U.N. Says U.S. Internet & Telecom Lags, but It’s Cheap

Last month, I wrote about one ranking of technology and communications that put the United States at the top of the world. The United Nations has chimed in with its own ranking that places this country further back in the pack at No. 17.

A quick mea culpa: The headline on the first post was “Surprise: America Is No. 1 in Broadband.” As many commenters pointed out, the ranking I was writing about, by Leonard Waverman, the dean of the Haskayne School of Business at the University of Calgary, evaluated a broader range of computing and communications technologies than simply high-speed Internet access.

In my earlier post, I don’t think my tongue was clearly enough in my cheek when I boasted that the United States was No. 1 (Woo Hoo!). Look at these two studies, with similar goals, and vastly different results. The problem is what they are trying to do just doesn’t make sense. Any methodology that takes a bunch of vaguely related and inconsistently measured indicators, multiplies them by arbitrary weighting factors and adding them up produces rankings filled with far more assumptions and statistical noise than real insight.

The study by the U.N.’s International Telecommunications Union uses the same sort of broad approach, looking at access to communications services (wired and wireless) in each country, the extent technology is used and the technological skills of their residents. It didn’t differentiate between faster and slower broadband service. It said Sweden is No. 1, followed by South Korea, Denmark, the Netherlands and Iceland.

This study differs from Mr. Waverman’s in two fundamental area. The I.T.U. is looking only at home users, while Mr. Waverman also considered business use of technology. And while Mr. Waverman did not try to use the same scale to compare developed and developing countries, the I.T.U. does and so it found indicators that it can find for 145 nations. So as a proxy for computer skills, the agency simply looks at factors like high school enrollment and literacy rates. Yes, if you can’t read, you’re probably not going on the Web, but it doesn’t really seem to help tell how many high-school graduates actually have learned how to operate a computer.

(There are lots of interesting facts in the 108-page report, most notably about the astounding spread of mobile phones. In 2002, there were about 1 billion cellphone lines in the world and about the same number of land lines. Six years later, the number of mobile lines is now 4 billion, representing 60 percent of the world’s population. That’s got to have big and unknowable effects in the coming years.)

I wrote the earlier post because many people are too quick to say that the United States is somehow woefully backwards in broadband. Sure, there are some countries with connections that are cheaper, faster or more widely available than here. But the infrastructure here is also better than much of the media and blog coverage would indicate. I’ve been diving into the differences between the broadband technology and policy in various countries.

Even now, while the United States doesn’t have the sort of price controls and competitive rules that exist in some countries, the consumer may not be entirely as bad off as some may think. The I.T.U. study compared the combined cost of wired telephone, mobile phone service and Internet access with the average income in the countries it studied. By that measure the United States had the second cheapest communications services after Singapore.

If that doesn’t make sense to you, as you write that $200 check to AT&T or Comcast, just wait. Another study will come out shortly that will prove you are being gouged.

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I have learned over 30 years working for universities and research institutions that one can always find a paper or study to prove the opposite. What I do know for a fact is that when we lived in Namibia, and visited the Kalahari farm of our friends, we had cell phone reach. Namibia is one of the most sparsely populated countries in the world. I can’t say the same for the village of 21,000 we live in in North Carolina, where the AT&T network does not reach our house, unless we go up to the main drag and wave the cell phone. My family in Belgium has better and faster internet connection than we do via our cable network! They also have TV access to the rest of Europe, here of the 250 channels most are homegrown and mostly junk, so we saved ourselves 60/bucks a month. You can see anythinig worthwhile via the web anyway. enough said!

“Any methodology that takes a bunch of vaguely related and inconsistently measured indicators, multiplies them by arbitrary weighting factors and adds them up produces rankings filled with far more assumptions and statistical noise than real insight.”

Well put. I’m going to quote you on that one the next time I see dubious rankings of colleges (or high schools), hospitals, football teams, etc. Rankings like these aren’t useful — they don’t predict future performance, so you can’t pick which school to send your child to, or where to schedule your surgery.

What are the implications for telecoms? That the US economy is losing because it has older tech? What is the real economic impact of dropped calls and lagging youtube videos? Can anyone say with confidence it justifies a huge investment?

35% of homes do not have Intenet access at all. 10% of US homes have dial up. “Average” availability is not the key issue. The “last x kilometers” of physical layer connectivity (e.g., including but not limited to the last mile) will vary massively depending on several variables, including:

1. GDP per meter^2
2. population density per meter^2

We grew up in an era in which regulators have pushed very hard via largely hidden taxation and cross subsidy to spread out connectivity like peanut butter across the geography. That era is mostly over. The subsidy is too big to hide when it now concerns broadband. Going forward, connectivity choices will be massively greater for rich people living in urban areas and the drop off in a nonlinear way for people living in rural less affluent areas and very poor urban areas. The only question is: how big the disparity will be.

