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Why Is Broadband More Expensive In the US Than Elsewhere?

mrspoonsi writes "The BBC reports "Home broadband in the US costs far more than elsewhere. At high speeds, it costs nearly three times as much as in the UK and France, and more than five times as much as in South Korea. Why?...'Americans pay so much because they don't have a choice,' says Susan Crawford, a former special assistant to President Barack Obama on science, technology and innovation policy. We deregulated high-speed internet access 10 years ago and since then we've seen enormous consolidation and monopolies, so left to their own devices, companies that supply internet access will charge high prices, because they face neither competition nor oversight."

569 comments

  1. Telco oligopoly by jhill000 · · Score: 5, Insightful

    The telco lobby writes the legislation.

    1. Re:Telco oligopoly by Creepy · · Score: 4, Informative

      Gizmodo article on it from earlier this year.

    2. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      How come the invisible hand of the market doesn't spank the telcos for their impudence?

    3. Re:Telco oligopoly by girlintraining · · Score: 5, Insightful

      The telco lobby writes the legislation.

      Nope, but you're half-way there. The problem with the United States is that, well... States. In most other countries, if you want to run cable, utilities, etc., you go to the federal government, get your permit, do whatever environmental impact studies need done, and be on your merry. But here, you have to deal with municipalities. Thousands of them. And that opens the door for exclusive contracts; Which are typically for 10, 20, even 50 years. And it goes to one company. One. For an entire town. For 50 years. They didn't write any legislation, they just took advantage of how our government was organized. It's a glitch courtesy of our Constitution.

      The other half of the equation though, and one most people forget, is that the United States is big. Like, really big. Like, it could fit all those other countries mentioned inside it and still have space left over for dessert. Low population density is what fucks us, even more than the above-mentioned which, while bad, can be fixed by law. You cannot shrink a landmass down to a more maintainable size.

      Roads, water works, electricity, cabling... all of it, we need more. A lot more than say, Japan would. In Japan, people are packed in like sardines. There are parts of this country where you can watch your dog run away for three days it's so flat and barren. But it still needs cabling run across it.

      We are, in a very literal sense, a victim of our own size. No fat american jokes though please.

      --
      #fuckbeta #iamslashdot #dicemustdie
    4. Re:Telco oligopoly by LurkerXXX · · Score: 5, Insightful

      We like our internet service like we like our medical service.

      Way overpriced do to large companies owning congress.

    5. Re:Telco oligopoly by 0100010001010011 · · Score: 5, Insightful

      Low population density is what fucks us, even more than the above-mentioned which, while bad, can be fixed by law. You cannot shrink a landmass down to a more maintainable size.

      This is a horse shit excuse and I'm tired of hearing it. Why doesn't the Northeast megalopolis have cheap internet? It has a population density of 360 people/sq km

      How about all of the 'mega regions' of the US? http://en.wikipedia.org/wiki/Megaregions_of_the_United_States

      Why don't the east and west coasts have high speed rail, good cheap internet, etc.

      South Korea is on a peninsula with a country stuck in the 70s to the north. Yet they have great internet. Their population density isn't that much greater than the North East megalopolis and much closer than say Sweden, Norway, Finland. All of which also have great internet. Denmark density is a 1/3 of the north east and I was still getting 1 Gbps in my hotel.

    6. Re:Telco oligopoly by akinliat · · Score: 5, Insightful

      Except you can't blame municipalities for the cost when they're pretty much the only part of government that's been trying to provide low-cost access. Many municipal governments have tried to set up as ISPs for their citizens, and the costs are typically far lower than what you see from the cable/DSL duopoly. They've been lobbied and sued and otherwise lawyered to death for the effort, but at least they're trying.

      And while you can't fix size, you don't really need to. Most of the long-distance fiber backbones have already been run, and most of the US population lives in urban or suburban areas. The bulk of the land area of the US is rural, and they may not get cheap broadband anytime soon (it literally took an act of Congress to get them electricity and telephone after all), but they're a pretty small minority.

    7. Re:Telco oligopoly by phantomfive · · Score: 3, Informative

      Why doesn't the Northeast megalopolis have cheap internet? It has a population density of 360 people/sq km

      Well there's your answer. Seoul has a population density of 17,288 people per sq km.

      --
      "First they came for the slanderers and i said nothing."
    8. Re:Telco oligopoly by Penguinisto · · Score: 5, Insightful

      How come the invisible hand of the market doesn't spank the telcos for their impudence?

      Three words: Right Of Way.

      Most cities/towns don't want to have their streets clogged up with wiring, so they limit what they lease out for rights to put in wire/cable/fiber, or worse, auction it off. Thus the number of competitors is pretty limited. This in turn creates a nasty little duopoly/triopoly in most areas, with one provider on cable (Comcast/Time-Warner/Charter), one on DSL (CenturyLink/Frontier), and maybe one for fiber if your locale is lucky enough to have it. Some areas also have wireless broadband as well, but nowadays that's as rare as fiber.

      Either way, the result is a "stable" market of regular price hikes where the consumer has no incentive to switch... I've only seen one exception, when Charter moved into the rural Oregon coastal area where I lived - I saw my broadband cost go down from CenturyStink's $70/mo for 3mb/sec, to Charter's $30/mo for 30mb/sec (which I suspect will remain that way until Charter takes over enough of the region.)

      Given the lower population density overall for the US (but not average, mind), the initial cost for competition coupled with reluctance from town/city/county officials to grant right-of-way (or worse, watching them action off or sell right-of-way for astoundingly high prices), means you the consumer are, well, screwed.

      Throw into the mix is the intensive and money-rich lobbying efforts by existing telcos to prohibit any worthwhile competition or muni-owned infrastructure, and you have a shit situation overall, no?.

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
    9. Re:Telco oligopoly by Penguinisto · · Score: 1

      He mentioned that too - munis get in the way there. See also the whole right-of-way nastiness.

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
    10. Re:Telco oligopoly by epyT-R · · Score: 5, Insightful

      Because the state interferes by granting monopolies over land rights for cabling and radio spectrum.

    11. Re:Telco oligopoly by keith_nt4 · · Score: 1

      I would like to agree with this. I live a relatively small town about 40 miles outside of Sacramento, California. Very low population density. For some reason cable internet runs around 35Mbps consistently and we have a ton of cable channels all in HD (internet only comes to around $50/month.). I have no idea how it's possible to maintain all that infrastructure given the miles of cabling to subscriber ratio. I mean granted the alternative is DSL that's less that 5Mpbs...or dial-up...but it still seems some how ridiculous this town has what it has given the population (and for TV there's always satellite). I would also mention the internet does not ever go down and when it does it's usually back up pretty quickly (we have the occasional big snow or wind storm knocking out lines). I believe there are places in silicon valley with few options.

      I'm not trying to defend the local cable monopoly I'm just saying it seems affordable and in some places it is in fact delivered reliably/affordably/at acceptable speeds.

      And may I add in my experience there seems to be absolutely zero demand for gigabit speeds. I'm a power user and I barely utilze the whole 35Mpbs. I think until there's a demand for even 10Mbps+ speeds the speed is most likely not going to change (and if people are moving to 3G/4G networks on tablets/phones anyway there's the demand for fiber-in-the-ground will be that much lower. Presumably.).

      As a side note their are about 5 different ways to get broadband in Sacramento, at least of them being fiber.

      --
      "UNIX is very simple, it just needs a genius to understand its simplicity." -Dennis Ritchie
    12. Re:Telco oligopoly by fatphil · · Score: 2

      > Low population density is what fucks us

      Yet the US has a population density higher than that of Sweden and Finland. And yet those two countries have well-connected populations, many effectively having broadband access for free. And not coincidentally, those two are well connected together too, as they are also to their southern neighbours. It's almost as if forward planning and cooperation can achieve objectives benefitting all involved parties. Ouch, it's that nasty European "socialism" rearing its ugly head again. As you indicate, the US system just isn't set up for cooperation like that.

      One of the reasons why theoretically "advanced" (world-leading in some respects) countries such as the USA are at an artificial disadvantage is that as each new generation of communication technology rolls out, you need to migrate people off the older technologies, which takes time and money, and which due to inertia keeps your national averages lower than you might expect. (I know people who are happy with about 512Kb/s in the empty midwest, and no plans to upgrade. I think I still know one on dial-up.) If you look at the current "statistics" you'll see fairytails about, for example, Romania having fast internet - that's because they were a technological black hole that had almost nothing to replace. All the economies of rolling out known technologies and known topologies were available to them. Finns and Swedes (and every other EU country that pays their bills) effectively paid for that roll out.

      --
      Also FatPhil on SoylentNews, id 863
    13. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      And New York City has a population density of 10,640 per sq km. Somewhat different, but not as much as you're implying. The NE megalopolis is not comparable to Seoul.

      Apple....see Orange.

    14. Re:Telco oligopoly by girlintraining · · Score: 2, Interesting

      This is a horse shit excuse and I'm tired of hearing it.

      "A variety of market and technical factors, government efforts, and access to resources at the local level have influenced the deployment of broadband infrastructure. Areas with low population density and rugged terrain, as well as areas removed from cities, are generally more costly to serve than are densely populated areas and areas with flat terrain. As such, deployment tends to be less developed in more rural parts of the country. Technical factors can also affect deployment. GAO also found that a variety of federal and state efforts, and access to resources at the local level, have influenced the deployment of broadband infrastructure."
      Source: GAO-06-426, A Report to Congressional Committees. May, 2006. US General Accounting Office.

      Attempts have been made; in 2007 the Community Broadband Act was proposed. It died in committee. It would have federalized broadband deployment and removed municipalities' and states' ability to restrict or impede broadband deployment. Did you know that in several states, broadband is banned by law?

      No. You probably didn't, because as you put it... it's a "horse shit excuse". I must admit, I'm incredulous too that a government as big as ours could be incompetent, or that the Constitutional separation of federal and state might occasionally create entry barriers for prospective companies looking to lay down infrastructure. Yes. Totally shit. Forget I mentioned that; and be doubly sure to forget that large "megalopolis" like New York continually try to pull stupid legislative shit like banning fountain sodas over a certain size, or those stickers on everything claiming the product only causes cancer if you live in California.

      --
      #fuckbeta #iamslashdot #dicemustdie
    15. Re:Telco oligopoly by mcrbids · · Score: 5, Informative

      Hrm... Seoul is a city, not a region. New York City's population density is about 10,630/km sq and Manhatten is about 25,846/km sq.

      Your argument needs more argument, I think.

      --
      I have no problem with your religion until you decide it's reason to deprive others of the truth.
    16. Re:Telco oligopoly by PRMan · · Score: 0

      Because in New York, you have to pay union workers that have to pay off the mafia.

      --
      Peter predicted that you would "deliberately forget" creation 2000 years ago...
    17. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      There are basically two forces at work here.

      A lot of the companies that serve those huge metropolitan areas also serve the outlying suburbs and the wastes beyond. By charging more in both places, the people who live where it was efficient to run the infrastructure are subsidizing those who live where it was more difficult.

      People are used to paying fixed prices for things. Should a TV really cost the same price in California, where it came off the ship from China and had to be driven maybe 50 miles to where it was sold, vs. in the middle of Missouri where it had to travel a thousand miles? Nope. But it does. So if the people in Topeka, Kansas are willing to pay $60/mo for high speed internet, why not charge the same for the people in NY? It's obvious that that is a price people are willing to pay, so you'd be stupid to not charge it (at least for as long as you can get away with it).

    18. Re:Telco oligopoly by Tablizer · · Score: 1

      Low population density is what [bleeps] us

      I live in a suburb of a large US city, and we have [bleep] choice here.

    19. Re:Telco oligopoly by Archangel+Michael · · Score: 5, Interesting

      Girlintraining almost has it right. While we are not socialistic and have a government being a good big brother to us, we are pseudo-Capitalistic with the worst part of both Socialism and Capitalism in force. If we had a REALLY free economy, the problem would be solved quite quickly. The problem is, we don't have a friggin clue how to solve the problem infrastructure.

      My solution would be to build out via a BOND measure, Fiber to the house/apt/business. Back haul it to a central facility or neighborhood closet, I don't care. Pay a guy to manage connecting Address A to Service Provider B in the closet, where Service Provider B is the company that Address A contracts service through. Allow for a certain number of Service Providers, via auction, to be able to install their CO-LO equipment in said facility, use that auction pricing to pay for the person in the closet connecting Addresses to Service Providers (or other means).

      The Municipality would build out the FIOS infrastructure plant, not giving "franchise" rights to any single player. This would provide EACH Address the opportunity to buy whatever services they actually need from whomever they actually like. Bad Players would leave the marketplace, new players come in with compelling products that shake up the marketplace.

      The Infrastructure would have to have a service fee for maintenance, based on usage of the FIOS plant. More expensive plans (tax on Service Provider plans) would pay a higher "service fee" and no fee would be charged for people who opt out.

      If this were setup this way, the build out would be contracted, to bring FIOS plant to each Address/dwelling/Apt/Business, a bond measure would be the easiest means to achieving this build out.

      This would give Comcast, Verizon, AT&T, and any other company access to every Address in the municipality via what is essentially "dark fiber". And the is no known downside, except for those companies.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    20. Re:Telco oligopoly by pspahn · · Score: 1

      If you're speaking of the areas around Citrus Heights, etc, well there is your answer. The dollars there allow these things.

      The same can be said for various section of the Rocky Mountains in Colorado. In the locations where there is enough money, there is fantastic internet. In the locations where there isn't, the internet is terrible.

      Funny how that works, huh?

      --
      Someone flopped a steamer in the gene pool.
    21. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Did you read the rest of the post? Where he says that getting access goes to one company and that he was agreeing with deregulation and no competition?

    22. Re:Telco oligopoly by reve_etrange · · Score: 5, Insightful

      No one questions that its more costly to supply infrastructure to rural areas. The question is why that excuse is at all relevant to American cities. My connectivity, in an urban area in a technological center of the country, is piss poor and extraordinarily expensive because Comcast has an effective monopoly.

      In addition to their price setting ability, Comcast has no incentive to systematically increase network capacity. Instead, they use incremental upgrades made in the course of necessary maintenance to provide new introductory offers while locking in existing customers at lower and more expensive tiers. I tried to find out recently if I could upgrade to a higher service tier - and the answer was no. Even though I'm on the lowest tier (15 Mbps @ $50/mo) and am an existing customer, they will only "offer" me new subscriber packages for which I am not eligible.

      --
      .: Semper Absurda :.
    23. Re:Telco oligopoly by couchslug · · Score: 3, Informative

      "Why don't the east and west coasts have high speed rail,"

      Old established rail that can't be taken out of service, and NIMBY.
      The Northeast in particular would benefit from HSR, and note that rail made the 'burbs practical LONG before automobiles were available, but there isn't room for a buildout.

      --
      "This post is an artistic work of fiction and falsehood. Only a fool would take anything posted here as fact."
    24. Re:Telco oligopoly by Anonymous Coward · · Score: 2, Insightful

      When it is packed, they complain about having to dug up the road, concrete and existing buildings.
      When it is too rural, the complain that the density just isn't there to offer service.
      They only want to lay down fibre when it is new development and rich areas (i.e suburbs) where people can afford their itoys.

    25. Re:Telco oligopoly by reve_etrange · · Score: 1

      I live in an urban area in the East Bay. Comcast's cheapest tier is $50/mo. for 15 Mbps - at least twice the price you pay per megabit. Reliability is OK, but the latency is not great (depends on connection type, actually) and their DNS sucks.

      It's just more evidence that there is no normal economic logic behind their pricing decisions. Their actual costs are so low that they can profitably provide rural areas 35 Mbps at $50/mo. when it suits their strategy. I am sure it is not cost which is keeping them from developing the infrastructure in my area - there is just no incentive for them to do it.

      --
      .: Semper Absurda :.
    26. Re:Telco oligopoly by Cimexus · · Score: 1

      I'm not sure about that. I don't think it's States, nor the size of the US that is responsible. For instance, Australia has both States, and is the same size as the US (geographically speaking, not population-wise), and does not suffer the same issues as the US does. Not to say the broadband situation is ideal in Australia - but access IS cheaper and almost everyone has dozens of providers to choose from, except in the smallest of towns.

      The key difference is that the law requires the monopoly infrastructure owners (the company that owns the physical lines to people's houses, which in most cases is Telstra) to wholesale access to that infrastructure to other companies. This is in fact mentioned in TFA (in the context of the UK, not Australia, but same principle):

      "Rick Karr, who made a PBS documentary in which he travelled to the UK to find out why prices were lower, says that the critical moment came when the British regulator Ofcom forced British Telecom to allow other companies to use its copper telephone wires going to and from homes."

      In the US, if you want to compete, you have to roll out your own infrastructure. That is prohibitively expensive for anyone except a couple of large companies. To me, that is by far the most significant factor in explaining the differences. There are other factors, sure, but that right there is #1.

    27. Re:Telco oligopoly by 0100010001010011 · · Score: 2

      Seoul.

      What about Israel, Bulgaria, Switzerland, Belgium, Romania and Latvia. All of which are in the top 10 too.

    28. Re:Telco oligopoly by crossmr · · Score: 1

      Population density is only part of it, raw population numbers are also a factor (volume). 25 million in the metro area, and that 17k is an average there are areas much higher than that in Seoul.

    29. Re:Telco oligopoly by girlintraining · · Score: 1

      No one questions that its more costly to supply infrastructure to rural areas. The question is why that excuse is at all relevant to American cities.

      Because cities are interconnected in terms of telecommunications, electricity, and roadways. Which means the distance between those cities, and the number of cities served, matters a great deal.

      I tried to find out recently if I could upgrade to a higher service tier - and the answer was no. Even though I'm on the lowest tier (15 Mbps @ $50/mo) and am an existing customer, they will only "offer" me new subscriber packages for which I am not eligible.

      While I sympathize with your problem, as has been discussed elsewhere, the problem is municipalities, who control the right of way for laying new infrastructure. As a result of having to deal with hundreds of thousands of municipalities all over the country, the cost of entry goes up enormously. As well, municipalities typically sign exclusive contracts for periods of 10 to 50 years for right of way for electrical and signal cabling. It is not Comcast's fault, but rather a failure of our Constitution and, by extension, our federal government to centralize right of way permits and promote competition by eliminating exclusive contracts, as has been done in most other western countries.

      That said; Turn off your service and ask a friend to pay for a couple months on their credit card and claim they live there. Obviously, pay your friend. They typically have low-cost deals for the first several months of service. When the term expires, have your friend cancel service, and request that the service be re-instated under your name as the previous tenants "didn't work out." Rinse, wash, repeat.

      --
      #fuckbeta #iamslashdot #dicemustdie
    30. Re:Telco oligopoly by countach74 · · Score: 1

      Excellent economic analysis.

    31. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Low Population Density???

      Try Australia, with three people per square kilometre, the USA has 35 people per square kilometre.

    32. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      prices in NYC are substantially higher than in the "surrounding wastes".

    33. Re:Telco oligopoly by girlintraining · · Score: 5, Insightful

      Girlintraining almost has it right. While we are not socialistic and have a government being a good big brother to us, we are pseudo-Capitalistic with the worst part of both Socialism and Capitalism in force. If we had a REALLY free economy, the problem would be solved quite quickly. The problem is, we don't have a friggin clue how to solve the problem infrastructure.

      Infrastructure that depends on right of way to land creates a natural monopoly. I don't feel going laisse faire would accomplish anything. If you remove government control and hand over access to private citizens, you will amplify the problem a thousand-fold; Everyone between point A and point B will want a cut, and not everyone will be willing to offer access at a reasonable rate. This is why you have easements and eminent domain. Our current system places right of way in the hands of municipalities, which often offer exclusive contracts and can also be bullied or bought off in ways that the state or federal authorities cannot.

      You cannot have a 'free' economy when you're dealing with a natural monopoly. Even Adam Smith in Wealth of Nations said as much about land ownership. It must be owned or controlled by the government, or you get situations exactly like this; Profits increase because the fixed costs remain constant but demand is ever-increasing. Telecommunications is the classic case of a natural monopoly. You would be hard pressed to find a better example!

      --
      #fuckbeta #iamslashdot #dicemustdie
    34. Re:Telco oligopoly by Belial6 · · Score: 4, Interesting

      I would do similar, but I wouldn't trust the municipality to touch the fiber. Municipalities have little to no experience with Fiber. What they do have huge amounts of experience with is piping. Most municipalities run at least 3 different sets of pipes. 2 to every home, and 1 to most neighborhoods. Water, sewage, and storm drains. If municipalities would run a new set of pipes that were the size of sewer lines, they would have the infrastructure to lease space to dozens of competing businesses. New players could pull whatever cable they see fit at a price that dwarfs what it costs now, and if your cable is having problems, you can push the service provider to replace it, or go to a competitor. It would also allow businesses to run private connections between offices within the same city.

    35. Re:Telco oligopoly by phantomfive · · Score: 1

      What about Israel, Bulgaria, Switzerland, Belgium, Romania and Latvia.

      I don't know, why not answer your own question instead of filling forums with useless comments? What exactly is the population density of those countries, specifically, what is the population density in areas that have high-speed internet?

      --
      "First they came for the slanderers and i said nothing."
    36. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Gov regulations insist on treating everyone equally so dense population centers are essentially subsidizing rural folks.

    37. Re:Telco oligopoly by godrik · · Score: 1

      I feel like competition is the problem and maybe you point out the right argument. Where I live (Charlotte, NC) there is basically no competition for fast internet (over 5Mbps), there is one cable operator (time warner), one phone operator (ATT); that's it. When I lived in France, pretty much all operators were present in all cities. But in france, the local loop is not tied to an operator. But in the US, the local loop is tied to an operator, so the operator is king and there is less competition.

      I dont really buy the population density argument for justifying the cost because most of the cost is in the local loop and not in the main infrastructure.

    38. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      *due?

    39. Re:Telco oligopoly by phantomfive · · Score: 1

      That's actually a really interesting idea. I could see it working.

      --
      "First they came for the slanderers and i said nothing."
    40. Re:Telco oligopoly by elashish14 · · Score: 1

      The problem with the United States is that, well... States. In most other countries, if you want to run cable, utilities, etc., you go to the federal government, get your permit, do whatever environmental impact studies need done, and be on your merry. But here, you have to deal with municipalities. Thousands of them. And that opens the door for exclusive contracts; Which are typically for 10, 20, even 50 years. And it goes to one company. One. For an entire town. For 50 years. They didn't write any legislation, they just took advantage of how our government was organized. It's a glitch courtesy of our Constitution.

      Excuses. Just fuck the bureaucracy already and get the job done. If America wants to stay relevant, that is.

      We're talking about the country that once prided itself on getting shit done. What happened to those folks? Did principles die away with them?

      --
      I have left slashdot and am now on Soylent News. FUCK YOU DICE.
    41. Re:Telco oligopoly by turbidostato · · Score: 1

      "Funny how that works, huh?"

      Yes, really funny.

      Are you implying that companies want to operate at a loss simply because "the dollars there allow these things"?

    42. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Why don't the east and west coasts have high speed rail, good cheap internet, etc.

      While I agree that America's internet infrastructure needs some socialization, this is a different problem entirely. The coasts don't have high speed rail because Americans like to drive places.

    43. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Whew...sorry but my first impression is that you've got to be working for ATT, or Verizon, or Comcast, or Time-Warner. True, there is a huge hodge podge of local jurisdictions that regulate plant for telcos and cable companies. But all this was not in spite of the telcos and cable outfits. It was actually because of them. ATT began buying out local telcos back after the War (WWII). General Telephone (now Verizon) soon followed. In the 60's there were hundreds of local Cable TV companies starting up. By 1980 most had been brought up by Televue, Cox,and a couple of others. Televue morphed into ComCast, Cox and most of the others were swallowed up by Turner Com, (later called Time-Warner) and ComCast. Now there are four major players in the broadband supply business. Plus a few minor players such as T-Mobile and Virgin America supplying mobile broadband. The 4 major players have for the most part fought to keep all systems separate from State and Federal control. Unless, in instances where the local governments have tried to hold permits up for better service. Then, and only then have the telcos gone to the states for relief.

      If you don't believe there is collusion between the major players, just check out the amateur players at big golf tourneys, like the ATT Pro-Am. Or hang out around the first tee at the big resort golf courses in Kohola on the Island of Hawaii this winter.

    44. Re:Telco oligopoly by todrules · · Score: 1

      It's not population density. It's urban sprawl. The US cities just keep expanding and expanding. The cable companies are constantly building out new infrastructure, and this costs a lot of money. The reason that the high density areas are still being charged a lot is because they're basically subsidizing these new neighborhoods.

    45. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Did you know that in several states, broadband is banned by law?

      Name them, please. Serious request. I really want to know.

    46. Re:Telco oligopoly by saleenS281 · · Score: 2

      So why bother with right of way? The city should run a strand of fiber to every home, and home-run them to a central location. Allow independent ISP's to plug-in there and provide service to the customer. There's no reason the ISPs should ever own last mile. It's a waste of time and resources, and it stifles competition.

    47. Re:Telco oligopoly by Ungrounded+Lightning · · Score: 2

      Also: Govenment officials are so clueless they think it's a "competitive market" when there are TWO providers.

      This has been built into communication regulations (and the thinking of regulators) at least since the original analog cellphone spectrum allocations - where they broke the available spectrum in half and gave half to the incumbent telco in the area and half to ONE "competitor".

      This is the theory they used when the supreme court and FCC decided that the market was "competitive" when there was a telco and a cable company in the area, and dropped most of the requirements to unbundle access to legacy infrastructure. Thus the "duopoly" of one telco-based ISP, one cable-based ISP forming the total landline Internet access market.

      Unfortunately, market forces, even without anticompetitive collusion, drive two competitors to match and raise prices and roughly split the market. Three competitors MAY also split the market and keep prices high, though it's less stable.

      It's when you have four or more competitors that the little guy(s) can be relied on to break the balance and go for market share, starting the competitive cycle that drives the price down toward cost plus adequate profit, and service levels up.

      --
      Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    48. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      > Your argument needs more argument, I think.

      Then you don't understand the economics of scale. Really? I have a population density of 2/sq ft standing next to my brother. Single disparate and separated municipalities don't impact the economics in any way. They are niche markets.

    49. Re:Telco oligopoly by Ungrounded+Lightning · · Score: 1

      Well there's your answer. Seoul has a population density of 17,288 people per sq km.

      Not only that, most of them (I think it's more than 80%) live in these GIANT apartment buildings, big enough to have their own telephone central offices in the basement.

      The result is that it's trivial to put a router in that central office and either string fiber through the phone conduit to the apartment or put high speed DSL or even Ethernet on the existing wiring, giving every apartment 100 Mbps or far better to the switch. Similarly it's trivial to light up some of the dark fibers in the apartment building's bundle to provide multiple gigabit backhaul to the NOC.

      Try THAT in rural, or even suburban, America.

      Heck, try it in urban USA. You still have to dig up the streets - in some of the priciest areas of the country. South Korea modernized in a short-term push post WWII. The US urban areas grew up over centuries.

      --
      Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    50. Re:Telco oligopoly by Ungrounded+Lightning · · Score: 1

      Here in Silicon Valley I've seen both companies and municipalities putting in conduit for fiber. In both cases they don't just run one conduit.

      The smaller was a drilling operation that buried bundles of three or four flexible conduits (with maybe 2" ID, so each could run a LOT of cabling). The larger was a dig-up that put in multi-manhole equipment vaults with arrays of stiff conduit between them.

      --
      Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    51. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      The telco lobby writes the legislation

      It's us, the voters, who let all these things happened.

      We routinely keep on voting in career politicians who are steadfastly opposed to campaign finance reform.

    52. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Someone has to pay for all those hard drives for data retention and Room 641A.

    53. Re:Telco oligopoly by redneckmother · · Score: 1

      Except you can't blame municipalities for the cost when they're pretty much the only part of government that's been trying to provide low-cost access. Many municipal governments have tried to set up as ISPs for their citizens, and the costs are typically far lower than what you see from the cable/DSL duopoly. They've been lobbied and sued and otherwise lawyered to death for the effort, but at least they're trying.

      And while you can't fix size, you don't really need to. Most of the long-distance fiber backbones have already been run, and most of the US population lives in urban or suburban areas. The bulk of the land area of the US is rural, and they may not get cheap broadband anytime soon (it literally took an act of Congress to get them electricity and telephone after all), but they're a pretty small minority.

      Hmmm.. I have electricity, but no telephone. I wonder what happened to all the money I paid for "rural communication" when I lived in metro areas?

    54. Re:Telco oligopoly by Galactic+Dominator · · Score: 0

      That's actually a really interesting astroturf. I could see it working.

      --
      brandelf -t FreeBSD /brain
    55. Re:Telco oligopoly by phantomfive · · Score: 1

      May you die a painful, fiery death. Better yet, live a long, painful fiery life. With fire ants,too.

      --
      "First they came for the slanderers and i said nothing."
    56. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Isn't private ownership of land a state-granted right as well?

    57. Re:Telco oligopoly by aliquis · · Score: 1

      i live in Ã-rebro, Sweden.

      My Internet provider option since year 2000 (?) has been Bredbandsbolaget.

      By ethernet they offer 1 gbps (500-1000 mbps), 250/60 mbps, 260/6-10, 100/60, 100/6-10, 10 (6-10.) Haven't seen the ranges previously, guess that may be a regulation thing or just to not disappoint people. But yeah, 10, 100, 250 or 1000 mbps with an option to pick whatever you want faster upload or not to.

      However almost all apartments in the city I suppose, and I think all (which is likely most) of the ones owned by the company ran by the municipally offer StadsnÃt.

      I can get it too and it's a network with no service by default and Ã-BO adds 75 SEK / month to your bill for accessing that network and then you pay whatever content provider you want, there I can pick from:
      Bredband2, T3, Tele2, Bredbandsbolaget, Bahnhof, AllTele, Tyfon, UniversalTelecom, Telia.
      And in speeds ranging from 1/1 mbps to 100/100 mbps.

      I can even get StadsnÃt here:
        https://www.facebook.com/photo.php?fbid=428621049459&l=9ba9c4d186
      https://www.facebook.com/photo.php?fbid=428626479459&l=eafafceac1
      https://www.facebook.com/photo.php?fbid=450508749459&l=f557ccb74c
      Thanks to some EU thing which help paid for getting access on such places, cost a little more to hook up there but the option, I suppose the providers are the same or about the same.

      Beyond that there's the DSL options which may be limited and 3G/4G options either with voice or with no voice. The cheap ones at least (which is cheaper than the wired connections) seem to be capped but they are very cheap (I can get no limit on amount but slow speed for my phone for 57 SEK = $8 or so / month and I think the decent speed but limited data amount ones cost in the $12 or so area) and a friend got somewhere around 10 mbps at the location shown above with his phone.

      Many phones isn't locked to a provider and you can easily get one which isn't at least and you can order 3G/4G dongle or WiFi access point of course, there's not so many (GSM/3G/4G) network owners in Sweden (I don't know how many) but a rather decent amount of companies selling network access but you got quite a few options there too.

      Anyway my options is far from ONE single provider.

      Personally I think the fiber everywhere + let someone sell bandwidth in those cables is (was, the future may be wireless) the correct way of going.

    58. Re:Telco oligopoly by Anonymous Coward · · Score: 1

      Did you know that in several states, broadband is banned by law?

      Do you have a citation for this?

    59. Re:Telco oligopoly by SQLGuru · · Score: 1

      Add to the fact that the number of miles of fiber/cable/wiring needed to cover the United States is far greater than that required to cover any single European country. Land costs + material costs have to be a good bit higher.

      Granted, I still think we all overpay for the quality of service we actually get, but I don't think it's as straight forward as Europeans try to paint it. Similar arguments for cell coverage.....how many towers does it take to cover England compared to the United States?

    60. Re:Telco oligopoly by ShanghaiBill · · Score: 1

      Population density is only part of it

      Population density is none of it. Sweden has a population density lower than America. Finland and Norway have a density less than half of America. Iceland has a density less than a tenth of America's. Yet they all have much cheaper Internet.

      Population Density per Square Mile of Countries

    61. Re:Telco oligopoly by Firethorn · · Score: 1

      Many municipalities are too spread out for economic home-runs even for fiber.

      My personal preference, having lived in 4 different areas, is for telecommunications to be handled by a local cooperative, otherwise known as a 'customer owned business'.

      I've received utilities from commercial companies, government and employee owned, as well as cooperatives. The Coops have always had the best customer service, price vs performance, etc...

      --
      I don't read AC A human right
    62. Re:Telco oligopoly by Firethorn · · Score: 1

      Indeed. The way I think of it it's a bit like secrets - the more people in the know, the more likely it's going to get out.

      The more competitors you have, the less likely you're going to be able to iron out an anti-consumer deal that everybody will stick to.

      --
      I don't read AC A human right
    63. Re: Telco oligopoly by Anonymous Coward · · Score: 0

      you mean private rental :-)

    64. Re:Telco oligopoly by reve_etrange · · Score: 2

      You might be right about our ordinances (I will have to find out), but still you are saying that even though there is still no economic incentive whatsoever for Comcast to improve service, they would do so if only our big bad city council would permit them to?

      I don't actually believe there is an infrastructure problem here as higher service tiers are available in new subscriber packages. Their strategy is to get subscribers at a low tier, then make (or just "turn on") marginal improvements to attract new customers while locking in existing subscribers to their current tiers. Further, Comcast is actually more competitive about 1 mile from here - where there is a AT&T CO.

      In all seriousness I will look into our municipal regulations, but nevertheless there is overwhelming evidence that Comcast is the entity responsible here.

      --
      .: Semper Absurda :.
    65. Re:Telco oligopoly by saleenS281 · · Score: 1

      The exact same thing was said in regards to power and telecom. We figured out how to make it work.

    66. Re:Telco oligopoly by gaspyy · · Score: 1

      Exactly. Don't know about other countries, but Romania has a population density of about 90 people / sq. km. If we take only the major cities, we won't exceed 500 people / sq. km. Total land area is 240,000 sq. km.

      We have 100 Mbps internet via fiber optics pretty much everywhere except remote areas. For remote areas, 3G is everywhere (over 99% coverage) and H+ and 4G is available in many rural areas.

      I pay $10/month for 100 Mbps (tested). Fiber end to end. No caps, no traffic shaping.

    67. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      In the US, if you want to compete, you have to roll out your own infrastructure. That is prohibitively expensive for anyone except a couple of large companies. To me, that is by far the most significant factor in explaining the differences. There are other factors, sure, but that right there is #1.

      Nope.

    68. Re:Telco oligopoly by Anonymous Coward · · Score: 1

      Broadband consumers in urban areas are subsidizing those in rural areas.

    69. Re:Telco oligopoly by dave420 · · Score: 1, Insightful

      This excuse doesn't wash. If that was the case, then US cities would have excellent broadband, and the towns not. As it is, practically all of the US, with some obvious exceptions, have terrible internet access. It is as simple as the Europeans paint it - covering a metropolis with access is technologically the same regardless of the country it's in. Population density in the US is not the same everywhere, so this "but... but... US so biiiig!" argument simply doesn't wash.

    70. Re:Telco oligopoly by dave420 · · Score: 1

      Nonsense. Why are you making such piss-poor excuses? New York's internet is shit "because the midwest"? Is that it now? Wow.

