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The Cost of Connectivity: An Analysis of the Open Technology Institute Report Cited by the White House

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WASHINGTON, January 14, 2015 — The White House’s recent report on “Community-Based Broadband Solutions” relies heavily on an Open Technology Institute report from the fall that compared the quality and cost of U.S. broadband Internet with the rest of the world.

The third annual Cost of Connectivity report from OTI, the technology program of the public policy institute New America Foundation, compared the prices, speeds, data caps and other fees of both home and mobile broadband in 24 cities from around the world.

“Our findings remain consistent: the majority of U.S. cities included in our report lag behind their international peers,” according to the report.

The report is consumer-facing, focusing on what consumers would actually pay for the advertised speeds in the respective cities. Other broadband reports analyze market trends, differences in economic and political systems, levels of federal and private investment, and compare advertised speeds to actual speeds. The findings of this report simply show the current state of broadband in cities across the globe.

As Business Insider quickly pointed out, OTI’s reported showed that San Francisco has the slowest speeds of any major U.S. city, coming in 20th out of the 24 cities. Yet the ISP Webpass offers a plan with 200 Mbps symmetrical connection (equal download and upload speeds) for $30 a month. The cost of that plan makes San Francisco the most affordable city in the U.S. for fast broadband for under $40.

Vice used the report to generalize about the poor state of broadband nationwide after it first compared Los Angeles and Seoul, saying “the internet in Los Angeles is half the speed of the internet in Seoul, and yet we pay ten times as much for it. The only cities in America that can even hold a candle to places like Seoul are Kansas City and Chattanooga, Tennessee, where the internet is fast but still twice as expensive.”

These reactions are understandable, as the findings of the report seem to be in line in line with the general sentiment that Americans have been reading about for months, even years: that U.S. broadband is not only slower than its international peers, but the cost to connect is also much higher in the U.S. However, Kehl made it clear that the report findings should not be generalized to a nationwide level.

“We make it clear that it is a city comparison,” Danielle Kehl, one of the experts behind every Cost of Connectivity report told Broadband Breakfast. “It tends to get covered much more as the U.S. is lagging behind the rest of the world and a country comparison. We are very conscious of the fact that it is a city comparison and that its not U.S. versus Germany, but Washington, D.C. versus Berlin.”

The report also notes why a city-to-city comparison was used. “We compare specific cities in an attempt to address population density challenges that often skew comparative assessments of broadband in the U.S. vs. other European and Asian countries.” The significance of population density is tantamount, as it is an “important variable that helps dictate broadband speeds and prices.”

 

Rank

City

Continent

Population (City)

Land Area (mi sqaured)

Pop Density of City (people per mi squared)

1

Paris

Europe

2,249,975.00

40.7

55,281.94

2

Seoul

Asia

10,442,426

233.67

44,688.77

3

New York City

North America

8,175,133

302.60

27,016.30

4

Taipei

Asia

2,693,672.00

104.94

25,668.08

5

Delhi

Asia

11,007,835.00

431.09

25,534.89

6

Bucharest

Europe

1,883,425.00

88

21,402.56

7

Mumbai

Asia

12,478,447.00

603

20,693.94

8

Sao Paulo

North America

11,895,893.00

591.78

20,104.00

9

Jerusalem

Middle East

890,428.00

48.32

18,426.59

10

Hong Kong

Asia

7,234,800

407

17,775.92

11

Copenhagen

Europe

579,513.00

33.28

17,413.25

12

San Francisco

North America

805,235

46.69

17,246.41

13

London (Inner London)

