Lower proportion of business telecom customers in rural service areas, resulting in less revenue for the provider. Yet, this is not the whole story. Forty percent of farms now have a computer, and Internet usage on farms was up to nearly 30 percent in 1999. Internet connection rates of schools in rural areas are higher than in cities, according to the US Dept. of Education. Telecom competition is increasing in rural areas as more businesses, especially e-commerce companies, locate their headquarters and warehouses there to take advantage of the low cost of land and labor.
Rural consumers tend to be aware if their neighbors have superior phone capabilities and service.
These customers, though, will show great loyalty to local carriers who provide them with high-quality service. This report includes a discussion of the rural plant and looks at the challenges faced by telcos covering rural areas. In addition, the various sources of funding for infrastructure are described. For decades the US government has funded the expansion of telephone companies' plant into rural areas. Recently, they have extended their focus and funding to include networks capable of providing Internet and broadband access.