Internet access (US market)

2022

The situation in the American home Internet market

On November 17, 2022, the Consumer Reports report was published, which summarizes the results of a study of the broadband Internet access (broadband access) market in the United States. The results were depressing: prices for services are very high, and consumer choice is often limited to only one provider.

To form the submitted independent review, accounts were received from Internet users in 50 American states, the District of Columbia, Puerto Rico and the Virgin Islands. Survey participants had various types of connections, including coaxial cable, fiber, satellite channel, fixed wireless, and DSL. Many respondents took Internet access speed tests and completed a questionnaire to collect demographic data. In total, information was received from more than 22 thousand consumers, which are served by almost 700 providers. It took more than 10 months to analyze these data.

Giant bills and meager provider choices. What is happening in the American home Internet market

One of the main conclusions of Consumer Reports is that broadband access services in the United States are very expensive, and bills can mislead users. On average, Americans pay $75 a month for access to the Network, and for some this amount reaches $150 or more. This is significantly higher than in other countries.

Customers complain that it is often difficult to separate the category Internet from telephony and television in the invoiced package services. When conducting advertising campaigns, it is not clear what the real cost will be in the future. Providers are trying in every possible way to raise the cost at the expense of additional fees, disguising them as a "fee for Internet an infrastructure," a "fee for expanding the network" or a fee for equipment.

The second significant problem is the lack of choice. About half of respondents reported the availability of only one provider. But even in the case of several operators, the difference in the cost of services is only a few dollars.^[1][2]

The government allocated $45 billion to connect all citizens to the Internet

On May 13, 2022, the allocation of funds began to provide the entire US population with high-speed Internet access by 2030. In total, the US authorities will spend about $45 billion on this project.

The Internet for All project was launched under the Infrastructure Act. The "Infrastructure Law" implies the allocation of up to $1 trillion for the technological development of the United States. The initiative will be managed and implemented by the National Telecommunications and Information Administration (NTIA) of the U.S. Department of Commerce.

US allocated $45 billion to connect all Americans to the Internet

The programs will help build internet infrastructure, teach digital skills, and provide the necessary technology to ensure that every American - including communities of color, rural communities, and older Americans - has the access and skills necessary to fully participate in today's society.

{{quote 'In the 21st century, you simply will not be able to participate in the economy if you do not have access to reliable and inexpensive high-speed Internet. Thanks to President Biden's bipartisan infrastructure law, Americans across the country will no longer be deterred by the lack of high-speed Internet access. We are going to provide every American with access to technology that will allow them to attend classes, start small businesses, visit a doctor and participate in the modern economy, said US Secretary of Commerce Gina Raimondo. }} The Enabling Middle Mile Broadband Infrastructure Program will provide competitive, technology-independent grants to relevant organizations for the construction, improvement or acquisition of mid-mile infrastructure. The launch of the State Digital Equality Planning Grants Program marked the beginning of a series of steps to implement the Digital Equality Act, under which $1.5 billion will be invested to increase the level of introduction and use of digital technologies.^[3]

2018

Internet penetration compared to other countries

2018

Mobile Internet speed

2017: Major sites protest US repeal of network neutrality principle

More than 80,000 websites, including, and Facebook Amazon , Google took part in an online protest against the Communications Commission's (USA FCC) plan to abolish the principle of network neutrality.

According to CNBC, this principle was introduced during the administration of US President Barack Obama in 2015. It provides that Internet service providers (such as Comcast, Charter and AT&T) must equally provide access to all Internet content. In other words, providers are prohibited from blocking content, speeding up or slowing down data transfer from certain websites^[4][5]

The principle of network neutrality came under threat in May 2017 after the FCC voted to repeal it. According to the commission, the lack of regulation will lead to increased investment in new technologies. However, web companies did not agree with the regulator.

"The FCC should listen to the voices of real people who will be affected by the attack on network neutrality, not just telecommunication company lobbyists in pursuit of more power," Evan Greer, head of the Fight for the Future protest campaign, tweeted. - The purpose of the protest... is that ordinary people have a voice and be heard by decision-makers in Washington, D.C. No one, regardless of their political affiliation, wants their cable company to control what they see and do online, or charge extra for access to the content they want. "

2016: The cost of broadband access in Russia is several times lower than in Europe and the USA

The estimated cost of broadband and mobile Internet access in Russia is one of the lowest in comparison with Europe, the United States and many developed countries. RIA Novosti came to this conclusion by comparing broadband access tariffs with speeds of about 10 Mbps and the cost of 1 GB of mobile traffic in different countries^[6].

The United States is the leader in the price of broadband access, users have to pay about 2,700 rubles a month, although many providers work in the country. Minimum fares are $30- $35. At the same time, ADSL technology is still common. According to the publication, the Internet from satellite operators is offered at similar tariffs. At the same time, mobile Internet is relatively cheap - only 470 rubles per gigabyte.

Read more: Internet access (global market)

2013: US to land on "gigabit" Internet by 2015

In January 2013, the telecom regulator USA Federal Communications Commission (FCC) announced plans to provide gigabit Internet access in all US cities by 2015. By this time, only 50 states will have to provide at least one community with broadband Internet access at a speed of 1 Gbps or higher.

FCC Chairman Julius Genachowski said this, calling the new Gigabit City Challenge initiative. According to him, gigabit access will stimulate technological innovation and, as a result, economic growth. "The United States needs gigabit communications on a national scale so that innovators can develop new generation applications and services, which will affect economic growth and global competitiveness," he is quoted in an official FCC release.

The Chairman of the FCC USA considers gigabit Internet in as many cities of the country as possible one of the main conditions for the development of an innovative economy

As an example of this relationship, Genachowski cited the experience of the cities of Kansas City, as well as the city of Chattanoga in Tennessee, where Amazon.com and other companies have already created more than 3.7 thousand jobs over the past three years.

However, at this stage, the role of the FCC in implementing the initiative will be to develop recommendations to increase access rates and at the same time reduce the cost of using such networks. The department also plans to hold workshops, where representatives of providers and local authorities will be able to find a joint solution to the problems of providing gigabit access in certain states.

Citing statistics from a group of Fiber to the Home Council organizations and service providers, Genachowski said that at the beginning of 2013, 42 cities in 14 states had "ultra-high-speed" Internet access. At the same time, the quality of Internet access is very different in different regions of the United States.

This is not the first initiative of the US federal government to support the development of optical networks. The Broadband Acceleration Initiative works to create the necessary legal framework, there is also the National Telecommunications and Information Administration's Broadband Technology Opportunities Program, which helps in the construction of optical network infrastructure.