Despite Assertions, U.S. Broadband is Neither Slow Nor Expensive

One often hears it argued that U.S. broadband is expensive or slow. That might not actually be the case, as data published by the European Telecommunications Network Operators’ Association suggests. 

Simply put, the ETNO analysis suggests U.S. downstream speeds actually are higher than in South Korea, Japan, Europe or the global average. 

Comparing prices, some point to costs that are not indexed for currency values. Looking at spending as a percentage of gross domestic product or household spending over the last decade or so, U.S. prices have dropped since 2010, as have prices in South Korea, Japan and Europe. 

source: ETNO 

The universal trend in those regions--and throughout the world--is lower prices. 

source: ETNO 

There are lots of nuances. For example, “fiber to the home” does not equate to “gigabit speeds.” In South Korea, acknowledged to be a world leader in broadband access, “next generation access” is close to 100 percent. But “fiber to home” or “premises” is at about 40 percent. 

So the issue might not be “access media” but rather “capabilities.”

source: ETNO 

That is clear in the analysis of gigabit capable or “upgradeable” networks. In the U.S. market, cable operators lead the gigabit market. 

Also, not all FTTH networks actually are upgradeable to gigabit service levels without substantial rework. In South Korea and Japan, most FTTH networks are gigabit capable or upgradeable. In Europe, about a quarter of FTTH networks are gigabit capable or upgradeable. 

source: ETNO 

Also, average downstream speeds in the United States are faster than in South Korea, Japan, Europe, or the global average. 

source: ETNO 

The point is that the repeated assertion that U.S. broadband speeds are low, or that internet access is expensive, does not hold up, either internally over time, or in comparison to trends in other developed nations. Globally, internet access is getting better, fast.  

Adjusting for purchasing power, U.S. internet access was deemed “among the most affordable in the world” by the International Telecommunications Union. 

Also adjusting for purchasing power, using the purchasing power parity method, internet access prices are around $35 to $40 a month. IIn developed nations  prices are less than $30 a month.  

Internet access in the developed world--including the United States--simply is not that expensive.