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Solution paper: When compared to the rest of the world, internet users in the United States are paying more money for slower internet speeds.


Statement of the Problem
When compared to the rest of the world, internet users in the United States are paying more money for slower internet speeds. According to a study performed by Ookla Speedtest (2014), they discovered that the United States is ranked 42nd in the world for upload speeds and 31st in terms of download speeds. In addition Americans pay up to ten times more for internet service than anywhere else in the world.
Statement of Purpose
The slow internet speeds and high costs are not due to the lack of technology in the United States, but rather the economic problems associated with the internet service providers in the market. This is because when it comes to picking an internet provider that offers high speed internet, 75% of homes in the United States, are restricted to only one option (2014). This neighborhood monopolization has been created by internet companies such as Comcast, Time Warner, AT&T, and Verizon. These companies have eliminated competition and the incentive to increase internet speeds across the entire United States.
In Europe, the government has fostered competition in the internet market by requiring companies to lease out a portion of the pipes that they use to run wires to their customers. This allows the market to become competitive and causes the two companies to compete for market share. As the two companies promote their internet service, they entice residents with reduced prices, higher internet speeds and better customer service. This approach not only benefits the entire community with very little government interference, but it also saves the companies millions of dollars in expensive installation costs.
However, in order to significantly improve our internet speeds, fiber optic cables will have to be installed. These cables are found in some parts of the U.S and they are one of the main reasons why other countries have such fast internet speeds. The only problem is that the initial cost of installing these cables is expensive, and can run from anywhere from $1,200 to $2,000 per household (2012). However these cables require little maintenance and they last for decades, giving companies plenty of time to receive a return on their investment. In addition the government spends hundreds of millions of dollars each year helping the telecommunication network expand and improve its services. The government could designate a percentage of the money to be used to help install the fiber optic cables that are needed to help close the expanding internet service gap, between the U.S. and countries around the world.
Ookla Speedtests. (2014). Global broadband. Retrieved from http://www.netindex.com/download/allcountries/
Crawford, S. (2012). U.S. internet users pay more for slower service. Retrieved from http://www.bloombergview.com/articles/2012-12-27/u-s-internet-users-pay-more-for-slower-service
Miller, C. (2014). Why the u.s. has fallen behind in internet speed and affordability. Retrieved from http://www.nytimes.com/2014/10/31/upshot/why-the-us-has-fallen-behind-in-internet-speed-and-affordability.html
Research strategy statement
We research information for our presentation and collect data by using Google.
Internet market
Why the US has fallen behind in internet speed and affordability
Internet Marketing US
Is Comcast a monopoly?
Comcast, Time Warner cable to face Monopsony claims in antitrust case
Why is Comcast service so bad
Speed Test
Tentative outline:
Nowadays, people cannot live without Internet. The internet is a global system of interconnected computer networks, and we use it to watch video, play video games, research information and so on. Apparently, Internet market is a huge market. However, internet users in the United States are paying more money for slower internet speeds when compared to the rest of the world.
Main point 1: Comcast Inc., as one of internet cable providers, occupies the most market shares. For this reason, Comcast would be a monopoly, and prevent other companies from competing. In addition, Comcast-Time Warner merger is good for most consumers, but they also control the price. Four reasons would affect the Comcast service.
Main point 2: Solutions for improving internet speed, we should install fiber optic cables. In Shanghai, government encourages residents to install the fiber optic cables and users can get one year free if they will sign the three-year contract. Also, government should help the telecommunication network expand and improve its services.
In the past, telephone, music, film, and television are most traditional communications media. As modern communication media, Internet provide a new platform to communication, and Internet market also develops quickly in recent year. Although we spend lots of time on improving the internet problem, the speed is not boosted too much actually.
Research/potential solutions:
The Government could require companies to lease out a portion of their pipes to other companies
The government could install fiber optic cables during the process of repairing roads and sidewalks to reduce the cost of tearing up sidewalks/roads
The telecommunications grants could be specifically for fiber optic cables

THE WHY 1.) The FCC said expanding adoption of ultra-fast broadband speeds will have a tremendous economic benefit. The agency, as well as other proponents said it will enable businesses to increase productivity, lower costs by making government and health care data more accessible and efficiently transferred and give low-income Americans equal access to new economic opportunities.

Among the myriad initiatives that the FCC proposed is a government investment of more than $15 billion in infrastructure to bring 100 megabit-per-second speeds to 100 million Americans by the end of the decade. That’s fast enough to download an average high-definition movie in about three minutes

2.) The government heavily regulates roads and electricity -why not internet cables?
A city, which usually owns the streets, can set up a network and deliver fast, efficient and pervasive service, just as it does with water and sometimes, electricity. One American city that has taken the step of providing such service directly is Chattanooga, Tenn., where the publicly owned power company, the Electric Power Board (EPB), has begun supplying high-speed service, to great attention.

the U.S. ranks a shocking 31st in the world in terms of average download speeds. The leaders in the world are Hong Kong at 72.49 Mbps and Singapore on 58.84 Mbps. And America? Averaging speeds of 20.77 Mbps, it falls behind countries like Estonia, Hungary, Slovakia, and Uruguay.

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