Tuesday, October 26, 2010

What's the Difference Between 50% and 93%?

There's a big difference between 50 percent and 93 percent. The first figure is the percentage of advertised bandwidth the Federal Communications Commission says U.S. ISPs are delivering to their customers.

The second figure (97 percent) is the measured percentage of delivered bandwidth, compared to advertised bandwidth, that U.S. ISPs are delivering to their customers, according to Ookla, considerd by many observers to be the most-accurate monitor of real-world bandwidth experience.

The 97-percent figure includes signaling overhead of three percent, which no Internet access connection can avoid. The difference between the two figures has important ramifications. In the first case, one might make the argument that regulation or voluntary industry guidelines of some sort are required to police ISP marketing claims.

The second figure indicates that there is, in fact, no market failure at all, and that ISPs in the United States are delivering exactly what they claim, in which case there is no need for regulation or industry self policing to a greater extent than already exists.

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