    71. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Add to the fact that the number of miles of fiber/cable/wiring needed to cover the United States is far greater than that required to cover any single European country. Land costs + material costs have to be a good bit higher.

      Conversely, the number of miles of fiber/cable/wiring needed to cover Europe is far greater than that required to cover any single US state. Land costs + material costs have to be a good bit higher.

    72. Re:Telco oligopoly by glockNine · · Score: 1

      Just to set the record straight, Norway's internet offering leaves much to be desired. Sure if you're lucky to have fiber it's great, and fiber is becoming more widespread, but Telenor's DSL lines are generally massively overloaded. In many places very close to major population centers it impossible to even get DSL or cable, so you are stuck with satellite or 5 ghz wireless, both of which cost well over $100/month for any reasonable speed.

      Mobile data coverage is just as bad, with many holes in 3g coverage even in Oslo metro area.

    73. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      That doesn't answer the question at all.

    74. Re:Telco oligopoly by Firethorn · · Score: 1

      The exact same thing was said in regards to power and telecom. We figured out how to make it work.

      I've read this a couple times, which part are you arguing against? The home-runs? You don't home-run power though. For that matter you don't 'home run' water or sewer either. If you're thinking that I think that fiber can't be economically run to 'every'* home, you're incorrect. I simply think that 'home runs' aren't ecnomical, in that you're going to need satellite stations. IE there's lots of cities where the 'last mile' might actually be 10 miles or more.

      Once you have large numbers of satellite collection points, because of how spread out you are, leasing to independent ISP's becomes a lot more complicated, to the point that offering the rest of the connection, that you propose having independent ISPs doing, is actually the easiest part. Ergo it makes sense to keep it one business. Then the question becomes one of 'how do I prevent the company from becoming a money-grubbing leech?'. Answer: 'Not for Profit' Customer owned Cooperative. Which, as I said, has given me the best service and price over every other utility model I've had to deal with.

      As for 'telecom' - We only sort-of made it work for telecom. While we certainly were able to get better than 99.99% of households phone access(only one aspect of 'telecom'), we never really saw extreme cost savings.

      *Every in this case being defined as roughly 99.99% of households

      --
      I don't read AC A human right
    75. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      There's nothing natural about a monopoly.
      The only reason why monopolies exist, is because they can lobby to get laws in their favor and stifle competition. Microsoft.
      If you apply the laws and constitution correctly, monopolies would still form, but only for a short time.
      We have MPAA, RIAA, BSA etc, all good buddies, when each member should be fiercely competing with each other.

    76. Re: Telco oligopoly by Anonymous Coward · · Score: 0

      What you american guys call "city density" is called "whole-country density" elsewhere. 360/sq km in this "megalopolis" , is still less than the 400/sq km in the entire COUNTRY of, for instance, the Netherlands. Europeans and Asian talk about thousands per square kilometer as "high density", not hundreds.

    77. Re:Telco oligopoly by jafiwam · · Score: 2

      Many municipalities are too spread out for economic home-runs even for fiber.

      My personal preference, having lived in 4 different areas, is for telecommunications to be handled by a local cooperative, otherwise known as a 'customer owned business'.

      I've received utilities from commercial companies, government and employee owned, as well as cooperatives. The Coops have always had the best customer service, price vs performance, etc...

      Yes, this is very true.

      In the US, the "last mile" tends to be "the last 14 miles" People forget that the average country is a fraction of the size of the US, heck, some states are bigger than the majority of other countries.

      Basically, the US would bump up against the edges of ALL OF EUROPE if laid over the top.

      The comparisons, from the get go, are just plain stupid if they neglect these facts.

      Locally, there has been huge inroads in fiber penetration into all sorts of places that were data deserts in the last two or three years. Only now, it's one trenching crew for one company, then another from another company, and then a year later, a third.

      Municipalities get tired of it, and people get tired of it. Which leads to resistance at the local board and ultimately, a lack of competition.

      There IS fiber going in all over, but there are a lot of restricting factors. There was a guy in the neighborhood where I worked that shared a bunch of information over a few beers. The guy makes considerably more than me as an IT guy, like six digits. His crew cost the electric company he was working quite a bit. He was constantly getting offers to move all over the US to work. People that could do what he was doing (read: several years experience running a tunneling device) are a little hard to get right now.

      The fiber will come, it just is going to take longer in the US.

    78. Re:Telco oligopoly by Bengie · · Score: 1

      Don't worry, fiber has a 49mile signal range for 1gb.

    79. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Gee. I'm a big, evil American and I get 30Mbps for $49.99/month. I'm pretty happy. And I live in a rural community! Pretty dumb for the BBC to take price samples from New York and Washington DC. Two of the most overpriced cities in the US. I would have expected more from the BBC.

    80. Re:Telco oligopoly by Bengie · · Score: 1

      If you only look at the top 80% of the USA by density, the USA has less land to cover per capita.

    81. Re:Telco oligopoly by RavenLrD20k · · Score: 1

      One way I was thinking of to solve the independent ISP issue is, everyone who pays taxes is given the fiber connection by the city government, and the city provides a city wide WAN that is not by default connected to the internet. Anyone within the city can communicate with anyone else, provided they know the IP address. The municipal users could set up whatever servers they want on the line and the government email system would ensure that city information and emergency broadcasts found their way to each taxpayer/user.

      Now, any internet service that people wanted that couldn't be accessed from within the city, such as if they wanted to go to Wal-mart.com to place an order for a product that wasn't in the local store; if they wanted to use google, yahoo, bing, or whatever to search the web for information that wasn't online from the library; if they want to play an online game like Mechwarrior Online or World of Warcraft; or even if they to access information from the next town over; this is where the independent ISP would come into play. By authenticating their modem with an Internet access provider (not really a service provider anymore, as the services themselves would be given by the municipalit{y,ies}) they could get a gateway to the internet at large.

      I know that there are a lot of kinks in this plan that need to be worked out, but this is just a sketch that I've worked out so far. The hardest bit would definitely be the implementation. It would require co-operation from every level of government because you can bet that the ISP conglomerate are going to fight it tooth and nail. That's the biggest issue I haven't started ironing out yet, and I have no clue where to begin that would be the most effective.

    82. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      South Korea as a whole has a population density of 500/sq km, The NYC Metro area has a population density of 700/sq km, and as a resident of that area (Nassau County, NY), I have 75Mbps for $65. The pricing at my location (FiOS), 15Mbps for $35, 150Mbps for $130, 500Mbps for $300. This is one of the few areas in the US that has competition too (there are two providers of 50Mbps+ internet, verizon and cablevision). Looking at the numbers in the article, this is roughly on par with Canada, and better than most of the US, but it's nowhere near the price that you see in SK.

    83. Re:Telco oligopoly by thoth · · Score: 1

      I think the poster meant "MUNICIPAL broadband is banned by law".
      There are too many instances of that being true to list.

    84. Re:Telco oligopoly by thoth · · Score: 1

      Given the context of the quote, I think girlintraining meant "MUNICIPAL broadband".

    85. Re:Telco oligopoly by akinliat · · Score: 1

      In a word? Deregulation.

      It's hard to say for sure without knowing which state you live in, but most states heavily regulate electric power, right down to require government approval of rate hikes. In telecommunications, deregulation has been the order of the day ever since the breakup of Ma Bell, which used to actively encourage regulation. Combined with federal spending priorities of the last couple of decades ("Millions for the rich, not one cent for the poor!") and you get an environment where telcos can cut loose their less-profitable (or even unprofitable) rural customers with ease.

      Oh, and the act of Congress that I mentioned was part of the New Deal, so it's been a while.

    86. Re:Telco oligopoly by OakDragon · · Score: 1

      In the US, the "last mile" tends to be "the last 14 miles" People forget that the average country is a fraction of the size of the US, heck, some states are bigger than the majority of other countries.

      Basically, the US would bump up against the edges of ALL OF EUROPE if laid over the top.

      The comparisons, from the get go, are just plain stupid if they neglect these facts.

      I don't have moderation points, so let me just say 'thank you' for getting this out there.

    87. Re:Telco oligopoly by rwise2112 · · Score: 1

      So why bother with right of way? The city should run a strand of fiber to every home, and home-run them to a central location. Allow independent ISP's to plug-in there and provide service to the customer. There's no reason the ISPs should ever own last mile. It's a waste of time and resources, and it stifles competition.

      I agree this is the way it should be. However, the thing that scares me is when you have trouble with your connection, I can see your ISP saying it's a local problem and to call the city, resulting in a never ending runaround. Dealing with 1 can be enough of a problem, but 2 groups responsible for your connection will probably be a nightmare.

      --

      "For every expert, there is an equal and opposite expert"
    88. Re:Telco oligopoly by orthancstone · · Score: 1

      We're talking about the country that once prided itself on getting shit done. What happened to those folks? Did principles die away with them?

      They got their shit done and retired to a nice pension. When the spineless paper-pushers came around asking if they'd like to contribute some more, the get-shit-done crowd gave them the finger and told them to get off the lawn.

    89. Re:Telco oligopoly by mrex · · Score: 2

      Basically, the US would bump up against the edges of ALL OF EUROPE if laid over the top.

      This excuse might make more sense if only rural connectivity was slow and expensive. But that's not the case: urban connectivity is just as expensive, and just as slow, even for areas with extremely high population densities.

    90. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Why not?
      Roaming is included. So you are paying for Wyoming and Montana while living in Massachusetts.

    91. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      This is similar to the how they deregulated electricity transmission and generation in New York and California. You get a bill from a transmission company, and pay a separate charge for generation from a company of your choosing. Consumers mostly ended up paying higher bills.

      Granted, power generation requires a lot more infrastructure and is less flexible than telco, but still, the best electric rates and service seem to be in communities with public utilities.

    92. Re:Telco oligopoly by Archangel+Michael · · Score: 1

      Municipality would own the right of way, and the fiber plant; the local Infrastructure. Maintained by taxes on services provided over the fiber.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    93. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Comcrap has an effective monolopy in just about every single market that they're, along with TW, et. al. It's almost as if they've agreed not to directly compete with each other.

      I especially love this information re-exhumed, along with their pushing for metered usage again.

      As to equipment rental: FREE CLUE BUY YOUR OWN DAMNED EQUIPMENT AND RETURN THEIRS FFS! In LESS than a year, what you save on rentals would effectively have PAID for the purchased equipment in the VAST majority of cases, and even those that are will require MUCH less than 2y to cover the purchase cost! This one thing "good" that I can say about comcrap is they at least have a page of recommended "compatible"(i.e. the ones that they already have canned configs for to reduce the capability of your equipment to what you actually subscribe to) equipment that you can buy to replace their rental crap, which is usually pretty old and outdated anyways.

    94. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Way overpriced do

      Yeah, that stylist charges way more than he's due.

    95. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      they will only "offer" me new subscriber packages for which I am not eligible.

      Then cancel and resubscribe. I do that every six months to save $20/month.

      The downside is I have to call them twice per year and sit on the phone for 2 hours while their fucktwats at the call center bounce me around, but it's worth it to not give Comcast extra money.

    96. Re:Telco oligopoly by dannys42 · · Score: 1

      Actually, I would contend that *all* infrastructure-based resources will be natural monopolies. As such, I think the way we handled it before was correct.. it was just the way we divided it wasn't quite right... Governments shouldn't run the services/technologies/etc. They should regulate a single local company to manage the it (ie. the government regulated monopoly). In this case, we're talking about the physical cable/fibre/etc into the home. Services on top of that, then can be a free market.

    97. Re:Telco oligopoly by Eravnrekaree · · Score: 1

      Even with this, the cable running part is still a natural monopoly, the cost of the cable itself is still very significant. Many cities also contract out the installation and, in some cases, repair of their public utilties to private companies, or in some cases neighbouring governments, that do these sorts of things. Especially so with smaller cities which are too small to justify having alot of their own utilities equipment. Even larger cities are known to contract major construction projects while having their own maintanence in house.

    98. Re:Telco oligopoly by Belial6 · · Score: 1

      No, it really isn't. Running cable is expensive, but not that expensive. Companies do it all the time on large campuses. They just budget it under capital costs.

      It doesn't matter if small cities contract out their piping work or do the work in house. Either way, they have a system in place to build and maintain 3 sets of pipe today. It is a problem that they already have a solution for.

    99. Re:Telco oligopoly by DrJimbo · · Score: 1

      It's us, the voters, who let all these things happened.

      We routinely keep on voting in career politicians [...]

      This is because of the misguided notation that if you don't vote for either career politician from column D or career politician from column R then you are wasting your vote.

      --
      We don't see the world as it is, we see it as we are.
      -- Anais Nin
    100. Re:Telco oligopoly by whipnet · · Score: 1

      "the USA are at an artificial disadvantage is that as each new generation of communication technology rolls out" I can assure you that future internet access technologies will have nothing to do with laying any kind of land cables. This will bring the U.S. up to par (or above) once all communications are via satellite or some other form of wireless.

    101. Re:Telco oligopoly by mcgrew · · Score: 1

      I think the problem is the US's national religion: the worship of money and those who have a lot of it. Seriously, Europeans value people and society, in my sad country the sociopath is celebrated. The 1% has got the rest of us snake charmed.

      We are, in a very literal sense, a victim of our own size. No fat american jokes though please.

      America is FAT. So fat that when it sits around the world, it sits AROUND the world!

    102. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      "we are pseudo-Capitalistic with the worst part of both Socialism and Capitalism in force."
      ==>
      Amen.

    103. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      Our current system places right of way in the hands of municipalities, which often offer exclusive contracts and can also be bullied or bought off in ways that the state or federal authorities cannot.

      And your local city can dictate who gives "exclusive rights" to provide for the citizens. When Concast got out of bankruptcy and started charging out the ass for services the original owner of Comcast wanted to create another company that offers cheaper TV/internet to compete with Comcast. The state of PA passed a law banning the big companies from running a monopolies. But pathetically allowed the local municipalities to choose, and they have done nothing to promote other companies that are offering cheaper and better services. And your local politicians and city employees get every service you can think of from Comcast FOR FREE.

      You can say about government regulating it, but that still doesn't change anything, they make the laws and rules when they buy off the politicians and until companies stop being.dictators.. Not disagreeing with your comments, but you seem to think and believe in a government that doesn't work for you.

    104. Re:Telco oligopoly by C0R1D4N · · Score: 1

      States aren't the problem, just replace the word 'Federal' in your post with state. NY/NJ/CT for example have huge pop densities and could handle this issue if there was a push to. The simple fact is people are willing to pay fifty plus a month for internet, and the telcoms are willing to pay politicians to stop anyone from getting a chance to undercut them.

    105. Re:Telco oligopoly by Anonymous Coward · · Score: 0

      My solution would be to build out via a BOND measure, Fiber to the house/apt/business. Back haul it to a central facility or neighborhood closet, I don't care. Pay a guy to manage connecting Address A to Service Provider B in the closet, where Service Provider B is the company that Address A contracts service through. Allow for a certain number of Service Providers, via auction, to be able to install their CO-LO equipment in said facility, use that auction pricing to pay for the person in the closet connecting Addresses to Service Providers (or other means).

      I strongly agree with the general idea of the plan, but there are some problems. Notably, guess what happens when someone goes on a corporate buying spree? Suddenly instead of 10-20 ISPs with the rights to access the facility, now you're got 1 or 2 and we're back to square one. There would have to be provision for adding additional access licenses. There would also need to be some kind of pay-per-use access to the central office, so a tiny startup ISP could connect a very few customers during the time it is too small to get continuous access. Perhaps this would take the form of requiring one of the access license owners to service requests to jumper fiber point A to fiber point B for some not too outrageous fee.

    106. Re: Telco oligopoly by Palamos · · Score: 1

      The argument that the USA being much larger than European countries and thus is a different model is misleading, fibre in Europe comes under European regulation with some relatively minor local, or country, adjustments possible. Therefore the comparison between Europe and the USA is entirely reasonable. We have a free market model but if that doesn't appear to be working in favour of the consumer the regulator, state or European, steps in to redress the position. The focus of broadband within Europe is primarily social benefit and not company profit so controls focus on areas that will promote this. I'm living in the UK and pay c. $25/month for 80mb broadband with calls and on-demand TV thrown in, this same package is available to over 93% of the population by law.

    107. Re:Telco oligopoly by Nyder · · Score: 1

      Also: Govenment officials are so clueless they think it's a "competitive market" when there are TWO providers.

      ...

      Well, those Government officials come from a 2 party system, where the corporations own both parties.

      --
      Be seeing you...
    108. Re:Telco oligopoly by Bengie · · Score: 1

      From what I've read, suburban USA is the optimal density. Super high densities like Seoul make it more expensive. This is why all new buildings are required to have fiber so they don't need to retrofit it.

    109. Re: Telco oligopoly by Bengie · · Score: 1

      You mean like the many 20k/km2 cities in the USA? If you look at the top 80% of the USA, we can compete with Japan and South Korea on population densities.

    110. Re:Telco oligopoly by Occams · · Score: 1

      The reason is market failure caused by lack of sufficient regulation to ensure proper competition in the interest of consumers. We pay the highest price that the market will bear. It has nothing to do with the cost of production. Beware of deregulation: It is a con from those who want to distort markets.

      --
      Heavy is the head that wears the tinfoil hat.
    111. Re:Telco oligopoly by reve_etrange · · Score: 1

      I wanted to do this, but they know it's me in the same residence. Are there any tricks? How long do you have to wait with no internet?

      Maybe it is like TOS, and they cracked down asymmetrically across regions?

      --
      .: Semper Absurda :.
    112. Re:Telco oligopoly by keith_nt4 · · Score: 1

      I'm not sure which part you're referring to. To be more specific I live in Placerville. It's up hi-way 50 about 40 miles (I only say that because we're sometimes confused with grass valley, of which I cannot speak). Ten more miles up the freeway in Camino there's fast cable internet as well. And that's some pretty non-existent population density right there. No idea how it ended up this area has such great HD TV/fast internet. It's not a rich/upper class area either. In fact if not for el dorado hills el dorado county would be one of the lower average income counties in the state...

      If you're referring to multitude of broadband provides sacramento seems to have I'm not sure why that is exactly. I know there cable, dsl, line-of-site microwave, the previously mentioned fiber and at one point there was very limited availability on some kind of 4G for the home service which I don't know if it still exists or not. As I said i don't know why this multitude of choices happened to sprout up in sacramento and not in other cities/regions. Of course in most areas of sacramento as far as I know it's really just the the DSL/Cable choices and I assume as every place else the cable co has dominance in market share anyway. But at least if you're not happy with the service you have some legitimate threats when expressing dissatisfaction.

      --
      "UNIX is very simple, it just needs a genius to understand its simplicity." -Dennis Ritchie
    113. Re:Telco oligopoly by spmkk · · Score: 1

      No one questions that its more costly to supply infrastructure to rural areas. The question is why that excuse is at all relevant to American cities.

      Because ISPs can't charge you $X/month for easy-to-deliver service in the city while charging your uncle in Glasgow, Montana $20X/month because his is harder and more expensive to provide.

      Kind of like the USPS - it costs them less than $0.46 to deliver a letter from New York to Chicago, but a lot more than $0.46 to deliver one from Corona, NM to Reedsburg, WI. Since they can't (either by law or by popular acceptability) charge more for the more expensive service, the lower-cost markets subsidize the higher-cost ones to make up the difference in cost-of-delivery. Same thing with ISPs - there's a lot more miles of cable to lay and maintain to connect rural areas. In contrast, France, Britain, South Korea, etc. don't have to wire rural areas to nearly the extent the US does.

    114. Re:Telco oligopoly by Firethorn · · Score: 1

      Do you really want to be running individual strands of fiber back home for 49 miles? You're going to need a huge facility for the patch panels for any decently populated area if you run it that long, even if you have unpowered neighborhood collection points where the 2-6 strands you run to individual homes* are collected up into bigger bundles.

      It's a balance - and in many other areas far more people are living in multifamily dwellings(apartments & condos) rather than single family homes. It's relatively easy to do the necessary upgrades there.

      *It's cheaper to run extra strands than worry about having to run more

      --
      I don't read AC A human right
    115. Re:Telco oligopoly by Firethorn · · Score: 1

      One way I was thinking of to solve the independent ISP issue is, everyone who pays taxes is given the fiber connection by the city government, and the city provides a city wide WAN that is not by default connected to the internet.

      On the other hand at this point the cheaper option is to have the city WAN offer everyone a certain baseline to 'the internet', maybe 1mb, with the option to pay an additional fee for a bigger pipe.

      Otherwise, well, what are the ISPs really offering? A patch cable from the wan to a leased line colocated in one of the switching rooms? The 'last mile(somebody else said in the USA it's equivalent to 17 miles)' is the most expensive bit.

      --
      I don't read AC A human right
    116. Re:Telco oligopoly by mgcarley · · Score: 1

      In the US, the "last mile" tends to be "the last 14 miles" People forget that the average country is a fraction of the size of the US, heck, some states are bigger than the majority of other countries.

      Basically, the US would bump up against the edges of ALL OF EUROPE if laid over the top.

      The comparisons, from the get go, are just plain stupid if they neglect these facts.

      Tell me, where in Europe is the access as slow and expensive as the US? There aren't many. I may be oversimplifying it a bit, but the only significant difference between the US and EU is only really a technicality... we call the US a single country whereas we don't say the same about the EU. In reality, the US could be compared to the EU in many ways, with each member state being compared accordingly.

      The US has federal laws and policies, just as the EU has EU-wide laws and policies, and each state with the US has it's own laws and policies, just as each country in the EU. Plus, the EU has 20+ languages and in some cases, were formerly enemies. Yet, somehow they've managed decent Broadband continent-wide despite all that.

      Locally, there has been huge inroads in fiber penetration into all sorts of places that were data deserts in the last two or three years. Only now, it's one trenching crew for one company, then another from another company, and then a year later, a third.

      Municipalities get tired of it, and people get tired of it. Which leads to resistance at the local board and ultimately, a lack of competition.

      This you're actually right about - I'm in a reasonably small town in Southern IL right now and there are 7 companies who have laid or are laying underground fiber right now. I wanted to be #8, but was told (if I may paraphrase) it would be a cold day in hell - but they were more than happy to let me do aerial, and according to them, they have no plans to ban aerial cabling anytime soon.

      I then came to an agreement with one of the underground operators to purchase access, so, for my customers, while most of the service [will] run on underground plant, the last few-hundred feet are aerial, and, apart from installing street-side cabinets here and there, I only have to get permission from the appropriate company to use the poles.

      --
      Founder & COO, Hayai India (hayai.in) / USA (hayaibroadband.com) // t: @mgcarley
  2. Not really news... by Anonymous Coward · · Score: 0

    Humans exploit market where there is no oversight. What a revelation.

    1. Re:Not really news... by clarkkent09 · · Score: 5, Insightful

      There is no oversight in clothing market and yet you can buy a shirt at Wallmart or Ross for $5 or shoes for $10. Why don't they charge $100 for a shirt and keep the difference? It is not government oversight that drives prices down but competition. Telcos are not a good case study of either free market or regulation as they are a special case in a lot of ways.

      --
      Negative moral value of force outweighs the positive value of good intentions.
    2. Re:Not really news... by tolkienfan · · Score: 1

      They are a special case in many of the same ways that internet suppliers are a special case...

    3. Re:Not really news... by Anonymous Coward · · Score: 0

      The barriers to entry on clothing are minimal.

    4. Re:Not really news... by clarkkent09 · · Score: 1

      In a truly deregulated market, the cost of entry for one cable company would be the same as for another. In a heavily regulated market that we actually have (at the local level) the first company had a very much lower cost of entry due to special deal with the local government.

      --
      Negative moral value of force outweighs the positive value of good intentions.
    5. Re:Not really news... by polar+red · · Score: 4, Insightful

      In a truly deregulated market, cable companies would split the markets to maximise profits.

      FTFY.

      --
      Yes, I'm left. You have a problem with that?
    6. Re:Not really news... by Anonymous Coward · · Score: 0

      You don't need right of way from the local government to install a shirt and you don't need to invest large amount of money on installing a shirt on a customer before getting regular payments from them in the long term.

    7. Re:Not really news... by bhcompy · · Score: 1

      It's already heavily regulated and that already happens. Time Warner Cable and Comcast made a huge deal in California in recent years and sold each other their exclusive contracts for certain cities in order to organize their infrastructure appropriately. The problem is that the best regulation was dropped(ability for broadcast networks to own cable networks and vice versa) while all of the other regulations stayed(must carry, etc) and many of those promote conglomeratizing the industry.

    8. Re:Not really news... by geekoid · · Score: 2

      Yes, the government does infrastructure really, really well.
      Anything where the service can't be created by anyone.

      Infrastructure is pretty much always cheaper for the consumer when the government does it becasue they aren't using it as a monopoly to boost profits. It's run a 0 +/-2% or so.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    9. Re:Not really news... by geekoid · · Score: 1

      How many cable companies are you going to put up with digging you your street and year becasue each on has to lay it's own infrastructure?

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    10. Re:Not really news... by spire3661 · · Score: 1

      Thats like saying we need individual roads for every home delivery service......Public owned conduit solves that nicely.

      --
      Good-bye
    11. Re:Not really news... by jrumney · · Score: 1

      It is not government oversight that drives prices down but competition.

      That, and child labor in crumbling factories in Bangladesh. Another consequence of lack of government oversight.

    12. Re:Not really news... by XcepticZP · · Score: 1

      How many cable companies are you going to put up with digging you your street and year becasue each on has to lay it's own infrastructure?

      But then who will build the roads?!!?

      Seriously though, why does it matter? I may only want one per year, others may want one per decade. The number is irrelevant to the discussion. You're basically using a utilitarian argument. "Oh, it's better that we only have one competitor because that's the easiest and most practical solution." Meanwhile, the only reason you're asking your question is because you can't fathom how this situation can play out; where some snappy young businessman will solve this conundrum for us at a price we are willing to pay.

    13. Re:Not really news... by AlphaWolf_HK · · Score: 1

      10 years ago you were still considered "lucky" to get broadband at all, so I'm not sure why they can blame it on 10 year old deregulation for a market that was largely in its infancy.

      --
      Careful with names containing L slashdot.org/~AiphaWolf_HK slashdot.org/~AlphaWoif_HK slashdot.org/~AiphaWoif_HK
    14. Re:Not really news... by Anonymous Coward · · Score: 0

      Incorrect bullshit! The Sherman Anti-Trust Act was written to make the PRECISE behavior illegal. In theory, this Act stimulates competition by making it illegal to fix prices or carve up markets. In practive due to legal technicality, proving violations of thie Act is extremely difficult and costly for the government. The government was successful with Standard Oil in 1911 but a twenty year long anti-trust lawsuit against IBM filed when Reagan gave up in the early 80's.

      Near the end of the century the government was successful against Microsoft, whose legal budget and staff was larger than the DOJ's. Unfortunately, George W, the only presidential vote I ever cast that I wish I could take back, neutered the effects of the suit during the penalty phase AFTER Microsoft was found liable (i.e. guilty).

      Just like with private citizens, there is a smallish percentage of the corporate population that is overtly criminal. I'm a conservative and pro-business but I recognize that you can't be BLINDLY so, George.

      If the government at all levels would kindly get off their lazy asses and do their jobs for once, please remove the legal barriers that make it so difficult to prove these violations in court. You'll get a higher success rate for punishing the criminal corporations, which is precisely what should happen.

      While you're at it, please remove chapter 11 of the bankruptcy code. The protections bankruptcy provides were not meant to be a strategy. We need to stop enabling and rewarding idiot management who repeatedly take their corporations into and out of bankruptcy to manipulate the stock prices and screw their creditors over. And no more Frank Lorenzos either, please. I applaud Frank for saving his companies but his methods did a lot of damage to the legal system. He "did it once", so shame on him. If we let anyone else get away with that, then shame on all of us. In the future, if corporations file, their only options should be chapter 7, liquidation. Let a different company with successful management come in, hire the employees, fill the market demand, and secure a bright future for everyone involved.

      Getting back on topic, simply assuming that any neighboring corporations would jump at the chance to be cruminals is stupid. No matter if you're a conservative or a liberal, I think we all agree that enforcing the law is one of the most important reasons we have government. In my humble opinion, I would like to see the government take more action and achieve more success doing just that.

    15. Re:Not really news... by Anonymous Coward · · Score: 0

      Incorrect bullshit! The Sherman Anti-Trust Act was written to make the PRECISE behavior illegal. In theory, this Act stimulates competition by making it illegal to fix prices or carve up markets. In practive due to legal technicality, proving violations of thie Act is extremely difficult and costly for the government. The government was successful with Standard Oil in 1911 but a twenty year long anti-trust lawsuit against IBM filed when Reagan gave up in the early 80's.

      so the regulation was good, the enforcing ofthe rules not so good you say ?

    16. Re:Not really news... by houghi · · Score: 1

      Why don't they charge $100 for a shirt and keep the difference? It is not government oversight that drives prices down but competition.

      Not sure about the USofA, but in Europe doing this is illegal. And with illegal, I mean there is not only government oversight but also sanctions when companies do this.

      The most relevant in Belgium is that there have to be three cell phone operators. When one bought a competitor (due to buying the European company) they were forced to sell the Belgian part.

      Another relevant part is that there is a law of the maximum price of roaming. And I can assure you those prices were not higher that what you were charged.

      In most countries the cables must be accessible for all competition. Unfortunately not enough do this.

      The only special thing about the telco's (and ISPs) is that they do not need to follow the same regulations.

      Regulation can be used for the good as well as for the bad. And what Europeans look at is mostly that if it is good for the people, it should be implemented. Companies will (with competition) work out how to make money. Might not be the same companies. Might not be in the same way, but somebody will make money of from it.

      --
      Don't fight for your country, if your country does not fight for you.
    17. Re:Not really news... by fgouget · · Score: 1

      There is no oversight in clothing market and yet you can buy a shirt at Wallmart or Ross for $5 or shoes for $10. Why don't they charge $100 for a shirt and keep the difference?

      Low barrier to entry is why. And I'm not talking about regulation. You can start a clothing business with $10.000 and sell world-wide. But if you have to lay down your own last mile network, then starting an ISP will easily cost you 1 billion just in civil engineering and equipement, and that's just for one large city like Chicago.

      It is not government oversight that drives prices down but competition.

      You say that as if competition always exists and the government and regulations can only prevent it. But, in the ISP case, the barriers to entry are much lower in countries where the government enacted regulations that force the owners of the last mile cables to let their competitors install their equipement in their telephone exchange. Then instead of having to spend billions duplicating the existing last mile copper network, new entrants can focus on their backhaul network, peering agreement, and providing new services like unlimited phone calls, TV over ADSL, WiFi hotspots, etc.

    18. Re:Not really news... by vidarlo · · Score: 1

      In a truly deregulated market, the cost of entry for one cable company would be the same as for another. In a heavily regulated market that we actually have (at the local level) the first company had a very much lower cost of entry due to special deal with the local government.

      This is wrong at two levels. First, when technology was new, a monopoly was sensible, to ensure access to telephone for most people, because building lines was expensive. Building lines in a city may be profitable, but not in rural areas. A monopoly can force a entity to provide coverage both places, in exchange for a (limited) monopoly. So yes, the community can indeed be better of by granting a monopoly in some situations. Second, even if it's a free market, the first actor will always have the upper hand, as they have more potential customers to pick from, and it is more unlikely that a customer will switch once they have a provider. Building a copper/fiber network to the curb is damn expensive, so not many players are able to this. So if we'd not have monopolies, we probably woudn't have as good coverage, and if we didn't have monopolies, the first player would still be favoured. Norway also had telco monopoly, building the network up to ca. 1995. But the government owned telco has been regulated into providing the copper for other DSL telcos, for a fixed price (~10$ month per customer), and the other DSL telcos can rent rack space in Telenor's facilities for installing DSLAMs and so on.

    19. Re:Not really news... by Anonymous Coward · · Score: 0

      Can I have my internet manufactured in a sweatshop?

    20. Re:Not really news... by Anonymous Coward · · Score: 0

      How many cable companies are you going to put up with digging you your street and year becasue each on has to lay it's own infrastructure?

      What the fuck is that supposed to fucking say? Are you that fucktarded that you can't fucking write a real coherent sentence? If so then get sterilized, immediately so you don't fucking reproduce fucktard.

  3. Probably Obama. Or the Tea Party. by isorox · · Score: 5, Insightful

    America is the home of capitalism, which means competition, which drives down prices and raises standards. The rest of the world is a socialist hellhole.

    It's similar to what the North Koreans believe, with a touch of stockholm syndrome.

    1. Re:Probably Obama. Or the Tea Party. by Moryath · · Score: 5, Insightful

      Precisely this. The illusion of "choice" and "capitalism" is strong in the USA.

      Then you get down to the nitty gritty.

      In the town I live in, precious few grocery stores aren't the HEB brand. There is no real competition for them and they gouge.
      In the neighborhood I life in, I can't get FiOS and the AT&T DSL options are a joke (they won't bother putting in capacity). So if you want anything but *shudder* dialup, your options are Warner, Warner, or... Warner. Zero competition, price gouging accordingly.

      The communications market is so "deregulated" that monopolism takes over, with deliberate barriers to entry placed by noncompete agreements and dirty tactics. And yet so many people think anarcho-libertarian, "laissez faire" deregulation will somehow make their lives better in every aspect.

    2. Re:Probably Obama. Or the Tea Party. by Crazy+Taco · · Score: 5, Insightful

      The communications market is so "deregulated" that monopolism takes over, with deliberate barriers to entry placed by noncompete agreements and dirty tactics. And yet so many people think anarcho-libertarian, "laissez faire" deregulation will somehow make their lives better in every aspect.

      That's not true at all. Try opening up a new cable company in your local town, or opening up a new power plant and running new wires to all the houses. Oh, that's right, you can't, because the government has decided that it would be inefficient to have more than one set of power lines, or water lines, or cable lines, or telephone lines, etc, going into a single home. So they allow one provider to service the whole town and be a government sanctioned monopoly. That's hardly "deregulation"... in fact, it's the epitome of the government regulating and controlling everything.

      --
      Beware of bugs in the above code; I have only proved it correct, not tried it.
    3. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0, Funny

      Precisely this. The illusion of "choice" and "capitalism" is strong in the USA.

      Then you get down to the nitty gritty.

      In the town I live in, precious few grocery stores aren't the HEB brand. There is no real competition for them and they gouge.
      In the neighborhood I life in, I can't get FiOS and the AT&T DSL options are a joke (they won't bother putting in capacity). So if you want anything but *shudder* dialup, your options are Warner, Warner, or... Warner. Zero competition, price gouging accordingly.

      The communications market is so "deregulated" that monopolism takes over, with deliberate barriers to entry placed by noncompete agreements and dirty tactics. And yet so many people think anarcho-libertarian, "laissez faire" deregulation will somehow make their lives better in every aspect.

      "Life" a verb now?

    4. Re:Probably Obama. Or the Tea Party. by Thomas+Miconi · · Score: 3, Informative

      Well, it's complicated.

      Take the example of France. Broadband internet and digital TV go largely through DSL. And yes, it's pretty damn cheap. When I was there, three years ago, I was paying 30 Euros / month for broadband internet + unlimited phone calls + television with a bazillion channels (did you know that there are two channels broadcasting in frigging Aramaic?)

