U.S. ISPs Deliver 82% to 114% of Advertised Speeds

In its new report on broadband access performance of 13 Internet service providers representing 86 percent of U.S. subscribers, the Federal Communicartions Commission found that actual download speeds are substantially closer to advertised speeds than was found in data from early 2009. 


On average, during peak periods, digital subscriber line services delivered download speeds that were 82 percent of advertised speeds, cable-based services delivered 93 percent of advertised speeds, and fiber-to-the-home services delivered 114 percent of advertised speeds. Verizon's FiOS average real-world speeds were actually higher than advertised speeds, both over a 24-hour period and during peak surfing hours. Other high-ranking ISPs include Comcast and Cox. 


During peak periods,  speeds decreased from 24-hour average speeds by 0.4 percent for fiber-to-the-home services, 5.5 percent for DSL-based services, and 7.3 percent for cable-based services.


Peak period download speeds varied from a high of 114 percent of advertised speed to a low of 54 percent of advertised speed.


Peak period performance results for upload speeds were similar to or better than those for download speeds. Upload speeds were not significantly affected during peak periods, showing an average decrease of only 0.7 percent from the 24-hour average speed.


On average, DSL-based services delivered 95 percent of advertised upload speeds, cable-based services delivered 108 percent, and fiber-to-the-home services delivered 112 percent.


Upload speeds among ISPs ranged from a low of 85 percent of advertised speed to a high of 125 percent of advertised speed.

The Free Press predictably chose to focus on the gaps.  "While the study indicates some providers are consistently delivering their customers the promised network speeds, it reveals that many providers are falling well short of their advertised claims." ISPs Fail to Deliver Advertised Broadband Speeds

On average, during peak periods, digital subscriber line services delivered download speeds that were 82 percent of advertised speeds, cable-based services delivered 93 percent of advertised speeds, and fiber-to-the-home services delivered 114 percent of advertised speeds.

During peak periods,  speeds decreased from 24-hour average speeds by 0.4 percent for fiber-to-the-home services, 5.5 percent for DSL-based services, and 7.3 percent for cable-based services. Read the report here.

Are Smart Phones, 4G Bad for Smaller Wireless Providers?

It is no secret that the costs of marketing smart phones are higher than was the case for feature phones, and that is true for carriers large and small.

MetroPCS has also seen its costs rise much more steeply than its profits, for example. Its cost per gross addition reached $177.88 in the second quarter, up about eight percent, and its average revenue per user rose to $40.49, up just over 1.6 percent. Read more.

The growing dominance of AT&T and Verizon Wireless in the U.S. market has been said to threaten Sprint, but does nothing to help either MetroPCS or Leap, argues 24/7wallstreet.

A merger of MetroPCS and Leap is likely only to delay their inevitable demise. Both AT&T and Verizon Wireless offer pre-paid phones, and though the pre-paid service is not their preferred business, the two giants could pretty easily eliminate MetroPCS and Leap.

One is reminded of what the advent of broadband did to independent Internet service providers in the dial-up era. Once the broadband shift began, dial-up ISPs found they no longer could compete, as the costs of providing broadband access were higher than dial-up, destroying profit margins.

It might be the case that smart phones and fourth-generation services might have similar impact on many smaller mobile providers, resellers and channel partners.

Are Smart Phones, 4G Harming MetroPCS?

Trans-Pacific Circuit Prices Plunge

Trans-Pacific capacity prices have plummeted over the past two years, says TeleGeography.

Between the second quarter of 2009 and second quarter of 2011, the median monthly lease price for a 10 Gbps wavelength from Los Angeles to Tokyo fell 63 percent, from $98,500 to $36,000.

Prices are tumbling on other trans-Pacific routes as well. Over the past 12 months, median 10 Gbps wavelength prices from Los Angeles to Singapore fell 33 percent, while Hong Kong-Los Angeles 10 Gbps prices declined 39 percent.

Three new cable systems are probably the reason for the sharp price declines. The Asia-America Gateway (2008), Trans-Pacific Express (2009), and Unity (2010) cable systems have increased supply, with the predictable effects on pricing.

Industry executives have been relatively optimistic in public about "rational" pricing behavior in the capacity markets. Some will argue faster price declines are to be expected when new capacity comes online. Generally speaking, price-per-megabit prices drop 20 percent or so each year, so a decline, on a per-megabit basis, is not unusual. The sharper declines on trans-Pacific routes, though, suggest pricing pressure will be more significant than usual, for a while.

Trans-Pacific Circuit Prices Plunge

Data Center Electricity Consumption Grows More Slowly Than Expected

Data center power consumption has grown significantly less than predicted over the past few years, largely due to the 2008 economic crisis, according to a new study.
The study, carried out by Jonathan Koomey, a consulting professor in the civil and environmental engineering department at Stanford University, found that electricity used by data centers worldwide increased by about 56 percent from 2005 to 2010.

Data center electricity use doubled from 2000 to 2005 and a study by the U.S. Environmental Protection Agency predicted power consumption would double again from 2005 to 2010.

Recession Saps Data Centre Power Growth

Visa launches mobile payments in Indonesia

"Visa has launched "m-saku," a mobile payment application for Visa card users who also have Blackberry and Nexian phones in Indonesia.

M-saku allows users to top up their cellular credit, pay bills, buy tickets and shop online using their smart phones.

The application also provides offers such as discounts for m-saku users from certain merchants, as well as a mobile payment function available at participating merchant locations.

Visa launches mobile payment phone app | The Jakarta Post

QFPay Readies Chinese "Square"

QFPay, a Beijing-based company providing a payments solution similar to Square, is coming out of stealth mode. QFPay enables users to pay with bank cards swiped on mobile devices.

QFPay, the Chinese "Square," Prepares for Launch

Verizon Partners with American Express for "Serve" Mobile Payments

Verizon Wireless will be supporting the American Express "Serve" system for mobile phone payments, in addition to its support of Isis, the wallet joint venture with AT&T and T-Mobile USA.

The partnership means Verizon mobile uers will be able to use the "Serve" payment system on mobile phones and tablet computers. Sprint also is working with American Express to support Serve for its users.

Serve enables users to send and receive money from mobile devices, using accounts provided by Amex, and is different from other systems designed for use at retail locations only.

Verizon, American Express Partner on Mobile Payments (subscription required)