In broadband race, USA is not No. 1

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[Commentary] Alas, poor us. The nation that invented the personal computer, television, the cellphone, the smart phone and — oh yes — the Internet, lags in creatively using all these things. In both land-line and mobile broadband, America is, at best, mediocre when measured on a variety of metrics such as penetration rates, Internet speeds and price.

Why? The simple answer is that other countries have policies that promote competition and innovation. In contrast, policies here have allowed a few dominant players that control the least interesting parts of the broadband landscape (the cables and the wireless spectrum) to dominate. In South Korea, consumers can get broadband service from a cable or telecom company. But they may also choose among myriad independent providers that are given access to the physical infrastructure. This competition keeps prices down and the quality of service high. If the U.S. were to take a similar tack, it would be a return to the way things once were. In the years of dial-up, phone and Internet service were two distinct things, with consumers getting multiple choices for the latter. A sweeping 1996 telecommunications law envisioned that state of affairs continuing after the move to broadband. But over time, cable and telecom companies worked the courts and Congress to make sure that this competitive world would never come to be. Today, in much of the country, consumers have little choice but to get their land-line service from a cable TV company, if they can get it at all. Wireless is a bit better. But the market has remained a near duopoly, with none of the smaller players emerging as a strong competitor to AT&T and Verizon. All this poses a problem. Being less connected than other countries in an age of information and technology could put the U.S. economy at a competitive disadvantage.

If nothing else, this much seems certain: Presidents Bush and Obama won't be the last to bemoan the state of American broadband.


In broadband race, USA is not No. 1