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2008 International Broadband Rankings

itif writes to let us know about a major new report, released yesterday by the Information Technology and Innovation Foundation, showing how the US and other countries compare in terms of broadband access, speed, and price. The rankings (PDF) place the US 15th, this country having fallen every year since 2001. Here's the full report (PDF). According to the report's executive summary: "The US broadband policy environment is characterized on the one hand by market fundamentalists who see little or no role for government, and see government as the problem; and on the other by digital populists who favor a vastly expanded role for government (including government ownership of networks and strict and comprehensive regulation, including mandatory unbundling of incumbent networks and strict net neutrality regulations) and who see big corporations providing broadband as a problem. Given the policy advocacy and advice they are getting, it is no wonder that Congress and the Administration have done so little."

8 of 198 comments (clear)

  1. Lack of competition is the biggest reason by smooth+wombat · · Score: 5, Interesting
    Take a look at from MarketWatch about Comcast's earnings which were released yesterday. Note anything interesting about it? How about this part:


    He said that despite a tough economic climate, Comcast has been able to raise average revenue per-customer to $107 from $96 over the past 12 months.

    In this case, he is Chairman Brian Roberts. In other words, because there is almost none to zero competitors in most of the markets Comcast serves, they can get away with continually raising prices. That is why the U.S. continues to lag the world in broadband.

    Yes, there is the whole issue of running fiber and cable long distances in the U.S. compared to other countries like South Korea and Japan, but when you look at places such as New York, Philadelphia, Chicago, etc, you see the same pattern. Only one, or if you're lucky maybe two, providers from which to choose your broadband service.

    In my area, we have two choices; Comcast or Verizon. I can pay $100/month for Comcast's triple-play or I can pay $100/month for Verizon's triple-play. But I can't pay $33/month for just the broadband access or $33/month for just the cable subscription (I currently pay $53.31/month for the combined Basic and Standard cable service).

    This is the overwhelming reason broadband penetration in the U.S. continues, and will continue, to lag behind the rest of the world. The only solution is, unfortunately, government interference. Force the providers to offer their lines to others based on the logic that it was taxpayers who helped to subsidize the laying of all the cable and fiber through tax breaks and such. Either the companies open their lines and allow competition or they have to pay back all the subsidies they got when they originally promised to bring broadband to the U.S. Ten years ago.

    --
    We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
    1. Re:Lack of competition is the biggest reason by Daniel_Staal · · Score: 3, Insightful

      Why do some of us think the current situation will never change? Economics: It is economically unfeasible for anyone to run extra lines to every house, get their own link to the Internet backbone, and start up as a competitor to the current telcos. And that is what it would take for a new competitor to enter the market.

      On the occasional small-scale this isn't always true: A mid-sized town could wire themselves if they wanted to. Note that this is local government doing the job at that point.

      The US telecom/television/broadband market is in free-market monopoly status, with the barrier to entry enforced by both government regulation and the sheer size of the initial install. Ask any economics professor; once a market hits that status it takes either government intervention or a major technological change to break out of it.

      There is one chance of a major technological change: Wireless Internet access is starting to spread, and may reach equal speeds. But at this point you either have to have the government break the monopoly or hope the cellular companies do a better job soon.

      --
      'Sensible' is a curse word.
  2. getting slow by ageforce_ · · Score: 4, Informative

    Here's the ranking:
    Score on Specific Broadband Measures
    Household Price5
    penetration3 (Lowest monthly
    Ranking2 (Subscribers Speed4 price per Mbps)
    per (Average download (US $ purchasing Composite Score6
    Nation household) speed in Mbps) power parity)
    1 South Korea 0.93 49.5 0.37 15.92
    2 Japan 0.55 63.6 0.13 15.05
    3 Finland 0.61 21.7 0.42 12.20
    4 Netherlands 0.77 8.8 1.90 11.77
    5 France 0.54 17.6 0.33 11.59
    6 Sweden 0.54 16.8 0.35 11.53
    7 Denmark 0.76 4.6 1.65 11.44
    8 Iceland 0.83 6.1 4.93 11.20
    9 Norway 0.68 7.7 2.74 11.05
    10 Switzerland 0.74 2.3 3.40 10.78
    11 Canada 0.65 7.6 3.81 10.61
    12 Australia

  3. Re:How many countries... by Narpak · · Score: 3, Informative

    Norway has directly invested the money made from our oil resources into our infrastructure. And before the oil platforms made a profit we received loans from a lot of other countries; with security in the oil. It is far from perfect, but the profit from the oil is considered to belong to the people and should therefor be used to build, and provide services, that benefits all. In practical terms this meant that in the sixties, seventies and eighties we build schools, medical facilities, phone lines, roads and started providing free (well almost) medical care for all citizens and public scholarship and loan to all that gained entry to a university or academy (and gaining access have been uncriticized as being too easy).

    Newest policy of the state is that at the end of 2007 98% of the population should have access to broadband, and hopefully 100% at the end of 2008 (we have some spots with low population that is kinda hard to reach; but we are getting there). Of course access don't mean that it is free, you still have to pay for it, but at least if you wanted a connection you could have one.

    I am not trying to make any type of point with this really. Just make a bit of an explanation before I replied; Norway subsidized their Telecompany to create the infrastructure; though at the time the Telco was operated by the state. Today it is partly privatized with the state still owning a minor controlling part (I think the term is).