As an example, soon enough people in rish areas will have GiGE to their home and others in the US will have dial up or no access still. A single FiOS subscriber has more bandwidth than serves entire public schools.

Personally, I find that, compared to my services when I’m in the UK…

The USA Customer:

1) Pays much more for comparable services
2) Has far fewer rights and protections
3) Get FAR worse customer support
4) Is more likely to be mislead or blatantly lied to
5) Is constantly exploited due to “shared monopolies” of the big players
6) Is rarely considered as important by the FCC and other agencies

Let’s hope that, with the demise of the obscenely corrupt Republican administration, whose only goal was Donations from corporations and the Super-Rich, the US will finally PLACE ITS CITIZENS FIRST, instead of its greedy corporations.

William, your rant gives away your point of view. Comparing a small country like the UK with the USA is ridiculous.

UK telecom is split up amongst legacy monopolists and other large companies just as ours is.

The way in which packages are devised differ; but the net cost (using real, not nominal currency) is not very different.

The UK is hardly known for ‘customer service.’ I know, I lived there and the difference is SHOCKING.

And finally, it’s laughable that you bring up ‘rights and protections’ with regard to a country that legalizes prior restraint, bans books and movies (see Spycatcher, A Clockwork Orange, etc.), registers TV owners and REQUIRES people to pay a yearly TV fee. Privacy rights are hardly more robust in the UK than here.

It’s fine to say that one country or another has ‘better’ broadband; but what if it’s $200/month? Is that considered accessible? It’s also a lot easier to ‘wire’ these small countries, where much of the population is centered around cities and don’t have massive, open, sparsely settled areas. Please compare apples to apples.

Finally, Rose, maybe you might want to look at another cell carrier. Belgium is about the size of Massachusetts. Maybe you’d like to compare Belgium to MA. It would be more fair. (And I love Belgium, especially the beer and mussels!)

William,

I am not sure what your problem is and why you need to attack a political system but let me set you down and explain a few things to you.

Did you ever stop to think that it was a Republican Administration that allowed all this great telecom technology to be released to the general public… I am sure it did not cross your mind at all because you were too busy taking digs at the Republicans then looking at the facts. Deregulation under Reagan started the technology revolution and that is a historical fact. It took Reagan to put the people of this nation first. Before Reagan a DC posts line was a year to 2 years out before a customer could get one, and when you got a DC post line it was always jacket up. Getting a T-1 or W-1 line was impossible and if you did somehow get a T-1 you paid $5000 a month for it. Reagan said there is no way this is good for the general public and de-regulated the telcoms and the Two-Way radio world. I am a 36 year vet of radio and telecom. I know a great deal about it, I worked it, lived it and know it, it is in my blood. In fact I was the chief engineer and ran a project in London to upgrade the CO switch there around 8 years ago. William I can tell you as an utter professional in the industry that you don’t have a clue and everything you said is flat out wrong and is bogus.

You should be thanking the Republican Administration of Reagan not lobbing bombs at them, he started a wonderful thing in the USA and it spread world wide.

By the way I am a liberal dem and I don’t like Republican’s much either, but fact are facts and you sir are clueless!

Larry, you are living in the past.

I pay £10 per month for 9 Mbps broadband, £5 per month for unlimited calls in the UK, AND TO THE USA.

My cellphone costs £12 per month for 500 minutes

And I get FAR better support here now than I do when I’m in the USA.

I don’t know where you get your “facts” from, but it’s not the UK!

Citizens’ rights are Far stronger in Europe now than in the USA.

You’re just a dreamy Republican, with visions of slave labor making you money all day.

Cheers

I agree:

#3:
“Going forward, connectivity choices will be massively greater for rich people living in urban areas and the drop off in a nonlinear way for people living in rural less affluent areas and very poor urban areas. The only question is: how big the disparity will be.”

#4:
“The USA Customer:
1) Pays much more for comparable services
2) Has far fewer rights and protections
3) Get FAR worse customer support
4) Is more likely to be mislead or blatantly lied to
5) Is constantly exploited due to “shared monopolies” of the big players
6) Is rarely considered as important by the FCC and other agencies”

I pay about 20dollar/month for 100mbit/100mbit(download/upload) in sweden.

William,

I pay for broadband $19.95 per month for 12 Mbps with free USA calling and 2 cents a min. outside the US. I think it would work out that mine is cheaper then yours. I have been paying that rate starting in 1995. I have a fiber right to my home.

My cell cost with all fees included, $21.16 per month and I get 1000 voice min and 2000 dispatch min. So it seems it is a tad cheaper then your cost.

I have had nothing but great luck in the USA with support, the morons in the UK could not figure out how to handle my two line phone. When ever I go the UK my second line does not work and they can’t figure out why!

Considering my wife is British and is a lawyer, practiced in the UK and is doing Constitutional law here in the USA, she says you don’t have your facts corrects and as far as she can tell, knowing the law the way she does, in both countries your statement “Citizens’ rights are Far stronger in Europe now than in the USA.” is total rubbish. I trust her over you because she is well versed in the matter, she has argued cased in front of both countries highest court hand won her case!

