Lobbyists and location stymie rural America's quest for broadband

Some 39 percent of rural Americans lack access to broadband Internet. Rural communities tend to be less profitable for broadband service providers, since a smaller number of customers spread over a larger geographical area prevents economies of scale that are achievable in a densely populated region. And years of lobbying by large Internet service providers have led to a web of state laws that block competitors and shelter incumbents. In many cases, large incumbent internet providers are shaping state policies to choke off competitors, said Christopher Mitchell of the Institute for Local Self-Reliance. “Most state legislatures, on broadband issues, will only hear from incumbent providers,” he noted.

When entrenched providers in rural locations fend off new rivals, they don't need to upgrade old infrastructure that can be slower and less reliable, said Debra Socia, the executive director of Next Century Cities, a group that works with local governments to improve and expand Web access. “State legislators are writing rules that make it nearly impossible for local communities to build their own broadband,” she added. “That’s a model for ensuring extended profit off of an investment.”