      Now one reason why France has cheap, abundant DSL is because of massive infrastructure built by former government monopolies. But at the beginning, even though they had this infrastructure, internet was still pretty damn expensive. The few telcos that were operating the networks obviously had a very gentle concept of competition.

      Then this guy came along, leased an existing network and offered much better service at much lower cost. Everybody had to align.

      So it's not just about competition or government - it's both together. Also, there's competition and "competition". Competition only works if you have some outsider willing to move in and break the "gentlemen's agreements". Apparently T-mobile is kind of doing this in America with mobile phone contracts, but broadband internet is still firmly within the grip of the cable oligopoly.

    5. Re:Probably Obama. Or the Tea Party. by clarkkent09 · · Score: 1, Informative

      Except that monopolies are almost always created by regulation.

      In the town I live in, precious few grocery stores aren't the HEB brand. There is no real competition for them and they gouge.
       
      Why is there no competition for them? Is there something stopping another chain from opening a store and charging slightly less and taking all their customer?
       
        In the neighborhood I life in, I can't get FiOS and the AT&T DSL options are a joke (they won't bother putting in capacity). So if you want anything but *shudder* dialup, your options are Warner, Warner, or... Warner.
       
      Again, why are there no other choices of Cable providers? Typically, there is local regulation that makes it is a legal nightmare as well as a huge initial cost for a second company to come in. Everybody has access to poles, a company "only" has to run its own wires and presto, you have a second provider. The only problem with this is that running lines carries an enormous up front cost, which made sense to the first one to come in due to the deal with the local government (regulation again, which typically included monopoly access for a number of years as part of the deal) but it doesn't make financial sense for a new company.
       
      The problem is how to incentivize companies to come into markets "owned" by an existing provider: 1) simplify legal process of getting necessary permits 2) Offer incentives like those offered to the initial company - something you should take up with your local government. 3) If the current provider is really "gouging" the customers, it should be no problem for the newcomer to offer a better deal and still be profitable

      --
      Negative moral value of force outweighs the positive value of good intentions.
    6. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 1

      Typical anti-capitalist diatribe.

      The problem is not capitalism, because we never had a free market in internet service. Instead, we used taxpayer money to set up the big telco's with regional monopolies, on the understanding that they would make internet access ubiquitous. Then after we looked the other way when they didn't deliver on their promises, we deregulated them. The problem is that we had already set up a system where competition would never be possible. Ever.

      Likely a regulated system OR a truly free market would have done better. But we cherry-picked the worst parts of both. Is it any wonder the costs are so high?

    7. Re:Probably Obama. Or the Tea Party. by Zenin · · Score: 4, Insightful

      America is the home of capitalism, which means competition,

      Horrendously wrong.

      Capitalism is a game in which the goal is simply to make the most money (with the least effort). The "free market" (aka competition) is just one of many possible strategies to make the most money. Competing in the free market however, is without question the most expensive, the riskiest, and the least rewarding possible strategy available to most business...which is precisely why practically every business on earth bends over backwards to avoid the free market at all costs.

      Going into "new markets", forming monopolies, getting regulations passed to raise the barriers to entry, avoiding "mature markets", etc are all entirely about avoiding the free market and thus avoiding competition.

      This is the biggest mental issue free market advocates face: The ironic reality that if you want an actual free market...you must drag people into it kicking and screaming (most effectively through tight regulation...).

      --
      My /. uid is better then your /. uid
    8. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 1

      This is the biggest mental issue free market advocates face: The ironic reality that if you want an actual free market...you must drag people into it kicking and screaming

      And cause a massive amount of damage to your economy and your citizens.

      All so you can get to the complete lie which is a free market anyway.

      The Tea Party should be considered economic terrorists. Because their goal will cause so much pain and hardship to the rest of society as to leave marks which will be felt for years by everyone else.

      It's a strategy of destroy your whole economy so you can rebuild it in the image of your ideology, and no guarantee it would actually work.

      It's intellectually dishonest bullshit, and it always has been.

    9. Re:Probably Obama. Or the Tea Party. by jwsarvey · · Score: 3, Insightful

      I'm mostly in favor of laissez faire policies, but there are some industries where it just doesn't make sense. Communications is one of those. There's only so much EM spectrum to sell, and only so much space for copper wire, fiber, etc. There's an argument to be made that it's a natural monopoly, and in some ways we treat it that way; whichever company buys a bit of spectrum from the FCC has a monopoly on it, and in many places cable companies have contracts with local governments that grant them a monopoly in the area in exchange for money or promises of better services. But we only have policies like that in place where it benefits the telecoms, not consumers. They assume all the perks of a government-sponsored monopoly with none of the responsibility. If we're going to grant these companies exclusive rights -- and frankly it makes sense to -- they need to be regulated. If you want exclusive rights to be the cable provider in the area, you have to provide consistently good service at a reasonable price.

    10. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      There's no such thing as gouging in a deregulated market. Those grocery stores charge only what the market will bare. If you want cheaper prices and more options, move to a city. (Yes, even in a disaster zone there's no such thing as gouging. If you wanted that gallon of water you should've bought it before the storm came, putting demand through the roof and blocking supply from reaching shelves.)

      As for cable companies, etc... yes, there is definitely a problem, no doubt. But don't get your economics mixed up, because the lobbyists and right-wing economists will enjoy nothing better than turning your poor grocery store analogy into a strawman.

    11. Re:Probably Obama. Or the Tea Party. by icebike · · Score: 5, Insightful

      Its more a matter of practicality than regulation.

      Nobody would stand for yet another cable company trenching through every neighborhood laying new wire or fiber. Even if they wanted to, they couldn't afford it. The only way this gets done is when the neighborhood is built, and there is nothing to disrupt, and not sidewalks or driveways are laid yet. You can trench, pipe, and pedestal a hundred home subdivision in an afternoon and leave it to the home builder to cable each house to the pedestal. Comcast or Verizon will jump at the chance to do that because it means a lot of customers are locked in.

      When you build a subdivision, you typically deed the streets, waterlines, sewers, to the city/county at the end of construction.
      Its long past time to stop subcontracting the bandwidth job to the Telco/Cable companies and make the subdivision contractor put that in
      and deed that to the city as well. Yes it raises home prices.

      --
      Sig Battery depleted. Reverting to safe mode.
    12. Re:Probably Obama. Or the Tea Party. by Ichijo · · Score: 2

      Telephone is a many-to-many service, using circuit switching to dramatically reduce the number of necessary wires. Why couldn't power lines, water lines, cable lines, and so on do the same using valves, relays, etc.?

      --
      Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
    13. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      There are plenty of small start up energy companies in the Houston area that will sell you electricity over wires owned and maintained by a third party (CenterPoint). What Comcast/Verizon/etc have is a vertical monopoly.

    14. Re:Probably Obama. Or the Tea Party. by Mitchell314 · · Score: 5, Insightful

      'Inefficiency' has little to do with why governments regulate and limit utilities. The biggest is safety; there used to be a time when there were many competitors for power supply and the combined distributions systems were incredibly dangerous. Not to mention a horrible pain to track and maintain for the companies and the technicians. There are also big issues with the legalities of easements, as well practical and technical problems. The market is very unlike common commodity markets.

      --
      I read TFA and all I got was this lousy cookie
    15. Re:Probably Obama. Or the Tea Party. by dpidcoe · · Score: 2

      3) If the current provider is really "gouging" the customers, it should be no problem for the newcomer to offer a better deal and still be profitable

      Maybe more of a problem than you think. If they've been gouging, that means they're rolling in money compared to you. When you show up with a new low price, they can easily undercut you (even to the point of taking losses for a few years) and your selling point dries up overnight.

    16. Re:Probably Obama. Or the Tea Party. by Zenin · · Score: 2

      Alternatives?

      The reality is it's simply not practical to allow any random person to dig up the streets or put up new telephone poles willy-nilly to run new lines, especially considering the extreme risk both to existing lines (corporate property) and personal residences.

      If my neighbor signs up with a shotty power, water, gas, or even Internet company...my home is at higher risk of fire or flooding.

      It's not (simply) about inefficiencies. It's about safety, reliability, and accountability.

      The fact is there are many businesses which, at least with current technology, are either natural monopolies (municipalities for example) or for which the "free market" incentives bad behavior rather than good (eg, healthcare). Forcing them into a "free market" for shear ideological reasons is simply foolish.

      --
      My /. uid is better then your /. uid
    17. Re:Probably Obama. Or the Tea Party. by Mr+D+from+63 · · Score: 0

      Except that monopolies are almost always created by regulation.

      That pretty much sums it up, although I'd also say that monopolies are also largely prevented by regulation as well. In the case of regulated utilities such as cable, the lack of competition is the central reason for high prices.

      It would be interesting to see the cable ISP industry parsed up like they did the long distance telephone companies many years ago. It was a mess for a while, but eventually prices plummeted and service improved.

      I think cable companies should be limited to management of the infrastructure, while services are regularly open to competitive ISPs & television service company competitive bids, or better yet, multiple providers simultaneously. It would be messy for a while.

    18. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      Let's accept your premise for a second, and ignore the fact that there really are logistical issues with having dozens of competitors run cable to every property in every city. Given our current election process, that particular type of government interference is inevitable, because once a company has enough of a market advantage to seek that sort of government sanctioned monopoly, they will, and current campaign finance practices guarantee they will be successful. If only the same people complaining about those government monopolies weren't the same ones fighting against any sort of campaign finance reform, also in the name of freedom, we might not find ourselves in the situation you're talking about.

      Now, to go back to the original faulty premise, there really are problems with running lines from a bunch of different companies for each utility you use. The logistics of setting up easements for all of those things are entirely non-trivial. It isn't about running a wire from the edge of your property to your actual house, it is about all the streets those wires or pipes have to go under or over to get to you. The government had to throw its weight around to even get you the pipes and wires you have now, and certainly would have to again to get the right of way to allow you to get hooked up to your hypothetical competitor. If you want to live in pretend land where the government is involved in this process only to get in the way, you'll have to figure out how exactly incoming competitors are going to do much of anything without the power of imminent domain.

      Anybody who speaks of government intervention or market forces as some sort of cure all is either a moron or a snake oil salesman. Markets handle a great many things well, but something with so obvious a natural monopoly as internet access isn't one of them. Less ideology and more practicality, please.

    19. Re:Probably Obama. Or the Tea Party. by polar+red · · Score: 1

      . in fact, it's the epitome of the government regulating and controlling everything.

      That's not what I call regulation. regulation serves to increase competition and protect the weakest actor on the market (in this case: the consumer, by far). The thing you think that is regulation, is in fact a tool of plutocracy.

      --
      Yes, I'm left. You have a problem with that?
    20. Re:Probably Obama. Or the Tea Party. by Jane+Q.+Public · · Score: 5, Informative

      "you can't, because the government has decided that it would be inefficient to have more than one set of power lines, or water lines, or cable lines, or telephone lines, etc, going into a single home."

      This all actually fits together. The glue that makes it all stick (or rather, fall apart) is regulation under FCC Title II. At the risk of oversimplifying, it went something like this:

      In the early telephone days, the U.S. saw that multiple competing, and usually incompatible, telephone systems wasn't working well. It decided to allow one highly regulated monopoly to build our countrywide telephone infrastucture. In exchange for allowing it to operate unchallenged, it had to live with certain regulations, as a common carrier under FCC Title II.

      There are certain strict regulations that apply to Title II common carriers. Among the rules are, in no particular order: (1) the carriers cannot supply content, they can only carry content (telephone conversations, internet packets) created by others. (2) A common carrier cannot intercept communications, or allow communications to be intentionally intercepted, without a warrant. There are other rules, too, but those are the two important ones for the moment.

      As a result of having a single, unified infrastructure, at the time the U.S. phone system was the envy of the world. This telephone monopoly was eventually broken up (the reasons are beyond the scope of this summary), but telcos still have to live by common carrier rules.

      Then along came cable TV. Back when it started to become apparent that cable could also be a good medium for internet communication, the cable companies (which were already fat from cable TV profits) lobbied Congress to specifically pass a law saying Title II (common carrier) regulation would not apply to ISPs.

      The result is what we see today: ISPs can legally intercept your communications in various ways, cable companies can supply content AS WELL AS carry communications (the possible negative consequences of this should be obvious), and they have had huge mergers and developed monopolies because they are not subject to the same sane regulation as the telcos were (are).

      The point being this: in countries where the common communications backbones are required to allow sharing by competitors, internet service is faster and cheaper. That is true competition. What the cable companies in the U.S. are calling "competition" really isn't.

      Free-market capitalism is not always the best answer, when it comes to common public services, utilities, etc. And it is becoming increasingly obvious that it hasn't worked for cable in the U.S. [But note: lobbying Congress is not "free market capitalism", either... so it's kind of a moot point in this particular instance.]

    21. Re:Probably Obama. Or the Tea Party. by AK+Marc · · Score: 5, Interesting

      Why is there no competition for them? Is there something stopping another chain from opening a store and charging slightly less and taking all their customer?

      Yes, the cost of setting up a new store. That's a significant cost, and if you did do that, they'd drop their prices. I've seen where stores have waited until a competitor bought land near them, then they dropped their prices significantly. The land was sold by the competitor because it was no longer profitable. Then the prices went back up. The monopoly bought the land, making money from their competitor, then developed into something that could never compete with them (offices, rather than retail), then sold it to a property management company, ensuring nobody could get an equivelent piece of land at a reasonable price for miles around them

      There are many ways for monopolies to abuse the marketplace without directly manipulating it.

    22. Re:Probably Obama. Or the Tea Party. by jonbryce · · Score: 5, Informative

      In the UK, there is one set of electricity wires in the street, one set of gas pipes, and one set (or sometimes two sets) of telephone cables.

      The owner of the electricity wires, the gas pipes, and except in Hull, one of the sets of telephone cables, is required to make them available to other suppliers at a regulated price. That means I can choose from many different people to supply my gas, electricity and telephone.

    23. Re:Probably Obama. Or the Tea Party. by Jane+Q.+Public · · Score: 2

      I should add that they did not get the Title II exemption just for the purposes of carrying internet. They also wanted to be able to provide content as well as deliver it.

    24. Re:Probably Obama. Or the Tea Party. by Luckyo · · Score: 4, Interesting

      And as of typing this, three ignorant fools modded you insightful.

      Do you know what happens in reality, behind those pretty words and talking points that are carefully fed to you via mass media? When your megatelco sees competition it:

      1. Blocks peering at local exchanges which it mostly controls, or puts in prices so high that fledgling business goes under.
      2. Lowers its user prices for a short period, dumping the price and bankrupting the competitor. Then pushing prices to even higher level to gain the money lost back.
      3. Buys new competitor out outright.
      4. Uses local bought and paid for legislature to block the competitor.
      5. Reminds its contacts in the local media to talk about 4. as if it's the fault of the government, and that more deregulation is needed to control 1-4. And so useful idiot like yourself types up that wonderful ideological drivel that is being carefully fed to him and he gets to parrot, and three other ignorant fools mod him insightful.

    25. Re:Probably Obama. Or the Tea Party. by Zaelath · · Score: 1
    26. Re:Probably Obama. Or the Tea Party. by Luckyo · · Score: 2

      Monopoly is natural outcome of unregulated capitalism. Take a look at what was happening in US in early 20th century.

    27. Re:Probably Obama. Or the Tea Party. by Sperbels · · Score: 3, Insightful

      America is the home of capitalism, which means competition, which drives down prices and raises standards.

      Competition. Right. My choices for internet are 50 mbps Comcast (which has to be bundled with cable service I don't use) or 1.5 mbps DSL. Seems there's lots of competition here.

    28. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      It isn't inefficient to put one set of power lines, cable lines, or telephone lines. It's fucking stupid. There is no benefit to it. In the case of phone/data lines, ISPs aren't even necessary. Just run lines to people's homes, let them broadcast to one another. ISPs are the very essence of a middle man that adds nothing to the equation. They've fought tooth and nail against public internet in the courts and public opinion. They've bought their markets. To say it's just "regulation" is simplifying it and glossing over that the powerful business interests have yet again gotten their way.

      They may say it's regulation, but that regulation was bought and paid for. The same as it would be in a free market capitalist US Libertarian wet dream. Someone with more money than you have would simply buy their way into to running everything.

    29. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      There does appear to be a false framing of the argument. If the industry is more deregulated then why are cable vendors issued monopoly licenses in each region?

    30. Re:Probably Obama. Or the Tea Party. by geekoid · · Score: 1

      yeah, but how many people can build a power generation plant where ever they want?

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    31. Re:Probably Obama. Or the Tea Party. by geekoid · · Score: 2

      "inefficient"
      actual, its because it isn't practical and it create a heavy burden on the citizen.
      So it's a good way to gt infrastructure they requires long distances built, but doesn't many everyone gets the street torn apart of each competitor.

      You should study the initial roll outs and expansion of electricity where a lot of people where running lines. It's pretty horrible.
      The regulation exists becasue of a reason. You should look at why any regulation exists.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    32. Re:Probably Obama. Or the Tea Party. by mishehu · · Score: 2

      You're simply contributing scenarios as to to why last-mile needs to belong to the municipality / county / state gov't and the users select their service provider on top of this. The telcos and cable cos need to NOT own the last mile.

    33. Re:Probably Obama. Or the Tea Party. by noobermin · · Score: 1

      The only problem with your opinion is we don't really have examples of this. Elsewhere, where there are government controls, prices are lower; ie., we have examples of the opposing opinion.

      The problem with libertarianism is the same of socialism. We have no successfully working examples. (Of course, thankfully for us in the modern age, we have examples for how communism will fail spectacularly instead.)

    34. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      * Provided you live in Paris or some metro area. I'm due to get fast broadband in about 2028 according to the fibre to the cabinet comittee meeting, but I don't live in a metro area.
      What makes it really annoying, is cable theives keep stealing 10km of copper linking our local dslam to the adsl network, and they could just pull fibre in and end the copper thefts since the upstream infrastructure is fibre.

    35. Re:Probably Obama. Or the Tea Party. by icebike · · Score: 2

      Telephone is a many-to-many service, using circuit switching to dramatically reduce the number of necessary wires. Why couldn't power lines, water lines, cable lines, and so on do the same using valves, relays, etc.?

      What ?

      Are you daft? You're streaming music from the web and suddenly it goes silent because your neighbor checked his mail?
      How to you propose to have water at every tap without a pipe running to the faucet? Bang on the pipe till some
      operator dressed like Lilly Tomlin working in your basement pulls a hose out of one pipe and plugs it into another?

      --
      Sig Battery depleted. Reverting to safe mode.
    36. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      We have two ISPs here Cable and DSL. They collude to rig the prices the same at $60+ dollars per month for 5Mb download, 0.8Mb upload.

    37. Re:Probably Obama. Or the Tea Party. by scarboni888 · · Score: 1

      Yes it's true it's capitilism and the rigours of the market for the poor. And socialism for those with the money. Namely Wall Street and the banks.

      Oh and speaking of the internet providers there's a whole bunch of them that successfully lobbied to keep dozens of communities across the U.S. from installing their own municiple broadband while simultanously refusing to offer them any service due to low profit margin.

      I don't think that last one is capitilsm OR socialism, though. I think that once is in a class all its' own: Assholism.

    38. Re:Probably Obama. Or the Tea Party. by clarkkent09 · · Score: 0

      Seriously? We are talking about grocery stores. Where I live there is a VONS, Smith's and Albertson's literally within 2 miles of my house and there was still room for newcomers like Fresh & Easy and a dollar store to open recently to serve niche markets. Everywhere I lived there were many choices of grocery stores. Perhaps in a small 'one store' town a company can get away with abusing its position for a time but the more they charge the more they open the door for competition.

      --
      Negative moral value of force outweighs the positive value of good intentions.
    39. Re:Probably Obama. Or the Tea Party. by icebike · · Score: 1

      You get to choose who to pay. That's ALL you get.

      Its the same gas in the same pipe, at the same pressure for everyone on the block.
      Gas company A has a pumping problem, and the entire load is picked up (unwittingly) by company B's pumps.

      Its not exactly the same thing as a data connection. My ISP goes down, my mail stops flowing,
      I get no packets at all, because unlike a cubic foot of gas, packets can and must be routed.

      --
      Sig Battery depleted. Reverting to safe mode.
    40. Re:Probably Obama. Or the Tea Party. by macpacheco · · Score: 1

      I live in a country that has all USA problems, plus a bunch of extra ones... Brazil.
      Our population density is similar to the USA, at the same time, we have twenty metro areas with a million plus population (including on the the ten largest metro areas in the world, Sao Paulo, with the population of Florida in a single metro area about 40x40 miles)
      But here we have up to 6 triple play (either mobile+landline+broadband or landline+broadband+tv) providers in most metro areas.
      Even though wholesale internet costs 10x more than in the USA (1 Gbps of wholesale internet costs about what 10 Gbps costs in the USA), we can get 35Mbps broadband for US$ 40 (R$ 100), ftth started about 2 yrs ago.
      The main difference is we don`t have those per city, per state monopolies for telecom, we have them for power, water, gas, but not for telecom. Its usual to find utilities poles with wiring for 5-6 separate telecoms running along with the electricity poles.
      Bottom line, even with our rampant corruption/taxes/govt intervention, at least we don`t but this local monopoly crap. Total effective taxes over telecoms are at least 45% of gross receipts, with 35% taxes directly over gross receipts (regardless of profits/losses).
      Wake up USA, Obama is bad, but the Tea Party conservatives are much, much, much, much worse.
      Pure free market don`t work, the USA shows that. Even a heavily regulated market such as in Europe works better (although in many ways less regulation than Europe can be good).
      But what really matters is getting rid of political cool aid. When the average citizen can spot govt/lobby crap and call it bullshit right of the bat, everything works so much better. That`s the real problem.

    41. Re:Probably Obama. Or the Tea Party. by macpacheco · · Score: 1

      True for everything except for telecom. While it`s not viable to have more than 2 sets of power lines, water mains, ... A single power line utility pole can house 6 or more telecom cabling systems. And that`s talking copper. Using only fiber, its viable to have a dozen telcos worth of fiber lines on a single utility pole. Here in Brazil, the telcos rent pole vertical space from the power monopoly. There`s ZERO reason for any telecom monopoly anywhere. It might be problematic to have a 20 telecoms in the same city, but 6-8 is perfectly doable, and great for competition.

    42. Re:Probably Obama. Or the Tea Party. by fatphil · · Score: 1

      Cartel is equally natural. It has the advantage of maintaining the illusion of choice, so that the sheeple don't get perturbed.

      C.f. US "democracy".

      --
      Also FatPhil on SoylentNews, id 863
    43. Re:Probably Obama. Or the Tea Party. by Archangel+Michael · · Score: 1

      No, it is a matter of short sighted leadership at the local level. Simply building out a Fiber to Premises would be feasible in a way that would bring data to every address in most cities. Bringing the dark fiber into a COLO facility would allow any number of companies the access to the Fiber to any particular address. Once that is done, competition again. However the Municipality would have to pull this off, and not leave it to Verizon or Comcast.

      Short sighted, as they see the cable plant as being owned by the company (or leased) and not as a "service" the municipality is responsible for. It could be paid for by service fees (connect fee, monthly taxes on service etc) to cover the cost of Maintenance.

      A one time build out, and return to competition would solve the whole problem. It is just a matter of willpower.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    44. Re:Probably Obama. Or the Tea Party. by nospam007 · · Score: 1

      "Telephone is a many-to-many service, using circuit switching to dramatically reduce the number of necessary wires. Why couldn't power lines, water lines, cable lines, and so on do the same using valves, relays, etc.?"

      I live in a small country in Europe and here this is all infrastructure. It has nothing to do with the companies delivering services over it, just as the streets are used by FedEx, Postal Service or any of the other 25 companies offering that service.

      I have 1 electricity cable, 1 TV cable, 1 phone line, 1 gas line and 1 water line but I can switch to any company I like for all of them, without any new lines being needed. Some people want only green electricity other are content ordering no nuke only, some electricity companies offer different contracts based on time of use or minimum usage, ditto with water, cable and DSL but the infrastructure (or phone number) never changes.

      Only if you order some special contract that need a newer, more sophisticated water, electricity or gas counter (time of day based, feedback etc) than your old one, these ones are changed by the new company, but these are only rented anyway, so there's no extra expense.

    45. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      Geez. Thanks Obama!

    46. Re:Probably Obama. Or the Tea Party. by icebike · · Score: 1

      Yes, but first you would have to condemn all of the existing cable plant franchises that exist in all the neighborhood, or buy the cable plants in these neighborhoods.

      Even if you can just trench in your own fiber to each subdivision and plan to pick up that subdivision's entire load after buying out Comcast, you have a motley assembly of various vintages of cable plants to bridge. Its a huge mess of coax plants, fiber plants, cat5 plants, and nothing at all.
      And in the process if you find one provider that doesn't want to play ball, they can make it very expensive in court.

      You can avoid this in Future projects, but rebuilding or even restructuring all existing networks in a country the size of the US is a 100 year task.

      My county did lay fiber all over the place to hook up county facilities. They are drowning in bandwidth, and are now slapping up free wifi in various communities. This, or course will become the tragedy of the commons all over again, because given a free resource there are those who will attempt to consume all of it.

      --
      Sig Battery depleted. Reverting to safe mode.
    47. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      There are NO ALTERNATIVE ISPs in Hull area, It's either Kingston Communications (Karoo) or no ISP, you can still use a 3G dongle, but why restrict yourself?

      OFCOM are strictly to blame for this monopoly; see: http://www.telecomsinhull.co.uk/

    48. Re:Probably Obama. Or the Tea Party. by Rockoon · · Score: 1

      Its more a matter of practicality than regulation.

      Come off it. First the Statists claim that there isnt enough regulation and thats why monopolies exist, and then when its pointed out that the regulation that exists specifically mandates that monopolies exist, we are to then fall back on the "oh thats a matter of practicality" excuse for why the Statist belief system has fucked us into having monopolies?

      You don't get to blame the situation on free markets. Period.

      Nobody would stand for yet another cable company trenching through every neighborhood laying new wire or fiber.

      Says who? You? Amazing that you have decided what other people will stand for for them. You have therefore decided for everybody that yet another Statist solution is the only acceptable solution.

      Meanwhile in the real world, companies like Verizon and Google are laying down new infrastructure in the very neighborhoods where you claim that "nobody would stand for yet another..." and completely against your claims the people are cheering them on.

      What is happening is that there were no exclusive fiber contracts and low and behold now companies are moving in and laying down fiber. Could those exclusive contracts possibly be the problem, and could your claim that people wont stand for more infrastructure be a completely fabricated lie? Yes. Yes it could.

      --
      "His name was James Damore."
    49. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      Sorry, but that argument is nonsense. In democracy we elect those in power in the government, but we don't get to choose who is the major shareholder of the local cable-company. Of course, the problem is the elected representative choose to have a decades-long one-company monopoly over such things, which I'd say should be made illegal somehow.

    50. Re:Probably Obama. Or the Tea Party. by Rockoon · · Score: 1

      2. Lowers its user prices for a short period, dumping the price and bankrupting the competitor. Then pushing prices to even higher level to gain the money lost back.

      ..creating an incentive for even more competitors to move in.

      3. Buys new competitor out outright.

      ..so the original profit incentive remains, plus they indicate a new one, so even more competitors move in.

      4. Uses local bought and paid for legislature to block the competitor.

      Thats calls regulation.

      5. Reminds its contacts in the local media to talk about 4. as if it's the fault of the government

      The government had the power to grant those regulations or to not grant them. Like it or not, the government dealt the hand and then pushed the pot.

      --
      "His name was James Damore."
    51. Re:Probably Obama. Or the Tea Party. by Ichijo · · Score: 1

      How to you propose to have water at every tap without a pipe running to the faucet?

      There would be one pipe running from the faucet to a local manifold fed by your neighborhood's choice of water companies.

      Even better, your pipe could be split and fed into two neighborhood manifolds, and you could choose from the two companies your neighborhood chose.

      --
      Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
    52. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      Its more a matter of practicality than regulation.

      Nobody would stand for yet another cable company trenching through every neighborhood laying new wire or fiber.

      That's exactly what happened about 10 years ago in Hong Kong, when new broadband companies started to dig up and lay new cables everywhere. And guess what? Every neighborhood looked forward to it eagerly as it means they can get 100Mbps internet once they were done.

      If your neighborhood don't want fast internet just because it means digging needs to be done, the people in the neighborhood is the problem.

    53. Re:Probably Obama. Or the Tea Party. by elashish14 · · Score: 1

      There's a simple solution: forcing companies to lend their cables to other companies.

      But the Supreme Court killed that one.

      --
      I have left slashdot and am now on Soylent News. FUCK YOU DICE.
    54. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      Everybody has access to poles, a company "only" has to run its own wires and presto, you have a second provider.

      Generally, the owner of the poles charges an annual fee for each "touch". In most cases, the poles are owned by the electric utility. Ignoring powerline broadband, the power company would make money with more renters on the poles, and these renters are not competition, but the power company does limit the number (and location) of cables on their poles for safety reasons. So, your statement is true only for very small values of everybody.

    55. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      It's classical economics that, long term, open competition eventually leads to oligopolies and monopolies so long as there are significant barriers to entry and resticted access to capital. I was very surprised when I was in the US how little real competition there was in so many markets. There are various reasons, I guess, but the fact that Americans put up with one phone company, one electicity company etc, when other countries have introduced competition in these markets, is quite bewildering.

    56. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      But it is still feasible to have one, regulated, wire and many companies selling the leccy. This is what happens in other countries. It amazes me that Americans don't get this.

    57. Re:Probably Obama. Or the Tea Party. by Belial6 · · Score: 1

      The claims that multiple competitors requires the street to be dug up for every competitor is a ridiculous red herring.

    58. Re:Probably Obama. Or the Tea Party. by sjames · · Score: 1

      Part of the problem is that many of the free market zealots misunderstand Smith's fundamentals. When he spoke of competition,he didn't mean a bunch of resellers all buying from the same wholesaler. He didn't mean 2 or 3 competitors, he meant dozens or hundreds. He was fairly specific that they had to be small. He warned that when the sellers were incorporated and became large that they would distort the market.

      In the early '90s with many small and often local ISPs, the model more or less worked for a while, but then the (not so) great consolidation happened and with broadband, for all the technical improvements it represents made it impractical for small ISPs to build out their own infrastructure.

      For a while, the CLECs held on by renting dry pairs from the Bells and colocating their own DSLAMs, but once theBells decided to jump in themselves, in spite of regulations for equal access, suddenly and 'mysteriously' orders from the CLECs ended up at the back of the queue every time. Bell could light up DSL next week but a Covad might take a month or two due to telco foot dragging (the same telco that hooked their own customers up in a week or 2).

      Cable or DSL is nowhere near a broad enough choice to meke a market work. A market solution will require that the last mile be community owned at the very least. That's why the ISPs fight so hard against that in court. So far the evidence suggests that a municipal ISP can provide much better connectivity at a fraction of the price.

    59. Re:Probably Obama. Or the Tea Party. by sjames · · Score: 1

      Power lines are a slightly larger gauge than telephone wires for one. Right now, there are 3 cables coming to my neighborhood to carry power. I don't think we want to put 250 of them on the pole instead of 3. A few miles down the road, those 3 connect to a substation. I'm rather sure we don't want a dozen substations where one serves now.

    60. Re:Probably Obama. Or the Tea Party. by jon3k · · Score: 1

      Except that we actually have a highly regulated duopoly, not a free market.

    61. Re:Probably Obama. Or the Tea Party. by Solandri · · Score: 1

      That's the way it works in the U.S. too. One company owns the electrical wires and handles repairs and expansions, but you can buy electricity from a plethora of companies. One company owns and maintains the natural gas lines, but you can buy gas from dozens of different companies. The company which owns the lines/pipes isn't allowed to sell electricity or gas. If they want to do that, they have to set up a separate independent company and can't grant access favors or lower rates to that company - it has to compete on equal footing with all the other companies selling electricity or gas.

      But for some reason (probably having to do with greasing politicians' palms) the telecos aren't run like this. The company that owns the phone or cable TV lines sells the service, and only they sell the service. Long distance phone service is competitive, but not local phone or internet service.

    62. Re:Probably Obama. Or the Tea Party. by RightSaidFred99 · · Score: 1

      I get it, snarky! The problem is the real reason is quite simple - the _least_ dense (population wise) country from that list of countries with cheap broadband is almost 4X as dense than the US. It costs money to run wires over long distances.

      What now?

    63. Re:Probably Obama. Or the Tea Party. by jareth-0205 · · Score: 1

      There is a middle way though... one set of wires held by one regulated company (in the UK, BT for communications and National Grid for power), and multiple companies competing to provide you with service. Typically they have equipment installed in the exchange, so the "rent" for BT is literally last-mile stuff.

      That horrible socialist holdout of the UK that has had one of the best value internet service through the last decade...

    64. Re:Probably Obama. Or the Tea Party. by jareth-0205 · · Score: 1

      You get to choose who to pay. That's ALL you get.

      Its the same gas in the same pipe, at the same pressure for everyone on the block.
      Gas company A has a pumping problem, and the entire load is picked up (unwittingly) by company B's pumps.

      They'd know, and presumably company B bills company A? I'm pretty sure the amount of fuel dumped into the grid is tightly controlled, they're not just randomly pushing gas around!

    65. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      ... there is one set of electricity wires in the street ...

      That's because the electricity 'grid' become government-regulated in the '30s. That allowed the building of giant power plants. Before that electricity supply was a local factory, like ice. Whereas ice in one town is the same as ice in another town, that wasn't true of the local power plant. Hence the need to regulate the voltage and current that could be sold which in turn allowed the standardized construction of motors, plugs and wiring.

    66. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      BT do need a kick up the arse though, as they're getting all this investment from the government to increase availability of higher speed broadband, but are spending it very poorly.

      Case in point, I just bought a flat on a new housing development, most construction work took place in 2012 and I moved in this January. During 2012, my town had the FTTC upgrades, but they didn't install them in the cabinet that now serves this estate of 400 new properties. Because it wasn't "commercially viable" at the time, when they had free access to dig in the area of the cabinet, and run the additional power necessary. It's commercially viable now because the new properties are occupied so they'll pay the vastly higher sums to upgrade the cabinet now in April 2014!

      If you're putting down trunking and copper to a brand new estate while the FTTH trials are underway, you'd think it might be worth putting some fiber down at the same time? Wouldn't increase the cost much compared to blowing fiber to individual properties later... but they didn't!

      BT have a total lack of foresight on their infrastructure development, and they simply won't spend a single penny in advance if they think they can get the government to set up a project to pay for it later.

    67. Re:Probably Obama. Or the Tea Party. by dave420 · · Score: 1

      That does nothing to explain why US cities have generally terrible internet access. How does the population density of Alaska explain why New York's internet is so poor? It doesn't. You're just making excuses so you don't have to feel bad that the US isn't the paradigm of wonder and awesomeness you seem to think it is. No-one is suggesting one should be able to walk into the wilderness in New Mexico or Arizona, turn over a rock, and find an RJ45 with 100/100 internet service.

    68. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      That's the problem, it IS regulated. But not in favor of competition.

    69. Re:Probably Obama. Or the Tea Party. by Orgasmatron · · Score: 1

      Nonsense.

