Residential fixed broadband internet access in the United States (US) has long been distributed inequitably, drawing significant attention from researchers and policymakers. This paper evaluates the efficacy of the Connect America Fund (CAF), a key policy intervention aimed at addressing disparities in US internet access. CAF subsidizes the creation of new regulated broadband monopolies in underserved areas, aiming to provide comparable internet access, in terms of price and speed, to that available in urban regions. Oversight of CAF largely relies on data self-reported by internet service providers (ISPs), which is often questionable. We use the broadband-plan querying tool (BQT) to curate a novel dataset that complements ISP-reported information with ISP-advertised broadband plan details (download speed and monthly cost) on publicly accessible websites. Specifically, we query advertised broadband plans for 687k residential addresses across 15 states, certified as served by ISPs to regulators. Our analysis reveals significant discrepancies between ISP-reported data and actual broadband availability. We find that the serviceability rate-defined as the fraction of addresses ISPs actively serve out of the total queried, weighted by the number of CAF addresses in a census block group-is only 55%, dropping to as low as 18% in some states. Additionally, the compliance rate-defined as the weighted fraction of addresses where ISPs actively serve and advertise download speeds above the FCC's 10 Mbps threshold-is only 33%. We also observe that in a subset of census blocks, CAF-funded addresses receive higher broadband speeds than their monopoly-served neighbors. These results indicate that while a few users have benefited from this multi-billion dollar program, it has largely failed to achieve its intended goal, leaving many targeted rural communities with inadequate or no broadband connectivity.

Recent research found that as the share of White non-Hispanics increases, average download and upload speeds decreases. To delve deeper into this finding and better understand the factors affecting internet speeds, this research conducted spatial error regression models looking at different groups across two points in time (2019 and 2022). Results indicate that rural, older, and poorer groups continue to be associated with slower speeds and that by 2022, these relationships became stronger, widening the divide. Remote work and educational attainment had a positive impact on speeds, particularly average upload speeds. These positive impacts increased over time, providing evidence of the need for symmetrical networks (download and upload speeds are identical). Lastly, the finding that White non-Hispanics are associated with slower internet speeds remained: it was in place as early as 2019 and became stronger by 2022, also widening the divide. Five research and policy insights are discussed to better inform broadband stakeholders and policymakers.

Intrepid Fiber Networks is expanding its open access fiber-to-the-premises (FTTP) networks with deployments in eight more communities in Colorado and eight more towns in Minnesota. These newly announced communities are in proximity to current Intrepid deployments, representing an organic expansion of its network. These new locations will bring Intrepid’s network to over 400,000 homes and businesses passed across the two states. Intrepid, which was founded in 2021, has quickly made a name for itself because its anchor tenant for its Colorado and Minnesota networks is T-Mobile. The company also scored with equity financing from Brookfield Asset Management. Intrepid is also talking to other ISPs, which may end up striking wholesale agreements over time. Typically, an open access network will have as many as five ISPs serving end customers. But too many ISPs can deteriorate the profits of the individual service providers. The company is also open to partnering with municipalities if it can “make the math work.” And it’s looking at Broadband Equity, Access and Deployment (BEAD) opportunities.