Closing the Digital Divide: How Rural Broadband Benefits Communities and the Climate

The document examines the 'digital divide' in the U.S., where rural and tribal areas lack high-speed internet access due to high deployment costs, limited competition, and affordability issues. It highlights how broadband is a prerequisite for smart home devices, precision agriculture, and smart grids, which can reduce energy use by 12–22%. The brief details various deployment initiatives by municipalities, tribal governments, and electric cooperatives, while reviewing federal funding programs and recent legislation aimed at achieving universal broadband access.

• Significant disparities in broadband access exist between urban, rural, and tribal areas. In 2019, 98.8 percent of urban areas had access to the 25/3 Mbps standard, compared to 82.7 percent of rural areas and 79.1 percent of tribal lands; this gap widens for faster 100/10 Mbps service, where rural and tribal access drops to 66.8 percent and 63.7 percent respectively.
• High deployment costs and low population density disincentivize private providers from expanding into rural areas. The FCC estimated in 2017 that while $40 billion could reach 12 percent of unserved locations, an additional $40 billion would be needed to reach the final two percent, which would also require $2 billion in annual maintenance funding.
• Broadband is critical for energy efficiency and climate goals. The U.S. could reduce energy use by 12–22 percent by utilizing internet-connected efficiency upgrades. Furthermore, broadband enables precision agriculture, which can save farmers $25 per acre on input costs, and supports smart grids that reduce reliance on expensive peaker plants through demand-response programs.
• Tribal nations face severe regulatory and financial barriers to broadband funding. Between 2010 and 2017, only 0.6 percent of FCC funding and 11 percent of USDA Rural Utilities Service (RUS) funding were allocated directly to tribes or tribally-owned providers.
• Alternative deployment models, such as municipally-owned networks and electric cooperatives, provide viable paths to access. Chattanooga, Tennessee's municipal network created approximately 5,200 new jobs and $1.3 billion in economic benefits from 2011 to 2015. Additionally, over 200 electric co-ops are deploying internet services, with 90 using fiber.
• Recent federal efforts include the Biden-Harris Administration's infrastructure plan, which commits $100 billion to deploy high-speed internet to every American, and the Consolidated Appropriations Act of 2021, which provided $7 billion for infrastructure and subsidies for rural and tribal residents.

APA

Environmental and Energy Study Institute (2021). Closing the Digital Divide: How Rural Broadband Benefits Communities and the Climate. https://www.eesi.org/files/IssueBrief_Broadband_Benefits_2021.pdf

Chicago

Environmental and Energy Study Institute. Closing the Digital Divide: How Rural Broadband Benefits Communities and the Climate. 2021. https://www.eesi.org/files/IssueBrief_Broadband_Benefits_2021.pdf.

Wikipedia

{{cite report |author=Environmental and Energy Study Institute |title=Closing the Digital Divide: How Rural Broadband Benefits Communities and the Climate |date=October 2021 |url=https://www.eesi.org/files/IssueBrief_Broadband_Benefits_2021.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{environmentalandenergystudyinstitute2021closing, author = {{Environmental and Energy Study Institute}}, title = {{Closing the Digital Divide: How Rural Broadband Benefits Communities and the Climate}}, institution = {Environmental and Energy Study Institute}, year = {2021}, month = oct, url = {https://www.eesi.org/files/IssueBrief_Broadband_Benefits_2021.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }