Global Broadband Gap

The term “broadband” has become synonymous with high-speed internet downloads, but exactly how fast is it? Martin Fransman of the Institute for Japanese-European Technology Studies, at the University of Edinburgh, reveals how data on broadband distribution and performance can be very different depending on where in the world you are. Japan and Korea are significantly ahead, with some users downloading at 100 megabits per second, compared with speeds in Europe and the USA that can be 100 times slower than that. Budget broadband in the UK is actually not much faster than dial-up if you’re on a busy node a long way from your digital exchange.

“Korea is by far the global front-runner in terms of broadband penetration,” explains Fransman in the International Journal of Technological Learning, Innovation and Development (2007, 1, 112-124) recently. “Japan,” he adds, “is the global leader in terms of speed, price and diffusion of advanced technology, specifically Fibre-To-The-Home.”

Outside these regions conventional telecommunications wires based on copper connections allow access to broadband through DSL. Even so-called “cable” broadband relies on copper cable TV connections rather than fibre optics at the user end of the network. There are some ultra-broadband connections in development that will operate at 40 gigabits per secondm which is fast enough to download a complete high-definition DVD in two seconds or so, but it will be quite some time before those enter the mainstream.

Fransman, who has worked with numerous governments and international organisations as well as with leading telecommunications companies, including AT&T, BT, France Telecom, NTT, Ericsson, Siemens, NEC and Fujitsu, suggests that this skewed distribution of broadband across the developed world is puzzling.

In particular, why is it that the USA, which introduced the world to the internet, is lagging so far behind in broadband, sitting 11th in the world? Why do Japan and Korea, who are not generally considered major global players in internet, computing, software and microprocessors, nevertheless lead the world in broadband? Why does Europe lag behind, not only the leading Asian countries, but also the USA?

In his research paper Fransman explains that there are economic and technological challenges to the widespread development and uptake of broadband that have resulted in this asymmetric distribution across the globe. Specifically, there are three interrelated explanations, he says. The first of these depends on the role played by ‘disruptive’ competitors and new entrants into the commercial market for broadband services, which have pushed prices down in Japan, for instance, and forced speed increases and other technological advances.

Secondly, there is significant competition between the different technologies that might deliver broadband. There are various flavours of DSL (digital subscriber line), cable TV broadband, satellite, and WiFi. But in Japan, the very high-speed connections are made possible by fibre optic connections from the network direct to the users’ computers.

Finally, he points out that the strength of regulation in each country has a significant impact on broadband. In short, the telecommunications authorities in Japan, and to some extent in Korea also, are much tougher than their US and European counterparts. This has pushed the broadband providers to offer much more efficient and faster services in order to remain competitive and sustain their market share.

“These three causes of comparative international broadband performance themselves have complex institutional determinants,” concludes,” Fransman, “Unfortunately, deriving appropriate policy recommendations is no simple task.” Given how slowly technological legislation changes, this could mean that US and European internet users will be burdened with lower service quality and slower downloads compared to users in Japan and Korea for many years to come.