Category Archives: Broadband

Broadband Speed by Country

broadbandspeedchart.jpg Letting a picture tell the story of how Japan, Korea, France, Poland, Portugal, and other countries have faster broadband than the U.S., here’s a graphical illustration of average broadband speeds per country. Finland, Sweden, Norway, and Iceland I would expect, since they’ve long been fast. But Poland?

There seem to be two tiers. Japan and Korea are the top tier. Then Finland, Sweden, and France. Then a third tier starting with the Netherlands. The U.S. is either in that third tier or in a fourth tier, depending on how you look at it.

The source report, Assessing Broadband in America: OECD and ITIF Broadband Rankings, By Daniel K. Correa, Information Technology and Innovation Foundation, April 2007, also examines broadband uptake, in which the U.S. is also fifteenth in these OECD rankings.

Maybe it’s time for a change. A change in public policy and the addition of competition.

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Warp Speed From Behind

JBrbop02.jpg As we’ve mentioned before Japan has Internet connections much faster than those in the U.S. This point is getting more mainstream media play:
Broadband service here is eight to 30 times as fast as in the United States — and considerably cheaper. Japan has the world’s fastest Internet connections, delivering more data at a lower cost than anywhere else, recent studies show.

Accelerating broadband speed in this country — as well as in South Korea and much of Europe — is pushing open doors to Internet innovation that are likely to remain closed for years to come in much of the United States.

The speed advantage allows the Japanese to watch broadcast-quality, full-screen television over the Internet, an experience that mocks the grainy, wallet-size images Americans endure.

— Japan’s Warp-Speed Ride to Internet Future, By Blaine Harden, Washington Post Foreign Service, Wednesday, August 29, 2007; Page A01

So is it just for video? If so, maybe we’d better let the telcos have their way. Continue reading →

Duopoly Spies

Mike_McConnell.jpg Well, I had been waiting to post something about the telcos and domestic wiretapping until more news came out, since much of it was still hearsay. But now National Intelligence Director and former National Security Agency Director Mike McConnell has confirmed it:
Now the second part of the issue was under the president’s program, the terrorist surveillance program, the private sector had assisted us. Because if you’re going to get access you’ve got to have a partner and they were being sued. Now if you play out the suits at the value they’re claimed, it would bankrupt these companies. So my position was we have to provide liability protection to these private sector entities.

— Transcript: Debate on the foreign intelligence surveillance act, By Chris Roberts, ©El Paso Times, Article Launched: 08/22/2007 01:05:57 AM MDT

Ryan Singel points out in Wired’s Threat Level blog that this is even though the same McConnell signed a sworn declaration in April saying to reveal that NSA and Verizon had such a relationship “would cause exceptionally grave harm to the national security.” Continue reading →

Russian Roulette

michael_copps.jpg FCC Commissioner Michael Copps has a way with words. Last year he said we should be talking about Internet freedom rather than net neutrality. And now he says we’re
playing Russian roulette with broadband and Internet and more traditional media

— FCC Commissioner: US playing “Russian roulette with broadband and Internet” By Nate Anderson, ars technica, August 03, 2007 – 09:20AM CT

And the Russians are winning. Continue reading →

Internet Robber Barons

krugman_paul.jpg Paul Krugman examines how far behind the U.S. is in every metric of Internet speed and broadband uptake, and why:
What happened to America’s Internet lead? Bad policy. Specifically, the United States made the same mistake in Internet policy that California made in energy policy: it forgot — or was persuaded by special interests to ignore — the reality that sometimes you can’t have effective market competition without effective regulation.

You see, the world may look flat once you’re in cyberspace — but to get there you need to go through a narrow passageway, down your phone line or down your TV cable. And if the companies controlling these passageways can behave like the robber barons of yore, levying whatever tolls they like on those who pass by, commerce suffers.

