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“Small” Broadband Providers and Federal Assistance Programs: Solving the Digital Divide?

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  • Whitacre, Brian E.
  • Mahasuweerachai, Phumsith

Abstract

Recent data from the Federal Communications Commission allows for examination of the location decisions of “small” broadband providers, i.e. those with less than 250 subscribers. While anecdotal evidence suggests that small providers may be serving disadvantaged or underserved areas, the data indicates that more than two-thirds service urban areas and seemingly choose areas with high demand potential. This paper models the location decision of these small providers and analyzes whether they are influenced by federal assistance programs such as USDA broadband grants and loans. The results suggest that while small providers do tend to locate in urban areas with higher levels of education and income, they also favor rural areas with high levels of Hispanics and African-Americans. No statistical impact is found for the federal-level policies included in the analysis, implying that the focus of these programs may be on the wrong areas.

Suggested Citation

  • Whitacre, Brian E. & Mahasuweerachai, Phumsith, 2008. "“Small” Broadband Providers and Federal Assistance Programs: Solving the Digital Divide?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(3), pages 1-15.
    • Handle: RePEc:ags:jrapmc:133003
    DOI: 10.22004/ag.econ.133003
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    References listed on IDEAS

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    Cited by:

    1. Whitacre, Brian & Biedny, Christina, 2022. "A preview of the broadband fabric: Opportunities and issues for researchers and policymakers," Telecommunications Policy, Elsevier, vol. 46(3).
    2. Dinterman, Robert & Renkow, Mitch, 2017. "Evaluation of USDA's Broadband Loan Program: Impacts on broadband provision," Telecommunications Policy, Elsevier, vol. 41(2), pages 140-153.
    3. Renkow, Mitch, 2011. "Residential Broadband Availability: Evidence from Kentucky and North Carolina," Agricultural and Resource Economics Review, Cambridge University Press, vol. 40(2), pages 145-157, September.
    4. Mahasuweerachai, Phumsith & Whitacre, Brian E. & Shideler, David W., 2009. "Does Broadband Access Impact Population Growth in Rural America?," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49303, Agricultural and Applied Economics Association.

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