Why Is Broadband More Expensive In the US Than Elsewhere?

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ivwshane

Lifer
May 15, 2000
32,345
15,156
136
It's a lack of competition indeed!

Luckily I've got a small time provider in my area that has been doing fiber for over 10 years. $70 a month for cable and 15/3 Internet, no contracts
 

me4get

Member
May 24, 2000
116
0
76
My town of less than 700 installed fiber to the home 2 years ago. Iowa rural telecoms have their own fiber network statewide
 

Moonbeam

Elite Member
Nov 24, 1999
72,722
6,201
126
We have competition where I am between ATT and Comcast with each costing about exactly the same thing. I won't give it out cheap if you won't.
 

AViking

Platinum Member
Sep 12, 2013
2,264
1
0
There are probably multiple reasons. However in my experience there is no competition or cooperation. When I lived in a small community outside of a large city I was stuck on dial up for a decade after everyone had DSL and cable since the only company that provided high speed internet refused to invest any money out there for only 1000 families. Later in other places that I lived there was a pact so that DSL and cable didn't compete. I could get shitty DSL but 3 blocks away they could get Cable. City size was in the millions.

My family in the US is still stuck with shitty 6Mbps down 1.5Mbps up DSL where they live. The only other alternative is satellite and they live in a big city. They pay a kings ransom for this. Meanwhile I have 1000Mbps up and down dirt cheap over in Sweden.
 

zanejohnson

Diamond Member
Nov 29, 2002
7,054
17
81
people just need to get smarter.


55 bucks a month here for 20mbps, and i just pirate the rest, qam, etc....

all you need is the data connecton, the rest is just stuff to bitch and whine about, and basically an obstacle you set for yourself.
 

Genx87

Lifer
Apr 8, 2002
41,095
513
126
Hmm I am paying 89.99\month on Comcast for cable TV + 50Mbps internet.


That said what world do you live within when regulated monopolies are defined as free market?
 

Engineer

Elite Member
Oct 9, 1999
39,234
701
126
It has nothing to do with running fiber optic lines to rural areas. Those places either pay higher prices for their connections, have no connection at all or have only one major provider with a local monopoly granted by local and/or state governments.

Lobbied and paid for by the big providers in that area too!

(See reports often from Broadbandreports.com on the lobbying efforts of the big ISP's to do exactly the above).
 

fskimospy

Elite Member
Mar 10, 2006
84,825
49,526
136
Hmm I am paying 89.99\month on Comcast for cable TV + 50Mbps internet.


That said what world do you live within when regulated monopolies are defined as free market?

Exactly. Our current system embodies the worst of both worlds. It has the lack of competition of a government monopoly combined with a profit motive to abuse that monopoly to the maximum extent. Even worse, when local municipalities try and deploy their own networks to get around this crap they are frequently shut down by the states in the name of 'competition'.

Internet access either needs to be seriously deregulated or treated like a utility. This halfway crap is no good for anyone but the cable companies.
 

sm625

Diamond Member
May 6, 2011
8,172
137
106
Local monoplies are obviously a factor. But it is a factor created primarily by geographical constraints. South korea is the size of indiana with a GDP 7 times more than indiana. So obviously their networks are going to be much better than indiana's. You should expect them to be 7 times better/cheaper. Imagine if Russia had as good of an infrastructure as we did. It would cost an insane amount since there are so many areas with low population density that basically have to be subsidized by the urban users.

Just be thankful the government and their damn public unions do not have their claws in communications construction. My god prices would skyrocket.
 

fskimospy

Elite Member
Mar 10, 2006
84,825
49,526
136
Local monoplies are obviously a factor. But it is a factor created primarily by geographical constraints. South korea is the size of indiana with a GDP 7 times more than indiana. So obviously their networks are going to be much better than indiana's. You should expect them to be 7 times better/cheaper. Imagine if Russia had as good of an infrastructure as we did. It would cost an insane amount since there are so many areas with low population density that basically have to be subsidized by the urban users.

I live in a metro area that has approximately the same GDP as all of South Korea but in an even smaller area. My broadband is still expensive and shitty.
 

Exterous

Super Moderator
Jun 20, 2006
20,431
3,537
126
I live in a metro area that has approximately the same GDP as all of South Korea but in an even smaller area. My broadband is still expensive and shitty.

But do those companies service areas other than NYC? I highly doubt that the profit from one area is required to be reinvested in that area as opposed to being used to offset higher costs for less dense areas.

I do agree with you that we have the worst of both worlds though. Its a shame that so many lawsuits have resulted in the curtailing of local broadband services
 

waggy

No Lifer
Dec 14, 2000
68,145
10
81
good god. The thread topic is great. why do we have shit coverage and expensive.


but wow..from bush to Sarah palins fault? really?!


hahahaha god damn.



I would think the reason would be from a mixture of greed (ie the company's want profits and people are willing to pay), and cost of expandignit

most of the country is rural. to lay out high speed internet is very expensive. so its concentrated around big cities. I do question why its still expensive in town and why we still lag in speeds.
 

momeNt

Diamond Member
Jan 26, 2011
9,297
352
126
Have to say it.

It's all Bush's fault.

Well, him and the Republicans de-regulated everything when he was in office and this is what America got, never un-did it and deserves to be screwed.

Either an extremely poor understanding of how these markets operate, or you simply shout "deregulation" whenever you think there is a problem like a damn shill.
 

v-600

Senior member
Nov 1, 2010
488
3
76
good god. The thread topic is great. why do we have shit coverage and expensive.

but wow..from bush to Sarah palins fault? really?!

hahahaha god damn.

