Resources
                                                         For Welfare Decisions
Vol. 6, No. 15                                                                                                                      October 2002

Bridging the Rural Digital Divide

Americans are connecting to the Internet at higher rates than ever before.  Over 50 percent of homes across the country have personal computers, and 4 out of 5 of them are linked to the Internet.  Despite increases in connectivity, a "digital divide" in access to and use of the Internet and other information technology (IT) persists, particularly among individuals at different income and education levels, and in remote geographic areas.  A recent study by the Federal Communications Commission corroborates this disparity. While rural citizens may have achieved near parity with their urban counterparts in conventional dial-up Internet connectivity, rural areas tend to lag behind urban areas in broadband penetration.  In urban areas, 98 percent of the most densely populated areas have high-speed access.  In central city and urban Internet households, high-speed access increased from 10 percent to 21 and 22 percent respectively between 2000-2001.  However, in rural areas, access increased less than 5 percent, from 7.3 in 2000 to 12.2 in 2001.  This discrepancy presents a significant challenge to communities hoping to revitalize lagging industrial and agricultural economies.  Furthermore, the lack of telecommunication services hinders the provision of enhanced educational content for K-12 education and adult learning, for those living in rural areas.   In addition, although some studies have shown that many rural residents have Internet access at work or via public libraries or community centers, home access is still somewhat limited.

Cost is the primary reason for slower deployment.  Costs for wireline construction increase the greater the distance among customers.  Respondents to a survey conducted in the summer of 2001 by the National Telephone Cooperative Association indicated that the major barriers to expanding broadband service are loop length, deployment cost, low demand, the lack of cost effective equipment scaled for smaller communities. The general isolation of rural communities also raises issues related to Internet content and the relevance of information available via the net that addresses specific local needs. 

Native Americans’ lack of access to the nation’s information infrastructure is particularly worrisome.  In a 1999 study, the U.S. Economic Development Administration found that only 9 percent of Native households had personal computers and of those only 8 percent had Internet access.  Weak economic development, geographic remoteness, a distrust of new technologies, and the lack of an integrated investment strategy to support technological development are among the barriers Native communities must overcome to cross the digital divide.  The inadequate state of existing infrastructure in Native American communities means there is less of a foundation to build on than in other communities. 

This Resources for Welfare Decisions provides a variety of resources related to rural technology development.   For additional information see http://www.financeproject.org/access_rural.htm, and http://www.financeproject.org/infotechnology.asp.

Publications and Electronic Resources

Appalachian Regional Commission.  Information Age Appalachia: A Rural Digital Divide Program.  (Washington, D.C.:  Appalachian Regional Commission, November 2001) at http://www.arc.gov/images/telecom/iaapp.pdf.

DigitalDivide.org, sponsored by the Benton Foundation, is a web-based resource for policymakers.  It is designed to encourage interaction of “action researchers” who are working with governments, businesses, non-profits and other organizations to shape new policies. See http://www.digitaldivide.org.

Donovan Johnson, Rebecca.  Connecting Indian Country: Tribally-Driven Telecommunications Policy.  (Washington, D.C.: National Congress of American Indians, December 2001) at  http://www.indiantech.org/main/documents/NCAIPolicyReport.pdf.

Federal Communications Commission.  High-Speed Services for Internet Access.  (Washington, D.C.: Federal Communications Commission, July 23, 2002) at http://www.fcc.gov/Bureaus/Common_Carrier/Reports/FCC-State_Link/IAD/hspd0702.pdf.

Leatherman, John C.  Internet-Based Commerce: Implications for Rural Communities. (Washington, D.C.:  U.S. Economic Development Administration, 2000) at http://www.doc.gov/eda/pdf/leatherman.pdf .

Riley, Linda Ann, Bahram Nassersharif, and John Mullen.  Assessment of Technology Infrastructure in Native Communities (Washington, D.C.: U.S. Economic Administration, U.S. Department of Commerce, June 1999) at http://www.osec.doc.gov/eda/pdf/ATINC.pdf.

Schadelbauer, Rick. NTCA 2001 Internet/Broadband Availability Survey Report. (Washington, D.C.: National Telecommunications Cooperative Association, December 2001) at http://www.ntca.org/leg_reg/white/2001bb_survey.pdf.

Telecommunications and Information Policy Initiative, University of Texas at Austin, see http://www.utexas.edu/research/tipi/.

Tscheschlok, Christine.  Rising to Meet the Digital Challenge in Rural Communities: A Growing Divide? (Macomb, Ill: Illinois Institute for Rural Affairs, Spring 2001) at http://www.iira.org/pubsnew/publications/IIRA_RRR_143.pdf.

