New report on state of US broadband - Broadband Reality Check

[David Farber <dave () farber net>]

Begin forwarded message:

From: Dewayne Hendricks <dewayne () warpspeed com>
Date: August 11, 2005 2:26:57 AM EDT
To: Dewayne-Net Technology List <dewayne-net () warpspeed com>
Subject: [Dewayne-Net] New report on state of US broadband -  
Broadband Reality Check
Reply-To: dewayne () warpspeed com


    Free Press, the Consumer Federation of America and Consumers  
Union released a report today detailing the ways in which the FCC's  
recent positive assessment of US broadband penetration is misleading  
and glosses over serious problems behind an ever-widening digital  
divide.

    The three groups have called on Congress to take notice of  
alarming trends and enact clear policies that will free the broadband  
market from domination by a handful of large cable and  
telecommunications companies. Their recommendations include ensuring  
open access to all high-speed communications networks, removing  
restrictions on public entities that seek to offer broadband services  
to consumers, and opening up more of the broadcast spectrum for  
wireless Internet applications.

    A full copy of the report, Broadband Reality Check, is available  
at:
    <http://www.freepress.net/docs/broadband_report.pdf>

Among the findings:

·        The FCC overstates broadband penetration rates. The FCC  
report considers a ZIP code covered by broadband service if just one  
person subscribes. No consideration is given to price, speed or  
availability of that connection throughout the area.

·        The FCC misrepresents exactly how many connections are "high- 
speed." The FCC defines "high-speed" as 200 kilobits per second,  
barely enough to receive low-quality streaming video and far below  
what other countries consider to be a high-speed connection.

·        The United States remains 16th in the world in broadband  
penetration per capita. The United States also ranks 16th in terms of  
broadband growth rates, suggesting our world ranking won't improve  
any time soon. On a per megabit basis, U.S. consumers pay 10 to 25  
times more than broadband users in Japan.

·        Despite FCC claims, digital divide persists and is growing  
wider. Broadband adoption is largely dependent on socio-economic  
status. In addition, broadband penetration in urban and suburban in  
areas is double that of rural areas.

·        Reports of a broadband "price war" are misleading. Analysis  
of "low-priced" introductory offers by companies like SBC and Comcast  
reveal them to be little more than bait-and-switch gimmicks.

·        The FCC ignores the lack of competition in the broadband  
market. Cable and DSL providers control almost 98 percent of the  
residential and small-business broadband market. Yet the FCC recently  
eliminated "open access" requirements for DSL companies to lease  
their lines, rules that fostered the only true competition in the  
broadband market.
Weblog at: <http://weblog.warpspeed.com>



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