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April 23, 2007

Cable's a Bit Touchy About New OECD Data


The OECD has just released its latest global broadband statistics (as of December 2006), which show, among other things, continued decline in the worldwide ranking of the U.S. in terms of broadband use per capita. The U.S. now ranks 15th out of 30 member nations, down from 12th place six months ago and fourth place in 2001.

The U.S. also ranks 20th out of 30 in terms of broadband penetration growth rates over the past year. The inevitable drumbeat has resumed for a national broadband policy that spurs greater incentives for and investment in broadband deployment and usage, particularly on the eve of a Senate Commerce Committee hearing on “Communications, Broadband and Competitiveness: How Does the U.S. Measure Up?”

Although a lot of smart people think these semi-annual OECD statistics are irrelevant at best, or misleading at worst, for some reason the National Cable and Telecommunications Association has taken particularly umbrage at the most recent rankings. NCTA’s CEO Kyle McSlarrow sent a letter today to relevant House and Senate leaders telling them not to believe everything they read when it comes to U.S. broadband deployment and adoption. McSlarrow says things are far better than the OECD would suggest:

Broadband deployment in this country continues to grow at a robust rate, and the number of consumers who have signed up for high-speed Internet service in the U.S. far exceeds that in any other country in the world.

Citing a slew of third-party statistics, McSlarrow points out that broadband is available to 93% to 94% of U.S. homes and that speeds are growing all the time. Korea, the gold standard for these kinds of broadband comparisons, is not like the U.S. (it’s more dense, etc.), so stop comparing, McSlarrow said.

Despite the rosy picture painted by McSlarrow, NCTA is in favor of a number of legislative and government programs aimed at bringing broadband to rural areas, such as tax credits for building networks where none exist, low-cost loans for rural providers and usage of universal service funds for network build-outs in unserved areas. Cable is not, needless to say, in favor of net neutrality regulations, McSlarrow reiterated.

Not sure why NCTA is taking a big stand on this report (didn’t see that any other player, say a telco, issued a comparable letter yet), other than the fact that the hearing is tomorrow and it looks like no cable-related people will be testifying. But hey, not much else is happening on the Hill so my guess is that the cable folks are weighing in where they can.

 

Cynthia Brumfield at 7:28 PM|Comments(0)

  

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