Tuesday
Nov152016

New Infographic: 98% Lack Real Broadband Choice, Costing Economy $150 Billion in Overcharges

WASHINGTON DC (November 15, 2016) – The Broadband Coalition, a collection of competitive broadband service providers, released a new infographic today (attached and pasted below) detailing the need for more choice and lower prices in the business broadband market. The Federal Communications Commission (FCC) is set to vote on their Business Data Services Order on Thursday.  

“The FCC must help bring more competition to American businesses large and small,” said a spokesperson for the Broadband Coalition. “For over a decade, business customers have been overcharged and underserved. Acting to curb market power abuse by large incumbent providers is an important first step to moving America away from monopolies and duopolies and into a more competitive future.”

The infographic points out that when competition enters a market, prices drop 19.7 percent and more. It also highlights FCC data showing 98 percent of America’s business locations – including schools, libraries, hospitals and government agencies -- have no more than TWO options for broadband provider.  

It also points to the estimated $150 billion in overcharges in the broken market, money that is being syphoned away from new infrastructure, teachers and nurses and new network investment.  

The infographic also illustrates numbers from former FCC Chief Economist John Baker, who found disturbing trends on the pricing of entry-level Ethernet, which can be priced 10 to 12 times higher than traditional service. 

 

 

About the Broadband Coalition:

The Broadband Coalition: Competitive broadband providers united to preserve innovation, competition and connection for future networks.

To learn more, please visit: http://thebroadbandcoalition.com 

and Customers 4 Competition: http://customers4competition.com

and follow us on Twitter: @bbandcoalition

 

 

INFOGRAPHIC CITATIONS

Data Exposes a Problem Section

FCC Business Data Services Order

https://apps.fcc.gov/edocs_public/attachmatch/FCC-16-54A1.pdf

 

The Cost of Market Power Section

Mark Cooper, the Consumer Federation of America, The Special Problem of Special Access: Consumer Overcharges and Corporate Excess Profits

http://consumerfed.org/wp-content/uploads/2016/04/4-16-The-Special-Problem-of-SpecialAccess.pdf

 

Moving to the Future / Lower Prices Section:

Declaration of Jonathan B. Baker on Market Power in the Provision of Dedicated (Special Access) Services

https://ecfsapi.fcc.gov/file/109211588300227/2016-09-21%20REDACTED%20Baker%20FNPRM%20Supp%20Reply%20Declaration%20Final.pdf

 

All Anchor Institutions Benefit:

SHLB Ex Parte Citing FY 2016 Schools and Libraries Broadband (C1) Demand

https://prodnet.www.neca.org/publicationsdocs/wwpdf/101816shlb.pdf

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