High-speed Net service hits slowdown
Wired’s “Epicenter” blog has an item based on reports out this week that say Americans’ adoption of broadband service hit a seven-year low last quarter, while super-high-speed connections are widely available in countries such as Japan.
The reason? Cost.
One key holdup for broadband adoption last quarter, according to a Leichtman Research Group report, is that the telcos’ pushed higher-speed, premium services (such as Verizon’s FiOS and AT&T’s U-verse) at a time when basic DSL was a financial stretch for many Americans.
“Net broadband additions in the quarter were the fewest of any quarter in the seven years [Leichtman Research Group] has been tracking the industry,” said Bruce Leichtman, LRG president and principal analyst, in a prepared statement. “The decline in additions this quarter compared to the same period last year was exacerbated by Verizon and AT&T’s emphasis on selling higher speed FiOS and U-verse bundled services, often at the expense of traditional DSL service.”
The item cites a Communications Workers of America report that says the average U.S. Internet speed is 2.3-megabits per second, up just 0.4 mbps from last year. Japan, by contrast, boasts average Net speeds of roughly 63-mbps.
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.