Europe

3,335,438.00

198.40

16,811.89

14

Tokyo

Asia

13,185,502

844.66

15,610.43

15

Mexico City

North America

8,851,080.00

573.00

15,446.91

16

Madrid

Europe

3,236,344.00

233.89

13,837.03

17

Boston

North America

645,966

48.42

13,340.89

18

Amsterdam

Europe

813,562.00

64

12,711.91

19

Dublin

Europe

527,612.00

44.40

11,883.15

20

Chicago

North America

2,695,598

227.2

11,864.43

21

Zurich

Europe

383,708.00

33.93

11,308.81

22

Toronto

North America

2,615,060.00

240.00

10,896.08

23

Washington, DC

North America

646,449

61.40

10,528.49

24

Berlin

Europe

3,517,424.00

344.35

10,214.68

25

Shanghai

Asia

24,150,000.00

2,448.10

9,864.79

26

Los Angeles

North America

3,884,307

503.00

8,282.00

27

Prague

Europe

1,243,201.00

192

6,475.01

28

Riga

Europe

701,977.00

117

5,999.80

29

Lafayette, LA

North America

120,687.00

49.1

2,457.98

30

Kansas City, MO

North America

459,787.00

314.95

1,459.87

31

Bristol, VA

North America

17,835.00

13.2

1,351.14

32

Chattanooga, TN

North America

173,366.00

135.2

1,282.29

33

Kansas City, KS

North America

145,786.00

124.811

1,168.05

Cities in regular fonts were used in the original report, bold and italic cities were added for comparison

Using this logic, the best comparisons are between or among cities with comparable densities. Seoul’s population density is so much greater than any other city in the report that it is an outlier. A better comparison would be between Los Angeles and Berlin, or among Amsterdam, Zurich, Los Angeles, Berlin, Dublin and Prague.

Best Home Broadband Deals Under $40

 

City

Provider

Monthly Broadband Price

Download

(Mbps)

Upload

(Mbps)

Density

Berlin TeleColumbus

$37.18

64

3

10,214.68

Dublin UPC

$36.59

60

6

11,883.15

Toronto Teksavvy

$36.25

30

5

10,896.08

Los Angeles Sonic.net

$39.95

20

2.5

8,282.00

Zurich UPC

$32.37

20

2

11,308.81

Prague O2

$37.41

20

2

6,475.01

Los Angeles seems to be holding up just fine against the cities with comparable densities. It should be noted that the data used for Los Angeles and New York in this comparison is not the same as used in the official report. Two simple Google search revealed that Sonic.net and RCN provided faster speeds than what was used in the chart. For the most part, cities with comparable densities have similar speeds and prices.

City to City Data

While the Cost of Connectivity helps to fill in the gaps left by other more technical reports, the report does not include mobile phone data plans, only home broadband and mobile broadband from USB dongles and Wi-Fi hotspots. The cost of those plans frequently include non-broadband related services like voice and text.

“There is a lot value in that research and we’d love to do it or see someone else do it,” Kehl told Broadband Breakfast. “In terms of the scope of this report, we decided to focus it on [accessing the Internet on a personal computer or tablet].”

While the Open Technology Institute report did not include mobile phone plans in their comparison, it did include the connection prices and speeds of mobile broadband of portable Wi-Fi hotspots and USB dongles. Examining the available dataset shows that 3 of the 4 US carriers lack any upload and download speeds. OTI told Broadband Breakfast that the data for the speeds was not publicly available. While the websites of AT&T, T-Mobile and Sprint do not display speeds, a live chat with a customer support representative quickly provided some missing details.

Missing data was not limited to U.S. carriers. Data on Canada’s Bell mobile broadband network can be found on their website Two out of the five Hong Kong carriers lacked data on speeds, and three of five Dublin carriers lacked that information.

American Trends

The report surveys relatively few cities with the highest tier of broadband. Other incumbent ISPs, regional ISPs and municipal ISPs nationwide have been building out fiber and increasing the speeds. CenturyLink announced seven new cities in which it will offer 1 Gbps upload and download speeds to residents in addition to the three cities — Las Vegas, Salt Lake City and Omaha — where it already provides the service.

New entrants like Google Fiber have sparked the competition to provide faster and cheaper broadband speeds. When Google announced it was bringing its fiber service to Austin, Texas, incumbent AT&T announced GigaPower service, which will increase the top home broadband speeds from 300 Mbps to 1 Gbps, to match Google’s speeds.