U.S. Department of Commerce.  A Nation Online: How Americans are Expanding Their Use of the Internet.  (Washington, D.C., February 2002) at http://www.ntia.doc.gov/ntiahome/dn/anationonline2.pdf.

Resource Contacts

State and Local Programs

Earlier this year, the Iowa Farm Bureau and Lighthouse Communications Inc. teamed up to provide dial-up Internet service to underserved, rural areas of the state, where access to the web is often more expensive than in urban areas. This service is provided in response a study by the Iowa Department of Economic Development and a series of surveys conducted by the Farm Bureau designed to identify the Internet access needs of rural residents.  In addition to low-cost service, Farm Bureau members expressed the need to easily access Internet sites that were relevant to their work and information needs, and they wanted the system to service entire households.  They were also interested in incorporating technologies that improved speed and efficiency.  The service is available for $16.95 a month (guaranteed for a minimum of 3 years) and allows unlimited Internet use.  The web site, FBX allows users to access pre-customized portals via a series of dashboards from the FBX home page.  Support from a 24-hour help desk is available to help users troubleshoot problems.  FBX hopes to reach 95 percent of all Iowa families within the next year.   Contact Dave Lyons at 515/225-5400.

The North Kansas Community Network (NCKCN) was formed 1995 to bring affordable Internet access to rural areas in north central Kansas. NCKCN is managed by a board of directors of officials from the North Central Regional Planning Commission, and local business leaders.  The commission leased locally available circuits from area telephone providers, allowing NCKCN to become the area ISP.   As a result, an area-wide network linking schools and local government was created.  Residential users pay a one-time set-up fee of $35.00 and $25.00 a month for unmetered service.  Users interested in e-mail access only pay a monthly fee of $15.00.  Business accounts, designed to meet specific business needs are available at higher prices.  Schools, libraries and government offices receive a free subscription and a free e-mail account.  Faculty and students are given free individual e-mail accounts that can be used while on school property.  In addition, income-qualified families receive a free e-mail account. Students at Bethel College provide technical support to users via a toll-free number.  Over 3,000 subscribers currently use NCKCN. 

NCKCN also provides technical support, when necessary and offers users a list-serve where they can post and reply to technology related questions.  In addition, NCKCN become an electronic incubator, supporting community and business growth across a 12 county area in the state.  Contact John Cyr at 785/738-2218.

The Rural Internet Access Authority in Raleigh, North Carolina was created by the state General Assembly in 2000 to oversee efforts to provide rural areas with high-speed broadband Internet access.  The Authority grew out of recommendations made by the NC Rural Center and the Rural Prosperity Task force.  It is designed to provide affordable, high-speed Internet access to rural parts of the state within 3 years.  In addition, the Authority also hopes to increase ownership of computers and Internet subscriptions throughout the state, insure that local dial-up Internet access is available to every citizen, develop 2 model Telework Centers, and develop Internet applications for government agencies to facilitate the delivery of services.  Particular focus has been paid to working with the more disadvantaged economic areas of the state so that all regions of North Carolina are connected to high-speed broadband networks.  Cable companies, independent telephone companies, telephone cooperatives as well as electronic cooperatives and Internet service providers have all been partners in this effort. The Authority is housed at the North Carolina Rural Economic Development Center, a nonprofit organization working to develop, promote, and implement economic strategies to improve the quality of life of rural North Carolinians.  The initiative is funded with $30 million from the Micro-Electronic Center of North Carolina, a private company that previously was the high-tech research arm of state government. 

The Authority serves as the lead entity in the implementation of e-NC, a statewide initiative to all North Carolinians, especially those in rural areas, to the Internet.  Contact Jane S. Patterson at 919-250-4314, and visit http://www.e-nc.org.

The Tulalip Technology Leap (TTL) initiative in Washington State was developed through a partnership between the Tulalip tribes, the University of Washington at Bothell, and Everett Community College. TTL was implemented to bring the latest technology to the reservation in order to improve and expedite the decision making process of the tribal government and its economic enterprises, and to improve the quality of life for all tribal members.  Every household received a home computer and now has access to computer training for in-home and job related activities. In addition to a web site and e-mail server, the project includes a system designed to track tribal growth and economic development.  Once the network infrastructure and support services were in place, the tribes implemented applications that directly benefited tribal interests.  These include E-learning for K-12, enhanced job skills training, economic development programs, and cultural programs.  Contact John McCoy at 360-651-4000, and visit www.tulaliptechleap.com.

WIN Staff Contact: Pamela Friedman, (202) 587-1000, pfriedman@financeproject.org

 

The Welfare Information Network is supported by grants from the Annie E. Casey Foundation, the Charles Stewart Mott Foundation, the David and Lucile Packard Foundation, the William and Flora Hewlett Foundation, the Ford Foundation, and the Administration for Children and Families, U.S. Department of Health and Human Services.