The manufactured debate over global broadband rankings

[Commentary] The popular assertion is that the US is falling behind the rest of the world in broadband Internet service, that the collusive cable and telco monopolists are providing American consumers with subpar service, and that government intervention is needed to develop new infrastructure needed to keep the US competitive – both in terms of global rankings and in terms of the competitiveness of the broader economy. But two research papers were recently presented that argue that broadband Internet service in US compares quite well to that offered in the rest of the world.

The data shows that US infrastructure is roughly on par with the rest of the world. It is a bit ahead by some metrics, and a bit behind in others. There are a few cases where the US is far behind – for instance, FTTH deployments in Japan and Korea. But in that metric, Japan and Korea are the outliers – those are the only two countries with substantial FTTH penetration, with the US and rest of the world falling into a tight band of penetration rates. And the Japanese and Korean rates result both from particular characteristics of those countries and questionably aggressive tax incentives. Additionally, Japan and Korea are largely disappointed with the uptake and subscription rates, suggesting a disappointing return on those investments. Things are not all rosy: there is a sizable falloff for rural speeds and penetration rates. But the gap between rural and urban rates has been closing quickly over the past decade. While advocates expressing alarm and need for intervention to improve rural rates may have had a compelling story a decade ago, the data strongly suggest that the market is already responding to these concerns.

It’s a compelling, media- and public-friendly, narrative that supports a powerful political agenda. And the clear incentives, for academics and media alike, are to find problems and raise concerns. Manufacturing debate sells copy and ads, and advances careers.

[Hurwitz is an assistant professor at the University of Nebraska College of Law]