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Fantastic video doc: Why is broadband so cheap in the rest of the world?

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Sorry if old, did a search but came up empty.

http://www.engadget.com/2011/06/28/why-is-european-broadband-faster-and-cheaper-blame-the-governme/

!!! VIDEO IN DE LINK !!!!

From Engadget a (what I think) is a fantastic video and text documentary about why is broadband so cheap in the rest of the world and how its an easy fix for the USA IF they wanted it.

Why is European broadband faster and cheaper? Blame the government

Rick Karr is a journalist and frequent contributor to The Engadget Show.


If you've stayed with friends who live in European cities, you've probably had an experience like this: You hop onto their WiFi or wired internet connection and realize it's really fast. Way faster than the one that you have at home. It might even make your own DSL or cable connection feel as sluggish as dialup.

You ask them how much they pay for broadband.

"Oh, forty Euros." That's about $56.

"A week?" you ask.

"No," they might say. "Per month. And that includes phone and TV."


It's really that bad. The nation that invented the internet ranks 16th in the world when it comes to the speed and cost of our broadband connections. That's according to a study released last year by Harvard's Berkman Center for Internet & Society on behalf of the Federal Communications Commission.

It's not surprising that we lag behind such hacker havens as Sweden (number one worldwide, according to the study) and Finland (number seven), nor densely-populated Asian nations like Japan and South Korea (numbers three and four). But the U.S. also trails countries that are poor by European standards: Portugal is just ahead of us in 15th place; Italy is number 14. (The full rankings are on page 81 of the study.)

By most measures, the U.S. has been losing ground. The UK, which traditionally lagged in international broadband rankings, is now number eleven, Germany, which has been slow to move to the most-recent DSL and fiber technologies, is number twelve.

I wanted to find out why we're doing so badly. So earlier this year I went to the UK and Netherlands under the aegis of the Washington-based Center for Investigation and Information to learn why broadband in those countries is so much better than ours. The project was funded by the Ford Foundation. (In April, my colleagues and I produced the first version of the story for the weekly PBS newsmagazine Need to Know; you can see that report here. Later this year, we hope to produce additional reporting for two NPR programs.)

We went to the Netherlands because it has one of the world's most advanced and fastest-growing fiber-optic networks. We visited homes there that get 100 mbps service in both directions -- they can upload as fast as they download -- as well as TV and phone for under $100 a month.

We chose the UK because it's racing ahead in global rankings. Over the past decade, average speeds increased by 25 percent between 2009 and 2010, while prices have tumbled. Broadband service comparable to what we get here in the U.S. is available for less than $6 a month. And no, there isn't a zero missing there. Six bucks a month.

So, what's the difference?

Our reporting suggests a one-word answer: Government.

Not government spending. The UK's administration hasn't invested a penny in broadband infrastructure, and most of the network in the Netherlands has been built with private capital. (The city government in Amsterdam took a minority stake in the fiber network there, but that's an investment that will pay dividends if the network is profitable -- and the private investors who own the majority share of the system plan to make sure that it will be.)

The game-changer in these two European countries has been government regulators who have forced more competition in the market for broadband.


The market in the UK used to be much like ours here in the U.S.: British homes had two options for broadband service: the incumbent telephone company British Telecom (BT), or a cable provider. Prices were high, service was slow, and, as I mentioned above, Britain was falling behind its European neighbors in international rankings of broadband service.

The solution, the British government decided, was more competition: If consumers had more options when it came to broadband service, regulators reasoned, prices would fall and speeds would increase. A duopoly of telephone and cable service wasn't enough. "You need to find the third lever," says Peter Black, who was the UK government's top broadband regulator from 2004 to 2008.

Starting around 2000, the government required BT to allow other broadband providers to use its lines to deliver service. That's known as "local loop unbundling" -- other providers could lease the loops of copper that runs from the telephone company office to homes and back and set up their own servers and routers in BT facilities.

BT dragged its feet and very few firms stepped up to compete with the telephone giant. "The prices were too high," Black says. "There were huge barriers to entry. The processes were long and drawn out."

When Black was named Telecommunications Adjudicator in 2004, he fought on two fronts to break the BT logjam. First, he used his own experience as a former employee of the telecom giant to push for change from the inside. When that wasn't enough, he used the bully pulpit provided by his government post to embarrass BT in public. He publicized the company's failure to meet goals. Reporters loved the story of the government regulator holding the giant firm's feet to the fire.

"Embarrassment works, you know?" he laughs.

