Indiana in the Fast Lane of Broadband Growth

By: Michael Hanley - Senior Fellow, Digital Policy Institute at Ball State University

Since deregulation of the telecommunications industry by the state Legislature began in July 2006, high-speed broadband technology has taken the on-ramp in Indiana, according to a just-released report from the Digital Policy Institute at Ball State University.

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Titled The Economic Impact of Telecom Reform in Indiana, the report notes how the old system of offering cable, Internet and video services in locally-controlled franchise areas has given way to full throttle, open-wheel competition. And Hoosiers in all parts of the state are reaping the benefits of increased competition for broadband Internet and video services.

According to figures from the Federal Communications Commission, the federal agency that regulates radio, television, wire, satellite and cable, the number of high-speed broadband lines in Indiana grew to over 1.5 million at the end of 2006 (the latest reporting period). That was a 72 percent increase over 2005. What�s more significant is that two-thirds of that growth came during the last six months of 2006 � after telecom deregulation began. Projections now indicate that 2007 FCC figures will likely show Indiana in excess of two million high-speed lines, a 100 percent increase since deregulation.

The growth in high-speed lines is evident across all broadband technologies, but DSL, fiber optic and wireless Internet additions have accelerated the fastest.
Verizon expanded DSL to 69 rural communities serving 70,000 southern Indiana customers, AT&T upgraded its DSL capabilities in 33 rural communities across the state and Embarq has increased DSL broadband availability to 80 percent of its access lines, all since 2006.

Fiber optic networks may offer the most promising opportunities for consumers and businesses because of the inherent speed of delivery and capacity. Indiana boasts an impressive collection of firms providing fiber-based network services spanning most of the state. Many rural areas and small communities, unable in the past to get access to broadband Internet from a cable company, are now in the passing lane as new fiber optic lines spider-web the state. A recent example is the announcement of a new fiber optic network that will improve telemedicine capabilities by connecting 35 Critical Access Hospitals. Rural Indiana will benefit as the hospitals make fiber connections available to businesses in their communities.

Telephone companies, who have provided DSL Internet service through phone lines for nearly a decade, have also joined the fiber race, providing fiber optic TV video services to a growing number of areas.
For homes and businesses inaccessible to cable or fiber, wireless Internet services are now available in nearly every county in Indiana. According to FCC data, there were 26 wireless Internet service providers in Indiana at the end of 2006. Today, according to the Indiana Office of Utility Consumer Counselor, there are 68.

Indiana has pole position as a national leader in broadband technology growth. And telecommunications deregulation is fueling that growth.

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