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."

Comments

Lack of competition is the biggest reason

[smooth wombat]

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.