Satellite Broadband Little Help To Rural Areas, Report Says

Getting broadband Internet service in rural areas isn't easy. With a small, spread-out customer base, big providers like Verizon and AT&T don't want to invest in the infrastructure required to serve them.

One solution is satellite Internet service, but the Rural Mobile and Broadband Alliance (RuMBA) isn't impressed. When measured against the prevailing definition of broadband, the group says satellite technology falls far short of conventional wired and wireless alternatives, mainly due to latency, bandwidth, price, performance and service shortcomings.

The Alliance, which represents over 250 rural broadband companies, has issued a report that highlights what it says are the limitations of satellite delivered Internet connections.

"Given the limitations of satellite Internet service detailed in this report, RuMBA cannot consider satellite a viable solution for rural communities who are increasingly cut off from mainstream America by the lack of access to affordable broadband service," said Luisa Handem, founder and Managing Director of RuMBA USA.

Broadband needs increasing

"There is every indication that America's reliance on broadband is only going to increase, especially in the areas of business, education, healthcare, government and entertainment, so it is vital that America's rural communities have all the facts before deciding on broadband access, and delivering those facts is what this paper is about," said Sascha Meinrath, Director of Open Technology Initiative, New America Foundation.

The report said latency, or delays, inherent in satellite Internet connections limits their use for standard broadband functions such as Voice over IP (VoIP) and Virtual Private Networks (VPNs).

The capacity limits of satellite Internet service rule out broadband functionality taken for granted by Americans living in communities served by cable, fiber optic, and DSL services. These functions include automatic software updates, online backup, streaming video, telecommuting, and website hosting.

Unpleasant surprise

Rural consumers sometimes sign up for broadband satellite services like HughesNet and are disappointed in the results.

“I recently got what I thought was going to be high speed Internet, as that is what i was told,” Dena, of Glendale, Ore., told ConsumerAffairs.com. “This service is a farce. It's very slow and I can't get anywhere on the phone with anyone willing to help me out.”

Many consumers also complain that the service can be impossible to cancel.  In fact, ConsumerAffairs.com has been trying to cancel a test account it opened years ago.  Telephone calls, certified mail and other attempts over nearly a year's time have so far produced no results and the company has never bothered to respond.

Despite the limitations, compared to other forms of broadband, the RuMBA report says satellite Internet service is less affordable than wired Internet service.

The report titled "Satellite Internet Connection for Rural Broadband: Is it a viable alternative to wired and wireless connectivity for America's rural communities?" is authored by Stephen Cobb, CISSP, a RuMBA member in rural New York State.

"Satellite Internet is amazing technology but a poor substitute for cable, fiber, or DSL," said Cobb.