Friday, March 21, 2025

Good Outcomes Beat Good Intentions: How Dumb Are We?

Good intentions clearly are not enough when designing policies to improve home broadband availability in underserved areas. In fact, since 2021, more than three years after its passage, the U.S. Broadband Equity, Access, and Deployment (BEAD) program has yet to install a single new connection.  


It seems we were determined to make the perfect the enemy of the good, preventing construction until we mostly were certain our maps were accurate. A rival approach would have proceeded on the assumption that residents and service providers pretty much know where they have facilities and where they do not; where an upgrade can be conducted fast and easily, and where it cannot. 


And perhaps (despite the clear industry participant interests that always seem to influence our decisions) we should not have insisted on the “fastest speed” platforms. Maybe we’d have prioritized “good enough” connections that could be supplied really fast and enabled the outcomes we were looking for (getting the unconnected connected; getting the underserved facilities that do not impede their use of internet apps). 


This is not, to use the phrase, “rocket science.” We have known for many decades that “good enough” home broadband can be supplied fast, and affordably, if we use satellite (geostationary or low earth orbit, but particularly now LEO) or wireless to enable the connections. 


To those who say we need to supply fiber to the home, some of us might argue the evidence suggests relatively-lower speed (such as 100 Mbps downstream) connections supply all the measurable upside we seek, for homework, shopping, telework. The touted gigabit-per-second or multi-gigabit-per-second connections are fine, but there is very little evidence consumers can even use that much bandwidth. 


Study/Source

Key Findings

Distinguishing Bandwidth and Latency in Households' Willingness to Pay for Broadband Internet Speed (2017)

Consumers value increasing bandwidth from 10 to 25 Mbps at about $24 per month, but the additional value of increasing from 100 Mbps to 1 Gbps is only $19. This suggests diminishing returns for speeds beyond 100 Mbps.

Are you overpaying for internet speeds you don't need? (2025)

Research indicates that many Australians are overspending on high-speed internet connections they don't need. Most households can manage well with a 50 Mbps plan unless they engage in high-bandwidth tasks like 4K streaming or online gaming.

Simple broadband mistake costing 9.5 million households up to £113 extra a year (2024)

Millions of UK households are overpaying for broadband by purchasing higher speeds than necessary. Smaller households often need speeds up to 15 Mbps but pay for over 150 Mbps, wasting £113 annually.

ITIF (2023)

- US broadband speeds outpace everyday demands

- Only 9.1% of households choose to adopt 250/25 Mbps speeds when available

- Clear inflection point past 100 Mbps where consumers no longer see value in higher speeds

ITIF (2020)

- Average existing connections comfortably handle more than typical applications require

- A household with 5 people streaming 4K video simultaneously only needs 2/3 of current average tested speed

- Research shows reaching a critical threshold of basic broadband penetration is more important for economic growth than faster speeds

European Research (2020)

- Full fiber networks are not worth the costs

- Partial, not full end-to-end fiber-based broadband coverage entails the largest net benefits

US Broadband Data Analysis

- Compared to normal-speed broadband, faster broadband did not generate greater positive effects on employment

OpenVault Q3 2024 Report

- Average US household uses 564 Mbps downstream and 31 Mbps upstream

- Speeds around 500 Mbps sufficient for most families

FCC Guidelines

- 100-500 Mbps is enough for 1-2 people to run videoconferencing, streaming, and online gaming simultaneously

- 500-1000 Mbps suitable for 3 or more people with high bandwidth needs


We might all agree that, where it is feasible, fiber to home makes the most long-term sense. But we might also agree that where we want useful home broadband speeds, right now, everywhere, with performance that enables remote work, homework, online shopping and all other internet apps, then any platform delivering 100 Mbps (more for multi-user households, but likely not more than 500 Mbps even in the most-challenging use cases) will do the job, right now. 


Good intentions really are not enough. Good outcomes are what we seek. And that often means designing programs that we can implement fast, at lower cost, with wider impact, immediately or nearly so. “Better” platforms that cost more and are not built are hardly better.


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