Download The Role of the State in Broadband Policy for Rural Areas

The Role of the State in
Broadband Policy for Rural
Areas: A Comparative Analysis of
Canada and the United States
Rural Telecon – October 23, 2006
Penn State Rural Telecommunications Working Group
Sheila S. Sager, Theodore R. Alter & William C. Shuffstall
Presented by Sheila S. Sager
Objectives


Role of the State in broadband provision for
the rural United States
Comparative analysis of government policy in
the rural US and Canada


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
Open access
Human and organizational capacity
Demand aggregation
Implications and conclusions
Canada
US
Population
33,098,932
298,44,215
Land Area
9,093,057 sq km
9,161,923 sq km
Rural
22% (6.4 million)
17% (49 million)
GDP per capita
$34,000
$41,800
Population below
15.9%
poverty
Broadband Subscribers 21.9
per 100 inhabitants
12%
Investment in
0.493
Telecommunications as
percent of GDP
0.169
16.8
Source : OECD
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Broadband Penetration &
Population Densities
OECD broadband penetration and population densities
Broadband penetration
30
25
600
Broadband penetration (subscribers per 100 inhabitants, 2005)
Population density (inhab/km2, 2004)
500
Simple correlation = 0.265
20
400
15
300
10
200
5
100
0
0
Federal Broadband
Policies & Programs

United States

Universal Service Funds,
1996
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Rural Health Care Support
Mechanism
Schools and Libraries Program
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Canada
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E-rate
Rural Broadband Access
Loans, 2002
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Connecting Canadians, 1998
National Broadband
Taskforce, 2001
Broadband for Rural and
Northern Development
(BRAND), 2002
Rural and Remote
Broadband Access Program
(RRBA), 2002
National Satellite Initiative
(NSI), 2003
Open Access

United States

Abolished open access in
August 2005

Canada

Supports and encourages
open access
Human and
Organizational Capacity

United States

Canada


National Broadband
Taskforce identifies ways
to build capacity
National Satellite
Initiative
Demand Aggregation

United States
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
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Decided at the local level
No federal support
Not eligible for e-rate

Canada

Aggregation is one of the
two key strategies
identified by the
National Broadband
Taskforce
Comparative Analysis
Canada
US
Role of the State Comprehensive
Limited
Policy goal
Serve all
Serve all
Type of policy
Comprehensive
Market driven
Effect
Serve all
Serve some
Broadband
policy
Leverages all
Isolates
sectors of society
Focus
Access and
Access
capacity building
Implications & Conclusions


Assumption – Access and use of broadband is
a necessary condition for economic and social
development.
 The lack of accessibility and capacity in
rural areas will hinder their development.
Compared to Canada, US broadband policy is
not designed to enhance accessibility and
capacity for those people living in rural areas.
Implications & Conclusions


Assumption – Economic and social well being
and quality of life in rural places is important
 Relative to Canadian policy, US policy does
not appear to serve this social value and goal
Assumption – Development, enfranchisement
and quality of life of rural people and places is
a strongly held value
 US policy needs to be radically reformed to
incorporate a larger role of the State where
the market does not provide adequate access
Implications & Conclusions
Rewrite of the United States
Telecommunications Act of 1996
 Carrier class services need to be the focus of
policy, in addition to residential services
 Provides an opportunity to recast policy that is
more supportive of rural populations and
places
Rural Telecommunications
Working Group (RTWG)

A multidisciplinary team of researchers,
educators and practitioners, at Penn State, are
focusing on the adoption and impact of digital
technologies on the economic, political and
social development of rural communities
RTWG Members
Ted Alter
Jeff Bridger
Sheila Sager
Kai Schafft
Jorge Schement
Bill Shuffstall
Marsha Tate
Comments, Questions,
Suggestions
The Role of the State in
Broadband Policy for
Rural Areas:
A Comparative Analysis of
Canada and
the United States
Presented by
Sheila S. Sager
[email protected]
814-863-6816