William every time you write something like “You’re just a dreamy Republican, with visions of slave labor making you money all day.” You make yourself look really dumb. For some reason you want to blame things on Republicans, you assume that everything is the fault of a republican, you need to really read some US history! There have been many great republican presidents in this nation, MANY, one of the most respected and one the most loved and what most people would consider the best ever was a republican and is the founder of the republican party, Pres. Lincoln. This is a tech board to comment on tech things and for some reason you want to take political digs which I frankly find really childish. My party, I am a Dem, has done some really bad things in the past, we are not 100% correct all the time and some of our failings have led this nation into a lot wars, continued all the “isms” for some stupid reason and now we are once again going to blow it with my new president making some really bad calls. Bottom line: It took a Republican to end slavery, it took a republican congress to pass the civil rights act, my party failed on these critical points… We need republicans just as they need us. We have a two party system and heaven forbid one party get s complete control of this nation.

William – please educate yourself before you post here, this is a world board and you are showing the world your uglyness!

William, it is you who is living in the past. I get 20/10 megabit internet over fiber, combined with my phone service and television. The whole shebang costs $95. Plus I get cell service rebates. I can pay a bit more and get even faster service. Frankly, I doubt you pay 12 pounds for your cell service, although 500 minutes is pretty minimal. I’d guess the VAT is 12 pounds. What about data? What about texts? Plus, in Europe buyers tend NOT to get subsidized phones every couple of years.

You provided NO rebuttal to my SPECIFIC facts about rights. You have no more ‘rights’ in the UK than I do here, and probably fewer. It’s just this Euro-sickness that drives an unreasonable need to denigrate the US. Inferiority complex anyone?

P.S. I don’t know what the Republican aspect has to do with anything. Frankly, you should be thanking Thatcher for paving the way to breaking the BT monopoly in the UK. Otherwise, your technology sector would be as moribund as your auto industry or UK industry in general.

Really Mike you pay $19.95 /month for a 12mb service and $12.16 for wireless? Through who and in what city/state as I track this pretty close and don’t know of a single company offering those types of plans to the general public anywhere in the US. How about those below the line “unfees” that should be in the price, but for deception reasons are placed below the line making the cost appear smaller?

I will state 2 things….

1.) There should be ONE nationwide fiber network built that serves every home and every business to provide any service that someone is willing to provide over those lines and willing to lease the line to reach that person. That network should be ran and maintained by the government or by 2-3 companies with GREAT oversight that can’t be removed through legislation. Broadband is a utility and should be treated as such. I as a consumer should be able to pick and choose who I want service from, and I, nor my neighbors, should have to bear the burden of having said company tear up yards, streets, or place unsightly equipment next to other unsightly equipment every time I want to change providers for one reason or another all for the sake of “its our their network”. Especially considering that the network was, is, and will always be built on the back of the American people through incentives received in the past, currently received, and will be received.

2.) This network could be already built and should be already built by the private enterprise as promised back in the early and mid 90’s. The telco’s in the early to mid 90’s to get their incentives and deregulations “promised” 45mbps symmetrical to receive such treatment. Which was the definition of broadband at the time. They have received over $200 billion in “incentives” to build that network and yet not a single one delivered on the promises THEY made. AT&T alone could be rolling FTTH to everyone of their customers and paying CASH to do it and yet they have to serve the stock jockies. They couldnt even depoly it fast enough to deplete a quarters profit.

Broadband in this country is shameful, corporate control of our entire government is shameful. The author of this knowing full well what I write to be 100% accurate stating anything otherwise is shameful.

Hi there. Im from Sweden (We have the same number of ppl/sq mile as the US) and just wanted to share some numbers:

The cheapest/fastest broadband you can find in sweden comes in at $6 a month and runs at 100mbit/100mbit. (pricerunner.se). No startup fees, no number of months before you can terminate it.

For my cellphone I use a plan from a company called Telia Sonera, the plan is called Max 25 and with it I get 3,000 free minutes to 50% of the population and 7 cents a minute to the rest. I get 3,000 free SMS and 3,000 free MMS a month. And there is a cap so that surfing the web with it can never cost more than $1/day.

So… I would not say that the US is cheap :S

It’s strange since here everything is more expensive otherwise. For every $10 I put in my pocket from working the government gets $11 (33% incometax after the employer had to pay 41% on top of that pay (pre-incometax) to the government) so it’s not like we are cheap in labour. Nor does the density of the population work all that well (look to the first paragraph of this comment).

Oh and for the last year I also had a 7,2 mbit mobile broadband service free of charge except for the modem. (The speed has never gone above 2 mbit though and 1 mbit is the standard rate I get) This month will be the first time I pay a monthly bill and it will come in at $10.