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[IP] New report on state of US broadband - Broadband Reality Check





Begin forwarded message:

From: Dewayne Hendricks <dewayne@xxxxxxxxxxxxx>
Date: August 11, 2005 2:26:57 AM EDT
To: Dewayne-Net Technology List <dewayne-net@xxxxxxxxxxxxx>
Subject: [Dewayne-Net] New report on state of US broadband - Broadband Reality Check
Reply-To: dewayne@xxxxxxxxxxxxx


Free Press, the Consumer Federation of America and Consumers Union released a report today detailing the ways in which the FCC's recent positive assessment of US broadband penetration is misleading and glosses over serious problems behind an ever-widening digital divide.

The three groups have called on Congress to take notice of alarming trends and enact clear policies that will free the broadband market from domination by a handful of large cable and telecommunications companies. Their recommendations include ensuring open access to all high-speed communications networks, removing restrictions on public entities that seek to offer broadband services to consumers, and opening up more of the broadcast spectrum for wireless Internet applications.

A full copy of the report, Broadband Reality Check, is available at:
    <http://www.freepress.net/docs/broadband_report.pdf>

Among the findings:

· The FCC overstates broadband penetration rates. The FCC report considers a ZIP code covered by broadband service if just one person subscribes. No consideration is given to price, speed or availability of that connection throughout the area.

· The FCC misrepresents exactly how many connections are "high- speed." The FCC defines "high-speed" as 200 kilobits per second, barely enough to receive low-quality streaming video and far below what other countries consider to be a high-speed connection.

· The United States remains 16th in the world in broadband penetration per capita. The United States also ranks 16th in terms of broadband growth rates, suggesting our world ranking won't improve any time soon. On a per megabit basis, U.S. consumers pay 10 to 25 times more than broadband users in Japan.

· Despite FCC claims, digital divide persists and is growing wider. Broadband adoption is largely dependent on socio-economic status. In addition, broadband penetration in urban and suburban in areas is double that of rural areas.

· Reports of a broadband "price war" are misleading. Analysis of "low-priced" introductory offers by companies like SBC and Comcast reveal them to be little more than bait-and-switch gimmicks.

· The FCC ignores the lack of competition in the broadband market. Cable and DSL providers control almost 98 percent of the residential and small-business broadband market. Yet the FCC recently eliminated "open access" requirements for DSL companies to lease their lines, rules that fostered the only true competition in the broadband market.
Weblog at: <http://weblog.warpspeed.com>



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