While not many U.S. cities can boast 1 Gbps up and down for around $40 or less like Hong Kong and Seoul, the U.S. is a substantially larger any other country surveyed in the report. In addition, many smaller cities and rural areas are getting the gigabit treatment. Residents of Brentwood, CA, which is right outside of San Francisco, are getting 1Gbps + voice for $40 a month from ISP Sonic.net, and will be expanding to San Francisco in the future. Verizon Communication’s Fiber Optic Service recently announced its move to provide symmetrical upload and download speeds on all of its plans.

A New Hope

Demand for faster, more reliable broadband is not only growing in the U.S., but it will be necessary in order to take advantage of newer, broadband-dependent technologies in the realms of education, health and business. This demand has drawn both private and government investment in laying fiber and building the infrastructure necessary for future-proofing American broadband. Coalitions such as the Schools, Health and Libraries Broadband Coalition have been formed to advocate for more federal funds, to help bring together ISPs and communities and to overall help the expansion of next generation networks. In rural and suburban communities where competition seems to be lacking, municipalities have worked to create affordable alternatives.

These efforts have not been in vain, as the Federal Communications Commission has made changes in the agency’s plan to increase the E-rate fund for schools and libraries. Now, President Obama’s push to support community-led Gigabit Networks could open up new super-fast options for cities in the United States.

 

Broadband's Impact

Josephine Bernson: The Customer Experience is About More Than Fiber

‘Listen to the customer’ is a fundamental pillar in gaining a satisfied customer.

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The author of this Expert Opinion is Josephine Bernson, Chief Revenue Officer at Great Plains Communications.

Customer experience and the digital customer experience are what makes businesses today stand apart from competitors. In our connected world, it means delivering products and services via high-speed internet, provided by a network that’s reliable and scalable according to rising bandwidth demand.

Yet, we must keep in mind the other component of a first-rate customer experience: customer service excellence.

Customer service excellence, from the beginning

How does a fiber provider successfully work with the customers and the community from the very beginning? And, continue to provide exceptional customer service each day thereafter?

It begins with listening.Listen to the customer” is a fundamental pillar in gaining a satisfied customer, whether it’s meeting with business executives, community leaders or residents. What are they hoping to achieve with their network, short-term and long-term? Any concerns that should be addressed?

Respond with solutions that meet their needs.  Personalization is better than a one-size-fits-all approach. Each customer has different needs and unique bandwidth specifications that should be taken into consideration. For example, the ability to adjust availability to accommodate peak work hours for a financial institution or local government complex or the flexibility needed for a local business that serves an online global market.

Get to know your customers. Focus on getting to know your customers through participating in local events and spending time in the community. Teams that live and work in same community they serve care about providing their neighbors with high-quality products and superior service. Valuable feedback comes from customers who directly interact with local employees immersed in the community.

Timely and convenient customer service options. If there’s a problem, how can customers contact you for a resolution? Does the customer service center or 24/7 operations center always have agents available? Are there easily accessible online resources equipped to handle common questions? Automation is a big trend in CX. While we enjoy our personal relationships with our customers, we also leverage technology for self-service tools. It’s important to enable customers to do business in whichever manner works best for them.

Happy employees for a happy customer experience

Happy employees have long been credited with increased productivity and better service for customers. Great Plains Communications’ culture has always been to attract, train and retain workers from the areas it serves.

Customer service representative Marisa Benham has been with Great Plains Communications for 15 years. “I’ve always been a people person so I really love talking to people! I love helping them figure out what services they want and helping them if they have an issue with their account.”

As for the GPC team itself, she says, “The biggest thing I love about our team is that even though we’re a large company, I feel like we are still trying to get that small company family feel.  I really love that about Great Plains as well.”

