Rural Broadband Investment to Grow with Stimulus Funds

State and local governments are busy spending stimulus funds on shovel-​ready highway and bridge repair projects but did you know that the American Recovery and Reinvestment Act of 2009 also provides forget_connected broadband investment? The feds are ready to spend $7.2 billion to boost broadband access to residential markets. A study recently released by PivotMedia indicates that the rural market for residential broadband access is particularly attractive.

Rural markets tend to be served by Tier 3 and 4 companies such as:

  • Fairpoint
  • HictoryTech
  • IowaTelcom
  • CenturyTel
  • nTelos

PivotMedia's study shows that demand for rural residential broadband access exceeded the demand in urban areas during 2008. This increased demand may have stemmed in part from the astonishing drop in the number of traditional land lines in rural America. The first quarter 2008 drop of 4.27% in  traditional land lines accelerated to 7.14% by the fourth quarter. Clearly, U.S. consumers in rural markets are ready to make big changes when it comes to communications.

If you are working with cable or other communications firms that serve rural markets, remind these clients that a new marketing campaign to reach consumers who have been underserved by high speed capabilities should be a top priority.

[Source: Pivot Media study, Spring 2009] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.