Pennsylvania Broadband - law vs. economics

In Pennsylvania, Chapter 30 (as amended by Act 183 of 2004 -- PL 1398), "prohibits political subdivisions from providing broadband services to the public for compensation unless (1) such services existed prior to the legislation or (2) the ILEC has been offered and has declined the opportunity to deploy such services."  In essence, the incumbent provider has the right of first refusal. Today, in a state with approximately 12.8 million residents, there are just two Pennsylvania municipal broadband networks -- Hometown Utilicom's fiber network in Kutztown and Pitcairn Power/Community Cable in Pitcairn.  The combined population of both towns is less than 9 thousand.

The drop-off in the number of providers, speed performance, and access to cable and fiber technology is considerable when comparing urban vs. rural communities in the state.  Yet, I question whether the law is creating the divide.  Given the topography of the state and very low population density in many remote communities, it is the economics of broadband that makes the investment difficult to "justify" by both private and public entities.  To overcome this, more government assistance or incentives are necessary.  And, it couldn't hurt to change the law too!    

Comparison of Urban vs. Rural Counties in Pennsylvania

                No. of                                     Providers 

             Counties    Population    3 or more     4 or more     DL>50mbps     DL>100mbps   Cable/Fiber

Urban           19          9.36M            91%             57%              96%                    84%             97%/50%

Rural            48          3.48M            65%             13%              60%                    30%             80%/11%

Source: http://www.broadbandmap.gov/