It is estimated that 70% of the population in developed countries are utilising the Internet per a report published by The International Telephone Union (or ITU Telecommunications). Despite the wide spread adoption of internet services, the United States ranks 15th on earth for fixed broadband penetration. Based on a June 2012 report issued by the Organization for Economic Co-operation and Development (OECD), the US fixed broadband penetration is just 28.4%, while the Swiss lead the world with over 40% broadband Snehal Brahmbhatt. Surprisingly but true, countries like Korea, Iceland and Canada are even outpacing America.
With all the current economic challenges facing US policy makers today, it's hard to determine when and where access to the internet fits into the clear answer equation. Before you decide that this is one problem we don't have to resolve, let's examine the existing US imperatives and a few basic approaches to advancing the digital communication age for the future.
The Federal Communications Commission (FCC) developed a National Broadband Plan in response to the current broadband gap. It should be noted that this is a long haul want to advance the digital communications for the nation at large. The very first three objectives include:
- At the least 100 million US homes should have affordable access to actual download speeds of at the least 100 megabits per second and actual upload speeds of at the least 50 megabits per second.
- The United States should lead the world in mobile innovation, with the fastest and most extensive wireless networks of any nation.
- Every American should have affordable access to robust broadband services, and the means and skills to subscribe should they so choose.
Most of these objectives are noble but to seriously move the broadband initiative forward at a faster pace, business leaders, policy makers and technology innovators must bond to operate a vehicle overall market growth.
Let's begin with driving access to affordable internet solutions. The OECD reports that 68.2% of US households have access to broadband services. The target set by the FCC is for 90% of US households to have broadband services delivered to their homes by the entire year 2020. Where's the gap?
Clearly major metropolitan and urban markets are served by many different players. The lack of broadband providers and coverage comes mostly from the rural, hard to achieve markets and the low income communities. Both are underserved and together form the delta between where we're and where we wish to be as a country.
So what're the options?
First and foremost, the US government must continue to provide business friendly policy to help communication providers have the means and interest in expanding the digital footprint. In 2011, the FCC voted to overhaul the existing Universal Service Fund (USF) that has been implemented in 1996 and created the "Connect America Fund" ;.The only intent behind this fund is to create broadband to areas that currently do not need access.
Second, it is essential to check beyond fiber to the home. A June 2012 ITU report identifies mobile broadband whilst the single most dynamic communications service. In fact, it reports that mobile cellular subscribers exceed 6 billion with at the least 1 billion mobile broadband subscriptions worldwide.
While cellular phone adoption is interesting, it's even more interesting considering the fact that Smart phones are far more accessible than ever. Based on a November 2012 report by Comscore, the US Smartphone market has passed a 50% penetration threshold. So with the advent of the Blackberry, iPhone and Android, consumers now have the power of a super computer in the palm of the hand. In an instant, they can email, play games, take part in social media, browse the net and communicate in a number ways anywhere and anytime.
That's right. The first barrier to entry for wide-spread internet adoption is gone. No more is really a computer required. Cellphones are bridging the gap across all social-economic groups and demographics. Phones today offer increased functionality and deliver basic computing needs.
And clearly some community and business leaders are embracing the mobile explosion - creating public hot spots that offer free access to the internet to people that cannot afford dedicated service or live in a residential area where broadband isn't currently deployed. Based on OpenWifiSpots.com, there are over 66,000 public WIFI spots in the US today. Visit a local Starbucks and you are able to witness mobility in action.
Lastly, the US must certanly be creative. All of us recognize the big players are doing their part and have invested significant capital to deploy quality services across major cities and communities across the country. Recent mandates to ATT and Comcast specifically have helped to produce cheaper broadband programs like lifeline services designed for the dial tone users. However despite some targeted activity, it's unreasonable to anticipate the major telcos and cable operators to produce ubiquitous networks for 90% of the US next 7 years on the own.
Specifically it's time to look for ingenuity from less formidable ISPs to expand our broadband reach. We need to cultivate innovators that are willing to produce affordable infrastructure.
"Only Fastnet" is one particular firm that's currently delivering affordable access to the internet to underserved communities. The strategy is simple. Take higher bandwidth dark fiber and invest in equipment to distribute and bring secure access to the internet to targeted low-income communities. Snehal Desai, VP Operations for Only Fastnet says, "We're not competing with the big guys. We work directly with apartment complex managers and home owner associations to provide a site where nobody else will go. Our network has military- grade security encryption and our upload/download speeds rival basic services offered by the competition. Residents now have an option to contribute to a local company for a regular fee that's about 50 % the buying price of the retail market."
Obviously "Only Fastnet" is simply one provider available and the coverage area is limited to South Florida at the moment. However this approach could possibly be replicated to help mitigate the large broadband gap in a substantial percentage of the US.
Over the next 7 years, there's much ground to cover to attain a 90% broadband penetration rate by 2020. Together we must engage our policy makers, leverage our wireless networks for rapid expansion and search for creative solutions to provide internet services to the underserved markets across the country. With only a little ingenuity and consumer education, it's possible for the US to regain the lead in the broadband market.
With over 30 years of property and commercial experience, Snehal Brahmbhatt, Founder and President of Creative Choice Group, has committed to a variety of public and private property properties with a life-time market value exceeding $1B. His career started very modestly. Now, living the American dream, he shares a passion and commitment to bringing affordable housing and technology solutions to consumers across the US. For more information, please visit
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