      The town I live in is served by two cable companies. Both of them have full fiber networks, and service is dirt cheap. My house actually has three fiber pairs servicing it, one for TV, one for internet, and one for the other cable company. (I wanted my network ONT in a different spot, but haven't gotten around to redoing the coax inside yet, cable company had no problem putting up a second box.)

      When the first company's exclusive franchise expired a while back, the second company lobbied for it not to be renewed. They then came in and wired up the whole town. No one complained about them doing it. The city didn't pay a dime for it. The old company had to cut prices to keep customers, and they did. A few years later, the new cable company came back and redid the entire town with fiber (this was a while ago). The next year, the old company ran fiber everywhere too.

      Did I mention that my town is about 2500 people? Oh, and they did the rural areas around town too. I'm actually about 6 miles out.

      The new company has detailed plans for fiber networks in every town in the area. Every few years they get another one to let their exclusive franchise lapse and they spring into action.

      This "story" is a joke. Where the cable system has actually been deregulated to the point of breaking the government granted monopolies, internet access is cheap and awesome. Where the monopolies still exist, it sucks monkey balls. I'm not sure how anyone with access to a dictionary can consider a government granted monopoly to be "deregulated".

      P.S. I have 50 down and 50 up for $45 per month. I could go much cheaper, or I could go much faster, if I wanted to. I used to live in a different city, where Charter has a monopoly. I paid close to $100 for 30 down and 5 up, which was top of the line there.

      P.P.S. Oh, phone service is relatively cheap here too, from what I hear. I haven't looked into it myself because the notion of getting a landline seems quaint to me. Three companies providing phone service and all. But it isn't as cheap as you'd expect because phone service is mostly governed by the state public utility commission, which amusingly sets floors on what a company can charge.

      --
      See that "Preview" button?
    70. Re:Probably Obama. Or the Tea Party. by firex726 · · Score: 1

      In Texas there is only one set of wires, for utilities, but are sold via brokers and the provider itself cannot sell direct. It's not that we need a second power company but that our current one is regulated while the brokers are more free to compete against each other.

      Basically the more volume they have the better rate they can get. So they compete to get customers to get themselves a better deal.

      http://www.eia.gov/electricity/monthly/epm_table_grapher.cfm?t=epmt_5_6_a

    71. Re:Probably Obama. Or the Tea Party. by sabbede · · Score: 1
      Well, the deregulation was on the Federal level, and intended to increase competition. However, on the State and Municipal level, cable companies still get to have a utility company style monopoly.

      And while that is a big drawback to federalism, its still the best way we have to govern such a large nation.

    72. Re:Probably Obama. Or the Tea Party. by dywolf · · Score: 1

      thats why the simplest regulation of all is the most effective.

      "thou shalt compete over the existing wires"

      --
      The guy who said the election was rigged won the presidency with the second-most votes.
    73. Re:Probably Obama. Or the Tea Party. by JWallyR · · Score: 1

      Horrendously wrong.

      Capitalism is a game in which the goal is simply to make the most money (with the least effort). The "free market" (aka competition) is just one of many possible strategies to make the most money.

      I have to correct you here, because you are way, way off in your description of these concepts.

      Capitalism is a "game" in the sense that every system is a game. "Evolution is a "game" in which the goal is to pass on your genes, and therefore (insert discussion of evolution using game terms)." etc. I strongly suspect (due to your following statements) that you're using "game" as a pejorative term to discredit the idea of capitalism because, although you don't really know what it means, you've been told that it's worse than (insert another economic system here) based on (insert oversimplified discussion of benefits of other economic system and pitfalls of capitalism).

      Capitalism is a system of economics in which (hypothetically) the capital means of production are owned by individuals, rather than the state, and through the mechanism of offer/counteroffer, prices are "discovered" due to market action. The "free market" is a related, but distinct concept based on the idea that the most efficient economies are reached through market action that is facilitated by a few conditions, including:
      1) Low (or nonexistent) barriers to entry in a market
      2) Widespread access to information
      3) Etc.

      In such a free market, the price that a company would be able to charge (i.e. the price that buyers would be willing to pay) would always draw very close to the cost of offering their product or service, due to the ability of competitors to jump into the market and undercut a company charging exorbitant rates, the knowledge of the buyers that the rates being charged were excessive, etc.
      However, the market created by the Telcos doesn't even remotely resemble a free market, due to:
      1) EXTREMELY high barriers to entry (legal monopolies on "the last mile" within residential neighborhoods, HUGE infrastructure costs in laying the network infrastructure outside these neighborhoods, etc.)
      2) The Telcos are often owned by the same vested interests that control the media, and therefore the information regarding the costs to provide these services is deliberately hidden/not broadcast/drowned out by misinformation/etc.

      In other words, while your assertion that "practically every business on earth bends over backwards to avoid the free market at all costs" is essentially correct, your understanding of *why* this is the case is so wrong as to be dangerous.
      The issue here is: the telecommunications market is not free and never has been. For a variety of reasons, a free Telco market is both impossible and impractical, and therefore the closest thing that we can do is have the infrastructure be handled as a government-owned utility, and have the providers of service compete against each other... but this is not remotely the same thing as "free markets are a bad strategy for business"...

    74. Re:Probably Obama. Or the Tea Party. by Elldallan · · Score: 1

      Actually the solution isn't all that complicated, limit the ability of the providers to make it expensive in court. A municipality a democratic organization, it represents the citizens of that particular community, make it obviously legal for them to organize something like this without the big corporations being able to sow a legal mine field because they want to gouge the inhabitants.

      Personally I think the ideal would be for the municipality to run dark fiber/cable throughout their city and then let any provider rent it at a rate that accommodates maintenance and future expansion, if no provider shows interest then the municipality can run it's own provider.

      Where I live the city lays down empty piping, at least to the switching station whenever it does any sort of extensive digging work on water, sewer or power lines so that whenever they want to lay down fiber it's pretty trivial and basically free since the work was done in tandem with other digging that had to be done either way. It will also be fairly easy to replace the fiber with whatever comes next, just pull the fiber out of the plastic pipe and replace it.

    75. Re:Probably Obama. Or the Tea Party. by Elldallan · · Score: 1

      By the way, Europe wouldn't have all this high-speed routing left to their own devices. It's easy for a politician to use tech someone else's many billions developed to satisfy the American market and then turn around and scream capitalism suxxorz!!1!11

      But you need an analysis that includes slower tech development due to business-unfriendly environments.

      We're not "screaming capitalism suxxorz!!1!11" we simply choose to conduct our business in a different manner, you are the ones screaming bloody communism whenever someone does something that's different from laissez faire captalism.

      Not letting the corporations buy your government is not the same thing as business unfriendly, there is a whole bunch of corporations that manage to thrive in Europe. There is a huge span between letting corporations do whatever they want and being business unfriendly.

      Yes there may be more invention going on in the United States than in Europe just like there is more manufacturing going on in China than in the United States, because it is cheaper but that doesn't mean that the research wouldn't be made if somebody closed that opportunity. Manufacturing happened before China and it will happen after China.

    76. Re:Probably Obama. Or the Tea Party. by RightSaidFred99 · · Score: 1

      Easy enough, we don't have terrible internet access. I get cable, including HBO, plus 25-30Mbps down and 20up for like $100 a month.

    77. Re:Probably Obama. Or the Tea Party. by Anonymous Coward · · Score: 0

      I'm in China and I get 20M down and 5M up for about $17US a month.

      Is it Chinas size or their capitalism that makes mine so cheap?

    78. Re:Probably Obama. Or the Tea Party. by Zenin · · Score: 1

      In other words, while your assertion that "practically every business on earth bends over backwards to avoid the free market at all costs" is essentially correct, your understanding of *why* this is the case is so wrong as to be dangerous.

      You say this, yet you've failed to even try to suggest an alternate motivation, to suggest an alternate "why"?

      The "why" is very simple; The motivation is money. Whatever strategy will garner the most money is most often the strategy used. On the whole it's exceptionally rare to find another motivation and thus exceptionally rare to find another strategy employed. And the few that are motivated by other factors almost always get eaten alive quickly; It's hard to last in a game when you have no interest in actually succeeding at it.

      The telcos, for all the reasons you've detailed and more, have plenty of opportunity to avoid and discourage free markets so of course they do so. This isn't rocket science.

      Free markets are simply NEVER in the best interest of ANY business. They're in the best interest of consumers, sure, but consumers have very little power in a capitalistic model. At best they have fleeting moments of the allusion of power.

      Capital (ie business) avoids free markets simply because it is in their strong self interest to do so, and no other reason.

      --
      My /. uid is better then your /. uid
  4. all those executives got to have their BIG bonuses by FudRucker · · Score: 1

    âoeIf he needs a million acres to make him feel rich, seems to me he needs it 'cause he feels awful poor inside hisself, and if he's poor in hisself, there ain't no million acres gonna make him feel rich, an' maybe he's disappointed that nothin' he can do 'll make him feel rich.â
    â John Steinbeck, The Grapes of Wrath

    --
    Politics is Treachery, Religion is Brainwashing
  5. What the market will bear. by intermodal · · Score: 2

    People will pay whatever is charged up to the point that the market will bear. It's not that far off from an unregulated utility at this point. Television content delivery has similarly pulled their prices up through the roof, because people will pay it.

    I haven't paid for either service (at least intentionally) since 2009. Under the right circumstances I might be persuaded to get the broadband again, but not cable or satellite television.

    --
    In SOVIET RUSSIA... erm...NSA AMERICA, the Internet logs onto YOU!
    1. Re:What the market will bear. by mythosaz · · Score: 2

      People will pay whatever is charged up to the point that the market will bear.

      +Everything, informative.

    2. Re:What the market will bear. by CanHasDIY · · Score: 1

      People will pay whatever is charged up to the point that the market will bear.

      ... at which point purchase will become compulsory via government mandate.

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
    3. Re:What the market will bear. by intermodal · · Score: 1

      I wish it were just cynicism rather than actual informative observation.

      --
      In SOVIET RUSSIA... erm...NSA AMERICA, the Internet logs onto YOU!
    4. Re:What the market will bear. by intermodal · · Score: 1

      That certainly seems to be the trend.

      --
      In SOVIET RUSSIA... erm...NSA AMERICA, the Internet logs onto YOU!
    5. Re:What the market will bear. by Anonymous Coward · · Score: 0

      Yes. Notice that salaries are often better in the US, and don't forget that the US is geographically huge. Both UK and France are about the size of Texas.

    6. Re:What the market will bear. by Anonymous Coward · · Score: 1

      But let's not forget that the government regulators are in most cases industry shills (i.e. FCC boss Tom Wheeler was a cable company lobbyist) and when their term in government is over they are richly rewarded for advancing the corporate interests. Cable TV was just recently allowed to encrypt all channels, even basic and now they have persuaded a lawmaker to introduce a bill to kill cablecard which is the end of 3rd party DVR's like TIVO.

      Americans really need to demand that the revolving door between industry and govt regulators close.

      http://www.dslreports.com/shownews/Cable-Industry-Tries-to-Kill-the-CableCARD-for-Good-125440

    7. Re:What the market will bear. by Anonymous Coward · · Score: 0

      And if the market decides that extreme actions need to be brought to bear such as the assination of the CEO of verizon or some other cable company would that be a just reward. If people decide to gouge their fellow human beings, what right do the those doing the gouging not have to be rewarded with a shorter life.

      We would be going back to the days when railroad robbers were publically applauded because the public thought the rail industry was soo corrupt. Isn't the ultimate end of laizefaire economics and unconstrained capitalism just anarchy. Where you have rival gangs and cartels battling it out to make the most money without any concern for the public good. I mean if capitalism is supposedly good for business because it breeds competition (ignoring the fact that business does not want competition and want monopoly and regulation to the extent that it prevents competition from entering the marketplace) shouldn't anarchy and gang war be good for humanity because it allows the best and strongest people to rise to the top. People seem to draw a distinction between legal monopolistic usery, and killing someone because they have a nicer pair of shoes than you do. I do not see this difference. To me a payday lender and some faggot selling crack on the streets are both the same. They are both parasites and should be eliminated. If a kid (the elite financial controllers of the world ) kicks a dog (the public) in the head enought times. The kid should not be supised if the dog tries to bite him.

      The greatest politician ever was Teddy Roosevelt. He was a man's man and realized the capitalism could raise such behemouths that the idea of a fair market was a joke. He worked with extreme prejudice to break up these monopolies. Today our politicans are making too much money off these guys to care.

    8. Re:What the market will bear. by jamstar7 · · Score: 1

      People will pay whatever is charged up to the point that the market will bear. It's not that far off from an unregulated utility at this point. Television content delivery has similarly pulled their prices up through the roof, because people will pay it.

      I haven't paid for either service (at least intentionally) since 2009. Under the right circumstances I might be persuaded to get the broadband again, but not cable or satellite television.

      I pay for satellite service here for TV because there is no cable company locally. I live in a town of about 3000, 40 miles from anywhere. Likewise, only ONE internet provider here, and the lines are slow as hell and expensive. Why? Because there is no competition.

      --
      Understanding the scope of the problem is the first step on the path to true panic.
    9. Re:What the market will bear. by Skiron · · Score: 1

      Also in the UK (as we are a relatively small Country) a lot of services run underground, so once laid they don't have so much maintenance costs.

    10. Re:What the market will bear. by Anonymous Coward · · Score: 0

      People wont pay what they can if there is true competition on the market. When every home have an option of 3 or more ISP to deliver you will have competition. I got 6 ISP's offering service on my fiber connected apartment. I can opt in for a xDSL connection from a few more, if 3/4G is my wish I got 4 operators to choose from.

      The lowest price for 100/100 fiber is $45 - highest $60.

      Almost the complete Greater Stockholm area is covered with dark fiber provided by several local utility companies but they don't sell Internet access.

    11. Re:What the market will bear. by ewibble · · Score: 1

      Suppliers will lower their prices until the can no longer to afford to be in business, they will innovate to reduce costs. That of course relies on competition. That is why you need competition. Otherwise yes they will charge as much as they can. They will produce it inefficiently as well because there is no driver to reduce costs, in fact high costs can be used to justify a high price.

      That is why when you hear a pricing scheme that goes along the lines well product A replaces B so lets about the same price as B, even though product A is much cheaper to produce. You know you don't have much competition since it does not take into account production costs. In an environment with healthy competition competitors would simply come in and undercut you.

      It works the same way for only one consumer. If you only have one consumer and many produces then the consumer can basically set the price to any point until the produce is no longer making enough profit to survive.

    12. Re:What the market will bear. by Mr+D+from+63 · · Score: 1

      People will pay whatever is charged up to the point that the market will bear.

      This is true, but competition more often makes a product available to the market at a price that is much lower than what the market will bear. I'd be willing to pay $5 some days for a chocolate glazed donut, but thank goodness I can get them for 99 cents!

    13. Re:What the market will bear. by Cramer · · Score: 1

      Not really... people pay what they do because they have little choice. Pay a high rate to one ISP or another (if they have others), or do without. And we all know, people will not do without. Broke and up to their eyeballs in dept, but they still have cable TV, internet, and the latest iPhones.

    14. Re:What the market will bear. by LynnwoodRooster · · Score: 1

      I pay for satellite service here for TV because there is no cable company locally. I live in a town of about 3000, 40 miles from anywhere. Likewise, only ONE internet provider here, and the lines are slow as hell and expensive. Why? Because there is no competition.

      Maybe it's not a lack of competition, but a lack of market.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    15. Re:What the market will bear. by firex726 · · Score: 1

      Maybe not entirely...

      Networking equipment on the enterprise scale is usually setup to handle users in the thousands; and is fucking expensive. A Cisco or Juniper firewall could run you around $60,000 just for that one device, not to mention all the other devices, laying fiber/copper, etc... Normally those kinds of devices can handle 10k concurrent users, etc... But you have less than 1/3 of what it's scaled for, so each of you have a higher share of the cost.

      Other providers probably are not too keen to get into that market due to there already being competition and to succeed they would need to charge at a rate that would not make them attractive unless they could subsidize that loss from other ventures.

    16. Re:What the market will bear. by intermodal · · Score: 1

      The fact that they choose not to do without is a clear indication that the market will bear it. It doesn't mean the market has to like it.

      --
      In SOVIET RUSSIA... erm...NSA AMERICA, the Internet logs onto YOU!
    17. Re:What the market will bear. by intermodal · · Score: 1

      So you're saying that the providers of luxury goods like home broadband connections should be killed if people don't like their prices? I'm certainly willing to agree that there are excesses and dirty tricks in the industry, but assassination is going too far.

      --
      In SOVIET RUSSIA... erm...NSA AMERICA, the Internet logs onto YOU!
  6. Don't forget cities that outlaw competition by Anonymous Coward · · Score: 1

    I live in downtown Bellevue, WA next door to a Microsoft building and within three blocks of two others. Comcast has been at capacity on the block for over six years so they have not offered new service for most of the past decade. CenturyLink offers 2Mbps DSL. It's so slow because of the universal SLiCs that are used in the area due to oversubscription. The city does not allow anyone else to sell on the block. You ever wonder why Microsoft people aren't very pro-Internet? It's because for most of them their Internet access is very slow.

    1. Re:Don't forget cities that outlaw competition by icebike · · Score: 1

      Bellevue probably made the same deal with comcast et al as did every other city. You put in the wires
      and you can have a monopoly for X years.

      I'm betting X years isn't up, but its so close to being up that Comcast sees no money in doing the last hundred feet for
      new apartments or pulling more fiber.

      --
      Sig Battery depleted. Reverting to safe mode.
    2. Re:Don't forget cities that outlaw competition by firex726 · · Score: 1

      As I recall not too long ago, some city tried setting up municipal internet, but the cable company that was local ended up suing and new laws got passed making all new startup ventures nigh impossible.

  7. Deregulated = Monopolies? by Austrian+Anarchy · · Score: 5, Insightful

    1. Where I live we do have choice between carriers, and it is not even a big city. 2. When I was in a densely populated area, Northern VA, we had choice too. Deregulation to allow competition causes monopolies? No, does not compute. Regulation creates barriers to entry that leans to monopolies or few providers, those who can get the government to protect their territory with police power. ATT was a national monopoly only until the feds allowed competition. Your local utility is only a monopoly as long as your local government makes them one, same with your cable provider, etc.

    --
    Time Bomber the Book coming soon.
    1. Re:Deregulated = Monopolies? by CanHasDIY · · Score: 2

      Where I live, we have precisely 2 choices: AT&T, or Mediacon.

      Every once in a while, I see ads for some local startup offering decent speeds at fair prices, but it doesn't seem like they last more than 2-3 months before getting swallowed up by one of the aforementioned Big Fish.

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
    2. Re:Deregulated = Monopolies? by petes_PoV · · Score: 5, Insightful

      Your local utility is only a monopoly as long as your local government makes them one

      The problem in the USA is that pressure groups, whether industrial or commercial have no counterbalance. The wrong sort of regulation stunts growth and competition. However zero regulation turns a free market into survival of the fittest with that survivor killing off the rest. Neither situation is good and a regulator who is able to stop consolidation and monopolies would act in the interests of the consumers.

      That's what happens in most countries and it's what keeps a competitive market operating. The USA has allowed its corporations to become too influential and too powerful.

      --
      politicians are like babies' nappies: they should both be changed regularly and for the same reasons
    3. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 1

      Regulation creates barriers to entry that leans to monopolies or few providers, t

      Bullshit. quote examples.
      I'll quote europe as a counter-example. http://en.wikipedia.org/wiki/European_Union_competition_law

    4. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      Regulations don't create monopolies. People create monopolies. Regulations are just a tool. In the hands of sane, well-trained people, regulations are safe and useful. In the hands of evil morons, regulations can kill.

      The trusts that were busted during the Theodore Roosevelt administration? Those were not created by regulation. The preceding era was probably as close to unregulated capitalism as we ever got. People called "robber barons" grew businesses and consolidated until they formed monopolies.

      AT&T? People argued that a regulated monopoly was better than competition in that market. They simply used regulations as a tool to do that. It may have been the right thing at the time. Times changed. People changed. Regulations changed.

      Now that that bogeyman is put to rest, Oh wait.. Halloween is coming. The bogeyman shall surely rise again...

    5. Re:Deregulated = Monopolies? by 0123456 · · Score: 0

      However zero regulation turns a free market into survival of the fittest with that survivor killing off the rest

      Only in socialist fantasy land.

      In the real world, there's always a smaller, smarter, hungrier competitor, so the most politically-connected company gets the regulators to write rules that keep them out of the market.

    6. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      I always wonder where people think these non-capitalist ideas came from? Surely, if you go far enough back in time, there was no regulation because there was no code of laws at all. In the limit of human history, we had a subsistence lifestyle that was "capitalist" by default, albeit without much in the way of capital infrastructure.

      So if the "real world" consists always of this perfect competition that annihilates all attempts at monopolization, where the hell did the first regulation come from that broke down this perfect, pristine system?

      I'll give my answer to the question: it came from a land monopoly that eventually evolved into the things we call countries, and that particular monopoly is called the government.

    7. Re:Deregulated = Monopolies? by gstoddart · · Score: 5, Insightful

      Only in socialist fantasy land.

      In the real world, there's always a smaller, smarter, hungrier competitor, so the most politically-connected company gets the regulators to write rules that keep them out of the market.

      Horseshit.

      In the real world there's always more large corporations willing to try to get the regulators to set up special deals for them.

      In the real world, if you didn't have regulation, you would still be having babies die of being poisoned by melamine laced formula from China.

      As long as there's an advantage to be had and profit to be made, there's always going to be things companies will do to maximize their profits which directly harms other people. If there's no regulation, there's no consequences.

      The market as so often gets pitched to us is incapable of solving these problems.

      Without regulation, Enron and other fraudulent things would happen all the time and your economy would be even more of a Ponzi scheme than it is now. Without regulation, your environment would be so polluted as to be unlivable. It really would be survival of the least scrupulous and with the most money, and everyone else would be fucked.

      Maybe in your capitalist fantasy land all of these would be self correcting problems. The problem is it would take decades, kill loads of people, and destroy most of your society along the way. And it likely still wouldn't do half of what people claim it would.

      Pure laissez faire capitalism is as much of a unicorn as the socialist workers paradise is. The problem nobody seems to like to acknowledge is pure capitalism will fuck you just as deeply as pure socialism -- only in entirely different ways.

      Neither system can actually exist in the extreme forms people like to advocate. Taken to their extremes, they're both full of shit.

      --
      Lost at C:>. Found at C.
    8. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      1. Where I live we do have choice between carriers, and it is not even a big city.
      2. When I was in a densely populated area, Northern VA, we had choice too.

      The plural of "anecdote" is not "data".

    9. Re:Deregulated = Monopolies? by AK+Marc · · Score: 1
      Banks were deregulated, and massive consolidation followed. Same with phone companies, and media companies. The less regulation, the fewer choices.

      ATT was a national monopoly only until the feds allowed competition.

      ATT was a competing company until the government outlawed competition. In the early 1900s, companies would have multiple phones from multiple companies because Bob might have one company and Alice a different one, and they couldn't call each other, and couldn't call a business unless that business bought lines from both companies. That silliness is why competition was outlawed. Then later mandated.

    10. Re:Deregulated = Monopolies? by dpidcoe · · Score: 1

      Regulations don't create monopolies. People create monopolies. Regulations are just a tool. In the hands of sane, well-trained people, regulations are safe and useful. In the hands of evil morons, regulations can kill.

      This is the point most people ignore in the whole capitalism/anti-capitalism debate. It's not some linear scale of "if we pass 6 more regulations than the monopoly will have to break up" or "if we remove 2 more laws than that company will form a monopoly" as it's most often dumbed down to be.

      In the case of the US, regulatory laws are often written (or strongly influenced by) lobbiests, and generally end up being written in such a way as to raise barriers to entry, or specifically screw over a competitor (competitor making cheaper cement than you? quick! find something unique to his production process and get it banned!). By the kind of posts I've seen so far, I suspect that it doesn't work this way in a lot of other countries.

      The way the system was supposed to work here is that corporations compete freely with each other, with the government stepping in as a referee only to ensure that the competition stays fair and the rules don't change suddenly and without warning. Instead, the players have paid off the referee to penalize the other players while looking the other direction when the payee commits a foul.

    11. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      And where do we get corporations from? That's right, the government. Their liability is so limited as to suppress the natural deterrent effects that the market would have on their risk taking. Look where you find the big giant competition crushing corporations and you find piles and piles of regulation too.

    12. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      The problem in the USA is that pressure groups, whether industrial or commercial have no counterbalance. The wrong sort of regulation stunts growth and competition. However zero regulation turns a free market into survival of the fittest with that survivor killing off the rest. Neither situation is good and a regulator who is able to stop consolidation and monopolies would act in the interests of the consumers.

      Is that why we can only get online through AOL, buy groceries at A&P, and buy clothes at K-Mart? And you seriously think having the right guys wearing the jackboots is the solution?

    13. Re:Deregulated = Monopolies? by Austrian+Anarchy · · Score: 1

      Banks were deregulated, and massive consolidation followed. Same with phone companies, and media companies. The less regulation, the fewer choices.

      ATT was a national monopoly only until the feds allowed competition.

      ATT was a competing company until the government outlawed competition. In the early 1900s, companies would have multiple phones from multiple companies because Bob might have one company and Alice a different one, and they couldn't call each other, and couldn't call a business unless that business bought lines from both companies. That silliness is why competition was outlawed. Then later mandated.

      That "silliness" did not need to be "outlawed" at all any more than any other marketplace problem needs outlawing. You know, like that "silliness" between file formats, etc.

      --
      Time Bomber the Book coming soon.
    14. Re:Deregulated = Monopolies? by Cramer · · Score: 1

      The words you're looking for are "very little choice" and "no choice". There are lots of places around the country that have no choice -- one ISP, take it or leave it. Most of the rest of the country has little choice... broadband from a single telco (DSL), or broadband from a single cableco (DOCSIS). There are very few independent DSL providers around -- covad, sonic, xmission -- but their service areas are small. (even the once national covad has shrunk almost into oblivion) It is exceedingly rare to find areas where there are multiple telcos or cablecos; because telcos were a protected monopoly for decades, and cable was protected by franchise contracts for just as long.

      Other niche options: Broadband over power lines which is about as common these days as a Yeti in Central Park, and is another pseudo-monopoly. WISPs (wireless ISPs, often using 802.11 WIFI) are rare, tend to be slow and expensive, and are prone to outages. Clearwire -- need I say anything? Cellular data... very expensive, very small caps (or dirt slow when you exceed them) to the point it's not a viable "broadband" option. Satellite? That's the absolute last option, and I'd be hard pressed to choose it over dialup. If you've won the lottery, you have a municipal fiber/wifi network or Google Fiber; the former having been banned and/or regulated out of existence in MANY states. (with laws written by, guess who, the local cable and telco lobbies)

    15. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      Let me guess, it's competition between a phone carriers DSL and a cable companies DOCSIS tech. Not really competition.

      What about competition between the community and an organization that seeks to generate privatized profits? Why do we even need to keep paying an ISP to transmit data packets down wires that run through our cities, towns, streets. Why can the community just deal with it on their own through whatever method they choose? If the community should choose to give ISPs the finger, charge a small fee of its citizens, and run fiber to the curb to every building and home, that should be their choice.

    16. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 1

      Here's your problem; you use the word "regulation" as if it were one single thing that can only fit your pejorative view of it when it's increased and optimistic fantasy when it's reduced when it's far more complex of a problem in place. You're right, some regulations get in the way of small business to compete but they are also a pain in the neck to the telcos who want to charge you even more than four times what other countries pay for internet for only about a fraction of the effective bandwidth in the worst case (check the recent ars technica article on this subject). It's bad to the point they've invested the resource necessary to actually get their own men appointed into the regulatory agencies.

      What we need isn't more or less regulation, it's better regulation that's not written by the guys in the lobby's pockets. The biggest barrier to entry into the telecom business isn't regulation right now, it's the already deeply entrenched and infinitely powerful mono/duopolies who will crush you as soon as you become a threat. Remember when google tried to bid on the 700mhz spectrum band and they listed a bunch of consumer-centric requests on the usage of said spectrum? It didn't take long for the telcos to shut them down pretty hard with a display of their mighty money power. Those who have interest in not competing have already contingency cash in reserve to prevent anyone from getting in the way of their profit and it's too late for anyone, even of google's size, to fight back in a way that makes financial sense.

    17. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      Spoken like the typical "free market" rube with a absolutely miserable understanding of history, the realities of human greed and willingness to subjugate and control one another given an opportunity.

      So yeah, let's deregulate and moth ball the government over the next few years. Surely the wealthy who own and control everything will simply dedicate themselves to a fair and open market place that allows competition to thrive. I mean, they've only already shown their willingness to buy off our leaders. But that's only because government exists. If it wasn't there, they'd have no one to buy off. And they'd only use those piles of money we've gifted them over the years to ensure everything works just as you imagine it in your dreams.

    18. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      (with laws written by, guess who, the local cable and telco lobbies)

      Seriously, you think these entities are the ones voting in the legislature and city council? Stop giving those governmental bodies all this power and their ability to create the problem you are bitching about goes away, along with the problem.

    19. Re:Deregulated = Monopolies? by Cramer · · Score: 1

      Find me someone who cannot be bought, and I'll vote for 'em. Good luck a) finding this person, and b) getting the rest of the sheep to vote them in.

    20. Re:Deregulated = Monopolies? by fatphil · · Score: 1

      > so the most politically-connected company gets the regulators to write rules that keep them out of the market.

      And thus the survivor kills off the rest. Killing by lobbied proxy is still killing.

      So either you live in a "socialist fantasy land" yourself, or the "socialist fantasy land" is actually "socialist observation of reality". Feel free to choose whichever makes you feel less uncomfortable, we wouldn't want you to have to throw away your entrenched prejudices.

      --
      Also FatPhil on SoylentNews, id 863
    21. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      Oh bullshit. Without regulation... nobody can sue for anything? There's no accountability without government regulation? Oh for fuck's sake, get off your goddamned Karl Marx dildo.
      Stop naming off every bad thing that ever happened with money and blaming them on capitalism.

    22. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      Funny. When the phone company was regulated the most it was one big company. How does that fit into your false dichotomy?

    23. Re:Deregulated = Monopolies? by AK+Marc · · Score: 1

      What false dichotomy? You shouldn't use big words you don't know the meaning of.

    24. Re:Deregulated = Monopolies? by AK+Marc · · Score: 1

      I never said it "needed" to be outlawed. Next time, try replying to what people say, not what you think they may have for an opinion, that wasn't even stated.

    25. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      However zero regulation turns a free market into survival of the fittest with that survivor killing off the rest

      Only in socialist fantasy land.

      In the real world, there's always a smaller, smarter, hungrier competitor, so the most politically-connected company gets the regulators to write rules that keep them out of the market.

      Only in a capitalist fantasy land. All companies can compete positively by building themselves up (eg. building a better product, providing better service) or compete negatively by bringing others down (e.g. fraud, killing the competition, stand over tactics etc.) . Regulation stop all the negative ways of competing while still allowing the positive ways. Zero regulation is just warlordism, might makes right.

      Even if the above weren't true many markets have inherent defects (e.g. high barriers of entry, incomplete information, etc.) which cause your ideal to be untrue.

      Sorry, but the real world is complicated. Extremists of any persuasion are usually wrong.

    26. Re: Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      Here in Finland they added regulation that a local telco had to rent the "last mile" for a reasonable price based on real expenses. This caused a big increase in competition and lower prices.

      Sure there are still places with high prices as the actual expenses are too high for anyone to actually want to compete. I believe the government supports these areas in programs aiming to ensure everyone has broadband access if they wish.

      Basic broadband access (few mbits/s) here starts from around 15â a month, 100mbit fiber is between 30-50 â a month. No caps, even mobile plans are generally divided by speed rather then data usage.

      The rational is, that governments and municipals have generally subvented initial building of the infrastructure, but now the barrier of entrance is too high and it would be hard and expensive and stupid for anyone to double or triple the cabling to every household. There was a loophole for a while where fiber was not covered that caused a few years of big housing buildings only being connected with fiber to block out competition (free market at work), but now its blocked and fiber connections are also half the price they used to be...

    27. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      "Only in socialist fantasy land."

      Name one small business that could 'compete' with intel in terms of producing a competitive CPU from a startup. I fucking dare you, you retard.

    28. Re:Deregulated = Monopolies? by Anonymous Coward · · Score: 0

      Yes, but regulations today sound something like.
      These are the regulations the year before, to win the bid, also newly added for this year, you must have this number of employees and this capital, and whoops, wouldn't you know it, of the 15 bidders only the first one qualifies.

      That's what people mean by asking for deregulation. If they mean what you said, then they're not just insane, but stupid as well.

    29. Re:Deregulated = Monopolies? by fgouget · · Score: 1

      Deregulation to allow competition causes monopolies? No, does not compute. Regulation creates barriers to entry that leans to monopolies or few providers, those who can get the government to protect their territory with police power.

      You say that like regulation can only raise barriers to entry and prevent competition. But regulations are just tools. As such they can be used for good or bad. They can be used for bad like when they prevent Tesla from selling cars in Texas or in this case grant monopolies. But they can be used for good when they lower barrier to entry by forcing last mile owners to let their competitors install their hardware at the telephone exchange (aka local-loop unbundling).

  8. Ease of Access by flogger · · Score: 0

    When all of the internet is being filtered through five or six main providers, it is easier for the NSA to funnel all of the information into its data analysis machines. Can you image the headaches the NSA would have if all the little mom and pop companies (if they were still around to do internet), would not provide for a free backdoor to the operations...

    So now there are just a few providers. They get to charge whatever they want and the government will let the monopoly continue so the executives and share holders can smile all the way to and from the bank.

    Fuck 'em. I'm done paying for interne@#$@#!43,

    --
    ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
    "First things first -- but not necessarily in that order"
    -- The Doctor, "Doctor
    1. Re:Ease of Access by jamstar7 · · Score: 3, Insightful

      When all of the internet is being filtered through five or six main providers, it is easier for the NSA to funnel all of the information into its data analysis machines. Can you image the headaches the NSA would have if all the little mom and pop companies (if they were still around to do internet), would not provide for a free backdoor to the operations...

      Not really. All they have to do is put their taps on the backbone servers. Since everything is routed through them, they see everything.

      --
      Understanding the scope of the problem is the first step on the path to true panic.
  9. It is always cheaper... by F34nor · · Score: 2, Insightful

    to buy a congressman than to build a better business. To all those you think America is a free market, go fuck you ignorant self then read up on Mussolini's definition of fascism.

    1. Re:It is always cheaper... by Anonymous Coward · · Score: 0

      to buy a congressman than to build a better business. To all those you think America is a free market, go fuck you ignorant self then read up on Mussolini's definition of fascism.

      Your first problem is America's economy is really huge, it isn't a singular market. Duh.

      A free market is an ideal. When people talk about what a market should look like, it's not always because they are entirely there already and wish to brag to you about it, strawmanzilla.

      We WANT a competitive free market. You can't just plant some seeds and add water. What do you propose, the government create an exchange for Internet service providers to compete over cable lines? And then.. what, tell the cable company how much to charge, the level of service to provide? What happens to all future possible forms of broadband service?

