Broadband Internet – The lack of competition among broadband Internet providers

Broadband Internet Service Provider Competition

The technology associated with high speed broadband Internet service continues to grow and expand on a daily basis. WiFi broadband Internet connections are becoming more popular as cities begin to create hotspots where residents can access free service; satellite broadband technologies make it possible to get a broadband Internet connection from any location in the world; broadband Internet speeds will be capable of transferring data at a rate that is 400% - 1,600% than current rates.

Yet the question lingers, why is broadband Internet connectivity still somewhat of an expensive luxury throughout the United States, as opposed to other countries where broadband Internet connectivity dominates the marketplace?

Experts say that the main reason that the United States is so far behind other countries in terms of the spread of broadband Internet connectivity is the price of the service. An example of the price situation is New York, where it is incredibly inexpensive for broadband Internet providers to serve the community, yet broadband Internet services in New York are some of the most expensive in the country.

Because there is relatively no competition for broadband Internet service for certain areas, providers are left with the luxury of being able to set a high price. Faced with the option of having no broadband Internet access or paying too much, most people will simply pay too much.

Broadband Internet Service and Congress

When you consider that some of the largest telecommunications companies own the majority of the network backbone making broadband Internet connectivity possible, it is not surprising that prices remain high. Without an adequate amount of competition, there is no reason for the broadband Internet providers to make broadband Internet service more readily and economically accessible to Americans.

It is because of this that numerous groups (such as Consumers Advocates, Consumers Union and Consumer Federation of America) are calling on Congress to take steps towards ensuring broadband Internet competition. The FCC recently ruled that telephone companies are not required to lease DSL lines to competitors, making it very easy for prices to remain where they are. The aforementioned groups want Congress to reverse this decision and create a more diverse marketplace through which broadband Internet services can be sold.

This most recent FCC ruling in conjunction with similar previous rulings make it very possible for the existence of “duopolies” in the broadband Internet service industry because people have two choices for their broadband Internet connection: The local cable operator or the local telecom DSL carrier.

Before the United States can make up ground on countries where broadband Internet access is economical, Congress is going to have to step in and create a greater amount of competition within the marketplace.