Internet Access in Very-Rural Areas is a Problem; High-Speed Access is a Big Problem

Lower-speed Internet access is a problem, but not as big a problem as higher speed service in the United States, a study suggests. 

Any experienced network engineer or architect would agree. At any higher speed, providing service in very-rural areas will be a big challenge.

But as access speeds climb, the gap between urban and suburban areas, and very-rural areas, grows fast.

At the moment, about 66 percent of U.S. residents living in very-rural areas have access to Internet access at speeds of at least 3 Mbps, compared to 99 percent of residents of residents of bigger cities and the suburbs of those cities.

About 53 percent of residents living in very-rural areas can buy access of at least 10 Mbps, compared to 98 percent of residents of bigger cities, and 98 percent of suburban residents living around those cities.

About 14 percent of residents in very-rural areas can buy service at 50 Mbps. About 67 percent of residents of suburban areas surrounding larger cities can buy 50 Mbps service, while 63 percent of residents in central areas of bigger cities can buy 50 Mbps service.

The gap is wider at 100 Mbps, where 38 Mbps of residents of suburban areas can buy such service, while 28 percent of residents in central city cores can buy 100 Mbps service. In very-rural areas, just about three percent of residents can buy 100 Mbps service.

About 23 percent of rural residents are able to buy Internet access at speeds of 50 Mbps or greater, while 63 percent of urban residents can do so, study by the National Telecommunications and Information Administration.

If adoption of 50 Mbps is not at 23 percent in rural areas, and 63 percent in urban areas, it probably means consumers have concluded the existing price-value relationships for slower-speed services are adequate.

One might therefore argue that producing inducements for further upgrades will require some tweaking of the price-value relationship. Since most expect there will be a continuing logic to “higher prices for higher speeds,” absolute price will be the biggest potential game changer, though price per megabit might indirectly be a driver of upgrades.

Likewise, some 38 percent of households in suburbs, 28 percent in the central areas of bigger cities and 31 percent of households in “exurbs” already can buy service at 100 Mbps.

What seems indisputable is that average purchased speeds will continue to increase, as speeds have tended to grow 10 times every five years.