国产视频

In Short

Susan Crawford: An Internet Connection Should Be Like Water, Not Oil

鈥淚nformation and data is the oil of our era,鈥 explained telecom policy expert Susan Crawford at the 国产视频 Foundation on Thursday. 鈥淲e鈥檝e got a few very large companies serving shareholders but not necessarily sharing our interest.鈥 Crawford was drawing a parallel between the robber barons and oil magnates of the 19th century and today鈥檚 21st century telecom and cable companies at an event to discuss her new book, .  The book highlights the ways in which a series of mergers, consolidations, and failures in antitrust law have led to an oligopoly within the American broadband market. This lack of competition has had grave consequences on American consumers, allowing companies to charge more money for limited services. Crawford notes in the book that developed nations who have leveraged policy in favor of broadband competition enjoy much cheaper and faster broadband access, and that American innovation and economic competitiveness are at stake.

鈥淭ruly high-speed wired Internet access is as basic to innovation, economic growth, social communication, and the country鈥檚 competitiveness as electricity was a century ago,鈥 Crawford writes in the book, 鈥渂ut a limited number of Americans have access to it, many can鈥檛 afford it, and the country has handed control of it over to Comcast and a few other companies.鈥

Crawford is a law professor and is currently a Fellow at the , where she spearheads the Institute’s work on promoting universal and affordable high-speed Internet access. She previously served as Special Assistant to the President for Science, Technology, and Innovation Policy.

In her work, Crawford examines the problems with the US broadband market, often drawing parallels to what is happening in other countries. To illustrate the problems here, Crawford recalled her January visit to South Korea 鈥撯 a nation where high-speed broadband is widely available at low cost.

鈥淧eople [in Seoul] told me that coming to America was like taking a rural vacation,鈥 she said. 鈥淟ife slows down when you come to America.鈥

In contrast to many Asian and European markets, America鈥檚 Internet . Discussing this problem with Open Technology Institute (OTI) Director Sascha Meinrath, Crawford acknowledged the work OTI has done in this field as well, noting our  study last year: It found that in a comparison of retail broadband plans across 22 cities worldwide, American consumers are paying more for worse Internet options than their international peers.

Throughout the evening, Crawford stressed the need for greater competition in the U.S. broadband market as a solution.

鈥淲e believed that the magic of the marketplace would protect us when it came to high-speed internet access,鈥 Crawford explained, 鈥渢hat we鈥檇 find a way to have telephone connections compete with cable modem connections, that they would be roughly the same price, and they鈥檇 be battling with each other. [We thought that dynamic] would provide access to all Americans as well as keep prices down to protect consumers. … It turns out that we were wrong.鈥

Crawford noted that for broadband speeds of 25 Mbps or greater consumers only have one real choice: cable. She pointed out that Comcast and Time Warner have essentially divided up the wireline markets in the United States while Verizon and AT&T have shifted their focus to wireless service provision, leaving more than 80 percent of American consumers with few, if any, choices in providers.

This lack of competition in the market can lead to a number of headaches for consumers, like data usage caps. These allow providers to charge additional fees when consumers go over their monthly data limits.  The providers claim the fees are there to manage network congestion and benefit consumers鈥 but that rationale is false. OTI has released several papers examining how data caps are  or 鈥渇airness鈥 but instead about  from consumers. Crawford emphasized that seeking higher profits does not make these companies 鈥渂ad,鈥 but that in the current uncompetitive market, their behavior has resulted in American consumers paying extremely high prices for a service that is becoming as essential to our lives as a basic utility.

Crawford closed the evening with some recommendations for how the U.S. can improve its broadband situation. One way lawmakers can help: Enable communities to build their own local fiber optic broadband networks. Federal policymakers should preempt  from building networks–laws that are often passed with backing from telecom industry lobbyists.

In the near future, Crawford urges policymakers and the public to fight for an America where every household has access to a broadband connection with 100 Mbps download and upload speeds as a 鈥渂asic鈥 service.

鈥淓ven though you need a wired high-speed internet connection in order to get a fine education, to apply for a job鈥 to get the best healthcare available, to鈥 start that new business,鈥 she said, 鈥渨e don鈥檛 have the kind of universal, world-class access that the country that started this whole thing –the Internet–should have.鈥

This piece was , the 国产视频 Foundation’s blog.

More 国产视频 the Authors

Hibah Hussain
danielle-kehl_person_image.jpeg
Danielle Kehl

Fellow, Open Technology Institute

Patrick Lucey

Programs/Projects/Initiatives

Susan Crawford: An Internet Connection Should Be Like Water, Not Oil