Testing the validity of NECA’s Middle Mile cost simulation model using survey data

Abstract Providing affordable high-speed Internet service in rural areas is a challenge because of low population density and long distances from customers to major Internet Backbone Ports (IBPs), which are entry points onto the World Wide Web. NECA’s Middle Mile Study, issued November 2001, focused on the cost of transporting traffic from an Internet Service Providers operating in a rural telephone company’s serving area to the nearest IBP. In general, the study concluded that high-speed Internet access loses money in most of the rural telephone company serving areas. Because the Middle Mile study relied on simulated data, the National Exchange Carrier Association (NECA) surveyed 200 serving wire centers (SWC) of rural telephone companies to test the reliability of the simulation model and its output. The survey results reported in this article confirm that the Middle Mile study was reasonable in measuring distances and conservative in estimating transport costs.