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User: jbrodkey

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  1. It shows how statistics can lie on Krugman On the Connectivity Power Shift · · Score: 1

    There is an article on the op-ed page of today's WSJ that shows why the OECD's statistics are bogus. As it says : "The OECD's methodology is seriously flawed, however. According to an analysis by the Phoenix Center, if all OECD countries including the U.S. enjoyed 100% broadband penetration -- with all homes and businesses being connected -- our rank would fall to 20th. The U.S. would be deemed a relative failure because the OECD methodology measures broadband connections per capita, putting countries with larger household sizes at a statistical disadvantage."

    Also, "The OECD also overlooks that the U.S. is the largest broadband market in the world, with over 65 million subscribers -- more than twice the number of America's closest competitor. We got there because of our superior household adoption rates. According to several recent surveys, the average percentage of U.S. households taking broadband is about 42%; the EU average is 23%."

    And, "The OECD conclusions really unravel when we look at wireless services, especially Wi-Fi. One-third of the world's Wi-Fi hot spots are in the U.S., but Wi-Fi is not included in the OECD study unless it is used in a so-called "fixed wireless" setting. I can't recall ever seeing any fixed wireless users cemented into a coffee shop, airport or college campus. Most American Wi-Fi users do so with personal portable devices. It is difficult to determine how many wireless broadband users are online at any given moment, since they may not qualify as "subscribers" to anyone's service."

    Finally, "In fact, the European Competitive Telecommunications Association reported last fall that Europe is experiencing a significant slowdown in the annual growth rate of broadband subscriptions, falling to 14% from 23% annual growth. Growth stalled in a number of countries, including Denmark and Belgium (4% in each country). And France -- a relative star -- exhibited just 10% growth. Yet all of these nations are "ahead" of us on the much-talked-about OECD chart.

    Here in the U.S., the country that is allegedly "falling behind," broadband adoption is accelerating. Government studies confirm that America's broadband growth rate has jumped from 32% per year to 52%. With new numbers expected shortly, we anticipate a continued positive trend. Criticisms of our definition of "broadband" being too lax are already irrelevant as over 50 million subscribers are in the 1.5 to 3.0 megabits-per-second "fast lane." "

    Krugman as an economist should have discussed these statistics - but he is very biased.