Not So High-Speed Broadband in the U.S.

          Even though the Internet itself first started in the states, compared to many other countries who are adopting high-speed broadband access fast, the U.S. is falling behind when it comes to speed. According to the article, "...the U.S. ranked 15th among the 30 members of the Organization for Economic Cooperation & Development in terms of broadband availability" (businessweek).

          Denmark is ranked in the first place followed by other European countries and Asian countries, including Korea. Even though the rate of Americans who have access to broadband service rose 20% in 2007, it's still only 73 million which amounted just 23 of every 100 residents.

          Officials argue that it's due to the geographic difficulty that prevents the U.S. to improve its speed and distribution of accesses to people compared to other smaller countries. In fact, saturated population over small geographic area is easier to distribute higher speed broadband service with lower cost. That explains why some of low-population states in America still have comparably low quality internet service.

          However, many experts critics that lack of competition in the U.S. market is the main cause for such insufficient broadband service because few major internet service providers share the market and charge more than any other leading countries. Verizon Communications, AT&T, Time Warner Cable, and Comcast are dominating their markets without sharing their lines with competitors which has been the entry to barrier for many new entrants.

          Many people are now asking FCC to step forward about these major companies’ behavior to lower the price which would allow many new companies to jump into the market. However, new concern has been raised as Verizon and AT&T acquired the license for the new wireless spectrum lines, their manipulating over the industry might get stronger.

          Now a day, the Internet is essential for all businesses and the cost for using the network for the company takes a great portion on their expense. While other developing countries offer same or faster internet service with lower rate, if the U.S. continuously has higher price for the such service, it would automatically become their competitive disadvantage which would hurt a lot in global market. Also, high quality broadband internet access increases the productivity and save time resulting more efficiency. I believe only way to solve this problem in the U.S. is to have more new company entering the industry; therefore, have a competition over price.


Reference;
Holahan, Catherine. "The Sad State of U.S. Broadband" BusinessWeek. May 22, 2008.
http://www.businessweek.com/technology/content/may2008/tc20080522_340989.htm?chan=rss_topStories_ssi_5

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