IP Democracy: Broadband Speeds Do Matter

Matt Richtel and Ken Belson have this longish piece in today’s New York Times about the importance of broadband speed throughput to phone and cable company marketing efforts. Both rival broadband providers emphasize the speeds of their broadband options in ad pitches, but some consumer advocates say that the companies don’t always make good on their promised speeds.

“They don’t deliver what’s advertised, and it’s inherently deceptive,” said Dave Burstein, editor of DSL Prime, a newsletter that tracks the broadband industry. ” ‘Up to’ is a weasel term that should be taken out of the companies’ vocabulary.”

The problem for broadband providers is that so many variables can alter the theoretical maximum broadband speeds, such as distance from the central office, in the case of DSL, or contention ratios — how many people are on the network simultaneously — in the case of cable. Fortunately, sites such as Broadband Reports offer speed tests that enable consumers to gauge whether they are getting the download rates promised.

The article ends with a curious and debatable piece of advice from PC Magazine’s Jim Louderback. Regarding whether most consumers need a lot of speed, Louderback advises consumers to go with what’s cheapest.

Mr. Louderback had some simple buying advice: “Unless you’re watching YouTube, or downloading a lot of video, go with what’s cheapest.”

Um, who isn’t watching YouTube or looking at video on the Internet anymore? Over half (56%) of Internet users watched video online in June 2006, a percentage that is probably now far higher.

When it comes to video, or even web sites with highly dense graphics, speed does matter. Remember when broadband was 600 kbps? There’s a world of difference between that and 8 Mbps. There’s also a world of difference between 1.5 Mbps, typically the cheapest broadband option in metro areas, and Comcast’s 8 Mbps.

Posted by Cynthia Brumfield on November 18, 2006 10:35 AM to IP Democracy