Rural Broadband Take Rates on the Rise

Broadband take rates in rural communities continue to rise, but regulatory uncertainty surrounding the national broadband plan (NBP) poses a severe threat to future deployment in rural America, according to a survey by the National Telecommunications Cooperative Association (NTCA).

The survey found that members' overall broadband take rate was 55% -- up from 38% last year. One hundred percent of respondents offer broadband to some part of their customer base. Yet an overwhelming majority expressed concern about the impact of the NBP on their operations -- noting the uncertainty about the NBP's potential changes to the existing regulatory framework will take is affecting their current decision-making process and impeding their ability to obtain necessary funding for broadband deployment. Nearly all (94%) of those who offer broadband serve some portion of their customer base via DSL, with 68% deploying fiber to the home or fiber to the curb. Despite the inherent challenges and significant costs associated with fiber deployment, particularly in high-cost rural areas, the 2010 survey revealed a 15% net increase in deployment (up from 59% one year ago). Seventy-three percent of respondents offer video service to their customers. More than eight in 10 respondents expect to have a video offering in place by year-end 2012. Nearly all (96%) indicated that the main barrier to providing video service is access to reasonably priced programming.