Sunday, August 12, 2007

America's $200 billion broadband boondoggle

Robert X. Cringely explains what went wrong with the federal Telecommunications Act of 1996 and why the U.S. is falling farther and farther behind the rest of the developed world when it comes to broadband Internet access:

There are no good guys in this story. Misguided and incompetent regulation combined with utilities that found ways to game the system resulted in what had been the best communication system in the world becoming just so-so, though very profitable. We as consumers were consistently sold ideas that were impractical only to have those be replaced later by less-ambitious technologies that, in turn, were still under-delivered. Congress set mandates then provided little or no oversight. The FCC was (and probably still is) managed for the benefit of the companies and their lobbyists, not for you and me. And the upshot is that I could move to Japan and pay $14 per month for 100-megabit-per-second Internet service but I can't do that here and will probably never be able to.

Despite this, the FCC says America has the highest broadband deployment rate in the world and President Bush has set a goal of having broadband available to every U.S. home by the end of this year. What have these guys been smoking? Nothing, actually, they simply redefined "broadband" as any Internet service with a download speed of 200 kilobits per second or better. That's less than one percent the target speed set in 1994 that we were supposed to have achieved by 2000 under regulations that still remain in place.

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