The Push To Bring Broadband To Rural Entrepreneurs

Today President Obama will be in Marquette, Michigan to talk about improving broadband access in that area. This discussion is just one step toward fulfilling his pledge to bring improved broadband access to areas where businesses need it most, reports The Wall Street Journal.

The goal is to bring high-speed wireless Internet coverage to nearly 98% of all Americans over a period of 5 years, especially to rural small businesses.

Broadband-adoption rates among small businesses are already as high as 90%, according to a congressional study conducted last year by the Small Business Administration’s Office of Advocacy. Indeed, less than 2% of 425 owners surveyed nationwide said broadband service wasn’t available to them, the majority located in rural areas, the study found.

Most subscribed to DSL or cable, paying an average of $110 a month. Though they would welcome higher speeds, only 12% of owners said they would consider relocating for better connectivity.

Owners said broadband was crucial for “achieving strategic goals, improving competitiveness and efficiency, reaching customers, and interacting with vendors,” the survey reported. A full 71% had a website and many used it to sell products or services in ever more distant markets, the study found.

Broadband provides for a critical exchange between vendors and customers and “enables many small businesses to have an international reach,” says Heather Gold, a senior vice president at Herndon, Va.-based XO Communications LLC, a broadband provider for small- and medium-size businesses.

Photo by Steffen

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