Cross-posted at Montclair SocioBlog.
According to an op-ed in the Times, America is the global leader in broadband, with high speeds and great service. And it’s all because the government restrained “onerous” regulation and let companies like Verizon do what they want and charge what they want.
It was written by the CEO of Verizon, Lowell McAdam.
I pay Mr. McAdam’s company about $115 each month for my land line, wi-fi, and cable (all FIOS). Mr. McAdam compares the U.S. favorably with Europe, “where innovation and investment in advanced networks have stagnated under an onerous regulatory regime.” I asked a friend who lives in Paris what he pays for his FIOS phone, wi-fi, and cable. The monthly bill: 39.90€ ($52) or half of what I pay Verizon. Maybe there’s an upside to stagnant and onerous.
There’s nothing wrong with getting what you can afford, and it occurred to me that U.S. broadband is the best because we can afford more. Onerous regulations or no, most other countries are not as rich as the U.S. What if you looked at broadband and per capita GDP?
The OECD did just that with data from June 2012 (their several spreadsheets on this are here). The purple bars are broadband penetration and the bumpy red line is GDP per capita. Do you see a correlation?
Consider France: As of a year ago, the country had greater broadband penetration despite a lower per capita GDP than the U.S. ($35,133 vs. $46,588); that’s 25% more broadband on 33% less income and at half the cost to consumers.
If you re-rank the OECD countries factoring in per capita GDP, the line-up changes. Notably, the U.S. and Luxembourg drop well below the OECD average, despite being among the wealthiest countries.
Of course, not all broadbands are equally broad. Verizon sold me on fiber-optic with their assurance that it was dazzlingly faster than their DSL that I had been clunking along on. This graph breaks down broadband into its various incarnations.
The U.S. is slightly above average on all broadband, but when it comes to a high fibre diet, we are ahead of several other countries that have greater total penetration. On the other hand, the Scandinavian countries are ahead of us, as are, impressively, the Asian countries.
This is not to deny U.S. advances. TechCrunch summarizes more recent data from Akamai on these changes:
the U.S. is currently second in the price of broadband for entry-level users. The nation is also third in network-based competition, second in the fiber-optic installation rate, first in the adoption of next-generation LTE, ahead of Europe in broadband adoption, and doing quite well in Internet-based services.
Still, the U.S. lags behind other, less wealthy countries. InnovationFiles, using Akamai data for different variables, has a less congratulatory view.
- The U. S. has picked up one place in the “Average Peak Connection Speed” that’s the best measurement of network capacity, rising from 14th to 13th as the measured peak connection speed increased from 29.6 Mbps to 31.5 Mbps.
- In terms of the “Average Connection Speed,” widely cited by analysts who don’t know what it means, the U. S. remains in 8th place world-wide. but we’re no longer tied for it as we were in the previous quarter; Sweden is right behind us on this one.
- In terms of “High Speed Broadband Adoption”, the proportion of IP addresses with an Average Connection Speed greater than 10 Mbps, we remain in 7th place, but now we’re tied with Sweden.
The title of CEO McAdam’s op-ed is “How the US Got Broadband Right.” Given the content, I guess “We’re Number 13!” wouldn’t have been appropriate. Even “We’re Number Seven (Tied With Socialist Sweden)!” doesn’t quite have that affirmative zing.
Jay Livingston is the chair of the Sociology Department at Montclair State University. You can follow him at Montclair SocioBlog or on Twitter.
Comments 18
Ely — July 11, 2013
Like, are you kidding me?
My grandma has 30 Mbps, cable, telephone and wi-fi. It costs her $55 monthly and she complains is *expensive*. Yup, that's dollars. In my birth country. (Granted, that means that there is much less penetration than in the US but costs are becoming globalised, anyway so I don't see why it should be more expensive there since we live in the same hemisphere).
