Signal to Noise

Tom Keating writes that the FCC is disappointed with the slow pace of broadband adoption in the U.S.A.  I echo this lament.  The problem isn’t that we’re fifteenth in broadband globally.  The problem is that American consumers have too much old-fashioned Common Sense. Cases in point:

- Gimmicky temporary pricing HURTS DSL sales in the long-term because consumers know better.

- Consumers realize that “fast” network access isn’t a premium any more. It’s a commodity. So, subconsciously, we’re asking, why pay a premium price for a service that’s a not a premium?

- AT&T still makes a distinction between its 4 overlapping service offerings–TV, Landline, Cellular, and Internet. In reality, there’s an increasingly unified access model for all of them (especially TV, landline, and Internet access), and people are beginning to realize that “broadband” doesn’t just mean Internet access. It encompasses TV, Net access, and Phone too! In other words, consumer awareness is moving faster than the phone companies can handle (surprise surprise).

- There’s still a lack of true competition on the last mile in many areas, so prices remain ludicrously high ($44/mo for 6m down/768k up cable in my area–with the requirement that you use the cable co for TV service at $70 a month too!) and the speed limits remain stupidly artificial (Docsys 3 anyone?).

- A lot of people spend 40 – 60 hours at work each week and have plenty fast access there. The need to use broadband access at home may be therefore somewhat quenched.

- Generally, there’s still no mainstream “rustbelt interest” in the Internet. It’s there, and it’s functional, but the folks in my midwestern circle still view it as a vehicle for work, not a vehicle for fun.  AT&T doesn’t help things by drawing a marketing separation between net access and TV and phone.

- The working middle class household earning 30 grand with 2 kids isn’t going to pay $44 per month for Internet unless there’s a World of Warcrack preteen living in the house, and that’s a fact.