There’s a belief out there that households don’t really want or need more than a basic broadband connection, much less gigabit connectivity. This mistaken impression especially affects rural areas, where observers point out that a resident may have more fingers on their hand than Megabits per second (Mbps) on their current Internet connection, so surely they’ll be satisfied with a bump up to broadband speeds of 25 or 50 Mbps.
However, in our experience at MuniNetworks.org, demand for high-speed connectivity is actually quite robust in rural areas where the infrastructure exists. We’ve heard from rural cooperatives that many of their fiber network subscribers opt for higher speed tiers and that gigabit take rates near 30 percent in some instances. This suggests rural areas are much more likely than more urban areas to opt for tiers above the lowest cost option.
Even if the majority of rural subscribers don’t need the very highest broadband speeds, it’s important to note that the demand is there and will certainly continue to grow. As federal and state governments invest in rural broadband deployment, they must ensure that the networks they’re subsidizing can meet current and future needs.
Co-ops Feed Need for Speed
Back in January, Telecompetitor reported that Curtis Wynn, CEO of Roanoke Electric Cooperative in North Carolina, shared on a press call that two thirds of the co-op’s broadband subscribers selected a speed tier above the lowest and cheapest option of 50 Mbps. This isn’t because the co-op’s members have extra money to burn. “We’re one of the poorest areas of the nation. We have a lot of low-income individuals who are our members,” Wynn told a reporter in 2019.
Last month, we spoke with representatives from another electric cooperative, Oklahoma Electric Cooperative (OEC), for episode 398 of the Community Broadband Bits podcast. They told us that many of their members also choose to subscribe to above-baseline speeds. The co-op only...Read more