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The Digital Divide--Not What You Think

Friday, June 02, 2006

Most people, when talking about the Digital Divide, are referring to the "haves" and the "have-nots" of US broadband. For instance, people living in urban and suburban areas have a much greater likelihood of broadband being offered in their region. Rural areas are pretty much left out in the cold. Money is another great divider; nearly 60% of all $150,000/year households have broadband, while only 19% of households that bring in up to $50,000 do.

The United States, along with countries around the globe, has recognized the importance of widely available and affordable broadband. Like other nations, our government has mandated the development of "broadband that enables users to originate and receive high-quality voice, data, graphics and video telecommunications."

Unlike other governments, ours creates often incomprehensible policy that is directly at odds with the 1996 Telecommunication Act's mandate. Which brings us to the other digital divide, the one the FCC doesn't like to talk about; that yawning chasm opening up between the US and the rest of the world, placing us squarely among the "have-nots".

While the US leads the world in the number of broadband connections, it is steadily falling when it comes to broadband penetration. The FCC's 2005 broadband report revealed the US was ranked 16th in broadband penetration, with only 11.6 subscribers per 100 inhabitants as compared to South Korea's 24.9 per 100. What have they got that we don't? Is it any wonder that the global community has eagerly adopted technologies like voice over IP while the US is still mucking around trying to find adequate bandwith?

And while we're asking questions, what about that $150,000 household figure? How come it isn't a whole lot higher? Certainly they can afford it. Are they just not interested? Do they live in one of the many areas where you simply can't get broadband? Perhaps it's not quite better enough to lure them away from dial-up, because in that tax bracket, almost 90% of the households have internet access.

The US defines broadband as 200 kbps (upstream or downstream)--a laughable number when compared to the 1.5 Mbps our Canadian friends to the north have deemed as the lower limit of broadband. You can run your voip internet phone system on 200 kbps, but don't expect to support anything with video at that rate. And digital TV??? Dream on.

Not only have our rates and available speeds stayed essentially static for the last 5 years, we also pay a heck of a lot more for much, much less. You can get a 26 Mbps connection in Japan for around $22/month and, though France, at $38 per month, pays only slightly less than we do, their connection speeds are 15 Mbps, as opposed to the 1.5 - 3 Mbps that US consumers receive.