What’s the problem with OECD numbers? First, they place too much reliance on residential broadband subscriptions and fail to take into account tens of millions of Americans who access broadband through various platforms and wireless connections. For example, there are now an estimated 50,000 Wi-Fi hotspots operating on campuses, in latte shops and even in fast food restaurants all over America. Big Mac and a broadband connection to the Internet anybody?
The OECD numbers also may not fully account for millions of broadband users in government and in business. According to iPass, the United States is by far the world’s leader in wireless “sessions,” showing vastly more usage than Western European countries and Japan. Access to U.S. broadband service in many areas of the country is ubiquitous and free.
Then this week, the New York Times’ Silicon Valley beat reporter John Markoff opened his article on U.S. broadband this way: “Contradicting earlier studies, conventional wisdom and politicians’ rhetoric, European researchers say that the Internet infrastructure of the United States is one of the world’s best and getting better.” He was referring to a new study by Insead, the business school near Paris, on behalf of the World Economic Forum, a policy and conference group based in Switzerland.
According to the report, the United States ranked 4th out of 127 “economies” on the Insead Networked Readiness Index. If that tells us anything, it’s that U.S. broadband capability is at the top of all competing economic powers in a rapidly changing and dynamic technological world.
And what about the old canard that the U.S. is falling behind on getting advanced broadband technologies installed in the “last mile” to homes and businesses? Again, way off the mark. On Verizon’s Policy Blog, Link Hoewing, the company’s Assistant Vice President for Internet and Technology Issues, reports that the US continues to lead the world in building fiber to home networks. He also quotes a report by IDATE, the French research group, which had this to say:
At end 2007 the “magic” barrier of 1 million FTTH/B subscribers has been passed in Europe and we reached nearly 5 million Homes Passed. Nevertheless FTTH is still concentrated to only a few countries as Europe remains far behind leaders such as Japan and the US.
In fact, almost every American can get some type of broadband service today.
David McClure, president and chief executive officer of the U.S. Internet Industry Association, puts his finger on the problem with the way U.S. broadband data has been distorted — often for political purposes — in a recent commentary in the Des Moines Register. Research conducted by the U.S. Internet Industry Association has shown that as of 2008, “virtually every U.S. household and business has access to broadband” and that includes rural areas. He raises these key objections to the data presented by OECD:
- The data confuses broadband deployment (making broadband available to consumers) with broadband adoption (consumers actually subscribing to broadband services). We measure adoption rates, and then make sweeping and massively incorrect conclusions about deployment.
- The data are old. In the past two years, the deployment of broadband over fiber, wireless, cellular and satellite has been nothing short of breathtaking. DSL and other landline broadband services continue at an amazing pace. Yet these accomplishments are ignored because policymakers are looking at data that is two to five years old – before this broadband push kicked in.
- The data are deliberately distorted and misrepresented for political purposes. This is generally done to promote government regulation of networks and network operators, as is the case with “network neutrality” initiatives and more recent calls for regulation of network management practices.
“While there is still work to be done to upgrade and enhance these choices,” McClure concludes, “broadband deployment is active, vibrant and successful.”
We couldn’t agree more. So keep an eye on these pages in the weeks ahead as we set the record straight on the tremendous progress that U.S. broadband providers are making in bringing this essential service to all Americans. The facts are clear and compelling.
3 Responses to “Debunking the OECD Rankings Myth”
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April 11th, 2008 at 3:38 pm
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April 11th, 2008 at 4:11 pm
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June 2nd, 2008 at 5:59 am
Hello,
re: the comments from David McClure:
1) No the data don’t confuse deployment and adoption. They are about adoption (they measure the number of subscriptions per inhabitants). Using it to compare the infrastructures of countries is an error of interpretation.
2) well the data are comparable across countries and over time. they have to be collected and compiled, which does take time. Official statistics cannot offer a real-time snapshot of the situation.
3) at the OECD level, there is no such political agenda. Again others can interpret the results in a variety of ways. On the issue of network regulation I fail to see how the USA results support one position or the other.
(disclosure: I do work at the OECD although I don’t compile the broadband statistics personally)