Hi everyone,
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
I thought some people on this list might be interested.
Best,
Frannie Wellings
http://www.freepress.net
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.
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