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Broadband’s area impact remains spotty

Whether downloading music, opening business files or checking sports scores, millions of Americans rely on the speed and convenience of broadband Internet everyday. While broadband access is widely available in urban areas, service in rural counties like Otter Tail continues to be spotty, raising questions about its impact on local economic development.

Broadband is a high-speed Internet connection, allowing users to surf the web, download files and stream movies and radio like never before. As opposed to dial-up, broadband is always “on,” ready for use at any moment. Most people access broadband service through their cable TV or telephone lines, though it is also available through technologies like satellites.

Many cable and telephone providers — including those serving Otter Tail County — are still working to provide residents in rural America with the same kind of broadband access available to city dwellers.

“Typically, the urban/rural gap exists in high cost-to-serve rural areas where a larger, regional provider is the incumbent and has not upgraded their network,” said Katie Johnson, business operations manager at Park Region Mutual Telephone Company. “Rural independent providers are more likely to make those investments in their networks because of their local presence in the community and their local connection to the success of the community.”

About 95 percent of Park Region customers have wireline broadband access available to them, Johnson said, explaining the company’s commitment to upgrading both wireline and wireless networks.

Tucker Carlson, a representative with Charter Communications out of the Twin Cities, said 100 percent of Fergus Falls customers have access to broadband.

“Anyone within the Fergus Falls limits of the Charter system has access to that plan,” Carlson said.

But where those limits lie can be hazy, experts say.

“What we generally find all over rural Minnesota is if you live within the municipal boundaries of a city, you generally have access to broadband,” said Jack Gellar, former president of the Center for Rural Policy and Development, a nonprofit research organization out of St. Peter. But 10 to 12 miles out of town, Gellar said, broadband service is harder to predict.

“You could literally have homes a couple hundred feet apart and one could get it and one couldn’t,” he said.

A recent survey by the Center suggests that while rural broadband adoption continues to accelerate, there are significant differences in technology adoption between households in rural and metro Minnesota. Released last April, the 2006 Minnesota Internet Survey found that 40 percent of rural households report connecting to the Internet via broadband, compared to 57 percent of metro-area households. Twenty-two percent of rural dial-up customers reported the unavailability of broadband in their area as their primary reason for not switching, compared to only 10 percent of metro-area residents.

Complicating the matter are socio-demographic variables, excellent predictors of technology adoption, according to the Center. Age, income and the presence of school-age children in the home influence computer ownership, Internet connectivity and broadband adoption, with overall technology adoption plummeting among those age 65 and over.

Broadband’s importance is tied to its role in local economic development. While broadband is convenient for accessing music, sports information and entertainment news, it is crucial for businesses that rely on the Internet for e-commerce, workforce training, technology leadership and more.

“Broadband and economic development in the 21st century really go hand in hand,” Gellar said. “It really has become a very important piece of the local infrastructure tied to the economy.”

With a small business, Gellar said, “What you’re doing is exporting goods and services and importing money into the community.” Without the benefits of broadband access, he explained, business transactions can be slower, more frustrating and less profitable in the long run.