm Bill (Food, Conservation, and Energy Act of 2008) reauthorized USDA’s telemedicineand distance learning and rural broadband access grant and loan programs. The Distance Learning, Telemedicine, and Broadband provision of the AmericanRecovery and Reinvestment Act of 2009 provided $2.5 billion to USDA for loans andgrants to increase broadband provision in primarily rural areas.

Depending on the ultimate goal of universal Internet access, the distinction between

ndividual access and household access can be important. The gap in Internet use

between rural and urban households (9.3 percentage points) is wider than the gapbetween all rural and urban individuals (6.5 percentage points—underlying data availablefrom authors). Policies encouraging broadband access generally adopt either an implicit

ndividual or household approach, where the policy addresses one population directly

with only secondary efforts directed at the other. If, for example, the policy goal is to

mprove educational opportunities for school-age children, a program that improves inschool broadband access may be more cost effective than one designed to improve broadband access to households, although such a program may also spur household adoption.

otherwise be available locally or via dial-up Internet. Online purchases now replace theonce common Sears and Roebuck catalog. Broadband Internet access can also affectpurchase decisions, however, facilitating price discovery and consumer informationgathering. Real estate and automobile purchases are examples of markets that have beensignificantly impacted by Internet-based consumer price discovery activities. BroadbandInternet also facilitates services, such as online banking, teleworking, and distance education, which would not be possible with dial-up Internet. Examples of how broadband Internet affects rural residents include the following:

Teleworking and increased marketing opportunities generate jobs and economicdevelopment.Government services can be more accessible and convenient.Telemedicine reduces patients’ time off work and out-of-pocket expenses.

Internet access is recognized as an important tool for many different aspects of

social life. Experts fear that areas without broadband Internet access are beingsystematically segregated from activities in their region. Research shows that broadband Internet facilitates greater contributions to community vitality through civic engagement and community participation.

The gap between rural and urban household broadband use suggests broadband

availability and cost presents more of a challenge for rural households. As such, the percentage of households with broadband increases as household income rises.Broadband providers now offer tiers of service speeds so that users can match theirneeds and affordability, but these options may not be available in rural areas.

Rural Broadband At A Glance

Rural Broadband At A Glance
05

101520253035

2000 2001 2002 2003 2004 2005 2006

RuralUrban

Share of population with low broadband internet service provision for U.S. rural and urban areas 1

Percent

 Low broadband internet service provision is defined as zero, one, or two service providers within a ZIP Code area. The specific number of providers is not disclosed for low service provision areas to protect firm confidentiality.Source: Economic Research Service calculations based on Federal CommunicationsCommission and Census Bureau data.

 1

United States Department of AgricultureEconomic Research Service

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and, where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic 

nformation, political beliefs, reprisal, or because all or a part of an individual's income is derived from any public assistance program. 

Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program

nformation (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). 

To file a complaint of discrimination write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.

Survey (since 1997), both provide information on Internet and broadband adoption by farm households. The Pew Internet & American Life Project hasalso conducted multiple, publicly available, nationwide surveys of householduse of the Internet. In addition, some States (e.g., North Carolina and Kentucky)collect data on broadband availability within their borders, affording more geographic detail than that provided in the FCC data.

Findings in Rural Broadband at a Glance are drawn from a larger body of

research currently underway. ERS is conducting a multi-disciplinary nationwidestudy of the economic issues surrounding broadband access and use in ruralAmerica. Ongoing research focuses on broadband use, broadband availability,and the effects of broadband Internet service on rural growth and prosperity, the provision of community public services, access to healthcare, and rural wellbeing. 

For additional information on this topic, please contact Peter Stenberg at

stenberg@ers.usda.gov or Sarah Low at slow@ers.usda.gov.

Background and Contacts . . .

Economic Research Service

Rural Broadband At A Glance

populations increased rapidly between 2000 and 2006. The main limitationof slower, dial-up Internet access is that many content-dense applications anddocuments, and such critical services as anti-virus protections, are not readily usable via dial-up due to low transmission capability and speed.Broadband Internet access in rural areas is less prevalent than in more densely populated areas of the country. Circumstantial evidence suggests thatthe difference in access may lie in the higher cost and limited availability ofbroadband Internet in rural areas. As a result, rural residents depend more onInternet use outside of the home, relying on places like the library, school,and work, where broadband Internet access is available.

Economic Information Bulletin Number 47

February 2009
05

101520253035

2000 2001 2002 2003 2004 2005 2006

RuralUrban

Share of population with low broadband internet service provision for U.S. rural and urban areas 1

Percent

 Low broadband internet service provision is defined as zero, one, or two service providers within a ZIP Code area. The specific number of providers is not disclosed for low service provision areas to protect firm confidentiality.Source: Economic Research Service calculations based on Federal CommunicationsCommission and Census Bureau data.

 1

United States Department of AgricultureEconomic Research Service

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and, where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic 

nformation, political beliefs, reprisal, or because all or a part of an individual's income is derived from any public assistance program. 

Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program

nformation (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). 

To file a complaint of discrimination write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.

Survey (since 1997), both provide information on Internet and broadband adoption by farm households. The Pew Internet & American Life Project hasalso conducted multiple, publicly available, nationwide surveys of householduse of the Internet. In addition, some States (e.g., North Carolina and Kentucky)collect data on broadband availability within their borders, affording more geographic detail than that provided in the FCC data.

Findings in Rural Broadband at a Glance are drawn from a larger body of

research currently underway. ERS is conducting a multi-disciplinary nationwidestudy of the economic issues surrounding broadband access and use in ruralAmerica. Ongoing research focuses on broadband use, broadband availability,and the effects of broadband Internet service on rural growth and prosperity, the provision of community public services, access to healthcare, and rural wellbeing. 

For additional information on this topic, please contact Peter Stenberg at

stenberg@ers.usda.gov or Sarah Low at slow@ers.usda.gov.

Background and Contacts . . .

Economic Research Service

Rural Broadband At A Glance

populations increased rapidly between 2000 and 2006. The main limitationof slower, dial-up Internet access is that many content-dense applications anddocuments, and such critical services as anti-virus protections, are not readily usable via dial-up due to low transmission capability and speed.Broadband Internet access in rural areas is less prevalent than in more densely populated areas of the country. Circumstantial evidence suggests thatthe difference in access may lie in the higher cost and limited availability ofbroadband Internet in rural areas. As a result, rural residents depend more onInternet use outside of the home, relying on places like the library, school,and work, where broadband Internet access is available.

Economic Information Bulletin Number 47

February 2009