Pivot Media: Rural broadband providers do better than urban counterparts

MAY 1, 2009 -- A new market report from telecom market research firm Pivot Media reveals rural service providers enjoyed slightly better sequential broadband growth in 2008 than urban providers.

MAY 1, 2009 -- A new market report from telecom market research firm Pivot Media reveals rural service providers enjoyed slightly better sequential broadband growth in 2008 than urban providers. While growth in broadband slowed dramatically in 2Q08 for both rural and urban providers, rural providers enjoyed roughly a two-to-one sequential rate of growth over their urban counterparts in the period.

"Even though broadband growth slowed overall in 2008, rural service providers consistently led urban service providers in broadband growth on a percentage basis," says Bernie Arnason, managing partner of Pivot Media.

Ongoing growth in broadband is increasingly important to the business of service providers operating in all regions, given ongoing access line loss and increased competition from alternative providers. Providers in rural markets have an opportunity to strengthen broadband capacity with access to $7.2 billion in funds available via the broadband stimulus portion of the American Recovery and Reinvestment Act of 2009. As the rate of access line loss accelerates, the business of all telecom service providers is dependent on broadband expansion through the deployment of next-generation technology that can be used to deliver cost-effective, fast, and reliable broadband services, Pivot Media asserts.

The full report is available for download.

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