In this report
Overview

Viewpoint

Last reviewed: November 2009

Here, a monthly perspective from Consumers Union on the latest challenges—and possible solutions—facing U.S. consumers today. See archived letters.

 

Skimpy broadband access


Image of a young boy looking at a computer with a teacher
Crash course
Henri Pierre, a sixth-grader, shows Superintendent Laurie Newton how his laptop lags.
Photograph by Kelly James

Days Creek Charter School in southern Oregon's logging country has it all—almost. Two computer labs, a slew of laptops, and a fast fiber-optic network. What it doesn't have, says Laurie Newton, superintendent, is enough high-speed Internet service. Downloads take ages; the system crashes; students taking state tests online, as is required, cripple the network.

The school has budgeted for more T1 lines, but the data pipeline through town is at capacity and the local utility hasn't expanded it. "It's frustrating for everyone because we are probably one of the most computerized schools in the state," Newton says. "We're ready for the future, but it's having a hard time reaching us."

Too exclusive, too expensive

Those without high-speed, or broadband, access are at a disadvantage, shut off from valuable multimedia tools. High-speed Internet will soon be essential for education, health care, and information. And in this down economy, a fast connection is even more critical for job searches, distance learning, and home businesses.

An estimated 55 percent of U.S. adults had broadband at home in 2008, but only 41 percent of adults in rural households did. Providers are often reluctant to take on the steep cost of reaching homes in sparsely populated areas, so many rural residents turn to libraries and schools to get a fast connection. But those places might not have broadband, either.

The problem isn't just access; it's also affordability. Midtel, a small telecom company serving rural Schoharie County, New York, charges $164.95 a month for 10-Mbps (megabits per second) service. Verizon charges up to $54.99 a month where it offers its 15-Mbps FiOS service. But that doesn't include Schoharie County.

Rural areas are suffering the most, but low-income urban households are also far less likely to have broadband than wealthier city dwellers. Other countries offer faster, cheaper broadband connections. For example, U.S. consumers pay almost twice as much for connections that are on average 20 times slower than those in Japan.

Recognizing the need, some local governments are applying for federal stimulus money. Consumers Union believes the country needs an affordable high-speed nationwide network. Government at all levels should encourage advanced wireless technologies, which can deliver mobile computing and broadband service to millions of people at affordable prices.