Arkansas is the most competitive broadband state in the country, according to a new study by ID Insight and broadband consultant Craig Settles. The researchers found that while States like North Dakota, California, South Carolina and Nebraska were competitive, States like Rhode Island, Hawaii, Colorado and Maryland were not. Surprising nobody, the study found that a very large number of States see limited competition due to large incumbent duopolies -- though there are some other surprises worth noting.

According to the study authors, they found a strong correlation between income and home value and how much competition was to be found in each state. The study found that as income and home values increase from state to state, the level of competition decreases.

Settles and company also found that States with the largest percentage of Internet users and highest available speeds tend to be less competitive. For instance, a state like Delaware that consistently ranks as one of the fastest states in the country with an average speed of 7.6 Mbps (according to Akamai data) ranks as one of the least competitive states in the country.

Why? In two words: incumbent dominance. "In more prosperous states where there are many users, and more wealth, this tended to attract the largest providers," concludes the study. "As infrastructure was enabled and larger providers began to dominate markets, it became increasingly difficult for new entrants to establish themselves."

In Rhode Island, one carrier enjoys a 78% market share (though the report doesn't say so, it's Cox Communications), while the second biggest carrier in the State (Verizon) enjoys a 17% market share. In Arkansas the top ISP enjoys just a 30% market share, followed by five other ISPs that see at least a 10% market share each.

The study also found that the bulk of broadband stimulus funding did not go to states with the least competitive environments.