"What's Broadband?" Billions in Stimulus Funds are at Stake

The headline I chose as the title for this post appeared in today's online issue of U.S.A. Today. It offers further proof that, when it comes to broadband internet policy, the United States seems to be on a different planet than people here in South Korea, in the EU and elsewhere. Congress has earmarked $7.2 billion in stimulus aid to deploy broadband in underserved parts of the USA. But what does that mean, really?

The Federal Communications Commission is trying to come up with answers. At the request of lawmakers, the agency is in the process of defining "broadband," "underserved" and other terms. The FCC is advising the National Telecommunications and Information Administration, which will make the final call on how stimulus money gets doled out. Opinions about what constitutes "broadband" vary wildly. Big incumbents such as AT&T favor a tiered approach to the speed of data delivery, starting at a minimum of 200 kilobits per second. Tech giants such as Intel say 100 megabits is more reasonable, given the explosion of bandwidth-hogging applications such as video streaming.

While this was the news from U.S.A. Today, Forbes carried an article with some advice for President Obama from the President of KADO, The Korea Agency for Digital Opportunity and Promotion. nearly 80% of the general public uses the Internet regularly--KADO has focused on helping people with disabilities, senior citizens, rural dwellers and low-income families get online. These groups have a much lower Internet adoption rate, around 40% combined. To reach people in remote areas, it partners with local governments and civic associations and even holds classes in private homes. Volunteers do most of the teaching. Son says KADO's education efforts have taught 10 million Koreans how to e-mail, search the Web and download files. Beyond its domestic programs, KADO also functions as the Korean government's global IT ambassador. Its international efforts include establishing IT training labs in places like Kenya and Laos, organizing a corps of Korean volunteers to teach IT education abroad and hosting an annual forum for IT experts from developing countries.

All these programs, naturally, cost money. KADO has a staff of 142 and an annual budget of approximately $45 million, which is fully funded by various branches of the Korean government. KADO was originally established as Korea's Information Telecommunication Training Center in 1982 and has evolved into its current form over the past decade.

The U.S., Korea and Broadband

Almost on the eve of President Obama's inauguration Business Week has published an interesting article, entitled "Bring U.S. Broadband Up to Speed," and its recommendations are right on target.  As the sub-head notes, "For long term economic growth Obama's stimulus package should include a $10 billion to $15 billion investment in high speed communications infrastructure.  Quoting from the article:

"The U.S. desperately needs to catch up with global leaders in two areas of high-speed broadband communications. The first is extending the current world-class wired broadband service now used by big business, smaller companies, and consumers across America. The second is increasing the transmission speed and reach of wireless service to nearly everywhere in the nation. Achieving these two goals would bridge the digital divide between city and country and provide a powerful productivity tool to all sectors of society: private enterprise, nonprofit organizations and institutions, and every level of government."

The article goes on to note how companies in other countries are leveraging broadband and the internet to operate more efficiently and create game-changing advantages.  Australia, with territory nearly as large as the continental U.S. and a very similar population distribution, has wireless network speeds of 21 Mbps to cell phones, laptops, and other wireless devices on a mobile Internet that reaches 99% of the population.  Plans are to double Australia's network speeds to 42 Mbps in 2009, "enough bandwidth to download a two-hour movie to a laptop on a beach in four minutes."

Business Week could have just as well have elaborated on South Korea.  This country built its first digitally switched network in the 1980s.  The Public Switched Telephone Network was completed in 1987, just before the Seoul Olympics.  Improvements to that network continued until, in the early 1990s leaders here saw the need for building "information superhighways."  The Korea Information Infrastructure project from 1995-2005 laid down the most extensive fiber optic, atm-switched communications network in the world, allowing those who live here to enjoy fast internet service.  However, things did not stop there.  In South Korea, development and investment have been consistent and continuous since 1981!  Policymakers here and most people have come to appreciate the productivity advantages and possibilities brought by the information revolution.  Soon WiBro (Mobile WiMax) will be available throughout Korea, but that will not be the last stage of this revolution.  Ubiquitous computing and ambient intelligence will be prominent in the next phase of development.

It seems clear that the U.S. could benefit from Korea's example and that a strong government-industry partnership between the telecoms sectors of the two nations would be beneficial to both as Obama takes office.

Broadband Convergence Update

The Joongang Daily reports that IPTV operators are "baiting subscribers with cash." With local high-speed Internet service providers using cash gifts as a marketing ploy again, experts warn that the industry faces cutthroat competition which is likely to harm subscribers. Since IPTV and Internet telephony are provided on broadband networks, Internet subscriber numbers are crucial to success. Currently, nationwide sales agencies of the country’s three major high-speed Internet service providers - KT, SK Broadband and LG Powercomm - all provide up to 200,000 won ($147) in cash or other high-value gifts such as the Nintendo Wii game console depending on the number of services people take and their subscription length. For example, SK Broadband offers 190,000 won in cash to subscribers who sign up for its triple-play service - Internet, IPTV and Internet telephony - for three years.