The costs of providing telephone service to rural America are much higher than for more urban areas of the country. By definition, small rural subscribers are scattered throughout large geographic areas. In rural areas, the average number of subscribers per route mile runs about 6.3; the average number of subscribers per square mile is 4.4. These figures differ dramatically from those of the Bell operating companies (BOCs), which show an average density of 130 subscribers per route mile and more than 33 per square mile. Small rural local exchange carriers (LECs) also report a higher proportion of residential versus business subscribers; they face higher unit costs for usage-sensitive equipment because they cannot take advantage of economies of scale; and have higher loop-related costs because their local loops are longer and their service areas more remote.
Preserving Local Telephone Service in High-cost Areas
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Legislators and regulators must recognize that rural America is different.
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