http://www.nytimes.com/2014/10/31/upshot/why-the-us-has-fallen-behind-in-internet-speed-and-affordability.html?ref=economy&abt=0002&abg=1
This article compares internet usage and affordability in the United States to that in Europe and Asia. According to this article it costs more and takes more time to be able to download your favorite movies or shows in the United States than it does in Europe or Asia. Technology isn't the problem, rather its an economic policy problem. There is lack of competition in the broadband industry. According to Tim Wu, a professor at Columbia Law, the internet market has one or two serious internet providers who set their prices at monopoly prices.
In many parts of Europe, there are policies that demand an internet service provider leave some space for their rivals in their pipe. In the United states, The internet industry isn't regulated. These Internet providers in the U.S have a choice to upgrade to fibre-optics which is faster and more efficient but so far there has been no pressure to do so.
Should the U.S have more regulations regarding the cost and usage of the internet like Europe or is it not that big of a deal?
Competition usually increases efficiency and lowers prices. Thus, I feel that some sort of regulation regarding cost and usage of the internet would be beneficial in the United States.
ReplyDeleteMaybe today we can get away with no competition in the broadband industry, however, we should keep an eye on this to determine a plan of action. Due to these monopoly-based prices, we could see an increase in prices from providers due to no competition therefore the U.S. can benefit with some sort of policy like Europe has implemented. Again, I don't think it's something extremely ridiculous today but is definitely heading in that direction which calls for regulations.
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