There... are... no... words... *dies*
RexSchrader — July 11, 2013
One issue with comparing bandwidth per-capita between the US and other countries is the relative population density. The US is orders of magnitude bigger than any of the Euro countries, significantly increasing the cost to serve rural subsets of the country.
Trabbs Boy — July 11, 2013
I have nothing to say about broadband per se, but I do wonder whether it even makes sense to talk about per capita GDP in America anymore. If you knocked off what's owned by the top 5% and averaged the rest for all those countries, you'd have a more accurate comparison number regarding the value and cost of service for the general public.
Andrew — July 12, 2013
I don't think anyone is ever surprised to hear some American or other inaccurately touting another "We're Number One" claim.
But it is rather disappointing to see the Op-Ed section of the New York Times being used as a platform for a CEO to advertise his own corporate interests as though they were shared by the public.
Elle — July 12, 2013
115 ? I am paying about 30 for my Fiber (90 MbPS) +wi-fi, and yes, there are better offers around. I am Russian BTW, so you can't apply the "great distance-additional cost" reasoning here. Plus in my exp, American users have I-traffic-limits in their subs more often then the rest of the world. Don't get me wrong, States have some great Infrastructure, but Internet access/public transport is not part of the "great" part, so to speak.
BTW, here is the MB penetration map (2012) with a fuller set of countries covered, if anyone needs it http://upload.wikimedia.org/wikipedia/commons/b/bb/MobileBroadbandInternetPenetrationWorldMap.svg
John — July 12, 2013
115 dollars? insanity.
Japaniard — July 12, 2013
$115 sounds like the price someone with a decent cable package would pay. Most likely Dr. Livingston is including the price of his HBO into his "internet" bill and comparing it to his friend in France who doesn't have a premium cable package from Verizon.
Also, as has already been stated, directly comparing the price of getting internet infrastructure out to all the citizens of sparsely populated Wyoming, Montana, etc. and getting it to everyone in France hardly seems like the most equivalent comparison. Fewer subscribers per mile of cable means individual prices go up.
You need to compare the US to more geographically similar countries with comparable population densities, like Australia
Anna — July 12, 2013
"I asked a friend who lives in Paris what he pays for his FIOS phone, wi-fi, and cable. The monthly bill: 39.90€ ($52) or half of what I pay Verizon."
It's not really worth comparing such bills with your friend. How do you know that your experiences with your phone, wi-fi, and cable are exactly on par with each other? For example, did your friend mention that they have to pay a yearly television tax of about 120 euros? Paying is compulsory, even if you don't watch public television channels, like if you only watch foreign channels on cable or dvds. Also, the French government is currently considering implementing a tax for smartphones and other internet-related services, for the purpose of funding arts and culture programs.
It's highly doubtful that your friend has found some amazing cable package for just 40 euros. Decent cable packages run considerably more expensive than that. They probably get few to zero channels with in-demand movies, tv shows, and sports coverage, and a lot of foreign tv channels from around Europe, the Middle East, and maybe central Asia (which, don't get me wrong, is fantastic. It can make you a more worldly and informed person. But only if you don't mind watching tv in languages you don't understand. Or you're a polyglot.)
Cobra_x30 — July 14, 2013
The idea that the U.S. market is unregulated is flat out stupid. I work in Telecom and I can tell you for certain that the market is regulated to hell. It's broken into hundreds of small regional monopolies. Stringing fiber optic cable is very cheap, but many cities won't allow it... so you must dig up streets and sidewalks to put down fiber. The cost involved is flat out prohibitive for any company. Additionally most cities often will only allow a few companies access to telephone poles. I would say our system is amazing considering the regulator climate.
Also... Comparing a French bill to an American one is dumb because they have a MASSIVE tax on it. Additionally, the companies that create TV shows and programming charge very large licensing fees to U.S. consumers. We have an enormous amount of content because we pay for it. We don't have to sit around watching crappy French shows dubbed over... while they have less content and must watch dubbed over "Friends" reruns for variety.