I’m not sure exactly how this news matches up with this innaugural post, but they’re both in the same ballpark, numbers-wise, and they both are saying the same thing — US broadband sucks, and it’s only going to get worse unless we have some legislative action to deal with it. This alone is pretty breathtaking:
US broadband might now be widely available, but it's slow and relatively expensive. Between 1999 and 2006, the US fell from third place to 20th in the International Telecommunications Union's broadband usage measurements.When it comes to average connection speeds, the US isn't beaten just by Japan but also by France, Korea, Sweden, New Zealand, Italy, Finland, Portugal, Australia, Norway, Luxembourg, the United Kingdom, and Germany. And it's not about population size or density, either; Finland, Sweden, and Canada beat us on most broadband metrics despite having lower population density. Finally, we're getting beat on price, coming in 18th worldwide when it comes to cost per megabyte.
So basically, we get slower broadband for more money in the US. That’s what the fealty to “the free market” has gotten us in this case. Never mind that there’s really no such thing as a “free market” when you talk about top-level IP communications; there’s maybe 2 or 3 companies, even in a giant, powerhouse economy like the US, capable of going to the trouble to actually upgrade the national network. When you’ve got such a small group of capable actors, the competitive incentive basically falls to zero.
The lack of national leadership (usually explained as a need to let the market do its thing without interference) has meant that broadband is still not treated as a utility that is made available to all people at reasonable prices. States have recognized the problem, and many (such as California and Kentucky) have launched innovative public/private partnerships of their own to bring broadband to all members of the state.
Here’s my favorite part of the post, and it gets back to my comparison from my earlier post on the subject—we can have all of this for about the same amount of money as a relatively minor chunk of time in Iraq. By spreading the cost around among state governments, the feds, and a TBD public or private-sector entity, we’ll effectively reduce the cost of this upgrade to $32 billion:
All that’s needed is $8 billion a year for four years from the feds, with the states also coming up (collectively) with the same amount. Put another way, 116 days of the Iraq war could fund the entire federal $32 billion contribution. We’ve made such investments before, and not just in roads and highways; the Universal Service Fund continue to dole out billions of dollars to fund rural phone connections, for instance.
Hopefully we’ll have the political will to pull this off this year. If not, it should happen in 2009 when we’ve finally got a Democrat in the White House.