    2. Re:It is always cheaper... by F34nor · · Score: 1

      No we don't. 1st rule of a free market, "If there is economic profit to be made people will enter the market and drive the profit to zero." 2nd rule, " no barriers to entry and perfect information."

      Cable is a natural monopoly. It can be a monopoly and have monopoloy pricing and fuck us or be a state regulated utility. I choose regulation.

  10. No real choice by stewsters · · Score: 3, Insightful

    Much like healthcare, most Americans don't have a real choice. I would pay less and get better healthcare and faster internet service if I could.

    Why is this? I would guess that it's probably due to monopolies taking advantage of regulations to make competition stay away. Also probably in part to people wanting to watch specific sports and shows, and only being able to get them though one of the major cable/satellite networks. Shows like that are going to be hard for a startup internet company to replicate. Things like piracy, netflix, and itunes alleviates some of these problems, but a lot of people still prefer to get their games live.

    1. Re:No real choice by Anonymous Coward · · Score: 1

      MAlso probably in part to people wanting to watch specific sports and shows, and only being able to get them though one of the major cable/satellite networks.

      And yet the NFL is still considered a non-profit organization, even though commissioner Roger Goodell earned nearly $30 million in 2011. Just imagine if the director of PBS earned 1/100th of that...

    2. Re:No real choice by Anonymous Coward · · Score: 0

      Much like healthcare, most Americans don't have a real choice. I would pay less and get better healthcare and faster internet service if I could.
       
      And how much choice in healthcare do the citizens of countries that have socialized medicine have? Your own argument fails on its face the second you bother to consider from both sides of the spectrum.

    3. Re:No real choice by Anonymous Coward · · Score: 0

      And how much choice in healthcare do the citizens of countries that have socialized medicine have? Your own argument fails on its face the second you bother to consider from both sides of the spectrum.

      You can buy private health insurance in countries with socialized medicine (e.g. Germany) if you choose to. It's good to make sure you have the facts straight, no matter which side of the "spectrum" you consider it from...

    4. Re:No real choice by dave420 · · Score: 0

      They have all the choice you do, but pay far less, and get the same level of care. Your ignorance just killed your argument.

  11. in mexico is more expensive by Anonymous Coward · · Score: 0

    we pay like 80usd for 10mbps, and we get a piss poor service

    1. Re:in mexico is more expensive by geminidomino · · Score: 1

      Don't feel bad.

      That's only $5 more than I pay for 10mbps -- or $15 less, if I hadn't decided to tell them to go piss up a rope when they tried to jack the static IP surcharge from $5 to $20...

  12. That's overly simplistic - population density key by Crazy+Taco · · Score: 0

    It's always a bad idea to compare the US to Europe or Asia. These kinds of comparisons always end up being overly simplistic. The US is a VERY decentralized nation in terms of population, and we have a far lower population density than they do. Compare Houston to Tokyo, for example... Tokyo is tightly packed and Houston is sprawling everyone. It's much easier to bring cheap, high speed broadband to a bunch of tiny, densely packed apartments than it is to bring it to every country lane. Asian and European cities are much more like LANs, and US cities are like WANs, to put it another way. If you want LAN speeds in the much less densely populated US, it is going to be very costly.

    --
    Beware of bugs in the above code; I have only proved it correct, not tried it.
  13. They downsize to take more.. by Rhurazz12 · · Score: 1

    If competition is down, they make more on profit margin. They may benefit, but the consumer suffers the most since we have no choice but to choose a provider in one or two different companies, and many often times in especially rural areas it's just one provider for cable/internet. If we had more companies that sold cable and Internet, we wouldn't be seeing the problem of ridiculous prices for these services...

  14. Hmmm .... by gstoddart · · Score: 5, Insightful

    We deregulated high-speed internet access 10 years ago and since then we've seen enormous consolidation and monopolies, so left to their own devices, companies that supply internet access will charge high prices, because they face neither competition nor oversight.

    So, the conclusion is de-regulation is bad for consumers, but good for businesses.

    Gee, I'm shocked. De-regulation basically is carte blanche to screw over your customers and not be accountable to anybody.

    The whole mentality of "it's good as long someone is making profit" will be the death of us.

    The 'free market' is a lie, and it always has been. Consumers don't have perfect information, and corporations will lie cheat and steal to improve their bottom line.

    That de-regulation would ever improve anything for consumers has always been a big lie.

    --
    Lost at C:>. Found at C.
    1. Re:Hmmm .... by MobyDisk · · Score: 3, Interesting

      Day 1: Deregulation is evil!!!
      Day 2: Deregulation is wonderful!!

      In this story, all deregulation is evil and capitalism is an illusion. In the Tesla story, deregulating car dealerships is great and everyone loves it. In states where people can choose their own power provider, deregulation is great. When we deregulated phone sales, everyone was happy. (For those who don't know: In the 1970s you had to buy phones from the phone company. they were all big, ugly, and expensive. No answering machines were allowed, etc.)

      Can we just stop the blanket "all deregulation sucks" posts? Removing bad regulations is good. Updating old regulations to reflect modern technology is good. But not all regulations are bad. It just isn't black and white.

      P.S. What deregulation of high-speed internet access were you even talking about? How can you say it was good or bad without even knowing what is being discussed?

    2. Re:Hmmm .... by bobbied · · Score: 2

      De-regulation basically is carte blanche to screw over your customers and not be accountable to anybody.

      Not exactly true. If you deregulate an industry, you also make it easier for new businesses to popup and thrive which where not possible before. Assuming your regulations didn't create a single monolithic company that provides an essential service, when you remove regulations the capitalist forces will drive efficiency and competition will drive prices down.

      So... What REALLY is the effect of deregulation? Better, more efficient delivery at reduced prices with more companies competing for your business.

      That's what happened when the airline industry was deregulated. http://en.wikipedia.org/wiki/Airline_Deregulation_Act

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    3. Re:Hmmm .... by gstoddart · · Score: 1

      Can we just stop the blanket "all deregulation sucks" posts?

      Only if you can stop all of the "all regulation sucks, the free market will solve the problem" posts as well.

      --
      Lost at C:>. Found at C.
    4. Re:Hmmm .... by stenvar · · Score: 1

      So, the conclusion is de-regulation is bad for consumers, but good for businesses.

      A bad conclusion derived from bad data. Maybe Internet access in San Francisco just sucks badly, or maybe they screwed up in their comparison. My Internet access is faster than any of those cities (through the local cable system), and it's $30/month. And I'm talking actual speed to servers in San Francisco, not theoretical limits.

    5. Re:Hmmm .... by Anonymous Coward · · Score: 0

      Sorry to see that asking you to be a reasonable, rational, intelligent adult is too tall of an order for you.
       
      WAAAA!!!! WAAAAA!!! I WON'T DO THE RIGHT THING BECAUSE EVERYONE ELSE IS MEAN!!!!! WAAAAA!!!! WAAAA!!!!
       
      Fucks like you have all the qualifications to be a big party politician.
       
      Asshole.

    6. Re:Hmmm .... by spikenerd · · Score: 1

      The 'free market' is a lie

      The free market is a noun. What were you told the free market would do? Magically ignore natural barriers to entry and resource limitations and spawn competition that will drive down prices to a fair value? Yeah, that would be a lie. Are you implying that we should give our government power to regulate this industry, and it will never use that power for evil? That would be a lie too. If you want the truth, you gotta stop making ridiculous assumptions.

    7. Re:Hmmm .... by dave420 · · Score: 0

      "Cake" is a noun, too. Coincidence?

  15. Monopolies suit the surveillance state by pieterh · · Score: 3, Interesting

    Once Upon a Time in America

    Cheap communications has changed our society more than any other of our inventions and it has removed more tyrants from power than any weapon. Let’s take another step into the history books, back to May 1st, in 1844. Alfred Vail, working with Samuel Morse, was setting up the first telegraph line, and on that day sent the world’s first ever electronic message down the 24 miles of cable that were working, from Annapolis Junction to Washington D.C., to report the results of the Whig Party presidential nominations (Henry Clay won that nomination, and lost the subsequent election).

    Just a decade later in 1855, the New York and Mississippi Valley Printing Telegraph Company and the New York & Western Union Telegraph Company merged to create Western Union. One assumes new-york-and-mississippi-valley-and-western-union-printing-telegraph-company.com was already taken by domain name squatters.

    By 1900, Western Union operated a million miles of telegraph lines, and by 1945 it had an effective monopoly over the US market. As the New Yorker wrote, monopolies make spying easier. It is an easy and obvious trade: the government allows, by inaction or by intervention, a powerful telecommunications company to become dominant in a market through mergers and acquisitions. In return that company provides the government with surveillance.

    The New Yorker explains how Western Union used its monopoly to serve those in power:

    What we now call electronic privacy first became an issue in the eighteen-seventies, after Western Union, the earliest and, in some ways, the most terrifying of the communications monopolies, achieved dominion over the telegraph system. Western Union was accused of intercepting and reading its customers’ telegraphs for both political and financial purposes (what’s now considered insider trading).

    Western Union was a known ally of the Republican Party, but the Democrats of the day had no choice but to use its wires, which put them at a disadvantage; for example, Republicans won the contested election of 1876 thanks in part to an intercepted telegraph. The extent of Western Union’s actions might never be entirely known, since in response to a congressional inquiry the company destroyed most of its relevant records.

    It is quite visible how cost gravity drove communications down from an experiment for the wealthy to a mass market product so cheap even Western Union couldn’t make profits from it. By 1980 its telegraph business was dying, and the old Western Union business was finally closed in 2006, after 151 years of operation. The name was, as we know, reused for a financial services company which today enjoys a government-sanctioned monopoly.

    Curiously, Western Union’s long telegraph monopoly seems to have had only a small impact on the size of communications networks. If cost gravity was operating fully, at 29% a year, and telegraph costs were in free-fall, there would have been 37M miles of telegraph by 1900. Instead, assuming Western Union had half the market, there were 2M miles. That is a factor of 16 over 55 years, which is not much, and a part of that can be accounted for by quality improvements.

    I’m also not sure what to do with the random figure of 113 million kilometers of fiber optic cable produced in 2010. A cable is a bundle of fibers, and the traffic rates are rather higher than Western Union’s old stock. Has cost gravity been working?

    One smoking gun pointing to a century and half of cost gravity being hijacked by telecoms monopolies back through AT&T and Western Union is the cost of the modern equivalent of a telegraph, the text message.

    1. Re:Monopolies suit the surveillance state by jonbryce · · Score: 1

      The Western Union that is around today is still the same company that operated telegraphs in years gone by. Transferring money quickly from one place to another is one of the things that the invention of the telegraph allowed people to do, and Western Union got into that market. They still do wire transfers today even though they are using other peoples' cable to do it rather than their own. They are not a government sanctioned monopoly in that field and there are many other companies that do the same, or a similar job. Moneygram provide exactly the same service. You hand money into one of the their shops in one location, and someone else can pick it up from another location a few minutes later. Other networks do it via the banks, such as SWIFT for interbank transfers, Visa and Mastercard for card payments and companies such as Paypal.

    2. Re:Monopolies suit the surveillance state by Deadstick · · Score: 1

      My local supermarket does lots of business in Western Union money orders, and for four or five years it had a poster on display advertising money transfers to Nigeria. Now we don't have any disproportionate concentration of Nigerian immigrants hereabouts to send money back home -- the most common destination is Mexico. There's only one thing special about sending money to Nigeria, and folks on /. know exactly what that is.

      In keeping with the gullibility of the target market, the fine print on the poster announced that these transactions would be performed at a less advantageous rate than those to other countries, with Western Union keeping the difference.

    3. Re:Monopolies suit the surveillance state by pieterh · · Score: 1

      The old WU was renamed First Valley, asset-stripped, and the remains sold to First Financial.

      MoneyGram's money transfer business was taken over by WU in 2008.

  16. Don't have a choice? by Anonymous Coward · · Score: 0

    ...'Americans pay so much because they don't have a choice,' says Susan Crawford...

    Wrong! It's because of excessive taxes and regulations.

  17. Re:That's overly simplistic - population density k by melonman · · Score: 3, Insightful

    The picture you paint of Europe is a little simplistic too. France has a few large cities, but the tenth-biggest one has less than half a million inhabitants. It has tens of thousands of villages with 1000 or less inhabitants. And you get a choice of cheap ADSL provider in most of those small villages.

    --
    Virtually serving coffee
  18. Population density? by Anonymous Coward · · Score: 0

    Population density of the above-listed nations as a multiple of the US:

    UK: 7.5x more density
    France: 3.4x more density
    South Korea: 14.5x more density

    So maybe it's more expensive because a lot of expensive technology has to be implemented and spread across wider areas to service the people in a country where the people are vastly more spread out?

    1. Re:Population density? by Sique · · Score: 1

      Then NYC, Los Angeles or Dallas/Fort Worth should be offering cheap internet access from several dozen providers, right? Given their density...

      --
      .sig: Sique *sigh*
    2. Re:Population density? by jonbryce · · Score: 1

      If you live in London, Manchester or one of the other big UK cities, you will have a huge choice of different providers, and it will be very cheap. If you live in a croft in the Scottish highlands, then you will have to pay a lot of money for satellite broadband.

      I can understand that if you live in a ranch the size of Wales, you can't expect much in the way of public utilities such as broadband, but if you live in a big US city such as New York, the population density is similar to UK cities, so you should expect the same level of service.

    3. Re:Population density? by RotateLeftByte · · Score: 1

      There is competition ALL over the UK. There are basically TWO levels. Nationwide using the BT infrastructure to the ISP
      Then there is what we call LLU (Local Loop Unbundling)
      This give the right for an ISP to put their kit inside a BT exchange and take over the operation of your phone + internet completely. If the line between your home and the exchange goes wrong then your ISP calls BT to fix it under contract. This is all regulated.
      I live in a town of some 50K people. I can choose between at 6 different LLU providers and one Cable (Virgin Media).
      BT have put Fibre into the local distribution cabinet so I get

      80Mbits down/20Mbits up/250Gb per month 08:00-23:59, unlimited for the rest of the day + phone with all calls for approx $50/month including 20% VAT.
      Most of the people who live near me are on Virgin Cable so I downloaded Window 8.1 the other evening at 5.5Mbytes/sec.
      I can't complain really.

      --
      I'd rather be riding my '63 Triumph T120.
  19. Deregulation?! BS by Anonymous Coward · · Score: 0

    My city has kindly allowed me to have TWO providers I can choose from for internet - my phone company or my cable company and both are granted a monopoly by... my city... which then tells me I have competition so the prices will be lower.

    The same city that, for some reason, has no power to force the cable company to offer ala carte channels. Or to regulate the phone company from charging me nearly $10 a month to have an unlisted number in the phone book. (Really? It costs $120/year to NOT print my phone number?!)

    And lest we forget, dear children, when we lived in the oh so golden age of "regulated industries" that this kind ex-Obama official wants us to return too, that The Phone Company didn't lay fiber because nobody needed data unless they were willing to pay the cost to LAY THE CABLE... that Long Distance Phone Calls were a LUXURY because of the awesomeness awesome resources required to do such a thing.

    So give me a freakin' break - The real reason we pay more for bandwidth here in the US is because the United States Federal Government lays hidden charges inside the phone bill as required costs. The laws of which explicitly state that the phone company may not itemize those charges because those might be misconstrued as a tax.

  20. Pay to use would solve everything by Okian+Warrior · · Score: 3, Interesting

    Yes, yes - it's a "natural monopoly", we get it, you studied economics in college.

    This whole thing could be fixed by changing the model from "pay to access" to "pay to use".

    The US considers the infrastructure a fixed resource - fixed radio bandwidth allocated to certain players, fixed easements given to certain players, and so on. When you have a fixed resource, you have high access fees and discouraged use: multi-year contracts, high monthly bills, data caps, throttled access, poor/no connectivity with no guarantee, and so on.

    In a "pay to use" model, the government would mandate a fixed maximum charge per gigabyte of usage. Companies with a fixed resource could increase profits only by encouraging more usage: deploy newer and faster technology, connecting more people, encouraging high data-transfer activities (netflix, et al.), and so on.

    Such a change wouldn't even affect the existing players: take the total cost of internet access and divide by total internet usage to come up with a fee per-gigabyte that would give the same income next year as they get with the current system.

    The difference being, now they have an incentive for service, instead of an incentive for rent-seeking.

    1. Re:Pay to use would solve everything by bobbied · · Score: 1

      You plan would kill a lot of THOR exit nodes and make seeding a torrent expensive too.... Hmmmm.. Interesting idea..

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    2. Re:Pay to use would solve everything by fatphil · · Score: 1

      > Companies with a fixed resource could increase profits only by encouraging more usage: deploy newer and faster technology, connecting more people, encouraging high data-transfer activities (netflix, et al.), and so on.

      Alas "and so on" includes the equivalent of flood pinging you, and getting you to pay for it. I've seen that on a pay-as-you-go mobile operator in the OK, which basically discharged my free 10MB of internet while I didn't even have a browser open (or any "accounts" of any description doing any updates). I wasn't willing to pay for any more data connectivity from that provider to see if they continued stealing off me once the free quota was over.

      --
      Also FatPhil on SoylentNews, id 863
    3. Re:Pay to use would solve everything by Anonymous Coward · · Score: 0

      Yeah, one might almost accuse "Okian Warrior" of being a telecom shill, but without evidence I'll merely comment on "Okian Warrior"'s insanity/stupid regulatory ideas.

    4. Re:Pay to use would solve everything by Anonymous Coward · · Score: 0

      I have seen this exact pitch on Slashdot before -- perhaps it was from the same user.

      If access is "pay to use", you say that the providers would encourage more use, and that it would lead to a better internet. But you are skipping the giant "but" -- if it is pay to use, then users will have a direct incitement to use the net less. Suddenly, we have introduced a whole new form of usage resistance that will slow down service evolution since the now ubiquitous access will instead be provided on a "Can you afford the data?"-basis.

      It is hailed as a "solve all problems" solution, but it introduces some major new ones, that are actively fought for this very reasons. If the internet is supposed to be a general infrastructure, it surely must be flatrate.

      Also, there already exists incitement for the companies to provide better service, i.e. faster connections. I have the choice of 2 Mbps, 8 Mbps, 10 Mbps, 50 Mbps, 100 Mbps, 200 Mbps and 1000 Mbps in my apartment (in Sweden). I choose 200 Mbps, since higher speeds enable services that just aren't feasible at lower ones.

      The internet is infrastructure -- the problem the US is facing is not that the payment model is wrong. It is blatantly easy to look at all the other examples of countries where the speed is higher, that are even mentioned in the article. They do not adhere to a "pay for use" model, and they have been doing exceptionally well for soon two decades. There are slim to none evidence that a changed model would change the situation to the better -- on what IT developed country do you base that? The problem is elsewhere, and I believe the comments to this article have already touched it several times: a legal structure that breeds corporate monopolies (and these are much worse for the consumer than governmental ones).

  21. Spying costs by MrDoh! · · Score: 2

    All that extra hardware to spy on US citizens, that cost has to be passed on to consumers. Probably why it's hard to get fast speeds too, you have to wait till the gov upgrades their backend to handle the extra workload of everyone on faster links; when they get their new spy gear in, you get another 5mb.

    --
    Waiting for an amusing sig.
  22. Gotta Love the sidebars by Anonymous Coward · · Score: 0

    The 32-year-old editor of a design magazine pays $37 a month to Comcast for a cable broadband package. She doesn't have a TV or a landline phone.

    "It's fine in the majority of the apartment but if I'm on my bed, I have to hold my laptop three feet away towards the open doorway of the bedroom because the signal is so weak.

    "It's a pain when you're in a 2am coma and trying to watch The West Wing and you don't really want to move. But if you're in the living room in the vicinity of the router then the speed is fine. I don't think it's good value because I pay the same for unlimited data on my phone and I expect more from a service at home on my laptop."

    What does crappy wifi have to do with cable broadband packages??

  23. Re:That's overly simplistic - population density k by Anonymous Coward · · Score: 1

    If you're looking at the US as a whole, your argument is sound. Yet why don't we see these extremely fast, cheap options in places like NYC?

  24. Deregulated monopoly by Todd+Knarr · · Score: 4, Interesting

    The big problem is that we deregulated the cable and phone companies, but we didn't remove their monopoly agreements and we didn't enforce any regulations barring them from entering into non-compete agreements. So you end up with a situation like where I live, where Cox Cable isn't subject to regulation regarding rates, services and quality, etc. but at the same time no competing cable company's allowed in (because Cox still has an agreement with the city making them the only cable company allowed to run cable on the public right-of-way), the city attorney routinely enforces that agreement (taking legal action when one of the two cable companies in the area tries to provide service in an area assigned to the other, even when that other company isn't actually providing service in the affected area), and there's an agreement between Cox and Time-Warner (the other company in the area) not to offer service where the other's already providing it. End result: all the downsides of a monopoly combined with all the downsides of completely-unregulated services. They can do whatever they want with rates, there's no legal basis for challenging them, and there's no competitor you can switch to. To fix the problem we have to remove this pseudo-deregulation: either they're fully deregulated and not allowed to bar competition from entering the area, or they've got a monopoly on service and are subject to regulation as a public utility.

    1. Re:Deregulated monopoly by Anonymous Coward · · Score: 0

      This.

      This describes the "free market" in far too many cities in the USA. People using these "free markets" to claim that Free Markets never work/are broken, do not understand what a free market truly is.

    2. Re:Deregulated monopoly by Anonymous Coward · · Score: 0

      Yes. It's an epic fail to confuse new regulations with "deregulation".

  25. Population Density Costs by jerralb · · Score: 0

    Cost/person in each country is the simpleton's approach to making the broadband-is-overpriced-in-america argument. Population density should also be factored in. Americans, in relation to the countries listed, are much more spread out which warrants a higher cost for infrastructure.

    1. Re:Population Density Costs by Anonymous Coward · · Score: 0

      One word: Sweden.

    2. Re:Population Density Costs by fatphil · · Score: 1

      But what kind of simpleton hasn't heard of the countries Sweden and Finland?
      It would be too easy to suggest that such geographical ignorance was a US trait.

      --
      Also FatPhil on SoylentNews, id 863
  26. Infrastructure by Anonymous Coward · · Score: 0

    There you go.

  27. USA is home of Mercantilism, not Capitalism by WillAffleckUW · · Score: 2

    There's your tax-subsidized patent-owned-by-public answer.

    Capitalism drives down costs.

    Mercantalism, which Adam Smith, the father of Capitalism railed against, provides large players with greater rewards for inefficiencies propped up by people who claim to be Capitalists, but depend on the lack of competition to win them billions.

    --
    -- Tigger warning: This post may contain tiggers! --
    1. Re:USA is home of Mercantilism, not Capitalism by Anonymous Coward · · Score: 0

      That's not what the word mercantilism means. If the US were a mercantilist state, there would be more government control over trade, more import taxes, and a better outgoing balance of trade (right now the US is a bigger consumer than producer).

      In fact, our economy would probably be in a much better state (but with the types of goods available within the state being much more limited. e.g. a lot fewer cheap electronics because they'd either have massive import taxes or have to be built within the US).

      China, Brazil, South Korea, and a lot of other countries would be much better examples of mercantilism than the US.

    2. Re:USA is home of Mercantilism, not Capitalism by WillAffleckUW · · Score: 1

      I stand by my statement.

      Given that multinationals are permitted to avoid taxes and extend patents and copyrights without work done, we meet the classic definition of a Mercantilist nation, but you're too focused on the concept that the Nation belongs to the Government, when it belongs to the WTO and their lackeys.

      Face it, we're all Serfs.

      --
      -- Tigger warning: This post may contain tiggers! --
  28. Only half true by Kohath · · Score: 2

    It is worse in the US than in Korea. But Canada also has bad Internet. South Africa has some slow speeds and usage caps. Also Australia and other countries.

    We're neither the slowest nor the most expensive.

    1. Re:Only half true by RightSaidFred99 · · Score: 1

      Population density. It's incredibly obvious that this is the largest factor. Australia's population density is like 3/sq km for christ's sake, Canada's isn't much higher. South Africa's is in line with the US.

      All those countries listed above with great Internet _start_ at 118 sq/km or so and go way higher. Japan's is 350/ sq km, they are the poster child for the "but, but, everyone has better internet than the US" rabble.

      It's much easier to wire people together when they are close to one another.

  29. Again? by prisoner-of-enigma · · Score: 1

    This old chestnut again? When are people going to stop comparing the US -- a vast geographic area with large areas of low population density -- with Europe? Or Korea for that matter? It costs more because larger areas need coverage compared to European counterparts. It costs more because rural areas get artificially-low costs because they're subsidized by urban areas with artificially-high costs.

    --
    In the end they will lay their freedom at our feet and say to us, Make us your slaves, but feed us. - Fyodor Dostoyevsky
    1. Re:Again? by AK+Marc · · Score: 2

      Then why aren't prices lower in NYC? In areas of high density, the prices aren't any better, even when small regional providers target the lucrative markets.

  30. No It's not. by upuv · · Score: 2

    US broadband is more expensive than a few countries.

    Also the available speeds vary widely as well. The US has a decent speed overall. Given that a significant amount of content is available in the US. The real world speed in the US is significantly better than other locations around the world. See: http://www.netindex.com/

    Lets also factor in region locking of content. The US generally does not suffer from the issue. Other regions around the world are simple blocked from content due to the region they are in. Again the US is at a significant advantage here.

    There are a lot of other countries that are a hell of a lot more expensive than the US. Case in point a first world country Australia.

    Overall the Internet experience in my humble opinion in the US is vastly superior to most other locations around the planet.

    Now lets also factor in penetration of broadband and average household income. The US fairs very well indeed when you start to think about these factors. However the US is still behind some notables. Korea for some time still be the bench mark that other countries try to achieve on all fronts. Other countries are embarking on plans to significantly improve speed, bandwidth, and costs.

    This article should have been about. If the US doesn't do anything to upgrade it's aging internet infrastructure it will soon be one the the most expensive and poorest performing broadband countries in the world.

    1. Re:No It's not. by upuv · · Score: 4, Informative

      I should have included this article which puts things in better perspective.
      http://royal.pingdom.com/2013/03/12/broadband-prices/

    2. Re:No It's not. by ausrob · · Score: 1

      Well said! I was going to comment with something similar. If I had mod points, I'd have modded up. It's also worth noting that in the OP's linked article, the comparison is between countries who have high speed broadband, however there are plenty of "first world" countries (like Australia) that don't even have what could be defined as a high speed network; who pay more for their substandard speeds across the board. Bear in mind that the US also has fairly decent wireless Internet options too. In some countries 3G and 4G services are challenging to locate, or don't exist at all.

    3. Re:No It's not. by CRCulver · · Score: 1

      Lets also factor in region locking of content. The US generally does not suffer from the issue. Other regions around the world are simple blocked from content due to the region they are in. Again the US is at a significant advantage here.

      What a bizarre argument for the superiority of US broadband. Content produced in the US tends to be region-locked to the US because the country of origin is also the initial audience for it, and there is already infrastructure in place to sell that content. However, when other countries show sufficient interest in that same content, some local entity ends up purchasing the rights to present it in those territories, and then it is no longer region-locked.

      Even when region-locking means that other countries cannot view the content through the channel set by the rights holder, the better quality internet (faster speeds, no usage caps) we have here means we can get the same content from other sources. Here in Romania, where I get a fiber-optic connection for about $12 a month, I cannot view Hulu or Netflix, but I can torrent any HD episode of e.g. Saturday Night Live or Arrested Development I want to watch in just a few seconds.

    4. Re:No It's not. by Anonymous Coward · · Score: 0

      I actually think we're going to leap frog everyone. There are plans under way to roll out gigabit fiber in most major cities in the US at this point.

      NY has Verizon (which kinda sucks compared to other fiber providers). I'm sure they'll get other options soon if they don't have it already.

      Austin, TX is getting Google Fiber and ATT Fiber

      Chicago is getting free google wifi in all parks (which I assume means google will do a fiber roll out there soon)

      Chicago is also getting Gigabit Squared in a few months

      Seattle is also getting Gigabit Squared in a few months and already has a couple smaller providers with limited range.

      These are just the things I know about off the top of my head. It's looking that the age of gigabit is coming fast. Rural US isn't going to see it any time soon, but most people in any city over 200k people or so should be getting cheap (under $100) gigabit access within the next few years.

    5. Re:No It's not. by Anonymous Coward · · Score: 0

      The linked article also raises an important issue--$5/mo broadband isn't cheap if you don't have $5, and many Sri Lankans don't.

      For somebody making $50k/yr (middle class US) $58/mo cable modem (that's what we pay here) with several megabits (I can watch YouTube vids) is not a big deal.

      To really make a fair comparison, you need to divide the cost by disposable income. Furthermore, Homelesss Americans can walk into coffee shops or libraries and use free WiFi in major cities. Middle class people can do that too. If they're willing to tolerate a lack of connectivity at home, they pay nothing.

    6. Re:No It's not. by Cimexus · · Score: 1, Interesting

      What the ...

      I'm an Australian that moved to the US and I pay more money for less speed here in the US. I moved from a city of 400,000 in Australia to another similarly-sized city in the US so I think the comparison is apt. While the Australian price on your map looks vaguely accurate to me, where did they pull this "$20" for the US from? The only plan you can get here for that kind of money is the lowest-tier DSL (768 kbps or maybe 1.5 Mbps).

      I'm not sure that map is comparing apples to apples. Sure you might be able to get a slow DSL plan for $20 here. But I was getting 60 Mbps for around $50 in Australia! Here, the fastest I can get is 30 Mbps, for $60 a month. Fractionally more expensive...but half the speed.

      So yeah, I'm disputing the 'Australia is a hell of a lot more expensive' thing. That was true 5-10 years ago. Not these days. Australia also has a lot more competition (almost everyone has ~dozens~ of ISPs to choose from, whereas here it's basically two choices - the local DSL monopoly and the local cable monopoly ... FiOS only if you're very lucky).

    7. Re:No It's not. by Anonymous Coward · · Score: 0

      "Overall the Internet experience in my humble opinion in the US is vastly superior to most other locations around the planet."

      Yeah, well maybe if you've only been to RSA, or other African countries, or maybe Australia and New Zealand, or a couple of South American countries, or maybe some of the mid-east countries.. Maybe the Us is bit better, hardly "vastly superior".
      Apparently you've not been to Europe lately (including eastern Europe), nor Japan, or Korea, nor Singapore, not to mention Chile, Most of Russia...etc.The US is suckingly behind unless you pay pay over 100 US$ per mo for your 20 Mbps connection.

    8. Re:No It's not. by Anonymous Coward · · Score: 0

      not sure you have looked at prices lately in Australia. Broadband is pretty damn expensive here now. 60 mbps in Australia for $50???? where? I pay double that for less bandwidth and of course it comes with a download cap.

    9. Re:No It's not. by Cimexus · · Score: 1

      It was TransACT VDSL2 in Canberra and my information isn't out of date - it's from this year. You can get similarly priced plans on the 50 Mbps tier on the NBN too. I do understand that's only available in certain areas ... I was just relaying my personal experience.

      The $20 in the US thing was the main point though - that's complete BS.

    10. Re:No It's not. by RightSaidFred99 · · Score: 1

      The comparison may not be apt, it all comes down to density. If you have 400k people in a large area, it's going to be more expensive than 400k people in a smaller area.

    11. Re:No It's not. by Anonymous Coward · · Score: 0

      Since house sizes in Australia are larger than the US, and almost noone lives in multi story apartments. Its a pretty safe bet that of 2 similar sized populations in the 2 countries America would be the denser.

      True for people too...

    12. Re:No It's not. by Cimexus · · Score: 1

      Australian suburbia and US suburbia are pretty damn similar. Especially if you are comparing to Canberra which is lower density than most other Australian cities.

    13. Re:No It's not. by Anonymous Coward · · Score: 0

      It all comes down to corruption and shitty infrastructure.

      I guess America just wins both.

  31. Woohoo! by cyber-vandal · · Score: 1

    Another transatlantic pissing contest yay!

  32. Because "freedom" and "capitalism" by Anonymous Coward · · Score: 0

    Which is the same probable cause as for all other American problems.

    Internet should be free, everywhere. So should education, food, water, housing.

    1. Re:Because "freedom" and "capitalism" by zwarte+piet · · Score: 1

      And beer, don't forget beer!

  33. Even with competition there are no bargains by Anonymous Coward · · Score: 0

    I have my choice of Verizon FiOS and Comcast and there's no attempt to undercut the other.

    The only marketing is the continuous barrage of junk mail trying to sell me their 3-in-1 – phone, internet, TV – service; of which I only need internet.

    Would it be any different if RCN had rolled out, as they contracted with the town to do? (They defaulted on the contract, but there were no penalty clauses, so the town declined to force them to execute as there seemed to be little point in doing so.) Anyway, it seems unlikely that there'd be any more competition, just one more piece of junk mail every month trying to sell me another 3-in-one package.

  34. Seriously? by Anonymous Coward · · Score: 0

    It's to pay for the massive NSA inquiry, we pay, they spy. Novel concept...

  35. Re:That's overly simplistic - population density k by bobbied · · Score: 1

    Is ANYTHING in NYC cheap? Just about everything runs at huge mark up in NYC for some reason or another. Internet access is no exception.

    Outside of urban areas, the infrastructure costs for internet access is much higher, but INSIDE urban areas, the costs of labor, taxes, licenses, access fees all drive up the prices.

    --
    "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  36. interesting, but so what? by Anonymous Coward · · Score: 0

    and we pay far less for other things. welcome to "it's not the same place!"

    i mean... duh?

    but hey, circle jerk about this like being able to download your modern family torrents quickly is the most important thing.

  37. In related news.... by NotFamous · · Score: 0

    Duh!!

    --
    Some settling may occur during posting.
  38. The two most common explanations by Anonymous Coward · · Score: 0

    The two most common explanations are:

    1) The US is more corrupt and less free-market than those other countries, so we have greater barriers to competition.

    2) The US' population is less geographically dense than those other countries, so we have more wire per person. Even if you don't live in a farm house in he middle of nowhere, it's thought that your bills subsidize the people who do live in such places.

  39. Not just internet by Dcnjoe60 · · Score: 1

    Since the 90s most of the deregulation that has occurred has not benefited the public interest or the consumer, but instead benefited the shareholder by decreasing competition through mergers and acquisitions. Even in the recent financial collapse, we found out that there were certain businesses that were too big to fail and had to be bailed out by the government. By definition, any business that is so big that it's failure would be catastrophic to the economy and needs bailed out by the government means that there also isn't enough competition in that market.

    So, sure, high speed internet costs more in the US than anywhere else, but so do most other things. After all, capitalism is for the benefit of the capitalist, not the public. That's why, previously, there were all of those regulations -- to protect the public. People forget that all of those regulations were put in place to protect against the robber barons. Well, they haven't gone away.

  40. Local loop length by TheSync · · Score: 1

    I will remind folks that the US has much longer telephone local loop length than other countries.

    Part of this is due to more rural and spread out suburbs, earlier deployment of telephone than other countries, but part of that may be also be due to CO consolidation during the firming up of ESS.