For any business to survive for a long period it must continually evolve. Great Plains Communications is a 113-year-old company serving nearly 200 Midwestern communities.  As a leading digital telecommunications leader, our core focus remains the same: customer service excellence. We believe in our high-performing network and high-performing people.

Customer loyalty depends on the customer experience, but it must be earned. It’s more than state-of-the-art technologies. It’s the people behind the innovation. It’s the teams that deliver and support the technology that make all the difference.

Josephine Bernson is the chief revenue officer at Great Plains Communications. This piece is exclusive to BroadbandBreakfast.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views reflected in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.

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Digital Inclusion

Sean Gonsalves: National Digital Inclusion Alliance Hosts Largest Net Inclusion Gathering

NDIA Executive Director Angela Siefer zeroed in on the need for good data.

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Selfie of NDIA Executive Director Angela Seifer and Net Inclusions audience from Twitter

With nearly 1,000 in attendance at the Henry B. Gonzalez Convention Center in downtown San Antonio for the National Digital Inclusion Alliance (NDIA) marquee gathering, those on the front lines of bridging the digital divide across the nation came to the three-day conference (Feb 28  to March 2) to network, share lessons, best-practices, and learn from experts as the largest ever federal investment in expanding broadband access is heading to state broadband offices this summer.

Mayor addresses attendees, acknowledges open secret of segregation

San Antonio Mayor Ron Nirenberg welcomed attendees, noting how his city was a fitting venue for the event.

“It’s no secret San Antonio is one of the most socio-economically segregated cities in the United States,” he said. “And that’s why we have zeroed-in on equity – in our budget, in who gets invited to the table.”

DeAnne Cuellar with Mayor Ron Nirenberg

Nirenberg congratulated NDIA for its work and the attendance record set by this year’s gathering. He also singled out our own outreach coordinator and San Antonio resident DeAnne Cuellar, not only lauding her work with ILSR’s Community Broadband Networks team but for her role in bringing city officials together with Older Adults Technology Services as the city commits to connecting 100,000 older adults in the city.

(ILSR’s Community Broadband Networks team, which has long worked with NDIA participated conducted a workshop, participated in several panels discussions, and hosted a special Connect This! live stream at a social mixer at The Friendly Spot Icehouse.)

“Broadband is a basic human right and is a public utility. That’s why digital inclusion is a pillar of our recovery program,” Nirenberg said, noting how that is reflected in line items in the city’s budget.

Mayor Nirenberg also spoke candidly about injustices that had been baked-in to city and state policies in the past and, whether intentional or not, excluded vulnerable communities across the city, putting them at a socio-economic disadvantage. He said that closing the digital divide was central to correcting those injustices.

He concluded his welcoming remarks encouraging attendees to “use technology to live, learn, work and thrive.”

Texas broadband office announces new network funding opportunity

Also on hand for the conference was Greg Conte, Director of the Texas Broadband Development Office. Conte announced a Notice of Funding Opportunity for $120 million in grants for the construction of new high-speed Internet infrastructure across the Lone Star State.

As projects are funded to build new infrastructure, the state can’t assume people will automatically subscribe for Internet service, as efforts to tackle affordability and adoption are equally important undertakings.

“We want to make sure communities can get online and use it,” he said. “We ask all Texans to help in this process.”

He also briefly touched on something numerous other state broadband offices are in the process of doing: beefing up staff as each state is set to receive an historic amount of federal funds from the bipartisan infrastructure bill’s BEAD program.

Conte was a guest on our Community Broadband Bits podcast last summer in which he discussed the challenges of staffing up his office and addressing the dearth of data about precisely where broadband is and isn’t available across the state.

Engaging other sectors in the work of advocating for more ACP funding

Batting clean-up was NDIA Executive Director Angela Siefer, who first zeroed in on the need for good data that shows and measures how local digital equity programs are working, and how those efforts can be improved.

