The Japanese Advantage
Thursday, August 30th, 2007In the course of my research on broadband access and quality in the United States, I’ve found a great number of competing opinions on the matter of exactly how far behind the U.S. is verses some of our international competitors. If you listen to FCC Commissioner Robert M. McDowell, America is on the right track in regards to broadband penetration, speed and access and that the U.S. should not veer towards increased government regulation.
This explains the commissioner’s opposition to Google’s open access requirements for the 700 MHz wireless spectrum auction and other regulatory efforts to boost broadband access and speed in the U.S. (IPDI will be holding a discussion with Google on September 25th about the wireless auction and Google’s vision for broadband in America…more details to come).
The Washington Post took a different view on the matter yesterday in a piece by Blaine Harden which outlined the huge advancements the Japanese have made in relation to broadband technology though innovation and government assistance. The article points out that Japan has dramatically higher broadband speeds than the U.S. because of America’s bombing of Japan’s infrastructure during World War II (which prompted them to use better cooper wire with smaller loops that allow for higher DSL speeds) and because the Japanese government ordered phone companies to allow independent internet startups access their phone lines. This resulted in heavy competition which in turn prompted Nippon Telegraph and Telephone Company to roll out a new fiber-optic network, spurring even more innovation, driving down prices and boosting speeds. This competition through regulation strategy has catapulted Japan far ahead of America. According to the article, the Bush Administration actually had the opportunity to provide the same incentives for innovation in the U.S. but the FCC and the federal courts blocked the effort.
Link Hoewing of Verizon responded to the post article on Verizon’s policy blog citing that the U.S. is making progress and catching up. I don’t disagree with that but I believe the point of the post’s article was to spark conversation as to whether the U.S. is perusing the right type of (government) strategy to ensure competition and innovation, a question IPDI will be focused on in the coming year.
Update: Check out what Richard Whitt says about it on the Google Public Policy blog:
We hope policymakers take a careful look at exactly what is now happening overseas, why, and then draw the right conclusions about the steps necessary to bring the benefits of real broadband competition and innovation to all Americans.