  41. Re:That's overly simplistic - population density k by heypete · · Score: 1

    Switzerland, where I reside, is similar in many ways (though at a somewhat smaller scale): the Zurich metro area has about 1.1 million people. Geneva and Basel metro areas are each around 500,000 people. The Bern metro area is about 350,000 people and yet the small suburb where I live (pop ~30,000 people) has a relatively large amount of competition: Swisscom (20 Mbps max) and Sunrise (30 Mbps max) each have DSL offerings, UPC Cablecom offers fiber-to-the-node with a EuroDOCSIS 3.0 coax last mile (currently the top plan is 150 Mbps max but this can increase in the future up to 400 Mbps), the electric company is running fiber to every property (it's at most homes now, with 90% availability in 5 years and 100% availability by 2020) and there's a variety of private companies that offer service over the municipal fiber. There's also several 3G and 4G mobile phone providers who offer service with varying speeds (up to 42 Mbps) and bandwidth caps with essentially total coverage.

    In short: even with a relatively low-density city composed mostly of private homes and low-rise (under 4 floors) apartment buildings it's economically viable to have many competing firms providing high-speed connectivity. There's really no excuse why US cities like Houston, Phoenix, etc. shouldn't have a good amount of competition in regards to connectivity.

    If anything, I'd posit that super dense cities like NYC and the like would be more difficult to run high-speed connections particularly due to the huge amount of legacy lines and equipment (e.g. gobs of twisted copper pairs in cable ducts where a modern fiber line would use much less space but replacing the copper would be disruptive and expensive) and the inability to just plop down equipment as needed due to limited aboveground space. In a lower-density city there's probably more room in cable ducts, places to put above or below-ground equipment boxes, less legacy cruft, etc. that should make it easier to build out high-speed networks and provide competition to customers. Ideally, things could be simplified by having a municipal fiber network that's owned and managed by the city (or, if they must, a contractor) but has service provided by competing private companies over that fiber.

  42. Natural Monopoly by alexander_686 · · Score: 2

    No, In a truly unregulated market the barriers of entry would be higher for new entries into the cable market. It is one of the justifications used for regulating cable.

    Look up the term “Natural Monopoly”. In any industry with high fixed costs and low marginal costs market structure will favor only one provider. If a challenger faces an incumbent, the incumbent will just drop prices until they drive out the challenger. They don’t need to pay for the high upfront capital costs – they have already done so.

    And while it is a valid reason to regulate I am not saying the cable companies haven’t captured the regulators to entrench their position – they have.

    1. Re:Natural Monopoly by AlphaWolf_HK · · Score: 2

      Local government regulations are the biggest expense that new providers have to deal with when entering a given market. Why do you think Google is so picky about where they deploy fiber? They are cherry picking their first markets for those whose governments are going to provide the lowest barrier to entry. Kansas City not only had the lowest, but they were so interested in fiber that they even offered them perks for coming.

      In fact, there's a city government whose politicians are currently in hot water because their hesitancy to allow a google fiber rollout caused google to abandon plans to start a new deployment in that city. They had already delayed it by 9 months and then wanted to wait another month to delay, so google called it off (and right after they did, suddenly the council said they're ready to sign on the dotted line - though it was too little too late.)

      http://www.kansascity.com/2013/10/25/4575335/momentary-stall-in-overland-park.html

      In some places it is really hard to deploy broadband. Google is merely balking at delays in this case, but there are much worse things to contend with, for example bleeding hearts that don't like it when you have to dig trenches in areas where there is no conduit because it "upsets the land". Or worse, the city politicians who won't allow for 4g deployment citing "health concerns" even though there are no proven health concerns.

      If the administration really wanted to speed broadband deployment, they should put restrictions as to what city governments are allowed to enact as far as ordinances that limit broadband deployment. Facilitating broadband deployment would be pretty easy to throw under the interstate commerce clause.

      --
      Careful with names containing L slashdot.org/~AiphaWolf_HK slashdot.org/~AlphaWoif_HK slashdot.org/~AiphaWoif_HK
  43. Yes! Get the administration involved. by ScentCone · · Score: 1

    That way, just like the letter I just got from my health insurance company, I can enjoy "more choice" and see my rates triple. ObamaCare is enough. I don't want ObamaISP, too.

    --
    Don't disappoint your bird dog. Go to the range.
  44. I know I know, I will be first against the wall... by Anonymous Coward · · Score: 0

    "The BBC reports "Home broadband in the US costs far more than elsewhere. At high speeds, it costs nearly three times as much as in the UK and France, and more than five times as much as in South Korea. Why?...'Americans pay so much because they don't have a choice,' says Susan Crawford, a former special assistant to President Barack Obama on science, technology and innovation policy. We deregulated high-speed internet access 10 years ago and since then we've seen enormous consolidation and monopolies, so left to their own devices, companies that supply internet access will charge high prices, because they face neither competition nor oversight."

    SHOCK!! OTHER COUNTRIES DO THINGS DIFFERENTLY AND THEREFORE HAVE DIFFERENT BENEFITS AND DIFFERENT DISADVANTAGES!!! OMG!

    You know there is no such thing as a perfect system. It's a matter of choosing which imperfections you wish to live with.

    Somewhere in Manchester someone could open up Dotslash.co.uk and read the following post:

    "CBS reports "Taxation and the percentage of taxation that goes to bureaucrats in the UK and France costs far more than elsewhere. At high rates of entrenched control, just making a living costs nearly three times as much as in the USA. Why?...'Europeans pay so much because they don't have a choice,' says Susan Crawford, a former special assistant to President Angela Sarkozy on science, technology and innovation policy. We began regulating the hell out of high-speed internet access and low speed access and every other kind of access decades ago and since then we've seen enormous consolidation of power and taxation in the hands of London career politicians, so left to their own devices, governments that supply regulations will charge high prices to the citizens, because they face neither competition nor oversight."

  45. Users per mile by Anonymous Coward · · Score: 0

    In the UK broadband is worse in rural areas. The reason is that DSL has a limited reach and in rural areas there aren't enough users in that radius to allow the telco to make a profit at the same price they charge in urban areas.

    Now compare the population densities:

    UK 661.9/mile^2
    US 88.6/mile^2

    So the UK density is 7.5x higher. Or to put it another way you have on average 7.5x the number of users in a given area to subscribe to broadband. Even comparing urban areas where the densities are highest American houses are much larger than UK houses so the density is higher.

    So in the US the telecoms companies have fewer subscribers on their hardware but the same costs. The solution to make a profit is to rise their prices. That is why broadband in the US is so much more expensive.

    Since prices are nationwide the low rural densities mean urban users still have to pay higher rates.

  46. You scratch my back, I scratch yours...... by Dega704 · · Score: 1

    A perfect example would be the way AT&T was allowed to start pulling itself back together after the trouble was taken to split the beast apart. It wasn't long before they were happily providing the government with taps into the backbone if the Internet. This is the paradox of people who scream for deregulation and rail against big government. They don't want the government to have too much power (perfectly understandable), but don't have any qualms giving ALL of the power to oligopolies which then collaborate with the government, thus giving them infinitely more power than the "onerous" rules and regulations ever would.

  47. Re:That's overly simplistic - population density k by RalphWigum · · Score: 1

    Except France's small villages are extremely close to each other.

    France (not including it's territories) spans 213,010 square miles and has a population of 63,460,000. A population density of 297.92 people per square mile.

    Comparatively, If you take the US state I live in and an adjoining state (Arizona and New Mexico), they span a combined 235,587 square miles (comparable to France) and host a combined population of 8,638,538. A population density of 36.6 per square mile. And like France, there are only a few large cities (large is relative).

  48. Natural monopoly is a myth by tepples · · Score: 3, Interesting

    Natural monopoly is a myth. A city could bury conduit under its streets and charge a reasonable rate for pulling copper or fiber.

    1. Re:Natural monopoly is a myth by Anonymous Coward · · Score: 0, Troll

      You post a Mises link, then advocate that a natural monopoly could be avoided if the government instead embarked on a huge, expensive project (that would still be a government monopoly)? Holy shit do you fail at reading comprehension and critical thinking.

    2. Re:Natural monopoly is a myth by sjames · · Score: 2

      If they're already doing the expensive part, they might as well do the cheap part and run the fiber. That still leaves a lot of legacy area where there is no conduit currently.

      Be it the fibers, just the conduit, or even just the right of way, there is a natural monopoly in there.

      Meanwhile, it is notable that several broadband providers HAVE chosen to divide up territories rather than competing head to head.

    3. Re:Natural monopoly is a myth by CyprusBlue113 · · Score: 1

      That's great and all until you look at scale. It simply doesn't, and this is coming from someone who did strategic planning for a CLEC. That's the entire point of using the term natural monopoly.

      --
      a handful of selfish greedy people are no match for millions of selfish, greedy people -u4ya
    4. Re:Natural monopoly is a myth by Anonymous Coward · · Score: 0

      SOCIALISM!

    5. Re:Natural monopoly is a myth by Belial6 · · Score: 1

      This is what I have been advocating. Cities usually have a lot of experience with conduit underground. Most cities run three seperate systems of pipes. Water, sewer, and storm drains.

    6. Re:Natural monopoly is a myth by turbidostato · · Score: 1

      "Natural monopoly is a myth. A city could bury conduit under its streets and charge a reasonable rate for pulling copper or fiber."

      And then "the city" would own the monopoly. Absolute antiamerican socialism.

    7. Re:Natural monopoly is a myth by westlake · · Score: 1

      A city could bury conduit under its streets and charge a reasonable rate for pulling copper or fiber.

      What do you mean by a "city?"

      There are 62 incorporated cities in New York ranging in population from 3,147 to 8,244,910. There are only five with a population of over 100,000. List of cities in New York

      How much does it cost to bury and maintain conduit?

    8. Re:Natural monopoly is a myth by Pope · · Score: 1

      LOL, Mises. Might as well just say a mythical wizard did it.

      --
      It doesn't mean much now, it's built for the future.
  49. As usual... by Anonymous Coward · · Score: 0

    Crap article - no reference to New Zealand (ok, so only 4m people, but *are* in the OECD)

    Try living in here - crap speed and way overpriced. Although the ultra-fast broadband rollout shows some promise.

  50. What are they comparing? by ugen · · Score: 1

    I've been paying about the same for a medium-tier broadband service in a number of cities and for a number of years. At this time I am paying $30 a month for what used to be a 15Mbps service to Comcast. The catch is that it's a 6 month deal, it will go up to $40 a month for the next 6 months, and towards the end I have to perform the usual "I am leaving for ATT" song and dance to get the deal again (I have not had to actually switch yet, but might at some point - ATT service is priced the same, though they try to rip me off another $5 a month for equipment.

    I also did a quick survey of what broadband services cost in a deregulated place like UK. Here is a link for Glasgow (because I like it :) ): http://www.cable.co.uk/local/broadband/glasgow/glasgow/
    Note that prices on the right are for service from a provider and users still have to pay "line fees" (because, much like elsewhere, no one will put a second set of cables in the ground, so infrastructure is shared). If you click through on any of these deals, the total price with line fee for a 1 year contract is about 17-20 GBP which translates to approx. $30 for the same 15 Mbps service.

    I don't know - I think we are on par here.

    It'd be nice if Comcast didn't make me go through the silly annual rejection cycle, of course.

  51. It's American Exceptionalism! by Anonymous Coward · · Score: 0

    Everything is greater and better in the US - even prices for basic utilities!

  52. Re:That's overly simplistic - population density k by Anonymous Coward · · Score: 0

    That is why NYC has prices and speed that kick the pants off of these major foreign cities right? oh it doesn't... maybe at least manhatten then? oh still no... Well then that kind of makes your argument completely and utterly wrong then... strange.

  53. Why? by noobermin · · Score: 5, Insightful

    Why is Broadband more expensive?
    Why do we pay more for healthcare?
    Why is our productivity so high compared to real wages?
    Why does our government spy on us and disregard our civil liberties?
    Why are we below the average in ability according to OECD?
    Why is the gap between the richest and the poorest on par with that of African countries?

    And finally, why the fuck do people keep telling me this is the greatest country on Earth?

    I want to be proud for my country and what it stood for, but it's hard to see nowadays.

    1. Re:Why? by mythosaz · · Score: 5, Insightful

      Will McAvoy: [Looks at Jenny] And, yeah, you... sorority girl. Just in case you accidentally wander into a voting booth one day, there are some things you should know. One of them is: There is absolutely no evidence to support the statement that we're the greatest country in the world. We're 7th in literacy, 27th in math, 22nd in science, 49th in life expectancy, 178th in infant mortality, 3rd in median household income, number 4 in labor force and number 4 in exports. We lead the world in only three categories: number of incarcerated citizens per capita, number of adults who believe angels are real and defense spending - where we spend more than the next 26 countries combined, 25 of whom are allies. Now, none of this is the fault of a 20-year-old college student, but you, nonetheless, are without a doubt a member of the worst period generation period ever period, so when you ask what makes us the greatest country in the world, I don't know what the FUCK you're talking about!... Yosemite?
      [Stunned silence]

    2. Re:Why? by SebNukem · · Score: 1

      Because they don't know any better. When you have nothing to compare to what you have is the best.

    3. Re:Why? by Penguinisto · · Score: 1

      Why is Broadband more expensive?
      Why do we pay more for healthcare?
      Why is our productivity so high compared to real wages?
      Why does our government spy on us and disregard our civil liberties?
      Why are we below the average in ability according to OECD?
      Why is the gap between the richest and the poorest on par with that of African countries?

      Because of governments elected by people who can't even spell "municipality", "Congress", or "legislature", let alone know how theirs are being run.

      Next question?

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
    4. Re:Why? by epyT-R · · Score: 1

      1. Lack of choice due to monopoly status over land and radio spectrum rights granted by the state to specific companies.

      2. Most of big pharma is here so we don't get access to generics right away. The state funds a lot of research as well as medical school. This glut of cash drives up the 'market-bearing' price. It's why medical school costs $100k -> a hospital stay costing $50000.

      3. Technology that hellpits like africa don't have. We also are expected to work too many hours a week for salaried positions. It isn't healthy.

      4. Because we let it get away with it. Too many liberals and too many neocons are more concerned with defending their camps from each other to give a shit about what their dear leaders are actually doing with their power.. This is the 'circus' part of 'bread and circuses.'

      5. I'm not sure what you mean by 'ability.' A quick glance at their site suggests it's about globalization. Well, the only thing a global economy has done for america so far is drive up costs, drive down quality, reduce wages, and drive quality of life closer to subsistence levels. If we're failing at that according to this OECD, then I consider it a good thing.

      6. Because that's how society works? Socialism is not the answer to everything. We are not equals. We are individuals, with different strengths and weaknesses. We've seen what happens when governments attempt this square peg for square hole philosophy. Those who have wealth, bail, leaving the rest with the bill, and the bureaucrats eventually get used to spending other people's money like it's nothing, leading to crazy debt and unstable economy.

      7. because the ideals america stands for on paper (constitution) are worth a little allegiance, though we are far from it nowadays.

    5. Re:Why? by Anonymous Coward · · Score: 0

      On the bright side, we do have the best lawns in the world ;)

    6. Re:Why? by Anonymous Coward · · Score: 1

      Why is Broadband more expensive?

      The internet protocols favor decentralized routing, but copies of all traffic in the U.S.A. have to be routed to the NSA.

      Why do we pay more for healthcare?

      That's a misconception based on a bad choice of metric. If you look at the cost per covered weight rather than per covered person, American healthcare is pretty competitive.

      Why is our productivity so high compared to real wages?

      All the people in prison have to be fed, too.

      Why does our government spy on us and disregard our civil liberties?

      Because you allow them to.

      Why are we below the average in ability according to OECD?

      Would you allow your government to spy on you and disregard your civil liberties if you weren't?

      Why is the gap between the richest and the poorest on par with that of African countries?

      You don't earn a lot of money without a basic education, and you can't afford a basic education in the U.S.A. without a lot of money. And actually, most of those having a lot of money don't actually earn it. They inherited it. In Marx' times, factories begot money, and money begot factories. That's capitalism. In the U.S., money begets money. That's absurd, but people still get to buy things with the circulating green pieces of paper. But since they are, after all, not more than paper, the U.S. has the largest trade deficit of any nation ever.

      And finally, why the fuck do people keep telling me this is the greatest country on Earth?

      If the belief breaks down, it will be harder to get things in exchange for little green pieces of paper.

      I want to be proud for my country and what it stood for, but it's hard to see nowadays.

      It's not hard to be proud for what this country stood for: it was a large step for a vision of humanity. But you can't just rest on your laurels while on a slippery slope.

    7. Re:Why? by girlintraining · · Score: 4, Interesting

      Why is Broadband more expensive?

      Regulatory hurdles, low population density, and we are one of the largest countries by area on Earth.

      Why do we pay more for healthcare?

      Because America subscribes to a warped version of capitalism that places things in the private domain when most other governments wisely decided to manage these things. This includes, but is not limited to, basic utilities like water, electricity, telecommunications, internet, and even roadways. This policy benefits a tiny fraction of Americans -- perhaps 1 in every 250 Americans, while harming the rest, and it is not changed because our government has essentially been co-opted by wealthy private interests and corporations. As our popular media is controlled by the same, the illusion is presented of choice regarding political affiliation and candidates, when in fact no choice exists.

      Why is our productivity so high compared to real wages?

      Because we don't take vacation, or sick days, and have no labour party present to defend workers' rights, leading to the majority of states passing variations of Right to Work laws which effectively ban unions and allow employers to fire people for any reason, at any time. As a result, the rights of workers suffer, leading to institutionalized abuse and exploitation of workers. Should labor prices rise, it is easy to simply order Congress to flood the affected market with immigrants and crash the labor price.

      Why does our government spy on us and disregard our civil liberties?

      All governments do that. Ours just got caught. As far as why they do it, the reasons are too numerous to list here, but effectively it comes down to national security and preventing any widespread political insurrection amongst a highly exploited worker caste.

      Why are we below the average in ability according to OECD?

      Because we invest very little in public education, and the price of post-secondary education is inflating at double digit percentages every year, effectively eliminating access to higher education for many, if not the majority, of the population.

      Why is the gap between the richest and the poorest on par with that of African countries?

      This isn't entirely accurate. Japan has the lowest wealth inequity of any country on Earth, and the highest is Bolivia. The United States, while scoring nearly the same as Uguanda, also wasn't that far off from the United Kingdom. Source The problem is not a wealth "gap" per-se but rather that when you plot wealth distribution as a curve, the United States has an uncharacteristically high concentration of wealth amongst the top 1% -- far higher than any other country on Earth.

      There are many reasons for this, but essentially it comes down to a lack of inheritance tax and how our economy has been structured; We are much more an investment and service-based economy than most, and both of these, but investment in particular, leads to rapid wealth disparity being created. Deregulation of the stock market, banks, etc., also have contributed significantly to this problem -- we are, as it were, robbing Peter to pay Paul. See also: Too big to fail. While the impact of any one of these legislative initiatives isn't enough to change things, collectively they are excerting a continuous pressure on the economy and over the past thirty years the problem has worsened. However, the retirement of the boomers has acted like a catalyst, rapidly accelerating this trend.

      And finally, why the fuck do people keep telling me this is the greatest country on Earth?

      Because we live here. Duh. Nobody's national anthem starts with "We're Number Two!"

      --
      #fuckbeta #iamslashdot #dicemustdie
    8. Re:Why? by Anonymous Coward · · Score: 0

      I was listening to Lewis Black and he was talking about Americans, government and citizens, running around saying America is the greatest country on earth. Those people are usually the idiots that have never been outside of America.

    9. Re:Why? by chill · · Score: 1

      God I loved that video clip. I need to find and save it.

      --
      Learning HOW to think is more important than learning WHAT to think.
    10. Re:Why? by reve_etrange · · Score: 1

      Just a little reminder that, not only are we 1st in incarcerations per capita, but also in total number of incarcerations.

      In the US, about 2.2 million people were in prison at the end of 2011, and 7 million under correctional control of some kind. As of 2012, China had a prison population of approximately 1.6 million.

      --
      .: Semper Absurda :.
    11. Re:Why? by girlintraining · · Score: 5, Informative

      We're 7th in literacy, 27th in math, 22nd in science, 49th in life expectancy, 178th in infant mortality, 3rd in median household income, number 4 in labor force and number 4 in exports. We lead the world in only three categories: number of incarcerated citizens per capita, number of adults who believe angels are real and defense spending - where we spend more than the next 26 countries combined, 25 of whom are allies.

      Literacy: 48th.
      Math: 32nd.
      Science: 14th
      Life expectancy: 33rd
      Infant mortality ('05-10): 40th.
      Median household income: 4th.
      Labor force: 3rd
      Exports (per capita): 43rd
      Exports (gross): 2nd
      Incarceration (per capita): 1st
      Adults (belief in angels): No reliable statistics available. 41-80%
      Defense spending (gross): 1st
      Defense spending (% GDP): 2nd (tied with Russia)

      "where we spend more than the next 26 countries combined, 25 of whom are allies."

      False. Only the next 14. Of those, only 9 are allies.

      --
      #fuckbeta #iamslashdot #dicemustdie
    12. Re:Why? by Cimexus · · Score: 1

      Which, sadly, is at least partly due to another factor of American life: the only OECD nation to have no legally mandated minimum annual leave/vacation days.

      Sure some jobs offer a decent number of days, but only after you've worked at the company for quite a long time, and even then, typically fewer than almost every other developed country. The result is that Americans don't travel to nearly the extent that Europeans/East Asians/Australians/New Zealanders do. So a high proportion of Americans really do have "nothing to compare to".

      I say this as someone, who had more paid days off working an unskilled job in a supermarket as a teenager in Australia, as he does now working in a highly-skilled position in a massive global software company in the US. (And I actually worked for the same company in Australia, before transferring to the US - moving to exactly the same position in the US saw me lose almost two weeks of vacation a year and came with a pay cut to boot!)

    13. Re:Why? by aralin · · Score: 1

      I'm sorry, in that case... AMERICA! FUCK YEAH! We ARE the greatest country!

      --
      If programs would be read like poetry, most programmers would be Vogons.
    14. Re:Why? by mythosaz · · Score: 1

      False. Only the next 14. Of those, only 9 are allies.

      Next thing you're going to do is tell me is that Will McAvoy isn't a real person...

    15. Re:Why? by mythosaz · · Score: 1

      ...with the exception of literacy and infant mortality (which I assumed was listed backwards -- I mean, is "#1 in infant mortality!" good or bad?), the top of the list is all pretty close, and you can likely find some list that matches those numbers.

      There's 242 countries if you count dependent territories and if you go as far down as the Pitcairn Islands, Coco Islands, and the Vatican City and only 188 on the infant mortality list. It's not just missing dependent nations on the 188 list - since other non-dependent islands like Nauru aren't on the list. 40th is believable depending on the list and order you use...

      Defense spending seems pretty far off... Concur.

    16. Re:Why? by Anonymous Coward · · Score: 0

      178th in infant mortality

      Isn't that a good thing? I mean, what kind of sicko would want to be 1st in infant mortality?

    17. Re:Why? by mythosaz · · Score: 1

      Sorkin likes to kick off his shows with these speeches.

      I'm probably more partial to Judd Hirsch's Network-esque speech at the beginning of Studio 60.

    18. Re:Why? by girlintraining · · Score: 1

      I'm sorry, in that case... AMERICA! FUCK YEAH! We ARE the greatest country!

      No country's national anthem is "We're Number Two". I am not sure how you could take such esoteric concept as "greatest" when referring to something as large as a country. We would need to establish a set of criterion for objectively measuring greatness.

      There are a number of things that are unique to America which are positive. Somewhere over half of our Fortune 500 companies were created by immigrants, despite being only about 1/8th of the population. That certainly speaks to economic opportunity. And we have a temperate climate, and abundant food; We are the bread basket of the world. If America stopped exporting food, billions would starve. We also possess the largest military on the planet and tons of natural resources. People love to bash America, but I think when you look at it as a complete entity, it is certainly one of the best places to live. That isn't to say we are number one at anything, but that also isn't to say we need to be either.

      I don't mind a little flag waving and "America, Fuck Yeah!" from time to time. We should be proud of our accomplishments. But that is not license to ignore our failures, or to sit on our laurels. And the same can be said wherever you live as well.

      --
      #fuckbeta #iamslashdot #dicemustdie
    19. Re:Why? by Anonymous Coward · · Score: 1

      You should probably know that GP's quote comes from a TV show set in an imaginary version of the country and you know it is absolutely imaginary because it's about journalists who have both a sense of ethics and balls to act on it.

    20. Re:Why? by Dorianny · · Score: 1

      You forgot a very important number, the GDP. At 14,991,300 its twice as big as the next country on the list with a quarter of the population. As per average test scores, they are completely irrelevant. You do not advance sciences and engineering with the average, you do it with the best and the U.S still attracts more of the best than anyone else.

    21. Re:Why? by turbidostato · · Score: 1

      Isn't that UK?

    22. Re:Why? by Anonymous Coward · · Score: 2, Funny

      Literacy is a statistic manipulated to justify more money to the teachers unions.
      Math? Ditto
      Science? Ditto
      Life expetancy? If you don't count immigrants, we win.
      Infant mortality? Are you counting countries that require a baby to live past 2 weeks and weigh more than 7 lbs to count as a "person"?
      Median household income? So second next to norway is you ignore the statistically irrelevant tax haven. Ooops
      Labor force, no, we don't have forced labor.
      Exports per capita? See above.
      Gross exports? Fair
      Incarceration? Fuck Yeah!
      Yup, we pay for the defense of NATO and the 5 eyes nations. Fair point. Wonder how NATO, as an agregate stacks up.

    23. Re:Why? by phantomfive · · Score: 1

      lol props for the fact checking on that one

      --
      "First they came for the slanderers and i said nothing."
    24. Re:Why? by Anonymous Coward · · Score: 0

      We have always been allied with Eurasia. I do not know what you're talking about. They are our friends and allies.

    25. Re: Why? by Badblackdog · · Score: 1

      Good move slick.

    26. Re:Why? by twebb72 · · Score: 1

      Look on the bright side, if you carve off select states, namely anything south of the mason-dixon line and east of new mexico, we do rocket up the list in education.

    27. Re: Why? by Cimexus · · Score: 1

      Blame family. :)

    28. Re:Why? by Anonymous Coward · · Score: 1

      Apparently we are number one in people who take dramatic fiction as literal fact

    29. Re:Why? by Anonymous Coward · · Score: 0

      Thanks Dwight

    30. Re:Why? by aralin · · Score: 4, Insightful

      If America stopped exporting food, so many countries could finally get domestic food supply on financially viable track and get self-reliant and people in those countries would get up economically out of poverty and hunger. Agriculture is the first industry of any country and we are denying them to opportunity to build it, basically keeping them in the stone age.

      On top of that people in US starve, while US exports food. How can you put that together other than the US Food Aid being basically a money giveaway to the local agriculture industry. You need to read some more on this "achievement" you mention. It is the one policy that basically decimates central america and africa and keeps them from developing. It is almost as bad as the fact that since they are now fully reliant on the food aid, we dictate policiies like no condoms in a continent fighting the worst AIDS epidemic.

      http://www.theguardian.com/global-development/2012/jul/18/us-multinationals-control-food-aid

      Make sure to get your flag ready.

      --
      If programs would be read like poetry, most programmers would be Vogons.
    31. Re:Why? by davester666 · · Score: 1

      Well, things changed in the hour between the GP's post and yours.

      --
      Sleep your way to a whiter smile...date a dentist!
    32. Re:Why? by Anonymous Coward · · Score: 0

      We should be 288th in infant mortality.

    33. Re:Why? by Anonymous Coward · · Score: 1

      False. Only the next 14. Of those, only 9 are allies.

      The US doesn't have 9 allies, only nations that they are currently not at war with.

    34. Re:Why? by serviscope_minor · · Score: 1

      Regulatory hurdles, low population density, and we are one of the largest countries by area on Earth.

      That's no excuse. Most Americans live in cities. In other words, most Americans live in areas smaller and denser than many countries which have much better broadband. Yeah, sure rural internet will suck if you live in a survivalist cabin in deepest Montana. Not really an excuse for it sucking in the middle of the east coast metropolis.

      I think the only reason is regulatory hurdles.

      Because America subscribes to a warped version of capitalism that places things in the private domain when most other governments wisely decided to manage these things.

      Most, but not all.

      This includes, but is not limited to, basic utilities like water, electricity, telecommunications, internet, and

      "we" as in the UK privatised water. First thing the water companies did? Sell off all that prime land holding resevoirs to property developers. Now we don't have enough resevior capacity.

      But I know it was a good thing because the conservative and labour parties both keep telling me that the free market makes these things better.

      --
      SJW n. One who posts facts.
    35. Re:Why? by the_arrow · · Score: 1

      Why is Broadband more expensive?

      ... low population density...

      It took some time for this old myth appeared. There are many countries with much lower population density that have both cheaper and better broadband in the middle of nowhere, than you have in the middle of NYC.

      --
      / The Arrow
      "How lovely you are. So lovely in my straightjacket..." - Nny
    36. Re:Why? by dunkelfalke · · Score: 1

      US GDP is overinflated by the financial sector.

      --
      "It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap
    37. Re:Why? by gravis777 · · Score: 1

      On top of that people in US starve

      You know, this baffles me. No offense to people who are hungry, but I don't get it. It is not all that difficult to get on Food Stamps (if you make, say, less than $1200 a month). WIC is available for many families. But let's say you don't qualify for food stamps....

      There are churches in practically every city in the US - many have food pantries. Many counties and communities across the US have food banks. About the only way I could see there being an issue is if you lived out in the sticks with no transportation to get to one of these places.

      As for kids, practically all (or all?) public schools in the US offer free lunch programs (sometimes (all the time?)breakfast as well), and many community centers and churches offer summer lunch programs.

      My experience with people I know who have kids who are hungry isn't from lack of support - it is from pride. People WILL go hungry before they humble themselves enough to say they need help. I've seen it - I've had neighbors who send their kids to me a couple of times a week because they know I will feed them, but who won't accept any themselves even though they may not have eaten in several days. Most I will finally be able to talk the mothers into eventually going down to the food stamp office and - guess what - they qualify!

      So I don't buy at all the argument that people are going hungry in the US because we are exporting food that would mean that store shelves and food banks would have to be empty, and that is just not true.

      Once again, this may not be true in rural areas, but in urban and suburban enviornments, the argument doesn't hold up. The problem isn't that there isn't enough food in the US because we are exporting it, as you imply. And the problem isn't that there isn't options for people who are hungry to get food - there is. The issue is that people are either too proud or too mentally incapable of understanding how to ask for help.

    38. Re:Why? by Anonymous Coward · · Score: 0

      Go live in Russia!

    39. Re:Why? by aralin · · Score: 1

      Because you think of it wrong. You think about how you would handle the situation if you were in it. The people that starve do not have your skills and/or intelligence. They don't have access to information, transportation and education. They might not be aware of programs that help, but even if they did, food is something you need every single day. It wears on you to beg all the time. They might be also too busy working often 2-3 part time jobs and getting from one to the other.

      Most people also starve because the food they can get is not nutricious or they don't get enough of it. The reason being high pricess on quality food, which are kept high due to the export and other factors. We do have full shelves, but we also have people who look at those shelves and cannot afford what is on them and so the shelves stay full.

      There were 4 billlion dollars cut from the food stamps program as well just recently. It will mean so many more families who still starve, but do not qualify for the food stamps. Those churches and food banks are not available in rural areas, where poverty is the biggest problem and are not sufficient for the demand in impoverished cities where there is just too many poor and starving people.

      The argument you are making is so insensitive and prejudicial it is hard to imagine how you can even think like that, but I guess this is what positive bias is about.

      --
      If programs would be read like poetry, most programmers would be Vogons.
    40. Re:Why? by Anonymous Coward · · Score: 0

      The United States is the greatest country on Earth. If you read the article, they are taking prices from New York and Washington DC and using it to say all of America is backwards. Our bandwidth is far superior and more people have access. The Internet was initially developed in the US, as was Google, Yahoo, Apple, most modern communication relays, HP, Dell, IBM, etc., etc. Over half the modern world uses our military equipment. Out universities on average are far superior. Our research is on average is far superior. Pretty good for a nation of people who score below the world intelligence average - so says a recent Chinese study.

      Pure and simple, take what non-US citizens say about the US lightly. You don't know their intentions. You don't know their bias. For all we know, anti-American statements can just as easily be posted by some AQ operative, some ultra left-wing propaganda machine, or just an angry teenager who will believe and repeat anything.

      The United States still stands for freedom, self reliance, opportunity, and much more. Regardless of what some eurotrash bottom feeder thinks.

    41. Re:Why? by Anonymous Coward · · Score: 0

      So you attract rich people to set up fortune 500 companies because your government is in the pockets of big business.
      Your minimum wage hasn't increased for like 100 years.
      You have limited healthcare

      Your a third world african country who was lucky enough to have a headstart.
      Your rich live like kings and fuck the rest, just like every third world country.

    42. Re:Why? by gravis777 · · Score: 1

      Yes, but your argument is that these people starve because the US exports food, which is just plane stupid. The issue is NOT a lack of food in the US.

    43. Re:Why? by dywolf · · Score: 1

      food banks
      food stamps
      soup kitchens

      there are literally dozens of food programs in every city. if people are starving, its not through lack of food.

      --
      The guy who said the election was rigged won the presidency with the second-most votes.
    44. Re:Why? by Anonymous Coward · · Score: 0

      Plenty of other countries could produce more food. If you stopped subsidising your farmers to the tune of billions of dollars they would. Dropping some of your tariffs would help too.
      Upward mobility (economic opportunity) is less that a lot of other countries (European especially) and certainly nothing to be proud of.
      That large military is a cause more often than its a solution to the worlds problems. And all that wasted money could be much more effectively spend on making your country truly great if you were so inclined.

      People love to bash Americans, because due to your less than stellar education system it's often the only way to get facts through your thick skulls.
      You truly have been given remarkable gifts of location, resources, history. But your current generations are squandering all the things that have been basicly handed to them.
      You could easily be the greatest country, but it seems you would need the greatest people first.

    45. Re:Why? by Anonymous Coward · · Score: 0

      Food is a difficult one to do though, it needs to be stopped over a long period (10 years or so), to give time for the supressed agriculture in other countries to get to the point that they can support their own county. Just stopping it outright will kill people in many countries.

    46. Re:Why? by Anonymous Coward · · Score: 0

      He was quoting a fictional TV show.

    47. Re:Why? by colesw · · Score: 1

      A reported prison population ...

    48. Re:Why? by aralin · · Score: 1

      I'm sorry, I thought you've got problems with basic economics, but clearly it is also reading comprehension and spelling. Please read again my last comment.

      --
      If programs would be read like poetry, most programmers would be Vogons.
    49. Re:Why? by Anonymous Coward · · Score: 0

      Will McAvoy: [Looks at Jenny] And, yeah, you... sorority girl. Just in case you accidentally wander into a voting booth one day, there are some things you should know. One of them is: There is absolutely no evidence to support the statement that we're the greatest country in the world. We're 7th in literacy, 27th in math, 22nd in science, 49th in life expectancy, 178th in infant mortality, 3rd in median household income, number 4 in labor force and number 4 in exports. We lead the world in only three categories: number of incarcerated citizens per capita, number of adults who believe angels are real and defense spending - where we spend more than the next 26 countries combined, 25 of whom are allies. Now, none of this is the fault of a 20-year-old college student, but you, nonetheless, are without a doubt a member of the worst period generation period ever period, so when you ask what makes us the greatest country in the world, I don't know what the FUCK you're talking about!... Yosemite?
      [Stunned silence]

      mythosaz, You seem to be confused. Our country's status has nothing to do with education levels (that's a matter of personal laziness and coddling more than anything else), life expectancy, infant mortality, or any other statistic you may wish to list.

