Rural Broadband Won't Be Solved By Profit-Maximizing Means

[Commentary] The foundation of American broadband policy to date has been that the best way to stimulate deployment is to leave it up to the market, to let private, profit-maximizing companies compete to lower prices, improve service, and expand networks. While this model may be working in some areas -- like those with the choice of Verizon FiOS, Comcast DOCSIS 3.0, and a handful of wireless providers -- it isn't working in all areas. In particular, we must come to accept the fact that rural broadband can't and won't be solved through profit-maximizing means. The economics just don't work out. If I'm a carrier with $X dollars to spend, then I have an obligation to my shareholders to invest that money where it has the greatest chance of making the best return, and that's almost always going to mean picking a city over a remote town or even more rural area. This becomes especially acute when we're talking about getting our most rural Americans online as it may be impossible to profitably deliver to them high quality service at a price they can afford. But that doesn't mean rural broadband can't be profitable.