When Black started work, only 12,000 British homes had multiple broadband providers. By the time he stepped down in 2008, about 5 million did, and today the number's closer to 6 million. "That's about a 500-fold increase in less than ten years," he says.


You can see evidence of the UK's competitive market on the streets of London: Broadband providers splash ads across bush shelters and train stations, touting prices that seem outrageously low by U.S. standards. Post offices sell broadband service; so does Tesco, one of the UK's largest supermarket chains.

Those providers target their offerings to users' needs. If all you plan to do is check you email every now and then, try TalkTalk's plan that goes for £3.25 a month (under $6). If you're a gamer and low latency is a key factor, buy a more expensive plan from Demon. (Bonus: Their customer service people are trained geeks who won't repeatedly insist that you reboot your computer and modem before moving on to help solve the problem.) Some London homes now have a dozen or more broadband providers.

Competition is spurring technological improvements. BT and its dozens of competitors realize that they're already pushing old-fashioned copper wires to the limit, and that speeds will increase only if homes are connected to fiber-optic cables. So right now, a consortium of competitive broadband providers is negotiating with BT for the right to use the phone company's poles and underground ducts to build their own fiber-optic network.

What's good for Britain is bad for America?

America's AT&T and Verizon are members of that consortium, pushing for faster service for British broadband users. Both firms back more competition in the UK and across Europe and fight to take market share from incumbent telephone companies there.

Yet both firms say the same policies they support in the UK would be a mistake here in the U.S. (You can see my questions to the firms here and here. AT&T's response is here, while Verizon's is here.)

Verizon told me in its written statement that it flat-out opposes the kind of local-loop unbundling that's reduced prices and increased speeds in Britain "for competitive reasons". Those regulations are "bad public policy and bad news for consumers", Verizon says, which "only benefit a few big phone companies, and those companies do not pass their savings on to consumers." Verizon also claims that "those competitors do not invest in their own networks".

Broadband industry insiders in the UK beg to differ.

AT&T takes a different tack: The firm says it supports competition, but notes that, "There is no 'one-size fits all' regulatory regime" that will work worldwide. AT&T cites two main differences between the UK and U.S. markets: First, more U.S. homes have the option of buying broadband service from cable companies. Second, the U.S. is more spread out -- the technical term is that those "loops" are longer.

But again, the facts in the UK suggest otherwise. Many homes in Britain's largest city -- London -- have cable access, but cable prices have fallen alongside that of DSL service.

Meanwhile, the size of the U.S. may be a red herring. Most of the region between Boston and Washington is as densely populated as most of Europe and the UK. So is the California coast between San Francisco and San Diego. And so is the region of the Midwest centered on Chicago. Those areas are home to about a quarter of all Americans. In other words, we live in a big country, but a lot of it is relatively empty space.

The argument that the U.S. is too spread out is nonsense, according to Herman Wagter, one of the Netherlands' most prominent evangelists for next-generation broadband. He thinks there's something else going on in Verizon's and AT&T's opposition to competition at home: They're afraid of it.

Standing next to an Amsterdam canal, Wagter used a historical analogy: Those canals were built and operated by private firms, he says. When they were built, they helped Amsterdam become the world capital of commerce and finance. But after a hundred years or so, a new technology -- railroads -- was proving itself to be more efficient. The new transportation system was helping Holland's neighbor to the west, the UK, race ahead of the Netherlands. When Dutch entrepreneurs petitioned to build a train, the owners of the canals "were screaming murder".

"They were saying, 'Oh, we can accelerate the boats a little bit, and convey a little bit more if you need more capacity'," Wagter says. The canal owners said the new railroads would "take away their business, and it was absolutely forbidden, and government shouldn't interfere."

Wagter says it's fortunate that the Dutch government at the time didn't listen to those arguments. Whether or not U.S. officials will make the same decision when it comes to next-generation broadband, he says, is "a matter of political will."

God I'm so glad I live in Holland, but for all the people living in the USA please for you own sake just spread around this video because its EXCELLENT in showing why you all need competiion in the USA.

[edit] forgot about Canada and Auzzie people have it so bad to :( sorry everyone.
So you do the same just pass the video around and have people see it and get the
discussion going.
Same goes for everyone in the world where you have problems getting or just getting raped on your broadband internet.
 

Darklord

Banned
Australia has slower speeds, caps galore(how does 20GB a month sound? Too much? We have 1GB caps too) and costs quite a bit, mine costs $50 with no phone or TV, just internet. Go back even 5 years and it was 10 times worse than that. Makes me puke when I see people complaining about speeds that kicks the shit out of anything you see here.