      We are the greatest country the world has ever seen because we have proven that a country of free people, with guaranteed and protected individual liberty, can prosper and come a lowly colony of a foreign country up becoming the most powerful nation on Earth be promoting individual success through the capitalist system. No other country on the planet can make the same claim.

      In these times it may seem like we are losing that liberty, and we are. But that is because of the Animal Farm-like conduct of our elected class and the ever increasing laziness of the American people.

    50. Re:Why? by Sumtingwong · · Score: 1

      Come live here in Pakistan for a little bit. Shit, go live in Europe for a bit. I am not talking visiting, I am talking living.

      Come back to the US.

      Make decision on what is the least evil you are dealing with.

      Perspective is a beautiful thing, especially when all you describe are first world issues.

      --
      Word!
    51. Re:Why? by vandamme · · Score: 1

      Because you can buy fresh Belgian beer here.

    52. Re:Why? by NewYork · · Score: 1

      "If you wish to keep slaves, you must have all kinds of guards. The cheapest way to have guards is to have the slaves pay taxes to finance their own guards. To fool the slaves, you tell them that they are not slaves and that they have Freedom. You tell them they need Law and Order to protect them against bad slaves. Then you tell them to elect a Government. Give them Freedom to vote and they will vote for their own guards and pay their salary. They will then believe they are Free persons. Then give them money to earn, count and spend and they will be too busy to notice the slavery they are in." --Alexander Warbucks

    53. Re:Why? by Anonymous Coward · · Score: 0

      We have an obesity epidemic in this country. People here aren't starving because we export food. Add to that 45Million people on food stamps and the cost of food is subsidized. So, if you're starving in the US it's probably because your mother is too lazy to take the food stamps to the store. Sadly, I'm related to a family where that is indeed the pathetic case.

    54. Re:Why? by Anonymous Coward · · Score: 0

      You are absolutely right about it being difficult to see why we have been labeled the greatest country in world. But if you look back, we earned some of that title when we went over and kicked Germany's ass. Not once but twice when Europe was incapable or tacitly unwilling to stop Germany on their own. We won the war with Japan at the same time and then we rebuilt both western Europe and Japan after the wars. Did we make a fortune on the deal, absolutely but we brought them back when by themselves they would still be living in bombed out houses or in caves. When push comes to shove we push back like no one else can. In the past the idea of moving to a new country and becoming successful and then seeing your kids become very successful in 2 or 3 generations was unheard of. The USA was the only place that could happen.

      Are we all that today? No. We have become less but that doesn't mean we can't rebound. Their have been uber-rich, robber barons before. They seem to rise every 100 years or so and then they show their true colors. We are seeing that now. If the path we are on today doesn't change we will see very hard times in the not so distant future. The human tendency to resort to lynchings and ballistic maintenance is never too far under ground. When this gets bad enough, some people will die, some people will be killed and the worst dicks on the stage will get some of what is coming to them. What comes around goes around. When you get older you will see that this true and that to make these changes happen your generation will have to stand up, turn off the video games, put down the iPod and the phone and actually do something to participate in this Republic.

      Why don't you start today? My generation let this happen. My parents, members of the greatest generation, let us do it. The train is already off the tracks. We are just waiting to see the outcome now. The ones who come after us will have to be prepared to rebuild.

      Signed: Grumpy old guy who really needs to get some supper.

    55. Re:Why? by MrExpatEgghead · · Score: 1

      I like the 'only nine'. Currently the US Navy could take on all the countries on the planet and destroy the entire non USA flagged merchant vessels and then sink, take, burn or destroy all their warships. I hope USians feel really safe queuing up in their local soup kitchens.

    56. Re:Why? by Anonymous Coward · · Score: 0

      We're 7th in literacy, 27th in math, 22nd in science, 49th in life expectancy, 178th in infant mortality, 3rd in median household income, number 4 in labor force and number 4 in exports. We lead the world in only three categories: number of incarcerated citizens per capita, number of adults who believe angels are real and defense spending - where we spend more than the next 26 countries combined, 25 of whom are allies.

      Literacy: 48th.
      Math: 32nd.
      Science: 14th
      Life expectancy: 33rd
      Infant mortality ('05-10): 40th.
      Median household income: 4th.
      Labor force: 3rd
      Exports (per capita): 43rd
      Exports (gross): 2nd
      Incarceration (per capita): 1st
      Adults (belief in angels): No reliable statistics available. 41-80%
      Defense spending (gross): 1st
      Defense spending (% GDP): 2nd (tied with Russia)

      "where we spend more than the next 26 countries combined, 25 of whom are allies."

      False. Only the next 14. Of those, only 9 are allies.

      critisim debunked, nothing to see here, carry on ...

    57. Re:Why? by lars_stefan_axelsson · · Score: 1

      Because we live here. Duh. Nobody's national anthem starts with "We're Number Two!"

      But there are some that are close enough. The second verse of Sweden's start "Du tronar pÃ¥ minnen frÃ¥n fornstora dar, dÃ¥ Ãrat ditt namn flÃg Ãver jorden". According to Wikipedia "Thou art enthroned upon memories of great olden days, When honored thy name flew across the earth,"

      So that comes pretty close I think... However, when it comes to broadband we're clearly a current superpower. I pay $52 for 100/100 MBps fibre to my house. (Dollar is cheap right now, used to be about $40). This includes IP-telephony.

      Note that Sweden is roughly the size and shape of California, with only 9 million people and self governing municipalities (it's in the constitution). And we still manage to be in the top.

      --
      Stefan Axelsson
  54. Seriously? Your internet is AWESOME! by Zeus3rd · · Score: 1

    $100USD for 50MBps? Americans are seriously complaining about getting those kinds of speeds for that amount of money? I would do unseemly things for those internet speeds! Here in Australia we can get 12MBps MAX (top of the range) at about the $100 mark per month (and AUD almost equals USD these days) with heavy download/upload limits on our aging, unreliable copper cable network. America has nothing to complain about. In fact, they should be lobbying to help us poor Aussies. http://goo.gl/OXkz5t And that's in the CBD. Anyone outside the CBD is practically on dial up. It takes me several hours to download Ubuntu whenever there is a new iso and watching a youtube video in HD renders the internet unusable to all other devices in the house. Yeeeeees there is a new broadband network being implemented (which is outdated technology in itself), but our new "elected" government is considering pulling it out and keeping the crap we've got now instead.

    1. Re:Seriously? Your internet is AWESOME! by Cimexus · · Score: 1

      I had 60 Mbps VDSL2 in Australia (TransACT, inner south Canberra) for under $60/month. Back here in the US I can only get half that speed (for the same price, approximately).

      Sure, my sample size is one, and thus meaningless. But having lived in several different cities in Australia and the US, I can honestly say the situation is no better or worse in either country. In both countries it's the luck of the draw - you could be in a spot with great internet (close to the exchange, or with FTTN/FTTH available) ... or in a spot with terrible options (no cable, no fibre, long phone line).

      Aussies stuck in bad internet areas love to THINK the situation is so much better in the US, but it really ain't. I've been stuck in a place with 5 Mbps max in Australia (southern suburbs of Brisbane, 4 km+ line length to exchange, no other options), so I know the pain. But I've lived in similar places in the US too (my parents in law for instance, who live in a mid-sized city and have 6 Mbps DSL as their one and only option).

      My parents back in Australia are on the NBN now, which makes me quite jealous. Can't get anything close to that where I live in the US currently. FiOS does exist here but is restricted to select cities, mostly on the east and west coasts ... I live in the Midwest.

    2. Re:Seriously? Your internet is AWESOME! by Badooleoo · · Score: 0

      +1

      Australia is way more expensive for internet access than just about anywhere else.

      It would be nice if we paid for it as a service not a quota chunk too. "Here have $$ and let me do whatever I want with it." They setup Australia's Internet business model on purpose to charge for how much is used instead of just a base charge to deliver.

    3. Re:Seriously? Your internet is AWESOME! by Badooleoo · · Score: 0

      But Canberra is where all the politicians are and is between Melbourne and Sydney. I'm not surprised internet is cheaper and faster there otherwise the polys wouldn't be there.

    4. Re:Seriously? Your internet is AWESOME! by Cimexus · · Score: 1

      Canberra (being a territory rather than a State and thus getting less representation than the other jurisdictions) actually has fewer politicians than Melbourne or Sydney. Federal parliamentarians are fly-in-, fly-out workers. Few own a home in Canberra. They spend most of their time in their home electorates. On top of that, the ACT's unicameral local legislature is much smaller than State parliaments.

      So I don't think pollies really come into this topic. Large areas of Canberra are an internet backwater just like the other capital cities. Luck of the draw, where you live.

  55. It's expensive, but 10 times cheaper than it was.. by swb · · Score: 1

    ...13 years ago.

    13 years I had one choice, DSL, and it was $79/month for 768k/256k asymmetric on the ISP side and then another $20 a month on the telco side. 1 static IP.

    Now I pay $72 per month and get 15/5 Mbit and get 5 static IPs. It was $69/month for the last 3 years but crept up $2/month in the last month (no explanation on the bill, just a bigger number).

    It sounds like in absolute dollar terms I'm paying about the same price, but I'm getting more than 10 times the download speed and static IPs aren't getting easier to obtain, plus the numbers above aren't corrected for inflation.

    I'm really surprised Comcast hasn't jacked the price up horribly -- the ONLY competition they have is CenturyLink who have done pretty much nothing to boost speeds/lay fiber/etc and the municipal wifi network which I think is likely to be not much better if not worse than LTE. Hell, half the time I stay in a hotel I end up ditching the low-rent wifi they offer for the personal hotspot off my LTE smartphone.

    Plus, Comcast MUST be facing constant pressure on their network. I hear people in densely populated hipster neighborhoods gripe about slow throughput but I can never tell what that might be.

  56. Geography by Anonymous Coward · · Score: 0

    While oligopolies and the utter failure of the US government to regulate the one thing it really should in a capitalist economy are half the equation, the other half is simple geography. The fact is that the continental US (IE minus Alaska and Hawaii) is twice the size of Europe and less than half the population. Which means a fourth the population density on average, and deploying four times the cables/cell towers per person on average is not a recipe for price parity.

    To be sure, this is on average and large population centers have little excuse. But even here geography helps oligopolies form. If Time-Warner is all over the North-East and Comcast is all over the West Coast, it's not exactly trivial to start up infrastructure several thousand miles away from where all your employees, accounting, and legal expertise lay.

    So while there's no real way exact price parity with the relatively high density population of Europe could be achieved, as ROI on infrastructure is going to be higher there by nature, it also isn't like George W. Bush didn't screw the American people out of billions either. And of course our current presidents solution is "do nothing about it" as always.

  57. Re:That's overly simplistic - population density k by LynnwoodRooster · · Score: 1

    Is ANYTHING in NYC cheap?

    Insults are you moron. Now get the fuck outta the way, and let the real men talk you limp-wristed panty boy...

    --
    Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  58. Not Awesome. Australia just even worst. by ze_jua · · Score: 1

    Articles after articles, we learned that Australian internets/ISP/regulators are the worst in the world. That doesn't make other networks better...

    1. Re:Not Awesome. Australia just even worst. by Zeus3rd · · Score: 1

      How could Australia's being worse NOT mean America's is better than Australia's? O.o I'm pointing out that that study is conveniently missing other countries like mine in it's analysis (where America's costs ARE considered better) which is a bit insulting to those ignored in the results. And the article didn't even mention Australia, so that's very biased. Again, isn't America lucky they are cared about more than the rest of us? :P

  59. Neighborhoods are competing for your residence by tepples · · Score: 1

    In the neighborhood I life in, I can't get FiOS and the AT&T DSL options are a joke (they won't bother putting in capacity). So if you want anything but *shudder* dialup, your options are Warner, Warner, or... Warner.

    I'm interested in why you can't move to a competing neighborhood.

  60. Re:That's overly simplistic - population density k by Anonymous Coward · · Score: 0

    What exactly is the excuse in major cities where there IS population density and the prices are just as high?

  61. Than anywhere? by rgardhou · · Score: 1

    Should try Australia. Prices here will make you swallow your tongue!

  62. Re:That's overly simplistic - population density k by bobbied · · Score: 1

    I was wrong.. TALK is cheap in NYC...

    --
    "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  63. One word: by Red_Chaos1 · · Score: 1

    Greed.

  64. Re:That's overly simplistic - population density k by Anonymous Coward · · Score: 2, Insightful

    I am French and I currently live in Arizona, and your logic seems a little bit bad because YOU DON'T NEED TO PUT CABLE/FIBER TO EVERY METER SQUARE IN UNINHABITED LAND. You just don't need to have fiber to every stone in Grand Canyon or Monument Valley but you DO NEED TO HAVE IT in Phoenix, Tucson, Flagstaff, etc.
    The population is clustered in such a way that it is easy to connect them.
    Yet :
    For 20Mbps here (in the center of a 500K inhabitants city) : 56$/mo (that's without TV or phone).
    For 25Mbps in France (in the center of 20 houses village, 3Km away from a 8K inhabitants city) : 49.71$/mo (which also includes free and unlimited calls to more than 100 countries and cheap mobile phone plans (2hrs voice, unlimited text)).

  65. Home broadband in the US costs far more by Anonymous Coward · · Score: 0

    Answer: GIMME!

  66. Re:That's overly simplistic - population density k by SleazyRidr · · Score: 1

    Compare New York to rural Finland. You're still getting screwed.

  67. Monopolies by daninaustin · · Score: 1

    It's going to take a while for that. The existing infrastructure put in place by previous monopolies by the telephone companies and the cable companies make it hard for any new competition to start up. There are significant barriers to entry. Maybe wireless will do something or Google will go crazy with fiber but i would not hold my breath.

    1. Re:Monopolies by Sique · · Score: 1
      When I was working in the 1990ies in the Rhine-Main-Regio in Germany (with Frankfurt am Main as the main city and an urban area of about 2.3 mio people), telcos were busy digging up streets and foot-walks to put additional fiber into the ground. The data center I was working in, had uplinks from three different providers, Deutsche Telekom, MCI Worldcom (yes, they existed at the time) and Arcor.

      About every larger municipality in Germany has at least the local utility also offering internet access, beside the large german-wide providers like Deutsche Telekom and Kabel Deutschland.

      I don't understand why in the U.S., such local diversity seems to be not possible.

      --
      .sig: Sique *sigh*
  68. Honest words from a political spokesman by HiThere · · Score: 1

    Honest words from a political spokesman...really news.

    When is the last time the government was so honest in a public statement?

    --

    I think we've pushed this "anyone can grow up to be president" thing too far.
  69. Cities compete for your residence by tepples · · Score: 1

    Cities compete for your residence. If your city sucks, you could try moving to a different city that does a better job of competing for your tax dollars.

  70. when comparing by geekoid · · Score: 1

    please use common population density, and not 'the whole US'.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  71. Because carriers charge by the byte by Lime+Green+Bowler · · Score: 1

    Charging by the byte, kilo, mega or gigabyte is a draconic and totally outmoded business paradigm. Unfortunately telcos will never break that paradigm because they are far too stuck in their ways to believe anything else besides that business model. No matter what anyone says, it does not cost the telco to transmit more data.

  72. Why do planes have ever shrinking seats in coach? by Anonymous Coward · · Score: 0

    Different question, same answer. Unregulated capitalism is a disaster for companies and customers. The WSJ ran a story describing how ALL long-haul carriers are giving more interior space to 'first-class', but in order to keep the same capacity in shrinking 'economy/coach' are making the seats progressively narrower. Making first class larger, so it offers more 'luxurious' facilities gains NOTHING at all when every carrier ends up having to do the same. First-class passengers are a self-defining, stable group who DO NOT increase in numbers or willing to pay more because one carrier temporarily creates an advantage over another. So, at the end of the day, the airline makes the SAME amount of money, and first-class passengers have a BETTER experience at the cost of an ever worsening experience for the 'peasant' class.

    In other words, unregulated capitalism ALWAYS creates a "let them eat cake" situation.

    US broadband suffers from the same problem. Corporate giants with politicians in their pockets (via the USA laws that allow politicians to indulge in INSIDER TRADING, free from legal penalty). The broadband companies pay filthy shills to shill technical forums like this with nonsense about how "every byte transmitted costs a fortune" and how "heavy users are thieves stealing from the pockets of regular users". As Slashdot endlessly proves, your average nerd is VERY thick, has a giant chip on their shoulder, and always thinks that other nerds are seeking to do them down. When the shill sez "kick those heavy bandwidth using nerds when it hurts" every other American nerd seems to cheer.

    In other nations, no-one cares about the 'opinions' of ill-informed and aggressive nerds. Instead, they consider the economic and societal benefits gained from an infrastructure of affordable, ever faster network connections. For years, other nations looked upon the USA with envy. America had free local telephone calls for a monthly fee- and other countries did not. America had gizmos and doo-dads in ordinary households that the rest of the planet could only drool over. Well, the American Dream impacted the globe, just as vile classes of monsters rose to power in the USA itself to take the USA in a war mongering direction. The new American Dream is to invade and genocide nation after nation, endlessly cheering the evil uniformed horrors that volunteer to be the nations stormtroopers.

    Too much broadband in the USA dangerously encourages TRUE alternative media activities, outside the control of mainstream media companies, or George Soros. When a nation requires every citizen to be goose-stepping to the same beat, the freedom of citizens to effectively challenge the 'New Order' is very dangerous indeed.

  73. bad numbers by stenvar · · Score: 1

    I pay $30/month and get 60+ Mbps. So, those numbers are certainly not generally true for the US. Maybe Internet access in San Francisco is particularly expensive, or maybe they just screwed up on selecting their plans.

  74. Re:Why do planes have ever shrinking seats in coac by Anonymous Coward · · Score: 0

    Because your ass is getting wider?

  75. Many states have laws prohibiting municipal... by Radical+Moderate · · Score: 2

    ...broadband. One guess who lobbied heavily for those laws.

    --
    Never let a lack of data get in the way of a good rant.
  76. Because they can by neminem · · Score: 1

    If your choice is a. expensive crappy internet from one company, b. expensive crappy internet from the other company, or c. no internet, you're probably going to choose expensive crappy internet. So what motive do either internet companies have to make their internet cheaper or faster? None.

    I miss the days when ISPs were actually allowed to have real competition.

  77. Mod parent up! by rueger · · Score: 1

    Funny, and arguably accurate as well!

  78. partly by dutchwhizzman · · Score: 1

    Yes, running broadband in the USA costs more per household than some of the cheaper countries mentioned, on average. However, since there is no regulation, you'd expect the locations where you actually have a population density to be thriving with competition and low prices.

    This is where legislation comes in. In at least Europe, there is a law mandating that there should be a fair and actual competition going and if there isn't, the government gets to set a price for whatever company chooses to provide service, will have to deliver that service. It's not a perfect system and companies still make way more than you would get with a truly competitive market, but at least it's limited.

    Here in the Netherlands we basically have two cable companies that divided the country in 2 regions (a few niche players have less than 10 percent of the country) and one former state owned telco that owns the copper pair stuff. That company is mandated to provide access "at cost price" to any ISP that wants access, but they managed to both add a lot of charges to whatever "at cost price" is and also for the uplink point and all that. To add insult to injury, they own most of the glass fibre FTTH stuff and are pulling a similar stunt there. In practice, that leaves most homes that have access to broadband a choice between 2 parties they have to depend on. One of the two cable companies and the former state company. If they choose to not go for cable, they are still going to be using the former state company, even if they get their IP connectivity (and a single bill) from another ISP.

    That leaves us with basically at least two major competitors for over 80% of households, that all offer triple play services at a price point starting around 30-40 euros monthly. For that, you typically get 20Mbit or so in internet access (or less if only lower speed DSL is available in your area) some free minutes to selected phones and about 50 channels of digital television. If you're willing to pay around 100 euros monthly and if you can get it, you can get up to 500/500Mbit (yes, that's 500Mbit uplink) with no data limit. I think the current coverage for that is around 15-20% of the people in the Netherlands.

    This may sound like a dream to most people in the USA, but believe me, there's a lot of "we're not going to offer anything more competitive if they aren't". There's nobody offering single play internet at the highest speeds, or an a-la-carte solution that would be in place if there was more competition. These three companies more or less are making all the profit that's in this market and the rest is there just as a vehicle to deliver the money to them. Since the cable companies are not mandated to open up their network to third party providers, only two competing companies per household is obviously still not enough to get a truly competing market. The prices are a lot better than they are in the USA, but all three are showing "very healthy" profits and that's not what you'd expect if there was a permanent cut-throat competition going on.

    It's about time the USA stopped worrying about communism or "too much regulation" and started to mandate price limits unless at least three independent services would offer full service for something as important as access to the internet. We're past the point that it was a luxury and a hobby thing; you are deprived of many benefits if you don't have a broadband internet connection these days. Just as you want running water, electricity and some sort of sewage system in your home. If a single company would win a contract to be the only gasoline provider in an entire state for 10 years in the future, people would revolt. When it's about internet access, there should not be a difference, even if it's only a single municipality. You can get get gas in the next town, not the next state. With internet, you don't have the luxury to travel to get some, so every home in the USA should have a choice between several providers.

    I'm not saying the USA should slavishly copy Europe, but the

    --
    I was promised a flying car. Where is my flying car?
    1. Re:partly by Firethorn · · Score: 1

      However, since there is no regulation, you'd expect the locations where you actually have a population density to be thriving with competition and low prices.

      No regulation? Are you kidding? Have you been reading this thread? There's HUGE loads of regulation when it comes to running wire through municipalities. There are issues when it comes to right of ways. Dig permits. Outright non-competes with right of way permits auctioned out on 50+ year contracts, etc...

      It's about time the USA stopped worrying about communism or "too much regulation" and started to mandate price limits unless at least three independent services would offer full service for something as important as access to the internet.

      Look up what happens when you simply mandate price caps. Some might get cheaper service, but the vast majority are simply told 'not available'. The REAL solutions are a bit more complicated. My favorite is to 'simply' set up local internet cooperatives that DO have access to right-aways. Break the old non-compete contracts if necessary(IE pass a law).

      --
      I don't read AC A human right
    2. Re:partly by volmtech · · Score: 1

      The US has high cost broadband but legislators are fairly cheap. Most are owned by a cable company or a teleco. If a municipality wants to instal their own system AT&T tells the state legislators that providing phone and internet has so little profit that without the income from that municipality AT&T will have to stop providing service to the entire state. The state sues the municipality and the state police make sure no equipment rolls.

      The federal government paid AT&T to run fiber past my house three miles to the end of the road. It didn't pay them to hook up the twenty houses that have telephone service. The CO is too antiquated to support DSL so we don't have that either. Cable and DSL service ends 1 mile up the road from my house.

    3. Re:partly by Firethorn · · Score: 1

      If a municipality wants to instal their own system AT&T tells the state legislators that providing phone and internet has so little profit that without the income from that municipality AT&T will have to stop providing service to the entire state. The state sues the municipality and the state police make sure no equipment rolls.

      Which is why I mentioned the law thing... Yes, you'd probably need enough municipalities in sufficient different districts in order to force enough senators to support their initiatives, but with enough pressure(grass root campaigns) it can be done.

      And yes, I've heard of plenty of situations like yours.

      --
      I don't read AC A human right
  79. I can choose my power, why not my internet company by Anonymous Coward · · Score: 0

    I live in Dallas, TX and we get to choose our electric providers. What we don't get to choose is the company that maintains the wires to our residences. I don't see why internet service should be any different.

    More info: http://www.powertochoose.org/

  80. Also, how fast is it really? by Sycraft-fu · · Score: 1

    Something I've noticed is that in a number of Asian and European countries, you see ISPs that operate and sell lines line giant WANs. You get a really fast connection to them, but it is way oversubscribed on the backhaul and you don't see that off-network.

    For example a few years ago I remember a gentleman from Japan here on Slashdot who was talking about his fast 100mbit Internet connection and how he could download a CD in like 8 minutes. I had to point out that is the kind of speed you get form 10mbit, not 100mbit, and indeed my 12mbit Internet downloaded it faster.

    So you do need to make sure you are doing real apples to apples comparisons on speeds. A lot of the amazing Speedtest results I see are people testing to a server on their own ISP which is fine for internal testing, but says nothing about overall speed. When I test my link, I always test to an ISP in another state, about 500 miles away, to verify that indeed I am getting my bandwidth to the larger Internet, not just to things near me.

    I'm not trying to say that this means the US is great, but it is a complex issue. I can offer you really cheap "gigabit" Internet... just so long as I don't have to have the backhaul to support it. I can build a gigbat WAN pretty cheap, and even have a local Speedtest server you can use, but it'll cost me a lot more if I want the backhaul to really support those kind of speeds.

  81. Re:That's overly simplistic - population density k by DerekLyons · · Score: 1

    The picture you paint of Europe is a little simplistic too. France has a few large cities, but the tenth-biggest one has less than half a million inhabitants. It has tens of thousands of villages with 1000 or less inhabitants.

    No, he covered that bit. It's under the part about how the US is sprawling and has a low population density - Neither of which describes France. Their 'tens of thousands' of villages are crammed into an area that's a small faction of the size of the continental US.

    Read comprehension, get some.

  82. Re:That's overly simplistic - population density k by fatphil · · Score: 1

    Now crunch the figures for Sweden or Finland.

    --
    Also FatPhil on SoylentNews, id 863
  83. It's a compromise by tepples · · Score: 2

    What I got out of the Mises article was that much of the mess that utilities are in comes from cities' failure to set an efficient price for access to the rights of way that it owns: "Benevolent and enlightened politicians, even ones who have studied at the feet of Harold Demsetz, would have no rational way of determining what prices to charge." I recognize that it'll be impractical as of now for cities to give up their ownership of rights of way, and instead, I set forth a technical solution that a city could put in place to allow more efficient access to its rights of way by competitors without disrupting travel.

  84. A ton of unused fiber was laid... by Radical+Moderate · · Score: 1

    during the dot.com boom, so the heavy lifting of connecting our far-flung nation is already done. And much of it is still dark, waiting to be used.

    --
    Never let a lack of data get in the way of a good rant.
  85. Real answer... by Lumpy · · Score: 1

    Unregulated greed.

    There is no other reason for it.

    --
    Do not look at laser with remaining good eye.
  86. Those prices are insane by Radical+Moderate · · Score: 2

    $20 for broadband in the US?! Where? I can get very crappy(Netflix basically unwatchable) dsl for $30, or cable for $60.

    --
    Never let a lack of data get in the way of a good rant.
    1. Re:Those prices are insane by GoodNewsJimDotCom · · Score: 1

      I'm thinking the exact same thought. Here in Comcastlevania it is 60$/month for bottom of the barrel subscription. They've stopped upgrading their service. Instead of passing upgrades to their subscribers, they've simply added higher and higher tiers. If you want to pay Comcast 200$+ per month for faster Internet, they'll do you the favor.

    2. Re:Those prices are insane by Anonymous Coward · · Score: 0

      My thoughts exactly...$20 is crazy...I never found $20 broadband, excluding intro deals (that expire after 6 months) for DSL, which in my mind isn't really broadband, since it doesn't provide enough bandwidth to support streaming HD video, at least in my area.

      FYI - I'm in central Kansas, where the only true broadband available is cable internet...and the provider (Cox Communications) just raised my broadband from $56.99 a month to $62.99 a month.

  87. You don't know what you are talking about. by mosb1000 · · Score: 2

    That's ridiculous. I used to install pipelines and wells beneath roads in southern California. That's a much slower and messier process than laying underground cables (I know because we did that too). Believe me, the residents did stand for it. To them it's just more road work. It would be easy for a company to lay new subterranean cable, and it would be even easier to place it above ground.

    1. Re:You don't know what you are talking about. by icebike · · Score: 1

      State/County Road are one thing, neighborhoods are a whole different issue. The cost accelerates dramatically.
      Zoom in on Google Maps to developments around any city.
      You are literately talking about trenching both sides of every street, and rip up every single lawn.

      Since you like to pretend you know something about this industry, why not take a shot at figuring the cost.

      --
      Sig Battery depleted. Reverting to safe mode.
    2. Re:You don't know what you are talking about. by mosb1000 · · Score: 3, Interesting

      I've done plenty of work in neighborhoods. The work is easier, because there is less traffic. No, you don't have to rip everything up, initially you'd take a big saw, saw out the pavement, run a trencher down it, put in the cable with boxes for each house, bury it and pave it over. It'd take maybe a day per block with at most dozen people, so maybe $5,000 for a block of a two dozen houses (both sides of the street). That's just $200 per house initially. Then you'd connect people when they sign up, because people aren't gong to let you bury a cable in their yard for a service they aren't getting. That would probably be a half days work for a team of 4, so about $800. So if you were doing a neighborhood of 1000 houses, you'd need $200,000 initially which you'd probably issue bonds for, you could easily get those at 10% annual interest because it's for physical infrastructure. If 125 houses signed up you'd need another $100,000 to wire them up and you'd probably take out bank loans to cover that cost, which you could get for much less than 5%. Your annual costs for the interest would be less than $20,000 for initial capital, and less than $5,000 for the connections. The total cost on interest would be just $17 per month per connected house in this scenario. Assuming you were installing premium fiber, you could charge $50-$100 per month, so the cost of installing the fiber would be relatively minimal.

    3. Re:You don't know what you are talking about. by icebike · · Score: 1

      200 per house. You must be joking.

      Broadly speaking, when a telco can pass five to 65 locations for every mile of outside plant, the cost per home ranges between $4,000 and $5,000 per location. When the number of locations drops below five passings per plant mile, costs escalate quickly, up to $19,000 a location.

      The study by Vantage Point Solutions, an engineering firm based in Mitchell, S.D., estimated costs based on site density, especially measured as “passings per linear plant mile.” Overall costs per location were double in the rural areas – $9,286 compared with $4,438 in the “town” portions of the networks.

      http://blog.performantnetworks.com/2012/11/how-much-does-rural-fiber-really-cost.html

      Better leave the estimating to the big boys.

      --
      Sig Battery depleted. Reverting to safe mode.
    4. Re:You don't know what you are talking about. by atriusofbricia · · Score: 1

      That's ridiculous. I used to install pipelines and wells beneath roads in southern California. That's a much slower and messier process than laying underground cables (I know because we did that too). Believe me, the residents did stand for it. To them it's just more road work. It would be easy for a company to lay new subterranean cable, and it would be even easier to place it above ground.

      Not only that but they'd likely say something along the lines of: "This will cut your Internet bill in half and double your speeds" to which the people in the area would reply "Right, do that then."

      Prices are high because government causes un-natural monopolies and shields their pet companies from competition via exclusive contracts for areas. End this practice and watch prices fall and quality rise.

      --
      I was raised on the command line, bitch

      "Nemo me impune lacesset"

    5. Re:You don't know what you are talking about. by mosb1000 · · Score: 1

      That's rural fiber. Also, I didn't say $200 per location, I said $300,000 for 125 houses, that's $2,400 per location. Learn to read and think before you post.

    6. Re:You don't know what you are talking about. by icebike · · Score: 1

      Read the second quote. Over 9k per connection rural.
      Nearly 5k in town.
      Twice your worst estimate.

      Better stick to the shovel work. Accounting is above your pay grade.

      --
      Sig Battery depleted. Reverting to safe mode.
    7. Re:You don't know what you are talking about. by mosb1000 · · Score: 1

      There are many quotes in that article, if you care to actually read it:

      Broadly speaking, when a telco can pass five to 65 locations for every mile of outside plant, the cost per home ranges between $4,000 and $5,000 per location. When the number of locations drops below five passings per plant mile, costs escalate quickly, up to $19,000 a location.

      At densities of about five to 10 locations per linear plant mile, costs were about $5,000 per location.Generally speaking, at densities of 35 locations per plant mile or more, costs dropped below $5,000 a mile.

      But others say the cost of fiber plant, even in rural areas, is about $1,100 per location.

      Analysis by the International Telecommunications Union has looked at overall fiber to home costs (not just U.S. or North American cases) and come up with cost per home passed ranging from $3,000 to $4,000.

      The study by Vantage Point Solutions, an engineering firm based in Mitchell, S.D., estimated costs based on site density, especially measured as “passings per linear plant mile.” Overall costs per location were double in the rural areas – $9,286 compared with $4,438 in the “town” portions of the networks.

      Why, you may ask, are all these estimates different? Because the costs are dependent on what factors you include. My estimate was based on labor costs, it might have been low, but it wasn't half of what it should have been, because the situation was more similar to the low end ($3,000) estimates than the high end ones. But as far as the per user cost, $17/month is still probably high because you should be able to get a better rate when you finance than I've used in my estimate (that's highly variable though, so it's probably safer to be conservative).

      Believe it or not, I have been paid to make these kind of estimates. And my estimates are usually pretty close to reality. Of course, I'd do a much more in-depth estimate if I were actually looking to build a fiber network.

    8. Re:You don't know what you are talking about. by jon3k · · Score: 1
      http://bits.blogs.nytimes.com/2008/08/19/a-bear-speaks-why-verizons-pricey-fios-bet-wont-pay-off/

      Here is how Mr. Moffett looks at the costs of the plan that Verizon has announced for FiOS. Through 2010 the company will pay an average of $817 to run the fiber past the 19 million homes, on poles or under the ground. It will also incur $172 per home passed in other costs related to the video infrastructure. He assumes that 40 percent of the customers passed will buy at least one FiOS service. If you allocate the cost of running the fiber past the homes that don’t buy FiOS to those that do, that makes the cost of building the network $2,473 per home. (That cost would be less if more than 40 percent of the potential customers sign up. Or it could be higher, if sales don’t achieve the 40 percent level.)

    9. Re:You don't know what you are talking about. by NoImNotNineVolt · · Score: 1

      Believe me, the residents did stand for it.

      They did stand for it, until they started Falling Down.

      Bill Foster: What are you doing to the street?
      Construction Worker: We're fixing it! What the Hell does it look like?
      Bill Foster: Two days ago it was fine. Are you telling me the street fell apart in two days?
      Construction Worker: Well, I guess so.
      Bill Foster: Pardon me, but that's bullshit. You see, I don't think anything's wrong with the street! I think you're just trying to justify your inflated budgets! I know how it works! If you don't spend the projected amount this year, you don't get the same amount next year! Now, I want you to admit, THERE'S NOTHING WRONG WITH THE STREET!
      Construction Worker: Hey, fuck you, pal.

      --
      Chuuch. Preach. Tabernacle.
  88. Land area by p51d007 · · Score: 0

    Also, look at the SIZE of these places. How many South Korea's, or Japan's would fit within just Texas? Providing high speed to every spot in the USA is problematic at best. Are telcos & cable ops overcharging? Most likely, but the rollout is hard to do, just to the amount of land area in the USA.

  89. But it can be contained by tepples · · Score: 1

    If they're already doing the expensive part, they might as well do the cheap part and run the fiber.

