The New Speed Battle

I’ve been thinking about the implications of having a new definition of broadband at 100/20 Mbps. That’s the threshold that has been set in several giant federal grants that allow grant funding to areas that have broadband slower than 100/20 Mbps. This is also the number that has been bandied about the industry as the likely new definition of broadband when the Federal Communications Commission seats a fifth Commissioner. The best thing about a higher definition of broadband is that it finally puts the DSL controversy to bed. A definition of broadband of 100/20 Mbps clearly says that DSL is no longer considered to be broadband. Unfortunately, by killing the DSL controversy we start a whole new set of speed battles with cable companies and wireless internet service providers (WISPs) that will be similar to the controversy we’ve had for years with DSL. Telecommunications companies have claimed 25/3 Mbps broadband coverage over huge parts of rural America in an attempt to deflect broadband grants. In reality, there is almost no such thing as a rural customer who can get 25/3 Mbps DSL unless they sit next to a DSLAM. I hate to admit it, but overstating DSL speeds has been a spectacularly successful strategy for the big telecom companies. We’re going to see the same thing all over again, but the new players will be cable companies and WISPs. The controversy this time will be more interesting because both technologies theoretically can deliver speeds greater than 100/20 Mbps. The fights over speeds are far from over.

[Doug Dawson is President of CCG Consulting.]