Rural Areas Left in Slow Lane of High-Speed Data Highway


RURAL AREAS LEFT IN SLOW LANE OF HIGH-SPEED DATA HIGHWAY
[SOURCE: New York Times, AUTHOR: Ken Belson]
For most businesses, the goal is to attract as many customers as possible. But in the fast-changing telephone industry, companies are increasingly trying to get rid of many of theirs. Big phone and cable companies are reluctant to upgrade and expand their networks in sparsely populated places where there are not enough customers to justify the investment. Instead, they are funneling billions of dollars into projects in cities and suburbs where the prospects for a decent return are higher. But those projects are unlikely to reach rural areas of Vermont and other states, leaving millions of people in the Internet’s slow lane, just as high-speed access is becoming more of a necessity than a luxury. The United States already lags behind much of the industrialized world in broadband access. The economics of providing broadband in rural areas are discouraging. The cost of upgrading an existing copper line that runs from switching stations to remote homes can be as much as $5,000, according to the National Exchange Carrier Association. Such costs are prohibitive for phone companies, which typically want to make back their money within three years.
http://www.nytimes.com/2006/09/28/technology/28vermont.html?hp&ex=1159502400&en=5256374abba709e1&ei=5094&partner=homepage
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