Angela Siefer speaking at Net Inclusion

And while quality robust data is vital, she said, it is also worth thinking about who benefits from expanded broadband access (beyond individual end-users) and how data and stories about digital inclusion initiatives can be used to engage industries and sectors of society who may not see bridging the digital divide as an urgent concern.

That includes the necessity of getting more than just Internet service providers at the table. Buy-in from healthcare providers, educational leaders, captains of retail and commerce, as well as transportation planners and housing officials should be engaged in helping to make broadband available especially for residents who struggle with affordability.

Specifically as it relates to commerce, Siefer noted, “the savings that can come from conducting certain business online can be invested into access.”

Siefer also emphasized the value of digital equity advocates sharing the stories they encounter of the lives impacted by their work with those who may not be tuned into the connectivity crisis that still plagues even such a technologically-sophisticated nation as the U.S.

Lastly, Siefer reminded the attendees that the federal funding that supports the Affordable Connectivity Program will run in the next year or so without additional appropriation from Congress.

“We need more money for the ACP,” she said, adding that it was important for state and local leaders to be pushing their Congressional representatives to replenish the ACP’s coffers.

“The long term plan is that the Universal Service Fund needs to be fixed but that is going to take time. The ACP will run out of funds before the USF is fixed,” she said.

Before the general assembly dispersed to a variety of focused workshops and breakout groups, Siefer ended with a note of encouragement: “Remember you guys are the heroes. You do the work on the ground. But NDIA has your back.”

Watch the plenary sessions below. Also, stay tuned for our new podcast series Building for Digital Equity, which will debut soon and feature interviews with dozens of frontline digital inclusion practitioners discussing the work they are doing in their local communities.

This article originally appeared on the Institute for Local Self Reliance’s Community Broadband Networks project on March 2, 2023, and is reprinted with permission.

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Digital Inclusion

NTIA Seeks Comment on How to Spend $2.5 Billion in Digital Equity Act

National Telecommunications and Information Administration is seeking comment on how to structure the programs.

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Photo of Veneeth Iyengar of ConnectLA

WASHINGTON, March 1, 2023 – The National Telecommunications and Information Administration announced Wednesday that it is seeking comment on how to structure the $2.5 billion that the Digital Equity Act provides to promote digital equity and inclusion. 

As part of the Infrastructure Investment and Jobs Act, the Digital Equity Act consists of two sub-programs, the State Digital Equity Capacity grant and the Digital Equity Competitive grant. Comments will guide how the NTIA will design, regulate, and evaluate criteria for both programs. 

“We need to hear directly from those who are most impacted by the systemic barriers that prevent some from fully utilizing the Internet,” Secretary of Commerce Gina Raimondo said Wednesday at the National Digital Inclusion Alliance’s Net Inclusion event in San Antonio. 

See Commerce Secretary Raimondo’s remarks at Net Inclusion:

The request for comment is part of NTIA’s strategy to hear diverse perspectives in implementing its goal to ensure every American has the skills and capacity needed to reap the benefits of the digital economy, stated a press release. 

The $1.44 billion State Digital Equity Capacity grant will fund implementation of state digital equity plans which will strategically plan how to overcome barriers faced by communities seeking to achieve digital equity.  

Simply making investments in broadband builds is not enough, said Veneeth Iyengar, executive director of ConnectLA, speaking at a Brookings Insitution event in December. Bringing digital equity means “driving adoption, digital skills, and doing the kinds of things that we need to do to tackle the digital divide.” 

The $1.25 billion Digital Equity Competitive grant program will fund anchor institutions, such as schools, libraries, and nonprofits, in offering digital inclusion activities that promote internet adoption. 

“Community-anchor institutions have been and are the connective tissue that make delivering high-speed internet access possible,” said Alan Davidson, head of the NTIA at AnchorNets 2022 conference. 

This announcement follows dissent on the definition of digital discrimination. Commenters to the Federal Communications Commission disagree on whether the intent of a provider should be considered when determining if the provider participated in digital discrimination. There has been no response from the FCC. 

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