A vibrant national economy depends upon world-class digital networks to stimulate job-creating innovation and economic growth. Moreover, investment in high-capacity networks by union employers creates opportunities for good union jobs.
The United States – the country that invented the Internet – should be at the cutting edge of communications. Instead, we have dropped to 16th in the world in deployment of high-speed networks.
The United States has fallen behind because our reliance on market forces, deregulation, and inadequate governmental programs has not served us well. Compared to other countries, we invest relatively less on telecommunications; we are charged more for slower speeds; millions encounter a significant digital divide based on income and geography; and unionized jobs with relatively good wages and benefits are being replaced by low-waged jobs with less training and higher turnover.
The International Divide — From 2002 to 2005 the U.S. fell from 11th to 16th in the world in terms of the percentage of residents with broadband subscriptions. We now rank behind such countries as Japan, Korea, Sweden, Israel, Singapore and Iceland, just to name a few.
The Speed & Price Gap — In the U.S., DSL generally reaches speeds of up to 1.5 – 3.0 megabits per second (mbps) at a price averaging $30-$50 per month (not including fees) while cable modems generally reach speeds of 3-5 mbps for $40-$50 per month. In Japan, an average connection with a speed of 26 mbps costs about $22.
The Investment Gap — The U.S. invests relatively less on telecommunications as a percentage of Gross Domestic Product than many other industrialized countries. Indeed, we rank behind South Korea, Great Britain, Spain, Canada, Japan, France, and even Mexico.
The Digital Divide — Millions of Americans – especially in rural and low-income urban areas – do not have access to high-speed broadband because it does not yet pay for providers to invest in these areas. For example, more than 62% of households with incomes over $100,000 subscribe to high-speed broadband at home, while just 12% of households with incomes below $30,000 subscribe. In addition, only 17% of adults in rural areas subscribe to broadband compared to 31% in urban and 30% in suburban areas.
The nations that have surpassed our deployment rate have made access to high-speed Internet a national priority and have put in place national public policies that reflect that goal. The lack of a clear, consistent and comprehensive national high-speed Internet policy jeopardizes our economic future.
Speed matters for digital networks. Speed of data delivery defines what is possible. Some countries have plans to deploy nearly universal networks capable of delivering 100 mbps. In Japan, fiber networks delivering 100 mbps already pass more than 70 percent of the homes in large parts of the country. But in the United States, we define “high speed Internet” as a mere 200 kilobits per second (kbps),500 times slower than Japan’s standard.
High-capacity networks provide numerous social and economic benefits, which ought to be accessible and affordable to all Americans.
- High-speed interactive broadband offers instantaneous contact between health professionals and patients. This enables remote monitoring, efficient chronic disease management and more effective responses to emergencies.
- Dynamic two-way communication, discourse and conferencing allow students and teachers to minimize the obstacles of distance and maximize the potential of simultaneous voice, data, and video sharing.
- Governments increasingly rely on the Internet to provide information and forms for taxes and government programs. For example, enrollment in the Medicare Part D drug plan relied on web-based communications, and people without broadband access were disadvantaged. High-speed interactive broadband can also improve citizens’ ability to interact with government officials.
- Access to high-speed broadband is important for police, fire, and emergency medical personnel as a means to respond to crises in this post 9-11 world.
- Multiple forms of simultaneous transmission allow individuals to break through the limits of physical disabilities.
- High-speed networks can break down the barriers of distance allowing residents of rural communities to participate fully in economic and civic life.
In sum, high-speed networks are the critical infrastructure of a 21st century economy and society. Since market forces alone will not provide affordable high-speed Internet to all Americans, the United States must do more to promote investment so that all residents are able to participate equally in the benefits promised by the information revolution.
The first step for the U.S. is to establish a national broadband policy with clear goals for high-speed Internet deployment. A realistic but aggressive goal would be that all Americans will be able to connect to a digital network capable of delivering information at speeds of at least 10 mbps by 2010, increasing speeds in subsequent years.
To achieve this goal, government at all levels should adopt policies to stimulate investment in and demand for high-capacity networks. Investment policies could include direct subsidies, tax incentives and/or loans. Support for emergency services (police, fire, medical) should be a top priority. The highly successful E-rate program of subsidies for schools, libraries, and rural health centers should be continued and expanded to include community centers. Housing advocates have demonstrated how to leverage public money to stimulate broadband deployment in publicly subsidized housing; similarly, publicly funded health care, education, or job training could support more efficient provision of these services over high-speed networks.
Government should also adopt policies to overcome barriers of cost, geography, or disability that consumers face in gaining access to high-speed broadband networks. In addition, demand can be aggregated if governments require their administrative units to utilize high-speed broadband, becoming “anchor” tenants in buildings or developments. Government can support demonstration projects in equipment distribution, consumer education, and development of socially useful content.
Policies should also promote an open Internet to ensure the widest possible dissemination of information from a multiplicity of sources, the foundation of a democratic society. Bandwidth scarcity and unequal deployment of high-speed networks undermines the value of the Internet and progress toward this goal.
Policies should provide for the public disclosure of high-speed Internet access, speed, and usage metrics. In addition, the federal government, through the Federal Communications Commission, should maintain active oversight of the Internet marketplace to ensure that all network, content, and applications providers honor consumers’ right to access the content, run the applications and attach the equipment of their choice to high-speed networks. Network carriers providing high-bandwidth access should be required to reserve a basic level of open, unmanaged Internet access, initially set at least 2 mbps downstream and 1 mbps upstream, with annual FCC rulemaking to adjust the speed upwards.
Union members develop the content, build and maintain the networks and service the customers of high-speed communications networks. We must take the lead to ensure universal, affordable access to high-speed networks; quality service and quality jobs; and responsible corporate practices and consumer protections.
The AFL-CIO and our affiliates will participate in the “Speed Matters: High-Speed Internet for All” campaign sponsored by CWA to promote national and state policies for affordable, universal high-speed broadband networks and quality jobs. The goal of the campaign will be to push for high-speed networks of at least 10 megabits per second to all Americans by 2010, with speeds increasing over time.