Waiting for Broadband: Local Competition and the Spatial Distribution of Advanced Telecommunication Services in the United States

Abstract

With the passage of the Telecommunications Act of 1996, Congress directed the Federal Communications Commission and all fifty U.S. states to encourage the deployment of advanced telecommunication capability in a reasonable and timely manner. Today, with the rollout of advanced data services such as digital subscriber lines (xDSL), cable modems, and fixed wireless technologies, broadband has become an important component of telecommunication service and competition. Unfortunately, the deployment of last-mile infrastructure enabling high-speed access has proceeded more slowly than anticipated and competition in many areas is relatively sparse. More importantly, there are significant differences in the availability of broadband services between urban and rural areas. This paper explores aspects of broadband access as a function of market demand and provider competition. Data collected from the Federal Communications Commission is analyzed using a geographic information system and spatial statistical techniques. Results suggest significant spatial variation in broadband Internet access as a function of provider competition in the United States. Copyright 2004 Gatton College of Business and Economics, University of Kentucky..

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