A group recently formed by President Barack Obama released a report today that asserted the high price of broadband, brought about by too few Internet service providers, is a major barrier to adoption that has left almost one-third of Americans unable to afford an Internet connection — findings that directly contradict assertions the telecommunication industry has made for years.
In its report, the Broadband Opportunity Council highlighted the inability of low-income families to afford the price of an Internet subscription as the primary reason that more than 25 percent of American households don’t have a broadband connection at home.
One of the primary reasons broadband prices are too expensive, the report notes, is because there is a lack of competition among Internet providers.
“Lowering barriers to deployment and fostering market competition can drive down price, increase speeds, and improve service and adoption rates across all markets,” according to the report.
The high-speed Internet market in the U.S. is dominated by Comcast Corp., AT&T Inc., Verizon Communications Inc., Time Warner Cable Corp. and a handful of others.
The council’s focus on income and competition contradicts reasons offered by the telecommunications industry and conservative think tanks — often financially supported by broadband companies — for why more than a quarter of American households still are not connected.