U.S. vs. Japan: Residential Internet Service Provision Pricing

[David Farber <dave () farber net>]

Begin forwarded message:

From: dewayne () warpspeed com (Dewayne Hendricks)
Date: June 25, 2009 4:26:26 PM EDT
To: Dewayne-Net Technology List <xyzzy () warpspeed com>
Subject: [Dewayne-Net] U.S. vs. Japan: Residential Internet Service  
Provision Pricing

U.S. vs. Japan: Residential Internet Service Provision Pricing
U.S. Residents Pay More and Receive Lower Speeds
By Chiehyu Li, New America Foundation
New America Foundation | June 23, 2009
<http://www.newamerica.net/publications/policy/u_s_vs_japan_residential_internet_service_provision_pricing 
>

	• The following chart lists the price, download and upload speeds of  
residential Internet services in the U.S. and Japan.

	• NTT (Nippon Telegraph and Telephone) is the major incumbent  
telephone operator in Japan. NTT has focused on fiber-optic business  
while Yahoo! BB (a subsidiary of SoftBank Telecom Corp.) has had first- 
mover advantage for DSL Internet. Due to unbundling requirements,  
Yahoo! BB and @nifty provide DSL service by renting NTT’s telephone  
lines at low prices.

        • Cable/DSL service
		• In the U.S., the price for cable or DSL (1Mbps-7 Mbps) ranges from  
roughly $20-45/month. Comcast has higher speed Internet,  
15Mbps-50Mbps, and costs $43-$140 per month
		• In Japan, the typical Internet speed is higher than the U.S.  
(8Mbps-50Mbps), and costs $30-60 per month. J:COM, a large cable  
Internet provider, has cable Internet up to 160Mbps, costs $63 ($0.4  
per megabit).
		• The high-speed Internet market is very competitive in Japan.  
Customers who pay two dollars more can upgrade from 8Mbps to 12Mbps or  
even more. For this reason, customers tend to choose higher speed  
Internet because the marginal costs are low.
        • Fiber-optic service
		• In the U.S., Verizon is the only large provider of fiber-optic  
service, FiOS. There are three options of the service, 15Mbps, 25Mbps,  
and 50Mbps, $50-$145 per month.
		• In Japan, the average of fiber-optic speed is up to 100Mbps~1Gbps,  
costs from $25 to $56 per month ($0.06-0.7 per megabit) for condo  
residences (up to 6 households or so) depending on VDSL/LAN/Fiber  
distribution; single house residences are charged higher rates,  
$55-67($0.03-0.6 per megabit), which is both much cheaper and much  
faster than the U.S.

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