The United States has fallen behind other developed nations when it comes to broadband speeds and prices. A substantial part of the problem is the lack of competition among broadband providers in local markets.

How We’re Getting the Internet

There are 11 major Internet service providers in America (companies with more than a million customers), and more than 15,000 smaller providers. But those numbers can be deceiving. Most communities that have high-speed Internet access are only served by one cable company and one telephone company.

A significant number of rural and low-income communities lack any broadband options. And alternatives to phone and cable, like wireless Internet and broadband transmitted over power lines, still fail to offer viable competition due to technical challenges and limited infrastructure access.

Building Blocks of Choice

With few real choices, Americans are left paying much more for Internet connections that are much slower than what’s available to consumers in Western Europe and Asia. To solve this problem, we need to take an honest look at the lack of choice among Internet service providers and encourage more competition among providers and more options for users.

Getting more “last mile” Internet service to homes requires access to public infrastructure such as airwaves, telephone poles and sidewalks. Some argue that we should make more network infrastructure available on a “wholesale” or “open access” basis, opening up resources such as the airwaves to more competitors.

Federal funds and policies that foster competition can spark the creation of more local networks. This may include encouraging the development of “Community Internet” systems by cities, public-private partnerships and local groups. The promotion of bigger, better commercial wireless networks as a competitor to phone and cable services is another option. This would be done by opening up more of the public airwaves to new wireless providers.

Options for Better Choice

Private Industry. Technological developments have created new means to deliver high-speed Internet services. But new businesses seek policies that lower barriers to entry, so they can compete with the dominant players and give people more choices. Examples include advances in wireless networks and new handheld mobile devices.

Federal Government. Governments can play a role in lowering barriers to entry to the marketplace by opening up more public assets — such as the airwaves — for new Internet services. They can also redistribute financial resources — such as the Universal Service Fund — for companies connecting rural customers. Other options include imposing open access conditions and providing tax incentives for companies seeking to compete with the “incumbent” phone and cable providers.

Local Communities. In the absence of competitive market choices, hundreds of communities have invested in broadband infrastructure to solve their problems themselves. Public ownership of local networks — both wired and wireless — allows communities to offer an affordable alternative to profit-driven commercial providers.