I would think the reason would be from a mixture of greed (ie the company's want profits and people are willing to pay), and cost of expanding it

Most of the country is rural. to lay out high speed internet is very expensive. so its concentrated around big cities. I do question why its still expensive in town and why we still lag in speeds.

This seems to have hit the nail on the head. The cost is high because people are willing to pay it. Cry brothers unite and lay down your wallets until the price drops to half. The big businesses would either reduce prices or go out of business or both, and the slack would be taken up by small firms across the nation....maybe.
 

Doppel

Lifer
Feb 5, 2011
13,306
3
0
This seems to have hit the nail on the head. The cost is high because people are willing to pay it. Cry brothers unite and lay down your wallets until the price drops to half. The big businesses would either reduce prices or go out of business or both, and the slack would be taken up by small firms across the nation....maybe.
That's not reasonable and a lot of people don't think it is, because internet access is now an essential utility. My business would collapse without it. Most in the country if they had no internet access would fall apart in short order. It is an essential necessity.
 

unokitty

Diamond Member
Jan 5, 2012
3,346
1
0


Hoping that Google Fiber Bunny comes to my town soon...

Uno
 
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alangrift

Senior member
May 21, 2013
434
0
0
In the UK most people still have ADSL and you need to get a phone line with that which they probably don't factor in.
 

fleshconsumed

Diamond Member
Feb 21, 2002
6,485
2,363
136
No matter how hard the telcos/cablecos try to push their lies about population density, the high prices are the direct result of monopoly, or duopoly if you're lucky. My parents have a choice between Comcast and Wide Open West (thank god for the latter). ATT at their house can only provide 1.5Mbps if it doesn't rain so it's not really a viable alternative. Where I live I get to choose between Comcast and *drumrolls please*.... ra-ta-ta-ta-ta-ta-ta-ta-ta... 768Kbps ATT DSL. Some quality choices right there. Anybody having any sort of doubt about the effects of this monopoly/duopoly should start frequenting www.dslreports.com . Telcos/Cablecos have a history of fighting muni deployments trying to stop it from ever becoming a reality, but if they fail to stop it through legislation, the inevitable result is they always, always lower prices because they have to compete on price with the muni internet/tv. It's a really disgusting state of affairs when these conglomerates legislate their profits.
 

JockoJohnson

Golden Member
May 20, 2009
1,417
60
91
No matter how hard the telcos/cablecos try to push their lies about population density, the high prices are the direct result of monopoly, or duopoly if you're lucky. My parents have a choice between Comcast and Wide Open West (thank god for the latter). ATT at their house can only provide 1.5Mbps if it doesn't rain so it's not really a viable alternative. Where I live I get to choose between Comcast and *drumrolls please*.... ra-ta-ta-ta-ta-ta-ta-ta-ta... 768Kbps ATT DSL. Some quality choices right there. Anybody having any sort of doubt about the effects of this monopoly/duopoly should start frequenting www.dslreports.com . Telcos/Cablecos have a history of fighting muni deployments trying to stop it from ever becoming a reality, but if they fail to stop it through legislation, the inevitable result is they always, always lower prices because they have to compete on price with the muni internet/tv. It's a really disgusting state of affairs when these conglomerates legislate their profits.

But I was told by some retard in an earlier post that it was because of redneck hillbillies living so far apart from each other.
 

Oldgamer

Diamond Member
Jan 15, 2013
3,280
1
0
10-28-2013

http://tech.slashdot.org/story/13/1...utm_source=rss1.0mainlinkanon&utm_medium=feed

Why Is Broadband More Expensive In the US Than Elsewhere?



"The BBC reports "Home broadband in the US costs far more than elsewhere. At high speeds, it costs nearly three times as much as in the UK and France, and more than five times as much as in South Korea. Why?...'Americans pay so much because they don't have a choice,' says Susan Crawford, a former special assistant to President Barack Obama on science, technology and innovation policy. We deregulated high-speed internet access 10 years ago and since then we've seen enormous consolidation and monopolies, so left to their own devices, companies that supply internet access will charge high prices, because they face neither competition nor oversight."

It's called deregulation, and no other competition! lol

Same thing with the "too big to fail banks".
 

unokitty

Diamond Member
Jan 5, 2012
3,346
1
0
After approving NBC buyout, FCC Commish becomes Comcast lobbyist

Four months after approving the massive transaction (Comcast/NBC merger), Attwell Baker will take a top DC lobbying job for the new Comcast-NBC entity, according to reports.

The response of groups like Free Press was expected in its anger, but not without merit. "No wonder the public is so nauseated by business as usual in Washington—where the complete capture of government by industry barely raises any eyebrows," said Free Press' Craig Aaron. "The continuously revolving door at the FCC continues to erode any prospects for good public policy. We hope—but won't hold our breath—that her replacement will be someone who is not just greasing the way for their next industry job."
As FCC Commissioner vote to approve Comcast-NBC Merger. Wait four months, go to work as a Comcast lobbyist.

Does anyone find this difficult to understand? Why should Comcast compete, when they can just buy the regulators?

Buying influential people is expensive. Takes lots of money.

Why should Comcast increase your cable speed? They already own the regulators.

Uno
 
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Matt1970

Lifer
Mar 19, 2007
12,320
3
0
FUck me too. i want the Google Fiber bunny to come to my town.

I want it too, but there are few websites that allow even 20Mbps, much less 100Mbs or even 10 times that. Google Fiber bunny is a Maserati in rush hour traffic.
 

unokitty

Diamond Member
Jan 5, 2012
3,346
1
0


It could be worse. As you can see from the above graphic, if you lived in Spain, Greece, the Slovak Republic, or Turkey, your broadband speed would likely be lower than it is in the USA.

LOL
Uno
 
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