    Just because the conduit is a natural monopoly given city ownership of roads doesn't mean that the service lines running through the conduit can't be competitive. To increase competition, properly identify the natural monopoly and contain it.

    That still leaves a lot of legacy area where there is no conduit currently.

    Roads need periodic repair. Storm drain lines need periodic repair. Conduit modernization could hit those areas first and eventually cover the whole city.

    Meanwhile, it is notable that several broadband providers HAVE chosen to divide up territories rather than competing head to head.

    In other words, they're playing the prisoner's dilemma. Under efficient conduit access, a firm entering the market could choose to serve areas along the border between the territories.

    1. Re:But it can be contained by alexander_686 · · Score: 1

      I think you missed why this is a natural monopoly. It's not because the city owns the right of way. It's because the market lends itself to a single firm.

      You only need 1 phone line to service a entire block.
      You only need 1 cable line to provide cable for a entire block.
      You only need 1 movie theater in the small town where I grew up.
      You only need 1 provider of water and sewer.
      You only need 1 railroad to connect city A to city B.

      In any of the above cases, if there were a competitor a fierce price war would start up until there was only one standing. The last 2 cases come from London from the 19th century.

    2. Re:But it can be contained by sjames · · Score: 1

      The roads in my neighborhood haven't had a sufficiently major overhaul since the neighborhood was built in '74. There is no conduit. The storm drains have never been replaced (and they're fine). They're also not interconnected. Just how many lifetimes do you expect people to wait?

      The cable and power are on poles. It is a fairly complex arrangement where the power company owns the poles and the cable company gets to use them (subject to a minimum safety clearance).

  90. Population Density Anyone? by lordeveryman · · Score: 1
    I may be dense, but it seems the number of people you can serve per km of infrastructure you have to install might effect cost.

    According to Wikipedia:

    • US: 34.2 people/km^2
    • UK: 255.6 people/km^2
    • SK: 501.1 people/km^2

    I am not a big fan of US telco's, but I think the numbers listed clearly indicate that the markets for the three listed countries are dramatically different.

  91. the internet is for bums by Anonymous Coward · · Score: 0

    I dont think usa is that expensive. switzerland is just as expensive. anyways, in the usa you dont get internet. it's more like you get comcast or verizon which ALSO happens to link you to the ... internet. there seems to be a well-made virtual wall keeping people from really tapping into the internet. like if you wanted to start your own mini isp, where would you tap in? this possibility (or lack therof) reflects how much the central (federal) goverment has bowed to the industry. one should be able to walk into a big internet backbone regional offfice with three days worth of facial hair, hippy sandels and khaki shorts and be taken seriously when one requests to locate a single mode fibre gibic that can do 80 km ... because its a federal law. what say you? or you know, the airwave spectrum, which is public but licensed off needs to have a tower? well sh1t I want to locate a directional antenna too for my 10 km 2.4 ghz link ...

  92. Capitalism might be wonderful, if we ever tried it by King_TJ · · Score: 1

    What we've got today is Corporatism, mixed with a few dashes of Socialism, with a "candy coated surface" giving the shiny appearance of Capitalism.

    Truth is, China has more real Capitalism than we do here in the U.S. If you keep your head down and don't run afoul of the government there, you're basically free to do as you wish with a business. Hardly even much to worry about in the way of environmental or safety regulations..... (Why do you think so many businesses traditionally considered American have huge factories over there? The CEO of Coca Cola, not too long ago, declared he'd never be interested in any more company growth inside the U.S. borders. All the real opportunity is elsewhere.)

  93. Capitalism, guys .. by dogandpants · · Score: 1

    The mantra was that it made things cheaper. Now you know.

  94. The #1 reason US broadband sucks... by jonwil · · Score: 1

    The #1 reason US broadband sucks is because companies that make big bucks selling you TV want to keep it that way.

    The cable companies are willing to spend big bucks keeping competition out. They see the Internet as a massive threat to their business model of selling linear TV channels (and they have Hollywood in their corner who see better broadband as being good for the "pirates" who "steal" their content, especially if its broadband run by entities that wont play ball with their "anti-piracy" plans and programs like Google or a local municipality)

    If you want a great example of what the cable companies are doing, look up the deal Verizon and Comcast did where Verizon agreed to stop rolling out FiOS (which basically hands Comcast a monopoly on high speed broadband in most of those areas)

  95. More developed countries are cheaper. by hobarrera · · Score: 1

    More developed countries are cheaper, why is this news?
    I live in Argentina. I pay 60USD for 3MB. Some (worse serviced) ISPs offer 5MB for that price.

    South Korea is first world, and a VERY developed country, it's only natural that it's chepear than countries that are not.

  96. Do data like Texas does power by Anonymous Coward · · Score: 0

    Either local municipality, coop or contracted monopoly, heavily controlled and regulated for reliability and cost, provides the local delivery, including area distribution, local transformers, and houe connectivity, including the meter. Rate is fixed, and guaranteed for all. They handle outages, hookups and disconnects, the hardware and lowest layer stuff. Then you as a consumer choose from many power generators or brokers, who provide the actual electricity you use. Go onth to month changing when you want to shop the best rates, or find a provider and lock in a long term cheap rate, or even choose a renewable only provider if you want to be "green".

    Same thing done for data: local or locally controlled monopoly given for local loop and feeder system. Basically they provide the carrier signal, up to layer 2. Then you go to your choice of provider at the head end, to provide you with digital TV, or IP connectivity, routing, DNS, etc - including (guaranteed) data rate, dates volume, latency, bandwidth.

    1. Re: Do data like Texas does power by Anonymous Coward · · Score: 0

      Texas does have laws that lay out how to bring competition to what is still the biggest monopoly in most places (power). Can they be adapted to data that easily?

    2. Re:Do data like Texas does power by Anonymous Coward · · Score: 0

      would love to see that - a cheap reliable regulated carrier for my basic physical layer, and an open market to choose from for bandwidth, access and routing at the data layer.

  97. Nash Equilibrium by mbkennel · · Score: 4, Informative

    Sometimes the invisible hand flips you a quite visible finger.

    http://en.wikipedia.org/wiki/Nash_equilibrium

    there is no reason an ogilopoly has to achieve the maximization of global utility

  98. modernize the telco deregulation by borcharc · · Score: 2

    In the US telco companies are required to lease their plant at wholesale rates to competitive exchange carriers. This deregulation is what gave us unlimited long distance and voip. In most areas of the country DSL that can be leased on a wholesale basis is quite slow based in technology issues. CLEC's are mostly stuck buying bare wires from the customer premise to the local telco exchange, putting the loop distance in the ADSL range. They have kept CLEC's out of their VDSL and fiber products due to how the telco deregulation law was written. If we want faster broadband we need to modernize the telco deregulations to include cable companies and vdsl/fiber products. There is no reason who comcast can not lease several blocks of 12 channels to competitors on a wholesale basis to run docsis 3 over. Comcast and other cable co's are very inefficient with their bandwidth and with SDV and an all digital cable system there should be no issues.

  99. Those prices look fine to me. by MobileC · · Score: 1

    I'm currently paying around $80us a month for a land line and 100Gb of 8M-bit broadband.

    --

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    :):):)
    1st 1st Poster of the new Millennium!

  100. I checked the options in my area by Khashishi · · Score: 1

    My options were Time Warner and Time Warner. Guess which one I picked?

  101. No, you didn't deregulate by Karmashock · · Score: 1

    How many phone companies can run land lines in a given area by law?

    Typically 1.

    Shockingly one telephone company tends to dominate a given area.

    How many cable companies can run cable lines in a given area by law?

    Typically 1.

    Shockingly one cable company tends to dominate a given area.

    These are government backed monopolies. Small towns have tried to set up their own internet and have been sued by major telecoms because they have a government backed monopoly.

    Remove those limitations and areas with high costs will have little ISPs pop up that serve just a small community and nothing else. Little guys that run their own cable from the trunk to the home/business. That is how you fix it. US internet access is not expensive at the trunk. Its expensive in the distribution because the government forbids competition.

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    1. Re:No, you didn't deregulate by the+eric+conspiracy · · Score: 1

      Analog phone lines are subject to a requirement that they admit various carriers on the lines.

      So for example while Verizon ran the POTS lines to my home I was free (and did) to use AT&T as my carrier.

      The problem is that this sharing process does not apply to cable or wireless.

      I'm fortunate that I live in an area that is served by FIOS as well as a cable company; there are two sets of lines in my neighborhood. The effects of this are very real - I get a very significant discount to my cable service, no caps on the amount of data I receive per month and a quite attractive bandwidth of 120 Mbps down / 30 Mbps up for less than $50/mo.

      Simply the reason costs are higher in the US is the lack of sharing the infrastructure among various carriers. I think this is most critical with internet service because there is so much than can be done with just this.

    2. Re:No, you didn't deregulate by Karmashock · · Score: 1

      Yes and the phone company that owns the lines sets the rates that those lines are sold upon and has total control over how many they are an where they go.

      Its not acceptable. Third parties need to be able to run their own cable. Small time ISPs are beholden to the house to house infrastructure of big telecoms. Being beholden to where the trunk lines go is one thing. Being beholden to where the land lines go, their quality, their rates of rental, etc is another.

      I should have the right to start up an ISP right now, get enough bandwidth for a hundred homes and just lay cable in the area. Generally speaking indifferent to money this is not legally allowed. They won't let me bury the cable next to all the other cables. And I can't even go wireless because the FCC won't sell me spectrum even if it isn't being used by anyone in the area.

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  102. bad diagnosis and treatment plan. by samantha · · Score: 1, Informative

    Actually it has more to do with government interference in the market and the way spectrum was licensed and then sold at high costs by the FCC. As a result at one time there were like 300 little fiefdoms of bandwidth in cellular traffic. Which is one reason we tend to lag on cellular and one of the reasons WiMax and friend don't catch on for wireless broadband throughout a citywide area. Too many companies have paid to much for spectrum that they nickle and dime us to recoup. On the cable stuff the monopolies granted in an area are very anti-competitive. So a Comcast can charge like 97% profit rates for home internet.

    The answer to the existing problems is most certainly not more regulation. It is getting government as out of the business and dropping some of the monopolies.

    1. Re:bad diagnosis and treatment plan. by samantha · · Score: 1

      Also if you started later in the game of wiring up access then you start with more and better tech options than countries that started earlier. This helps tremendously.

      One thing that is likely to cure the wired portion is the work that noted that you can get 1 Gbps over twisted copper over the distance from the pole to the home. This makes bringing fiber everywhere much much easier if it pans out.

    2. Re:bad diagnosis and treatment plan. by Anonymous Coward · · Score: 0

      Yea, it's regulatory capture. The regulation, while seemingly restrictive, really just acts as a market barrier and keeps the entrenched big players in business. The big companies don't really mind regulation, because they write them, and they have teams of lawyers to interpret them, and a big regulatory compliance department that they can bill the customers for anyway. The regulations do however keep any competition out.

  103. still considered a "luxury" by Anonymous Coward · · Score: 0

    While it's certainly true that the telecom oligopoly has gamed the market towards an artificially high $/Mbit ratio, the root cause is that broadband is still considered a "luxury" rather than a "necessity".

    This may even have been true at one time. In today's world, broadband should be considered as much a "basic necessity" as dialtone, complete with subsidies for rural areas.

    Don't worry, the wireless side of the industry will make sure to capture "rural broadband" and offer the poor unfortunate country dwellers a 5G/month cap...

  104. We're paying to be spied on. by Anonymous Coward · · Score: 0

    With all the info out there about our privacy being invaded, who do you think pays for it. It's passed on the the consumer.

  105. Some things cheap, some things not by Anonymous Coward · · Score: 0

    I'd rather pay $70/month for a comm line than $10/gallon for gas.

  106. Monopolistic competition by tepples · · Score: 1

    You only need 1 phone [or cable] line to service a entire block.

    Provided that the entire block is being serviced in an efficient way. With one provider, this efficiency cannot be guaranteed.

    if there were a competitor a fierce price war would start up until there was only one standing.

    Sometimes we need a price war to keep the price of entry-level service from rising faster than inflation. And sometimes different providers can compete on varied services over their respective wires. If an ISP is only interested in providing "consumer" service (tiny upstream, inbound connections strongly discouraged or outright blocked), that leaves an opening for another provider to differentiate its service by providing more symmetric "enthusiast" and "business" tiers.

    1. Re:Monopolistic competition by alexander_686 · · Score: 1

      You only need 1 phone [or cable] line to service a entire block.

      Provided that the entire block is being serviced in an efficient way. With one provider, this efficiency cannot be guaranteed.

      Sadly no. Being a natural monopoly gives the incumbent a huge advantage. Most natural monopolies fail because of a huge shift in the market (cell phones displacing landlines) or the incumbent is truly incompetent.

      if there were a competitor a fierce price war would start up until there was only one standing.

      Sometimes we need a price war to keep the price of entry-level service from rising faster than inflation.

      Not exactly my point. I like price wars but in the special case of natural monopolies the end is foretold – only one company will be left standing.

      And sometimes different providers can compete on varied services over their respective wires. If an ISP is only interested in providing "consumer" service (tiny upstream, inbound connections strongly discouraged or outright blocked), that leaves an opening for another provider to differentiate its service by providing more symmetric "enthusiast" and "business" tiers.

      Maybe. This point made me think. I view most utilities as commodities where differentiation is hard. I think. I can’t see how much value “business class” would add. Then again I can’t think of how to differentiate water yet there are dozens of bottled varieties in the local market.

      As a counter argument I will direct you to Michael Porter’s 5 forces. He suggests that you can either be a low cost provided of commodities or try to differentiate yourself and charge higher prices. This is basically what you suggested.

      http://en.wikipedia.org/wiki/Porter_five_forces_analysis

      However, he also warns that firms can be “stuck in the middle”. Your differences have to be of a greater value then the benefits inherent with the incumbent’s natural monopoly.

      http://en.wikipedia.org/wiki/Porter_generic_strategies#Criticisms_of_generic_strategies

  107. Water utility by tepples · · Score: 1

    How much does it cost to bury and maintain conduit?

    That depends on whether your city's residents rely on well water and septic systems. Otherwise, as Belial6 pointed out, you could extrapolate from how much it costs to bury and maintain water, sewer, and storm pipes.

  108. The USA is a pseudo-democracy, a cattle ranch by Anonymous Coward · · Score: 0

    more fundamentally, the USA was designed from the start to be a pseudo-democracy, with a governmental structure designed to, in the words of its designer, james madison, 'protect the minority of the opulent against the majority,' and to preserve wealth inequality.

    Extorting the citizenry for basic needs such as internet and healthcare, is right in line with this design goal.

    So the USA is run somewhat like a livestock operation, but with human livestock. Purely for profit, and not for the benefit of the citizenry.

    google 'radicalamericancentrist.blogspot' for more....

  109. live abroad by Anonymous Coward · · Score: 0

    Is just not true, based on my experience. See how much a throttled and capped service in Australia costs, by comparison. And don't even start in on how much mobile data costs outside of the States. In the US I get about 12x the data for 2/3 the cost.

  110. Derp by maseo126 · · Score: 1

    Our series of tubes is clogged with bullshit:/

  111. Can the USA get over itself. by Anonymous Coward · · Score: 0

    Worst than anywhere else in the world, my @rse.
    Come to Australia. We have a government who is trying to keep us in the dark ages of internet speeds.
    I would gladly be ranked number 32, rather then sub 50s.
    Not only that we pay for capped usage at about 20% more.
    I am honestly lucky if I get speeds between 2-4Mb/s...over 5 is unheard of.

  112. Why is healthcare so much more expensive in the US by Anonymous Coward · · Score: 0

    It's the same answer for just about everything that we pay more for compared to everyone else. We give the industry the power to take away choices with anti-competitive tactics.

  113. Monopoly? by Anonymous Coward · · Score: 0

    Time-Warner in my area uses government to prevent any competition from gaining a foothold. People would flock to an alternative if local government didn't squash any competition at TWs behest.

    The problem is not deregulation. It is crony capitalism.

  114. It's called regulatory capture by Anonymous Coward · · Score: 0

    It is not a lack of quantity of regulation, it's about quality. This is a clear case of regulatory capture. The major players have influenced the rule-making bodies to the point that market entry is very difficult. All the big players have their piece of the pie and can milk it for what it's worth.

    To be fair though there are some other practical reasons, like the almost incomprehensible geographical differences. At 243000 km^2 the UK would beat out Minnesota as the 12th largest US state, right behind Michigan. At the same time it's population of 63 million handily beats California's 38 million. The population density on the east coast of the US is comparable, but once you get off the eastern seaboard it's not even close.

  115. Because We Scan by flyingfsck · · Score: 1

    The problem is that all communications in the world is routed to the NSA and someone has to pay for all that bandwidth.

    --
    Excuse me, but please get off my Pennisetum Clandestinum, eh!
  116. Re:That's overly simplistic - population density k by radarskiy · · Score: 1

    " If you want LAN speeds in the much less densely populated US, it is going to be very costly."

    Why not start with the high density areas first? The thing about low density areas is that MOST PEOPLE DON'T LIVE THERE.

    New Jersey has 25% greater population density than Belgium, and over twice the density of Switzerland. How to the low density portions of the US explain why New Jersey can't have it as good as Belgium or Switzerland?

  117. Re:That's overly simplistic - population density k by radarskiy · · Score: 1

    "Is ANYTHING in NYC cheap? "

    Compared to Zurich? Everything.

  118. It's all about fair competition by fplusx · · Score: 2

    But in France we had the most expensive Mobile Phone Bills in the world. Because the major companies made an confidential agreement to not change their prices.
    And then another company entered the game, and now we have very low mobile phone bills.

    It's the same company who several years ago made the ADSL prices drop:
    http://en.wikipedia.org/wiki/Iliad_(company)

  119. Because the USA isn't a functioning free market? by Anonymous Coward · · Score: 1

    If the USA were a free market there would be competition that would lower prices over time. Corporations have co-opted the government & created a captive market of middle class yuppies they can bleed dry with regulatory capture. All the worse markings of oligarchy & plutocracy rolled in to one giant propaganda machine draped in an american flag swearing allegiance to Wall St. profits.

    Essentially: we live in Fascist Italy.

  120. Unlimited Data Caps by Eskarel · · Score: 1

    US internet is expensive because regular users have to subsidize heavy users. It's also why you get particularly slow internet service.

  121. Depends on which countries you're referring by Anonymous Coward · · Score: 0

    If you compare the US with any other country you have to take notice about the sheer size of the country and how it needs to be continuously connected. The setup was expensive and maintaining this connection continues to be expensive. If you compare the US with the Philippines which is probably no bigger than the state of California, it charges around $30USD / month for 2mbps down internet. If you want more, it'll cost up to $90/mo. for just 12mbps. Sure, it's not the end of the world if you think about it in USD but consider the fact that 90% of the population is poor and underpaid, where 90% of the population can barely afford a roof and rice. $30USD is the cost of rent for a month (although it can go up to $200/mo. if you get a good place).

    In Japan, the cost of internet is around $40/mo. but you get good speeds and you do get paid pretty well over there. The minimum wage is roughly $7/hr. compared to the Philippines which I believe is $1.40 and in the US it varies but generally people make over $8/hr. I know fast food joints like in-and-out pays $11.50/hr but I haven't had a job like that in forever to know what's going on with it.

    So is the internet in the US expensive? I say no, not for what it offers. I would much rather spend $40/mo. for 36mbps through comcast or $90/mo. for 1gbps through a local fiberoptic company than seeing cable companies raise the price because less people have cable now. hahaha

  122. I suppose our geography has nothing to do with it. by RightSaidFred99 · · Score: 1

    I find it amusing so many people find this to be a big conspiracy or even a mystery.

    I will solve it with 4 lines.

    France: Population Density 118/sq km.

    UK: 257/sq km

    South Korea: 508/sq km

    US: 33/sq km.

    Come on, people. Work with me here this isn't complicated. Of course there are other factors but that right there is a big one.

  123. Elsewhere you might get small fees but not speed by Anonymous Coward · · Score: 0

    You guys must know that in some countries ... like mine (Romania) they sell broadband cheap but you don't actually get broadband.
    They advertise it like 150 mbps but is actually up to 150 mbps ... speed that you'll never get to see.

    So either you get actual speed and you pay for or you just seem like you get speed and the price is acordingly.
    www.consultantahr.ro

  124. Nah it is a LIE by SmallFurryCreature · · Score: 1

    US broadband prices are the lowest in the world because the free unregulated market and zero government interference give companies incentives to compete on service and/or price ensuring US consumers get the service they want at the price they wish to pay.

    ANYONE who believes anything else is an enemy of the state and will be re-educated through being forced to watch American TV 24/7 with 23/7 commercials.

    In posts commenting (and damning yourself) please include your service number for easy matching by your friendly NSA agent.

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.

  125. Cancer in California by pne · · Score: 1

    those stickers on everything claiming the product only causes cancer if you live in California.

    Do you have a picture of one?

    The ones I've heard of say that the product contains chemicals which the State of California knows cause cancer.

    So the stickers don't say the chemicals don't cause cancer elsewhere, just that other states have not recognised their carcinogenous properties (or have recognised them but chose not to require a warning to that effect).

    --
    Esli epei etot cumprenan, shris soa Sfaha.
  126. Public infrastructure is vital by mumma3k · · Score: 1

    Internet infrastructure is just as vital as roads, water and electricity, and it can't be left to be run by private monopolies. Here in sweden, it's very comming with metropolitan fiber networks that is owned by the county/municipal/city, and then the ISP's rent capacity or channels to delivier to end-customers. This keeps prices low and competitive. My friend pays $15 for a 100/100 Ethernet with a static IP. Traffic caps doesn't exist at all. The swedish then state-owned Telco did a lot of important job in the 80's and almost converting all long-haul links to optical, and so a nationwide data-highway was born. Nowadays several ISP's/Telco's uses the same paths with their own equipment and cables. Socialism internet is great.

  127. And I always thought ... by YoungManKlaus · · Score: 1

    free markets regulate themselves when left to their own devices *schadenfreude*

  128. This must be pretty serious by TQL · · Score: 1

    I had to scroll for ages before I found a funny comment....

  129. Deregulated? by Anonymous Coward · · Score: 0

    Calling the broadband market deregulated it a joke.

  130. The myth of the natural monopoly. by postermmxvicom · · Score: 1

    The idea of a natural monopoly *sounds* great. But I don't think it holds up under scrutiny. See the myth of the natural monopoly.

    Considering what google is doing with fiber, I think the 'natural' monopoly of telcos is as natural as the car dealership problem Tesla is facing in Texas.

    If it was truly a scarce resource that one company had monopolized. Then that company should be broken up into competitors and seperated from the businesses that depend on it (so the few companies that control it, don't also own the businesses that depend on it).

    --
    One last thing: Sometimes I wonder; "Is that someone's signature? Or do they type that at the end of each post?"
    1. Re:The myth of the natural monopoly. by Bengie · · Score: 1

      A natural monopoly arises where a limited resources can only effectively have a few owners. In the real world, one person with a shotgun not letting you tear up his lawn will stop an ISP from being able to install to the other 100k users. Unless an ISP plans to purchase the land of the entire town, it's going to be SOL.

  131. I think part of it is our fault... by Vermonter · · Score: 1

    ...In a sense, when we agree to pay for home internet service, we are saying "your prices are acceptable". I bet if we had enough people refusing to pay what it currently costs for internet access, you would see companies suddenly dropping their prices in order to get the customers they need to sustain themselves. However, knowing the under-40 population of this country, I am going to be told I am insane and it is impossible to live without internet access.

  132. If you read the book by kilodelta · · Score: 1

    "Captive Audience" by Crawford she spends maybe 5% or so of the book explaining WHY we get bent over the barrel for net services in the U.S. It's because of our economic model - charge all the traffic will bear. But it's also because it's COMPLETELY unregulated. She put forth that it costs Comcast maybe $2 per month to provide the net service, yet they charge close to $60 for it. And this is true of all the others - including at&t, Cox, et al. We need people in the FCC that aren't lawyers but engineers and techies, and then move net services into common carrier status. Fully regulated. Then you'll see pricing come back into reality.

  133. Eminent Domain, land rights etc. by postermmxvicom · · Score: 1

    A guy with a shotgun is going to jail. That is silly. Do deeds even grant you the right to stop pipes from being run under your property? I know many deeds do not includes mineral rights. Even if they do, I would think eminent domain would be used for the public good there.

    --
    One last thing: Sometimes I wonder; "Is that someone's signature? Or do they type that at the end of each post?"
    1. Re:Eminent Domain, land rights etc. by Bengie · · Score: 1

      Unless you plan to use the monopoly rights granted via right of ways, then yes.

      Right of ways are the cause of legal monopolies. If you don't want monopolies, then you need to get permission. At least around here, if someone is on your land and refuse to leave, you can treat them as a threat against your life.

    2. Re:Eminent Domain, land rights etc. by postermmxvicom · · Score: 1

      Surely, you are being a little dramatic with he gun thing. If some evil corporation sent out guys to lay pipes in my yard and I threatened them with a shotgun, I don't think a judge would be impressed by my story.

      However, I am interested in hearing you out on the idea of right of ways and monopolies. But do you mean 'legal' or 'natural' monopolies. You used both terms and they seem different to me. I would like it if you slowed it all down for me and explain how what you mean works in the typical US jurisdiction.

      --
      One last thing: Sometimes I wonder; "Is that someone's signature? Or do they type that at the end of each post?"
  134. It's an illusion by Gonoff · · Score: 1

    There is an illusion that it costs more for you than the rest of us. It is caused by very artificial exchange rates. These rates also make you think that you are more highly paid in comparison to us.

    For example, 1 UK pound exchanges for about $1.60 but you cannot buy as much with $1.60 as I can with a pound. A more realistic exchange rate is from $2 to as much as $2.50 to the Pound.

    If you compare your prices and your wages using this, you get a different view about comparisons.

    --
    I'll see your Constitution and raise you a Queen.
  135. Well by MitchDev · · Score: 1

    "We deregulated high-speed internet access 10 years ago and since then we've seen enormous consolidation and monopolies, so left to their own devices, companies that supply internet access will charge high prices, because they face neither competition nor oversight."

    And the giant DUH! Award goes to the obvious.

  136. US More Expensive than Elsewhere? Make me laugh. by StealthNet · · Score: 1

    Let me fix that for you: "US More Expensive than Other 1st World Countries". I am in Brazil and I pay U$ 160,00 for 50 Mbps. In fact, I pay that for a 50 Mbps last-mile link, because my real Internet download performance hardly comes to that. We have a national regulation / monitoring agency (Anatel) that watch broadband services and, surprise, carriers always miss their monthly performance targets.

  137. Only if... by Anonymous Coward · · Score: 0

    Why are you attaching a condition that has nothing to do with what MobyDisk wrote? He made no mention of free markets.

    This seems to be a big problems with ideologues on both side of the fence. They can't admit that there may be a third way to take, or a compromise to be had. They see that as a giving in, as abandoning their ideals.

    Good luck solving anything with that attitude.

  138. Conflict of interest by tepples · · Score: 1

    Most natural monopolies fail because of a huge shift in the market (cell phones displacing landlines) or the incumbent is truly incompetent.

    Sometimes it's a bit of both, such as cable and fiber providers displacing DSL because local loops in the US tend to be so long that DSL can't exceed 3 Mbps down. For comparison, the FCC defines modern broadband as 4 Mbps down.

    I can’t see how much value “business class” would add.

    For possible arguments, look up the comments to previous Slashdot stories about ISPs imposing caps on home subscribers and not letting them run even low-traffic servers. For businesses that need more nines of reliability than a home, there's also value in using a second ISP as a backup.

    Your differences have to be of a greater value then the benefits inherent with the incumbent’s natural monopoly.

    When the cable ISP also owns several major cable TV networks, it subtly manipulates the cable Internet service in its service area to discourage Internet subscribers from terminating TV subscription. At various times, Comcast has instituted cap policies that run the meter even during non-congested hours to discourage use of competing video on demand providers such as iTunes, Amazon, and Netflix, and it has shunted traffic from competing video on demand providers onto its more congested lines. And plenty of cable ISPs have inflated the price of their home Internet plans so that they can offer pay TV for negative additional charge to Internet subscribers. A competing ISP could promote its lack of conflict of interest.

  139. Re:I suppose our geography has nothing to do with by Anonymous Coward · · Score: 0

    And I'll show you ignorance with one:

    Australia: 3/sq km.

  140. $110/month for 10 Mbps by Anonymous Coward · · Score: 0

    Canadian here: I pay much more than you for lower speeds. As Arnie says: "Stop whining!"

  141. Better B Schools by Anonymous Coward · · Score: 0

    All those highly trained customer hating MBA's using every ounce of a companies market clout to squeeze every last nickle out of their customers so that at all costs they can avoid having to actually innovate.

  142. The answer is simple by DrStoooopid · · Score: 1

    ...labor unions.

    They drive up the price of construction and maintenance of new equipment.

    Source: I'm a former telco worker

    --
    There are 2 groups of people you can make fun of on the Internet without fear of attack. The illiterate, and the Amish.
  143. Yes, it was the telco lobby by whitroth · · Score: 1

    In the mid-nineties, I worked for Ameritech, one of the Baby Bells (now swallowed by SBC, er, now ATT). When the deregulation bill came up in Congress, our Division President sent orders down to all that he wanted us to contact our Rep and Sen, and ask them to support the deregulation. AND HE DEMANDED COPIES OF OUR LETTERS. And if you don't think that was a threat to our continuted employment, you're amazingly naive. And, right after starting, they brought us into a meeting where they were trying hard sell to get us to contribute, from our salary, to their PAC.

    Yeah, our representatives, right.....

                    mark

  144. Decentralize USA by NewYork · · Score: 1
  145. price fixing by MA179 · · Score: 1

    BS, it's price fixing, either specifically or just an "understanding" among providers. In my town we have Verizon FIOS, Verizon DSL, Comcast, and RCN. So with 3 major providers of high-speed internet (DSL isn't high-speed) there should be some competition. But no, the cost is the same as in areas that have only one cable provider and Verizon DSL. This doesn't fit with a fair market, and it's not because of deregulation which would be nothing but government price fixing. We already have price fixing, we don't need to add government and increase our costs with government fees and taxes. Add to this that when you work out a speed/feature comparison the cost of all three are surprisingly (sarcasm) close.

  146. Size matters by Anonymous Coward · · Score: 0

    I think it's due to the physical size of the USA. Because of the size the dollar amount required initially to get the infrastructure in place is much higher, which explains the raise in premium. Canada is expensive as well.

  147. Expensive Broadband by hanekhw · · Score: 1

    .......because of all the political corruption? Because our government works on the pay to play principle? Because a few hundred thousand in political donations commonly turns into hundreds of millions in profit? Or is it because Americans are the stupidest smart people on the planet?

  148. prices by Anonymous Coward · · Score: 0

    When a friend of mine said they had 5 Mbps broadband in USA back in 2008 and paid around $50/month I could hardly believe it.
    Here in Hungary it cost $12/month for a 50 Mbps unlimited data back in 2008. Now I use 8 Mbps mobile net, which is $15/month with unlimited data, but I believe fixed line internet got even faster since than for roughly the same money.

  149. Should not be expensive by YaddaMinski · · Score: 1

    The homeowner should pay for a conduit pipe from street then comm vendors can bid to use it by fishing conduit wire thru it to home. This would drastically reduce the price of upgrading services and even allow more than one provider at a time. The problem is cronyism on the local level with Cable deals from the 1970's and then Federal rules that favor the incumbents to collude.

  150. Re:I suppose our geography has nothing to do with by RightSaidFred99 · · Score: 1

    You've shown nothing. Australia's Internet access is not much better than the US's. And only having to wire like 2 cities is no big task.

  151. National Interests at Large by Anonymous Coward · · Score: 0

    The reason for higher than worth of internet service in the U.S. is the lack of support for the youth to gain the needed education to creat and implement and improve upon the systems in place for such , such as quality and not the accepted modis of cheat,screw and laugh on the way to the bank. We as consumers
    are chaste to the rule of proprietary technology developed by outside monies and interests. Blah,blah,blah, etc and so forth.

  152. Not to mention... by Anonymous Coward · · Score: 0

    If these dimwits WERE "investing" in the future, why don't I see them installing fiber everywhere? Even that said I still don't see them "investing" in their current infrastructure unless they mean the minimal cost in equipment upgrades for their existing increasingly antiquated copper coax nets... ...just saying... after all they're going to be hitting a copper coax deadend sooner or later, and instead of wasting monies playing with it, it would seem to be OBVIOUS to me that IF they were "investing" in teh futar that fiber would be the way to go... just saying, but WTF do I know, it's not like I'm an engineer with a relevant degree or anything... gotta love private sector bureaucrats...

  153. Re:I suppose our geography has nothing to do with by Anonymous Coward · · Score: 0

    I've shown exactlly what you showed.

    So you admit its better, but just not much.
    Australia is of similar size, so thats not the difference.
    Our cities are more distant from each other, and are much more distant from the rest of the worlds cities. So backhaul will be more expensive. So thats not the difference.

    Please tell me what you think the difference is then?

  154. regions covered by the research by meketrefi · · Score: 1

    That research done by the New America Foundation’s Open Technology Institute clearly does not cover Brazil. Even the highest prices, like the one practiced by Comcast in Chattanooga, TN, sound like common-place in Brazil. It is no wonder The Economist's "Big Mac Index" lists us among the six most expensive. It seems we will get the most expensive PS4 in the world. Taxes here are a bitch.

  155. Not In South Africa, we pay much more & other by Anonymous Coward · · Score: 0

    Here in South Africa we have pay one of the highest price for broadband .... and then on top of it, the consumer experience can be woeful at times. Consumers can sometimes wait months for issue to be resolved or the Telco may just say they will not fix!! It's very sad.

  156. Re:That's overly simplistic - population density k by RalphWigum · · Score: 1

    Can you answer this WITHOUT YELLING?:

    Which scenario has the greater cost/revenue benefit? (thus allowing for lower costs to consumer):

    1) Wiring up and connecting 5 towns in a 100 square mile radius, each with a population of 10,000 people. That line you run out to each town services 10,000 people each!

    2) Wiring up and connecting 5 towns in a 100 square mile radius, each with a population of 1,000 people. That same line to each line only services 1,000 people.

    Both scenarios require similar amounts of infrastructure in place, but one scenario offsets the cost with more revenue. If you can do that, you can lower the cost per customer... Higher population density = more revenue/cost.

  157. Higher prices leads to investments in infrastruct? by Anonymous Coward · · Score: 0

    "We may be paying more in your eyes today but we are building for tomorrow and the long-term."

    How naive is this guy? or a corporate lacky.
    Yes they will have more money to invest, and they might use it, but the consumer will never reap the benefits, only the telecos will.
    They will continue to fix prices as high as they can get away with, while killing the value of the service. (Ya they might give u faster speeds, but they might pair it with usage caps and/or bad routing, etc.)
    Remember, this is evil corporations at work. Don't expect fair competition; expect collusion, insider activities, and every anticompetitive tactic in the book.

    Btw, slashdot really needs to enable https:///
    Many ppl that visit this site are at work, where there are devices that spy on web traffic.
    Telecos might even decide to degrade the quality of service to and from slashdot ;)

    -H**hie @ tr**net.net