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American Internet - Slow and Over-Priced
The Communications Workers of America (CWA) performed a study of broadband speeds in the United States and other developed countries. Its findings? Turns out America is way behind in the broadband race. The average download and upload speeds in the U.S. are two megabits per second and 371 kilobits per second, respectively. At that speed, a feature length film takes about an hour and a half to download.
Those speeds compare pretty poorly to average downloads of 61 megabits per second in Japan, 45 in South Korea, 18 in Sweden and 17 in France. Even Canada averages seven megabits per second.
Meanwhile, the World Bank released a study that makes these speed numbers even more depressing. Turns out Americans pay more for their lackluster broadband service than other countries. South Korea spends $0.08 per 100 kilobits of bandwidth, and Japan $0.07. The U.S.? A whopping $0.49 per 100 kilobits a second, slightly higher than the per-kilobit price in France.
Well, at least our gas is cheaper.
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Comments
2
Subscribe to commentsBradleyFeb 14th 2008 2:27AM
The speed is a fair comparison. But I don't think the cost question has been framed correctly.
Certainly it seems we pay a higher cost per kilobit. But let's consider the average cost of internet to the end user... total.
Let's start with the United States. At $0.49 per 100 kilobits and an average of 2 megabits, it appears the average person in the US is paying $9.80 to connect to the internet (.49 X 10 X 2). Now let's compare this with the other countries. South Korea has an average cost of $36.00 and Japan, $42.70.
Given these numbers, the United States suddenly appears to be the bargain at less than a quarter of the cost. This is especially true considering the diminishing marginal utility that each megabit brings. In other words, the difference between 0 megabits and 1 megabit coming into a home is has a huge effect on the family residing within it. On the other hand, having a 60 or 61 makes almost no noticeable difference at all. I think there might even be an economic term for this kind of good which has such a steep drop off. I remember hearing an example of it with water. The first 20 gallons a month or so being so crucial to survival, but the last twenty being largely unnecessary. Anyone remember their ECON 101?
Anyway, my bottom line point is that it's cheaper to get on in the US and that I think I prefer a system where everyone, all classes, has a chance to get in the game... even if the game is moving in relative "slow-mo".
ZaneMay 22nd 2007 10:19AM
This all because the telcom companies never installed fiber optics cables across the US like they promised.
As part of the 1996 Telecommunications act, the large telecom companies were given tax breaks, in return for the promise to install fiber optic cable all over the US. They got the tax breaks, but never installed the cables, it's such BS. The US used to be #1 for the internet, now because of these greedy companies we're not even #10.