— The French Connections, Paul Krugman, New York Times, 22 July 2007

Krugman reminds us that as recently as 2001 the U.S. was far ahead. And then he gets specific. Continue reading →

700Mhz and Competition

markey.jpg Positions on future uses of the 700Mhz spectrum formerly occupied by analog TV aren’t just for presidential candidates anymore. Congress is hearing arguments:
Rep. Edward J. Markey (D-Mass.), who chairs the subcommittee that handles telecommunications and Internet issues, urged the FCC to “seize this opportunity to create an open-access opportunity for wireless service in this auction.” He added that wireless carriers are “exerting far too much control over the features, functions and applications that wireless gadget makers and content entrepreneurs can offer directly to consumers.”

— FCC Auction Should Allow for Open Wireless Network, Say Lawmakers, By Kim Hart, Washington Post Staff Writer, Thursday, July 12, 2007; Page D08

Some search, VoIP, and computer companies say auctioning off some of that spectrum with open access requirements would promote competition, while telcos claim it would hurt their investments, stifle competition, and reduce revenues to the government from the auction. I think it may well reduce direct government auction revenues, but the economic benefits of real competition should be worth it. You’d think the nominally free market supporting telcos would agree with that. Continue reading →

Global Media Consolidation

mediabrands.jpg In case you thought media ownership in increasingly fewer hands was a uniquely U.S. problem, here’s a handy graphic illustrating its worldwide scope. There are links to the research behind it.

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Franchise Reform?

shutesbury.jpg In the previous post, I quoted a paper as saying competition would promote lower prices. Here’s what the authors recommend to produce that competition:
Federal reform and additional state-specific reforms have focused on reforming “video franchising” laws to reduce barriers to entry and investment by new service providers. We commend such policies as likely to contribute to investment and competition in broadband services.

— The Effects of Broadband Deployment on Output and Employment: A Cross-sectional Analysis of U.S. Data, By Robert Crandall, William Lehr and Robert Litan, Brookings Institution, 2007

Here’s what some affected parties think about that:
Two years ago we profiled the rural Massachusetts towns of Shutesbury and Leverett, who have long been trying to get broadband from anyone — but aren’t deemed profitable to serve by Comcast or Verizon. While towns as close as 300 feet get service, these two towns are still waiting, though some have concocted home brew solutions. Locals tell us they were insulted when approached by Verizon to support “franchise reform,” which all but seals their fate by eliminating build out requirements.

—Broadband Black Holes: FiOS? We’ve never been able to get DSL, by Karl, BroadbandReports.com, 10:42AM Thursday Jul 05 2007

It seems “franchise reform” may be one of those newspeak phrases like “tax relief” which is used to persuade those who will suffer to support something that will benefit those who propose it.

It’s enough to make you nostalgic for FDR and the REA.

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Broadband Produces Employment

crandall.jpg
lehr.jpg
Litan.jpg
Many have assumed that broadband is good for the economy; now here’s a study with rivets:
More specifically, for every one percentage point increase in broadband penetration in a state, employment is projected to increase by 0.2 to 0.3 percent per year.

— The Effects of Broadband Deployment on Output and Employment: A Cross-sectional Analysis of U.S. Data, By Robert Crandall, William Lehr and Robert Litan, Brookings Institution, 2007

Of course, this is like saying every state in medieval Germany that had a printing press produced employment in the printing industry. There are economic and social effects far beyond mere employment. What should be done?

The paper has a few recommendations:

The surest route to lower prices is provided by increasing competition in the delivery of broadband services.
Continue reading →

Broadband in Two Countries

BBArussfig1070702.gif Broadband growth is slowing in the U.S.:
Price reductions and other factors led to 40 percent growth in adoption from March 2005 to March 2006. Over the following year, growth was a more modest 12 percent, the Pew Internet and American Life Project said in a report Tuesday.

“The low-hanging fruit was picked … so you saw a slowdown understandably going to 2007,” said John Horrigan, Pew’s associate director for research.

— Study: Broadband Growth Slowing in U.S. By Anick Jesdanun, AP Internet Writer, 3 July 2007

Meanwhile, back in the USSR Russia:
The broadband market in Russia, particularly in Moscow, is growing quickly. The Ministry of IT and Communications reports that the fixed broadband market grew 42% and wireless broadband market showed a 61% annual growth rate in 2006.

— FTTx and DSL in tussle for Moscow market share, PointTopic, 3 July 2007

And in Russia it’s mostly fiber to the home, enabling even faster future speeds.

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