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."
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
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
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.
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- 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.
Full Tilt