Edit: UK has internet for only 3 pounds? 400 providers? Holy shit.
 

2Crisis

Member
Title of the op and the article to an extent seem a bit misleading. It's much more about the proliferation of truly high-speed broadband versus the price.

You ask them how much they pay for broadband.

"Oh, forty Euros." That's about $56.

"A week?" you ask.

"No," they might say. "Per month. And that includes phone and TV."
Where the hell would this happen? No broadband in the United States is $56 a week unless you live in the middle of nowhere. I pay less than 'forty Euros' a month for a very good broadband package.
 

q_q

Member
Oh what? Corporatist douche bag Republicans are fucking our shit up with their outdated economic ideologies? Who would have thought?
 
2Crisis said:
Where the hell would this happen? No broadband in the United States is $56 a week unless you live in the middle of nowhere. I pay less than 'forty Euros' a month for a very good broadband package.
Yeah, I pay $50 a month for 7Mb or whatever that is.
 
2Crisis said:
Where the hell would this happen? No broadband in the United States is $56 a week unless you live in the middle of nowhere. I pay less than 'forty Euros' a month for a very good broadband package.
Well that specific thing is just and example of the difference between the EU and USA.

And on the OT issue well I think is "good" because that is the question of the documentary why is the USA lacking in broadband and why is it so cheap in the EU/rest of the world.
 
alr1ghtstart said:
but you have caps.

Only if you want them. The competition mentioned in the op allows you to choose a different supplier if you're not happy with the usage restrictions of your current supplier.

Caps/tiers allow suppliers to sell lower cost broadband options to those that don't need an unlimited package, but the unlimited option is there for a small premium if you want it.
 
UK may have cheap net but the speeds are crap unless you are with virgin, or live in the middle of a big city. Alot of the phone or tv services give away free internet, such as talktalk.

So if you want good speed net in the UK there is only one option. If your happy with any old broadband though, it can be cheap.
 

RoadHazard

Gold Member
Skiptastic said:
Yeah, I pay $50 a month for 7Mb or whatever that is.

That would be considered pretty expensive here in Sweden.

I pay an equivalent of about $47 USD per month for a 100/10 connection (I could get 100/100 for a bit more, but I don't need that UL speed). For about $125/month, I could get 1000/100. Yes, that's a lot of money (and I definitely don't need that speed), but the point is that it's available to me if I want it (and get a computer that can handle it, haha).

This is in a relatively cheap, generic apartment building on the outskirts of my city. Of course, these options are not available to anyone anywhere in Sweden (I'm in Gothenburg, the 2nd largest city in Sweden), but I guess our #1 spot on that list has its reasons.

No caps or throttling, by the way. Caps pretty much don't exist in Sweden, except with mobile broadband plans (but you can get those with unlimited data as well).
 

-Silver-

Member

I pay £10 for this. I'm on the old O2 setup so the cap is pretty high, never hit it yet, while the new O2 system sucks.
 

squicken

Member
q_q said:
Oh what? Corporatist douche bag Republicans are fucking our shit up with their outdated economic ideologies? Who would have thought?

Did you sleep through the part where there was a Democrat-held Presidency, House, and Senate? Or when Clinton and the FTC approved all those mergers in the 90s?

It's an issue that gets no traction b/c it won't win any votes, so lawmakers would rather just take the money from the industry.
 

RobertM

Member
My blood boils looking at those charts and prices. I do love Verizons response:

http://www-tc.pbs.org/wnet/need-to-know/files/2011/05/verizon-redacted.pdf
Verizons response to the unbundeling situation said:
Artificially low wholesale rates only benefit a few big phone companies that compete with Verizon, and those companies do not pass their savings on to customers.

Furthermore, because these competitors do not invest in their own networks, states lose out on economic development. And, the below-cost rates mean that Verizon must attempt to maintain an expensive and capital-intensive network while other companies that would receive unbundled network elements form us would skip out without paying their fair share of the cost of maintaining the network they rely on. Simply put, the below-cost discounts are not needed to create competition.
Hey Verizon, pot calling the kettle black anyone? When these companies lease out some of the copper, I do believe some of the maintenance cost would be included, what's the issue again?

Free market baby! Oh wait, you can only choose between Comcast and Comcast. Yeah, that's the competition I'm talking about. FCC step your fucking game up.
 

LQX

Member
Bureaucracy, government, more bureaucracy, more government. There should be a law against killing competition because a certain telecom have bought into the government but its prevalent everywhere and especially in the suburbs where you have one provider charging everyone out the ass or they work in cahoots carving up a certain region keeping prices high.
 

