Reader Comments (Page 1 of 1)

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".