United States of Slow Internet?

Did you know that the United States has one of the slowest internet speeds for first world countries in the World?

I'm here to talk to you a little bit about the history of the internet in the United States and why slow internet speeds are the norm.

The History:

The internet grew from a project developed by the United States Department of Defense in the 1960s. It wasn't until the 1970's however at the International Computer Communication Conference (ICCC) that the Internet really became open to the public so that they could work on improving it. In the early 1980s, the internet was really commercialized and commercial products became the norm. Then in the 1990s, the Internet became closer to what we know it as today as far as product, services, and format goes.

Remember this icon?

This all seems very mundane, right? The truth is that this commercialization in the early 80s is a key part of why you are paying so much for your connection in comparison to other areas in the world. In the 1970s and 80s, the United States government was working on getting the internet up for commercial and private use. The problem? It was extremely costly to lay the cable lines that were needed for it to happen. Their solution? They allowed the cable operators to have an exclusive contract in the area (being able to set rates) for the next 12-15 years. At that point, the cable company owned the lines and it was too cost prohibitive for new companies to come in behind them to compete. The United States realized what was happening and tried to fix it with the Cable Television Consumer Protection and Competition Act of 1992. It was too late however, because the oligopolies/ monopolies were already set up.

The Current Situation:

While many people would think that the 1992 Act would cause the market to correct itself over time, and they could possibly be right, the cable companies did something that would prevent that. In the summer of 1997, nicknamed the "Summer of Love", the cable companies put into practice a large amount of swaps, partnerships, acquisitions, and connections that meant that most of the markets in the United States were split up between the companies so that they did not (and still do not to this day), compete with one another. What does this mean for consumers? It means limited choice, and that there is no real reason for cable companies to change their price or improve their service. This is different from other countries, who due to competition and market pressure have faster internet and lower prices than we do in the United States of America. If you are interested in these differences, check out this New York Times Article on it. If you are more of a visual person, this article from theverge.com has some really nice graphs and charts depicting it (just scroll down towards the bottom of the article).

An example of what is happening across the United States.

What can be done you may ask? The truth is, in the current political climate, not much. The only thing that can really fix both the internet speeds and the price of connection in the United States is for competition to enter more heavily into the market. This would mean that the government would have to subsidize the laying of more cables, or they would need to help make purchasing the use of the cables already laid for competition easier for competitors.

Questions:

1. What do you think about the current state of internet and cable costs?

2. Where you or your family live, what are your choices for cable company?

3. Do you think that there is a good way to bring more competition into the market? If so how do you think that would happen?

4. Do you think that net neutrality going away will help make this problem better or worse? Why?

5. Comment about frustrations you have had with the cable companies!