  4. Re:I hate to side with the obvious... by Richard+W.M.+Jones · · Score: 4, Informative

    The situation in the UK is peculiar and accidental. Back in 1982 the government sold off the state-owned telco, including all the lines in the ground (now worth a vast fortune) for not nearly what it was worth. But you could argue that at the time very few people really understood that the plain ol' telephones would turn into such an important service for the economy.

    Since then it's been mismanagement all the way. A series of toothless regulators did nothing when BT basically refused to get into broadband (1995-2000), did nothing when BT refused to install fibre to the consumer (1992-today), actually backed down when BT refused to implement LLU deadlines required by law (2000-2003), and are still doing nothing about access speeds, the backhaul network, price of POTS, phony "unlimited DSL" adverts, premium line rip-offs, fibre again, etc. etc.

    BT realised belatedly that they could make a bit of cash from one technology, ADSL, which didn't require them to dig anything up and only needed them to install a few racks of equipment at the exchange. The only thing the regulator did was force them to sell wholesale ADSL to themselves (BT) at the same price as to other providers. I was involved in the early days and the other providers still had to fight to access BT's order provisioning systems (which involved a lot of rekeying orders multiple times into slow BT-owned mainframes).

    So now most peole in Britain have, almost accidentally, access to speeds around 2-20 Mbps (mostly 2-8) for still quite a lot of money.

    But, here's the thing. Where is the investment in speeds over ADSL 2+? BT have spent a few billion implementing what they call their 21st Century Network, which amounts to replacing a bunch of ATM and Frame Relay switches with IP routers, which will allow BT to reduce their costs. But where's the fibre into homes and offices? Where's 100 Mbps+ going to come from? What about the 3/4G mobile access that isn't charged at ££/megabyte?

    None of this bodes well for the future of Internet access or indeed the economy as a whole.

    Rich.

  5. Re:Government provided broadband? by drinkypoo · · Score: 3, Interesting

    Yeah, they're "fixing our government"? Is that what you call killing 3000 innocent civilians in one day?

    Funny, we kill people "accidentally" left and right. Are we "fixing the government" of Iraq?

    The USA is the world's largest consumer of Cocaine, but we are continually fucking with cocaine-producing nations. We are the largest consumer of Afghani heroin, but we paid the Taliban to combat Opium production, no joke. The Bush family has been doing business with the Bin Laden family for many years (and long before that, they did business with Hitler) Note that I have included links only from reputable publications. Note also that if you search for documents related to these particular scandals, you have a very hard time finding documents in the US news. That's because 10 megacorporations control 95% of the media in the USA, and they're all owned or controlled by rich people getting richer on the status quo.

    One major way people do take responsibility for fixing theirr governments is to limit the power of a government to do your people harm. That's exactly what DrLang21 was talking about doing. Keeping the government's hands out of as many things as possible and making them accountable to the people is a prerequisite to "fixing your government".

    We're well past that point today. We've currently got a president who the people never elected. He wouldn't have even had the electoral college in the last election (he already didn't have the majority vote) if all votes had been counted. And the electoral college is unnecessary and inherently undemocratic. Only four times has it overridden the will of the American people, and in at the very least the last occasion it was both unwarranted and, simply, the wrong decision. We ended up with an AWOL DUI puppet instead of a genuine war hero without whom we might not have the internet today. The massive attempts to make Gore look like a whiny bitch worked and distracted all the sheeple away from the reality of what was occurring.

    I'm not claiming that the Republicans are the problem. The populists are the problem, and unfortunately, that's most of our representatives - and most of our population.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  6. Re:Yeah.... AND?? by eebra82 · · Score: 4, Informative

    What about just the SIZE of the US? When some new fiber cable comes out that can dramatically increase the speed, or some other sort of technology, it takes a HECK of a lot longer to deploy in the US. If Japan, South Korea, Norway, Sweden, etc. did not catch up to us AND then start passing us, I would think there would be something wrong with them. Yes, what about the size of the US? Maybe you should take the following into account:

    - Most of the countries listed above the United States are European. Most states of the United States would still be dominated even if they were compared directly as smaller pieces of the US to the smaller pieces of Europe.

    - The size of the country doesn't matter as much as you may think. The US is heavily urbanized which means that the network isn't as much webbed as you may think.

    - The price per Mbps in the US is $2,83. How do you justify your claims when you look at Sweden, which is down at a low $0,35 per Mbps, yet is the size of Florida and only 9 million citizens? Florida has more than twice as many citizens and not even close to Sweden.

    I think your nationalistic thoughts got in the way of all reasoning here.
  7. Re:How many countries... by 99BottlesOfBeerInMyF · · Score: 3, Insightful

    How many countries subsidize telcos with tax dollars to create their infrastructure? I'm curious. I know we are a spread-out nation here in the US, but there is no reason why cities with people living on top of each other (LA, Boston, New York, etc) can't easily have the infrastructure that the rest of the world has.

    We've paid more per person in tax subsidies than many other nations. Take Sweden, for example. Their population density and median population density are both about the same as the US. Their subsidies, however, had legal teeth that required the telcos to actually provide something in exchange. They also had a huge embezzling scandal where much of the money was stolen. They still have significantly faster internet at significantly lower prices than the US, in exchange for a smaller per person tax.

    The high speed internet problem comes down to pretty much the same thing as many other problems in the US. Politicians are willing to give private companies billions is subsidies, in exchange for hundreds of thousands being returned as campaign contributions. So long as this legalized bribery is allowed, companies will simply pay off politicos in exchange for subsidies or for not having to fulfill the agreements they made when the subsidies were given.