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Location, Location, Location - And broadband

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By PETER SVENSSON

The Associated Press

Published: November 10, 2008

Adam and Anita Paulk had a nice home outside Temple, Texas, with a big yard and a 10-minute commute to his job. But in Internet terms, the house was on Slow Lane. There was no high-speed Internet connection available.

So the Paulks pulled up stakes in 2005 and built a home in a new subdivision. It was a little further from his job, but at least it could get broadband.

"It was worth it, not to hear my husband complain about the connection anymore," Anita Paulk said.

In less than a decade, broadband has gone from a luxury to a must for many people, and for some of them, it's started to influence their real-estate decisions. Homes that have broadband are winning out over more remote ones that don't. Areas with better and faster broadband are becoming more desirable than ones with slower access.

Edward Redpath, a real estate broker in Hanover, N.H., said he has seen deals fall through once the buyer realizes a home doesn't get broadband. Across the Connecticut River in Norwich, Vt., only the center of the village has cable.

"We have a lot of people that don't go into the rural neighborhoods or consider the rural neighborhoods because they need the broadband," Redpath said. "Our lifestyle demands speed."

There are several intersecting trends at play. One is that our reliance on broadband is increasing. About 55 percent of Americans have broadband at home, according to a recent survey from the Pew Internet and American Life Project.

But the spread of broadband is slowing down. Getting the last 10 percent or so of homes connected is expensive, because they're in small communities or far from other homes.

To connect distant Vermont homes in Redpath's area, the local phone company, FairPoint Communications Inc., will use wireless links.

Wireless broadband coverage from cellular carriers is also expanding rapidly, but it still follows major roads and population centers. Even if you can get it, it's slower than wired broadband and there are monthly download limits.

As a last resort, satellite broadband is available nearly everywhere. But it has strict limits on how much data a subscriber can download.

Even in built-up areas, broadband has become a factor for some people when they decide where to live, at least if they work from home.

In luxury apartments, the standard is now to have at least two choices for broadband, according to Henry Pye, the director of resident services and technology at JPI Partners LLC, which owns buildings across the country. It's his job to make sure they get broadband, because, he said, you can't rent out apartments without broadband.

"It might as well be water," he said.

As for the Paulks, they're considering making another move. They're thinking about moving back to their old house, which they still own, because DSL became available there year ago.

"In my opinion," said Adam Paulk, "it was perfect in every way except it lacked broadband Internet."

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