NTCA Survey: Comprehensive Broadband Deployment in Rural Areas

Broadband availability in rural areas is comprehensive, and take rates continue to grow in the rural and high-cost areas served by independent communications providers, according to new survey results from NTCA (National Telecommunications Cooperative Association). Survey respondents comprise 20 percent of NTCA’s 560 member companies.

One hundred percent of respondents to NTCA's annual Broadband/Internet Availability survey offer broadband to some part of their customer base, and 15 percent of respondents' customers are taking their 200kbps to 500kbps offering (up from 12 percent a year ago, a one-year growth rate of 25 percent). Nearly all companies (98 percent) provide broadband to their customers through DSL, though a wide variety of technologies are used to deliver the service. Twenty-eight percent use FTTH or FTTC, 22 percent use unlicensed wireless, 15 percent satellite and 13 percent licensed wireless.

The survey also found that an increasing number of independent communications providers are offering video service – largely in response to mounting competition from cable companies offering voice service. More than half (59 percent) of respondents currently offer video service, with an additional 25 percent planning to deploy video no later than the end of 2008.

In addition, nearly three-quarters of respondents are planning to offer VoIP service in the near future, though only 3 percent do so currently.

While 86 percent of survey respondents indicated that they face competition from at least one other broadband services provider, nearly two-thirds stated that their competitors serve only the cities and small towns in their service areas.

The survey also showed that adequate access to a primary Internet backbone connection continues to threaten independent telcos' ability to compete with larger carriers in offering high-quality broadband service. Fifty-seven percent of respondents indicated they have access to only one or two Internet backbone providers, despite the fact that the average survey respondent already traverses more than 125 miles to reach their primary backbone connection.

NTCA (National Telecommunications Cooperative Association) www.ntca.org

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