Vanillalite

Ask me about the GAF Notebook
Decent vid, but still doesn't solve the fact of broadband availability in the US/Canada verses other smaller countries.
 

Daeda

Member
Heh, I pay 10 euros a month for 100mbit internet.. yay university Network.

But yeah, internet is pretty affordable here in The Netherlands. Another reason for this, besides just government, is also the fact that internet became popular relatively late, so while some earlier adopting countries already payed a lot for telephone networks, we went on and invested in broadband.
 

winter

Member
q_q said:
Oh what? Corporatist douche bag Republicans are fucking our shit up with their outdated economic ideologies? Who would have thought?


Bingo. Enforcing rules that prevent industries from fucking the consumer is SOCIALISM.
 

dudeworld

Member
TheExodu5 said:
Western Canada. Eastern Canada is still a crap shoot.

which is funny because western canada is so big and empty with only a few major cities dotted here and there while eastern canada is all so compact (toronto, ottawa, montreal) and the maritimes aren't too far away

you'd think it would be the opposite if you base it on geography
 

Hitokage

Setec Astronomer
LQX said:
Bureaucracy, government, more bureaucracy, more government. There should be a law against killing competition because a certain telecom have bought into the government but its prevalent everywhere and especially in the suburbs where you have one provider charging everyone out the ass or they work in cahoots carving up a certain region keeping prices high.
Actually, this is about government stepping in not backing off. Regulation of this kind helps competition.
 

dudeworld

Member
AlphaTwo00 said:
I wish I had that over here.

Bell $45 for 12mbps (which I only get around 5 in my area), and I'm on a 60GB cap. It's complete bullshit.

to be fair, we just got these plans recently. Before we were a bit similar to you guys (I think it was like $50 for 15mbps & 120gb cap). We just bought the 100mbps plan with Shaw but they're out of modems so we have to wait
 

Slavik81

Member
Razorskin said:
Thank god Canadians are protected from that nasty competition.
Indeed. If we let non-Canadian companies provide phone and internet service or sell books, we'd probably all start speaking American.
 
Not in spain though. We get those prices, but not such great speeds (not unless you live right near one of the stations of the company youve bought internet).
Although thank goodness we dont have shitty caps in any comapny here! (at least is all broadband now, there are caps if you want those moving around internet access for phones or laptops though)
 

tedtropy

$50/hour, but no kissing on the lips and colors must be pre-separated
I pay about $40/month for good-speed broadband (US, Texas) that's more or less never down. Even with the 250GB cap, it's just about the only bill I don't complain about just from the amount of value/entertainment we get from it.
 
Starting around 2000, the government required BT to allow other broadband providers to use its lines to deliver service. That's known as "local loop unbundling" -- other providers could lease the loops of copper that runs from the telephone company office to homes and back and set up their own servers and routers in BT facilities.

Government forcing the private sector to do something that would be in the best interest of consumers?

SOCIALISM!

Depends on the political will, eh? Good fucking luck. None of that to be found. Not while telcom companies are lining the pockets of our political leaders.
 

Ezduo

Banned
It's definitely pretty bad in some places. We had Comcast for a while but the internet and phone service stopped working for long periods of time. We were basically paying for service that worked maybe an hour out of the day. We called them on a daily basis to complain and had at least four or five people come out to help. Eventually we told them to fuck off and got rid of the entire service but the only other person providing cable internet in the area for some reason wouldn't allow us to use their service because of some outstanding bill by the people who lived in the house before us (we were renters). That was back in 2005-2006 or so. My family hasn't bothered to get internet since then, we just use our phones. Such bullshit. Some of the corporations in this country need a god dammed boot up their ass from someone in the government to keep them from screwing us over.
 
AT&T and Comcast have caps. Plus I routinely have bad speeds, outages, plus it's expensive for what I'm getting.

Fucking sucks!
 
Canada sort of has the same model as the UK (Rogers and Bell have to share their lines with wholesalers), but it's not as widespread and they're trying to seriously gimp the entire thing.
 

blu

Wants the largest console games publisher to avoid Nintendo's platforms.
Mr Pockets said:
I pay $60 a month for this... Good enough.

Not sure..

1367142360.png

I pay 15 eur for that. And it includes ~40 tv channels.
 
Brazil has one of the most expensive broadband of the world.

I pay ~US$ 52 for 15/1Mbps, but I'm lucky. There are people paying US$ 60+ for a 1Mbps connection. It's ridiculous.
 
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