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Abstract

Using new data set of Federal Communication Commission, we model where small broadband providers choose to locate. When using all areas data, we find that even in term of small broadband providers, digital divide between rural and urban areas still exist. However, when we restrict data on areas previously depicted as no provider, rural areas seem to be an attractive target for small broadband providers. In addition, areas with high number of household but low number of business seem to be interested by small broadband provider especially rural areas. The results also suggest that USDA policies to increase broadband providers in rural area are ineffective.

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