Europe Has the Right Goals

The European Commission issued a press release yesterday that announced that 100% of the households in Europe now have access to broadband.

Most households have some sort of wired access with 96.1% of homes having access to copper, coax or fiber. Wireless coverage with 2G, 3G or 4G covers 99.4% of houses. And all remote homes are now covered by satellite broadband using a network of 148 satellites.

Before anybody argues that we have the same thing here in the US due to satellite, we need to distinguish between the satellite broadband that is available here and what is available in Europe. Basic satellite service in Europe is only $13 per month. I can’t find the speed for but assume this is a few Mbps download speeds. But customers can get 20 Mbps download from satellite for $33 per month.

In the US there are two major satellite providers. ViaSat Exede offers a 12 Mbps download service. The amount you pay is based upon the usage cap you choose. For $50 per month you can get 10 GB per month, for $80 you can buy 15 GB and for $130 you can get 25 GB. Hughesnet offers 5 Mbps down and 1 Mbps up for $50 per month, 10 Mbps down and 1 Mbps up for $60, 10 Mbps down and 2 Mbps up for $80 and 15 Mbps down and 2 Mbps up for $130. The four Hughesnet products also have data caps of 10 GB, 20 GB, 30 GB and 40 GB respectively.

Speed isn’t everything and the caps matter. Just to put those data caps into perspective, a 2-hour HD movie will range between 3 and 4.5 GB. So homes in the US using satellite are very limited in using their satellite connection to view video.

The US satellite companies are also limited since they only have a few satellites capable of delivering the above products. If those satellites get oversubscribed then actual speeds will be slower than advertised in the same way that a cable modem system can bog down in the evening hours. But with more satellites in Europe the speeds can be faster and there is a lot less chance of congestion and oversubscription.

The Europeans also have goals to speed up Internet access. They have the goal by 2020 of getting all citizens the ability to have 30 Mbps download speeds, with at least half of them having access to 100 Mbps.

This is pretty easy to contrast with the US where the current national definition for terrestrial  broadband is 4 Mbps down and 1 Mbps up. Both stimulus grants and borrowing from the RUS have recently financed networks that are able to deliver those speeds.

If we don’t set high goals in the US, and if we are content to finance rural broadband that delivers slow speeds when it is brand new, we are relegating the rural areas to having slow broadband for decades to come.

In the US we are more given to grand announcements that don’t come with any funding or mandates. For example, earlier this year the FCC set a goal of having a Gigabit City in every state of the country. That means a network that is capable of delivering a gigabit of download speeds to customers.

Don’t get me wrong, I would love to live in one of those few places where you can get a gigabit. But this is a completely voluntary system, and a Gigabit City might only be actually selling that much speed to a few customers to be given the designation. Rather than trying to get one City in each state to provide a few customer with a gigabit download speed we ought to instead be concentrating on making our basic broadband a lot faster than 4 Mbps. When that lowly speed is our national goal, we are telling rural America to not expect anything better.

The Europeans have it right and we have it wrong. And a decade from now when we are far behind them in terms of productivity we can look back on the crappy national goals we set for ourselves.

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