Closing the Digital Divide
Summary
The document analyzes the 'digital divide' in the U.S., where millions of people—particularly in rural and tribal areas—lack high-speed internet. It details various broadband technologies, the economic and social impacts of this gap, and the critical link between broadband and smart energy technologies. The brief also reviews federal funding mechanisms, the role of municipal and electric cooperative networks, and recent legislative efforts to expand access.
Key insights
- Broadband access disparities are most severe in rural and tribal communities. In 2019, 98.8% of urban areas had access to the 25/3 Mbps standard, compared to 82.7% of rural areas and 79.1% of tribal lands; this gap widens for faster services, where only 66.8% of rural areas and 63.7% of tribal lands had access to 100/10 Mbps internet.
- High deployment costs and low population density discourage private providers from expanding into rural areas. The FCC estimated in 2017 that while $40 billion could reach 12% of unserved locations, an additional $40 billion would be needed to reach the final 2%, with an additional $2 billion required annually for maintenance.
- Broadband is a prerequisite for many energy-efficiency and clean energy technologies. The U.S. could reduce energy use by 12–22% through internet-connected efficiency upgrades, and broadband enables smart grids, demand-side management (DSM) programs, and the optimization of electric vehicle (EV) charging.
- Precision agriculture depends on broadband to improve resource efficiency and profitability. Technologies such as sensor-based irrigation and yield monitors can save farmers $25 per acre on input costs, and universal broadband combined with digital farming could add $47 to $65 billion to the U.S. economy.
- Tribal nations face significant regulatory and financial barriers to broadband funding. Between 2010 and 2017, only 0.6% of FCC funding and 11% of USDA Rural Utilities Service (RUS) funding were allocated directly to tribes or tribally-owned providers.
- Non-private alternatives, such as municipal networks and electric cooperatives, provide critical access. Chattanooga, Tennessee's municipal network generated $1.3 billion in economic benefits (2011-2015) and created 5,200 jobs. Additionally, over 200 electric co-ops are deploying internet services, with 90 using fiber.
- Recent federal legislation and administration plans have significantly increased funding for broadband. The Biden-Harris Administration's infrastructure plan commits $100 billion to deploy high-speed internet to every American, while the Consolidated Appropriations Act of 2021 provided $7 billion for infrastructure and subsidies.
Cite the original document
- APA
- Snead, R., & Tolbert, J. (2021). Closing the Digital Divide. Environmental and Energy Study Institute. https://www.eesi.org/papers/view/issue-brief-closing-the-digital-divide-2021
- Chicago
- Snead, Rachel, and Jaxon Tolbert. Closing the Digital Divide. Environmental and Energy Study Institute, 2021. https://www.eesi.org/papers/view/issue-brief-closing-the-digital-divide-2021.
- Wikipedia
- {{cite report |last1=Snead |first1=Rachel |last2=Tolbert |first2=Jaxon |title=Closing the Digital Divide |publisher=Environmental and Energy Study Institute |date=12 October 2021 |url=https://www.eesi.org/papers/view/issue-brief-closing-the-digital-divide-2021 |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{snead2021closing, author = {Snead, Rachel and Tolbert, Jaxon}, title = {{Closing the Digital Divide}}, institution = {Environmental and Energy Study Institute}, year = {2021}, month = oct, url = {https://www.eesi.org/papers/view/issue-brief-closing-the-digital-divide-2021}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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