The Rural Broadband Crisis: What's Being Done?

In 2019, the rural broadband crisis in America remains stubbornly persistent. The FCC's latest Broadband Deployment Report acknowledges that approximately 21 million Americans lack access to broadband internet — and independent analyses suggest the real number may be twice that, due to the FCC's notoriously generous coverage maps that count an entire census block as "served" even if only one home has service.

The consequences are real and measurable. Rural communities without broadband face disadvantages in education, healthcare, economic development, agriculture, and civic participation. Farmers can't access precision agriculture tools. Students can't do homework. Businesses can't compete. And the gap between connected and unconnected America continues to widen.

Here's what's being done — and what more needs to happen.

The Scale of the Problem

By the FCC's 25/3 Mbps broadband definition, roughly 39 percent of rural Americans lack access to adequate broadband. In tribal areas, the number exceeds 60 percent. Even these figures understate the problem, because "access" as defined by the FCC doesn't mean service is actually affordable or that the speeds are truly available at reported levels.

The core challenge hasn't changed since we covered broadband adoption in 2008: the economics of building broadband infrastructure to sparsely populated areas don't work under normal market conditions. The cost per home passed is far higher in rural areas, and the potential subscriber base is far smaller. Private companies have little incentive to build where the return on investment is negative.

Federal Funding Programs

Several federal programs are directing money toward rural broadband:

USDA ReConnect Program

The USDA launched the ReConnect Program in 2018 with $600 million in grants and loans for rural broadband deployment. The program targets areas where at least 90 percent of households lack broadband at speeds of 10/1 Mbps. Applications for the first round closed in April 2019, and awards are expected this summer.

The program offers three types of funding:

• 100% grants up to $25 million (requires 25% matching funds from the applicant)
• 50/50 loan-grant combinations up to $25 million
• 100% loans up to $25 million (at Treasury interest rates)

FCC Connect America Fund

The FCC's Connect America Fund (CAF) is the largest federal broadband subsidy program, distributing roughly $4.5 billion per year. Phase II of the program awarded $1.49 billion over 10 years through a reverse auction in 2018, with providers committing to build broadband in underserved areas.

However, the program has been criticized for its speed requirements. CAF Phase II only requires providers to deliver 25/3 Mbps for fixed connections and 10/1 Mbps for fixed wireless — speeds that are increasingly inadequate as bandwidth demands grow. Building infrastructure today that meets only today's minimum standard risks creating tomorrow's underserved areas.

USDA Community Connect Grants

Smaller than ReConnect, the Community Connect Grant Program provides funding for broadband deployment in rural communities with populations under 20,000 that lack any broadband service. The program provides both infrastructure funding and money for community center computer access.

Technology Solutions

Multiple technologies are being deployed to reach rural areas:

Fixed Wireless

Fixed wireless has emerged as a leading solution for rural broadband. Companies like Cambium Networks, Ubiquiti, and RADWIN manufacture equipment that can deliver 50 to 200 Mbps to homes within range of a tower. Local WISPs (Wireless Internet Service Providers) — often small, locally-owned businesses — have been building these networks across rural America.

The economics work better than fiber in low-density areas: a single tower can serve dozens or hundreds of homes across several miles, compared to the per-home cost of running fiber. The tradeoff is that speeds are generally lower than fiber, performance depends on line of sight, and capacity is shared among all users on a tower.

The upcoming CBRS (Citizens Broadband Radio Service) spectrum band could be a game-changer for rural fixed wireless, providing access to 3.5 GHz spectrum without the need for expensive licenses.

Satellite Internet

Traditional satellite internet (HughesNet, Viasat) has long been the broadband option of last resort. It works anywhere with a clear southern sky, but latency of 600+ milliseconds makes it unsuitable for real-time applications, and data caps of 10 to 50 GB severely limit usage.

The more exciting development is the emergence of low-earth orbit (LEO) satellite constellations. SpaceX's Starlink and Amazon's Project Kuiper plan to deploy thousands of small satellites in low orbit, promising latency of 20 to 40 milliseconds — comparable to terrestrial broadband. SpaceX has already launched test satellites and plans to begin commercial service by mid-2020.

If LEO satellite internet delivers on its promises, it could be the most significant development for rural broadband in a generation. But the technology is unproven at scale, and there are legitimate questions about capacity, pricing, and whether the constellations can serve the number of customers needed to be financially viable.

Fiber

Several rural electric cooperatives are building fiber networks, leveraging their existing utility pole infrastructure and deep community ties. These cooperatives serve roughly 42 million Americans in 47 states, and over 100 have already deployed or are building fiber broadband networks.

Organizations like the National Rural Electric Cooperative Association (NRECA) are advocating for policies and funding to accelerate this trend.

State and Local Initiatives

Many states aren't waiting for federal action:

• Maine has created a broadband authority to coordinate and fund rural connectivity
• Minnesota has invested over $120 million in its Border-to-Border Broadband Program
• Virginia has established a $50 million broadband fund
• Colorado allows counties to opt out of state restrictions on municipal broadband

Local communities are also taking creative approaches. Some rural counties are building open-access fiber networks and leasing capacity to ISPs. Others are partnering with electric cooperatives. A few have formed broadband cooperatives modeled on rural electric co-ops from the 1930s.

What More Needs to Happen

Despite all this activity, progress is too slow. Here's what experts say is needed:

Better maps. The FCC's broadband maps are widely recognized as inaccurate. The agency is working on improved mapping methodology, but it's not clear when updated maps will be available. Accurate maps are essential for directing funding to areas that truly need it.

Higher speed standards. The 25/3 Mbps definition of broadband is already outdated. Any infrastructure built with public money should be future-proof — capable of delivering at least 100/100 Mbps to keep pace with growing demand.

More funding. Current federal and state programs, while helpful, are insufficient to close the gap. Estimates of the total cost to bring broadband to all unserved Americans range from $40 billion to $80 billion.

Reduced barriers. Permitting, environmental review, and pole attachment disputes slow construction. Streamlining these processes could reduce costs and timelines significantly.

The rural broadband crisis is solvable. The technologies exist. The demand is there. What's needed is the political will and funding to make universal broadband a reality — the same commitment that brought electricity and telephone service to rural America in the 20th century.