We know the numbers – the Organization for Economic Co-Operation and Development (OECD) world broadband ranking numbers. The U.S. ranks 20th in the world in terms of adoption (60 percent), according to the latest “Global Broadband Forecast” from Strategy Analytics, a global research and consulting firm.
Needless to say, placing 20th in such a category is not where the U.S. wants to be. Compared with past rankings, it indicates we’re actually falling farther behind instead of catching up to competing nations.
It begs the question: How accurate is that ranking when looked at from a different perspective? According to Thomas Hazlett, a professor of law and economics at George Mason University, it’s not very accurate at all.
Instead of ranking nations based on broadband subscriptions per 100 households, as OECD rankings do, Hazlett looked at broadband availability instead, since availability shifts the attention to household size as a statistical denominator. His research, which included analysis by Federal Communications Commission economist Scott Wallsten, placed the U.S. between eighth and 10th when primarily looking at world broadband availability. However, in addition to household size, Wallsten also compared broadband speed and pricing among nations. When considering all these factors, the U.S. is much more competitive with most other advanced economies than previously thought.
Our nation is competitive despite the fact that many U.S. consumers don’t take advantages of options to obtain ultra-high bandwidth connections because of the added expense. However, thanks to recent technology breakthroughs, cable systems are finding ways to increase bandwidth economically, which may force telecommunications rivals to improve their service speed – and perhaps price – as well. Improvements in those areas could catapult the U.S. into a position as a world broadband leader.
Another number to consider: According to a study sponsored by the Business Software Alliance, the U.S. is ranked No. 1 in the world in the IT industry competitive index. The study considers a nation’s supply of skilled workers, technology infrastructure, intellectual-property protection and a government support of technology that allows market forces to work. Our top ranking is commendable, but we need to commit to infrastructure improvements to stay ahead of other nations that already have more defined broadband strategies in place.
Considering the above information, we look much better now, don’t we? We do, but keep in mind a different look at the numbers also offers this perspective: Just about any nation can look better on paper depending on how the data is manipulated. In short, there’s still plenty of work to do. Just because we change the perspective doesn’t mean we’re completely in the clear. After all, while a case can be made that the U.S. should be ranked much higher when compared with other broadband nations, other studies with solid methodology show we’re right where we should be. But whether you prefer to view the U.S. as ranked eighth, 10th, 15th or 20th, it doesn’t change the fact that our nation still isn’t quite where it wants to be.
