America's Internet Service Mediocrity

In the late 1990's, the US had the fastest internet speeds and widest penetration of almost any country.  Today, the US comes 16th, according to the OECD, with an average of 27 megabits per second, compared with up to quadruple that in countries such as Japan and the Netherlands.

A price comparison shows that internet service is more expensive in the US than elsewhere in the world.  The average US cost for 1 Mbps is $1.10 compared with $0.42 in the UK, $0.34 in France, and $0.21 in South Korea.

Countries such as Estonia, Portugal, and Hungary have better internet service than the US.

Comcast is America's largest cable television and internet provider and is a near monopoly in most of the largest cities in the US.

Through brilliantly effective lobbying, US cable companies have escaped the universal access and affordability clauses that were imposed on telecoms and electricity companies in earlier eras.

Comcast is one of two fixed-wire internet providers in 22 of America's largest 25 cities. As a result, only 7% of American homes are served with fiber optic wire compared with more than half in South Korea and Japan. It is the difference between a steam train and a bullet train.

The above blog is excerpted from an article published on Feb. 25, 2013 in the Financial Times, p. 9, and authored by Edward Luce. The dollar rates quoted above are monthly rates apparently.

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