A few weeks ago Charter increased my home broadband speeds from 60 Mbps to 130 Mbps with no change in price. My upload speed seems to be unchanged at 10 Mbps. Comcast is in the process of speed upgrades and is increasing base speeds to between 100 Mbps and 200 Mbps download speeds in various markets.
I find it interesting that while the FCC is having discussions about keeping the definition of broadband at 25 Mbps that the big cable companies – these two alone have over 55 million broadband customers – are unilaterally increasing broadband speeds.
These companies aren’t doing this out of the goodness of their hearts, but for business reasons. First, I imagine that this is a push to sharpen the contrast with DSL. There are a number of urban markets where customers can buy 50 Mbps DSL from AT&T and others and this upgrade opens up a clear speed difference between cable broadband and DSL.
However, I think the main reason they are increasing speeds is to keep customers happy. This change was done quietly, so I suspect that most people had no idea that the change was coming. I also suspect that most people don’t regularly do speed tests and won’t know about the speed increase – but many of them will notice better performance.
One of the biggest home broadband issues is inadequate WiFi, with out-of-date routers or poor router placement degrading broadband performance. Pushing faster speeds into the house can overcome some of these WiFi issues.
This should be a wake-up call to everybody else in the industry to raise their speeds. There are ISPs and overbuilders all across the country competing against the giant cable companies and they need to immediately upgrade speeds or lose the public relations battle in the market place. Even those who are not competing against these companies need to take heed, because any web search is going to show consumers that 100 Mbps broadband or greater is now the new standard.
These unilateral changes make a mockery of the FCC. It’s ridiculous to be having discussions about setting the definition of broadband at 25 Mbps when the two biggest ISPs in the country have base product speeds 5 to 8 times faster than that. States with broadband grant programs also have the speed conversation and this will hopefully alert them that the new goal for broadband needs to be at least 100 Mbps.
These speed increases were inevitable. We’ve known for decades that the home demand for broadband has been doubling every three years. When the FCC first started talking about 25 Mbps as the definition of acceptable broadband, the math said that within six years we’d be having the same discussion about 100 Mbps broadband – and here we are having that discussion.
The FCC doesn’t want to recognize the speed realities in the world because they are required by law to try to bring rural speeds to be par with urban speeds. But this can’t be ignored because these speed increases are not just for bragging rights. We know that consumers find ways to fill faster data pipes. Just two years ago I saw articles wondering if there was going to be any market for 4K video. Today, that’s the first thing offered to me on both Amazon Prime and Netflix. They shoot all new programming in 4K and offer it at the top of their menus. It’s been reported that at the next CES electronics shows there will be several companies pushing commercially available 8K televisions. This technology is going to require a broadband connection between 60 Mbps and 100 Mbps depending upon the level of screen action. People are going to buy these sets and then demand programming to use them – and somebody will create the programming.
8K video is not the end game. Numerous companies are working on virtual presence where we will finally be able to converse with a hologram of somebody as if they were in the same room. Early versions of this technology, which ought to be available soon will probably use the same range of bandwidth as 8K video, but I’ve been reading about near-future technologies that will produce realistic holograms and that might require as much as a 700 Mbps connection – perhaps the first real need for gigabit broadband.
While improving urban data speeds is great, every increase in urban broadband speeds highlights the poor condition of rural broadband. While urban homes are getting 130 – 200 Mbps for decent prices there are still millions of homes with either no broadband or with broadband at speeds of 10 Mbps or less. The gap between urban and rural broadband is growing wider every year.
If you’ve been reading this blog you know I don’t say a lot of good things about the big cable companies. But kudos to Comcast and Charter for unilaterally increasing broadband speeds. Their actions speak louder than anything that we can expect out of the FCC.