Closing the Broadband Digital Divide: The Role of Utility‐Owned Fiber

Abstract

Digital redlining, defined as inequitable digital access for marginalized customer groups, is a reality in broadband. In a deregulated competitive market, internet service providers (ISPs) and carriers will deploy broadband in those areas promising the greatest potential market share and revenue. As a result, some areas, particularly rural or low‐income urban neighborhoods, are prone to be underserved, becoming “broadband deserts,” or areas with limited or no access to affordable broadband internet services. These areas are characterized as unserved (with coverage falling below 25/3 Mbps1) or underserved (with coverage falling below 100/20 Mbps) by broadband providers due to the area's unfavorable costs to deploy and build infrastructure relative to the predicted “take‐rates” (number of consumers that would subscribe for service), average revenues per subscriber, and associated returns on investment.