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Wednesday, April 28, 2010

Improving Broadband

Here's an interesting opinion piece about ways to increase broadband penetration and service quality in the U.S. Apparently, we're lagging far behind many other developed nations. Although we have widespread broadband access (meaning people can buy it if they are willing and able to pay), our penetration rates (how many people actually have it) are low due to high prices and low value for money in terms of speed and quality. I pay more to Comcast each month for my TV/internet bundle than I pay for heat. For many people in America, broadband internet remains an unaffordable luxury. Before all the cool sector-specific applications and "internet of things" we've discussed in class can really take off, we'll need a better broadband infrastructure with cheaper bandwidth.

Public policy can play a key a role here in making the market more competitive and transparent. From the perspective of Comcast and Verizon, government regulation may be a threat, but for the rest of us it can be an opportunity. I'm particularly intrigued by the idea of using transparency rules to improve the information available to consumers so they can make better decisions. I can't count the number of times I've cursed Comcast because my Netflix viewer freezes in mid play. If ISP's had to publish clear, accurate metrics like average speed, latency, jitter and uptime, and consumers could be educated about what these mean for their user experience, the market would become more competitive. I could easily tell whether leaving the devil I know (Comcast) for the devil I don't (Verizon) would be a good decision. They'd have to offer better value to keep their customers.

1 comment:

  1. Indeed, our environment in business school remains somewhat rarefied and exceptional. I was learning about Boston's WiFi pilot project in OM855 yesterday, and the facts concerning internet access in Boston are sobering: only 43% of Boston residents have high speed internet service, and 80% of Boston Public School students do not have internet access at home. 80%! Sometimes I think that I'm behind the times for not having a smartphone, and then articles like these remind me that I'm relatively privileged. Thanks for putting it all in perspective!

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