This week, organizations which rely on as many people as possible having inexpensive, reliable access to the Internet received some good news and some interesting news.
First, the good news. Associated Press reported a study showing that high-speed Internet services were growing in rural areas. According to the report, which is based on a survey by the Pew Internet and American Life Project:
- Last fall, 24% of rural Americans had broadband Internet access at home, more than double the 9% rate reported in 2003.
- By comparison, 39% of urban and suburban dwellers had broadband last fall, up from 22% in 2003.
- Adding in people who use dial-up or access the Internet only at work, 62% of country dwellers use the Internet, compared with 70% elsewhere.
This is excellent news for companies with business models that would benefit from extending their markets out of urban areas. It is also important for organizations which had no alternative other than delivering services or information through channels less efficient than the Web in rural areas.
Associated Press also provided us with the interesting news. “Telecommunications companies want to be able to provide ‘tiered service,’ guaranteeing that, for a price, some packets will get to their destination on time.”
AP reports that the opponents of this approach fear that abandoning the “network neutrality” may allow the carriers to cut off sites that are late paying or competing with their own services.
For companies that have built a business model on near ubiquitous access to the Internet—notably Google which is now actively opposing this scheme—this change poses a considerable threat.
Of course, as AP points out, the carriers also have a business model: “Whether they tier their service or not, telecommunications companies need to expand capacity. To do so costs money, and the telecoms argue that Internet users will have to pay, one way or another. They say it’s preferable that the money come from those who need and are willing to pay for better service, rather than spreading the cost out over all users.”
The last time I wrote on this topic, I suggested this was an issue to monitor occasionally. You might want to start following it a lot more regularly.
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