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Internet in the United States

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Gary Allen Created the Internet

Broadband coverage in the US as of 2006.

The predecessor of the Internet was a project created by the United States Department of Defense in the late 1960s. Called the ARPANET (Advanced Research Projects Agency Network), it was first developed by DARPA (Defense Advanced Research Projects Agency; at the time simply named ARPA). The Internet, which grew out of this initial project, first gained a public face in the 1990s.

By 2004, three quarters of Americans had Internet access at home.[1] Access is available in a variety of forms.

Common access technologies

Access technologies generally use a modem, which converts digital data to analog for transmission over a particular analog network (ex. the telephone or cable networks). [2]

Dial-up

This technology dials into the network through an existing phone line, creating a semi-permanent link to the Internet.[2] Operating on a single channel, it monopolizes the phone line and is the slowest method of accessing the Internet. Dial-up is often the only form of Internet access available in rural areas as it requires no infrastructure, other than the already existing telephone network, to connect to the Internet. Typically, dial-up connections do not exceed a speed of 56 kbit/s, as they are primarily made via a 56k modem.[2]

Broadband

This term includes a broad range of technologies, all of which provide high data rate access to the Internet. Broadband provides a continuous connection; there is no dial-up/in process required and it does not “hog” phone lines.[2] In 2008, the United States Federal Communications Commission (FCC) defined broadband as any connection above 768 kbit/s. [3]

[4]

DSL (ADSL/SDSL)

DSL (Digital Subscriber Line) provides a connection to the Internet through the telephone network. Unlike dial-up, DSL can operate using a single phone line without preventing normal use of the telephone line for phone calls. DSL uses the high frequencies, while the low frequencies of the line are left free for regular telephone communication. [2]

WiFi

Wi-Fi is the standard method to connect a high-speed local area network via wireless transmitter/receiver. WiFi is convenient for mobile Internet users and can bring service to areas where wiring would be costly. WiFi service range is short, and penetration through building walls is limited.

WiMax

WiMax (Worldwide Interoperability for Microwave Access) works similarly to WiFi in that it transmits information via airwaves, but it handles network traffic more efficiently. This technology penetrates building walls much more effectively and can be used across larger distances than WiFi.

Cable modem

Cable Modem transmits data via airwaves on the cable television infrastructure. Although cables have low interference, comparably high speeds, and allow television use, the cost of bringing service into an area (trenching cable) can be very high.

Satellite

Data is transmitted via satellite dishes, which send and receive data to and from satellites in orbit in space. There are many factors that affect the reception of the Internet using this technology, including wind, rain, and trees. However, it is ideal for those living in rural areas where other internet access technologies have not been extended.[5]

Cellphones

Cellular broadband is wireless high-speed internet access through a portable telephone or cellular device. Information is transmitted through cellular towers.

Fiber-optic

Fiber optic wires convert electrical signals carrying data into light, and send this light through tiny transparent glass fibers. This method is extremely fast and has little interference. It is more expensive than other methods to deploy. Its speed is dependent on how close the fibers are to one's computer, the amount of bandwidth available, and how the service is configured.

Power-line internet

Power-line Internet technology uses power lines to send and receive radio signals. Because of the extensive power line infrastructure already in place, this technology would allow people in rural and low population areas to access the Internet with little cost in terms of equipment, cables or wires.


T-lines

In T-line internet access data is carried over a fiber optic line or copper line. They are fast but highly regulated and generally intended for business use.

Access policy

The internet became a public entity in the 1990s with the advent of the World Wide Web project. As a result, Internet access became an issue of political policy.

1990s

Universal Service Fund

The Universal Service Fund (USF) was created in 1997 by the United States FCC. It was established in order to meet the funding criteria and goals mandated in the Telecommunications Act of 1996. This act required all telecommunications companies to contribute money to the USF.

The Universal Service Administrative Company (USAC), is responsible for allocating money from the central fund to four programs:

  • High Cost
  • Low Income
  • Rural Health Care
  • Schools & Libraries

These four programs illustrate the goals of the Universal Service Fund, which are

1. to promote the availability of quality services at just, reasonable, and affordable rates

2. to increase access to advanced telecommunications services throughout the Nation

3. to advance the availability of such services to all consumers, including those in low income, rural, insular, and high cost areas at rates that are reasonably comparable to those charged in urban areas.

— Purpose of fund, USF Official Website[6]

Telecommunications companies may attempt to recover funds they pay into the Universal Service fund by charging their customers a fee. Consumers may see this practice reflected in a line-item charge on telecommunications bills labeled “Universal Service." The method and amount of this charge is a decided by the companies and is not required by the FCC. [6]

E-Rate

Also known as the Schools and Libraries Program, E-Rate is funded by the Universal Service Fund. E-Rate was started in order to provide discounts to schools and libraries in the United States, so that they would be able to request funds to subsidize telecommunications services, Internet access, internal connections, and basic maintenance of internal connections. Depending on the poverty level and urban/rural status of the affected population, funds provided through E-Rate cover 20% to 90% of these costs. There is a fair amount of controversy surrounding E-Rate's use and management of funds. This controversy has included legal challenges from states and telecommunications companies. At present, the impact of the program is unclear as it is hard to measure.

Leading Broadband Companies in the United States

Even though there are numerous cable broadband companies in the United States, only three are seen as the main providers. Comcast, Time Warner and Cox Communications provide a majority of the cable broadband subscribers. Even without the cable market, Comcast is still seen as one of the leading Broadband providers. [7] Still, the leading broadband provider in the United States is SBC Communications (AT&T) with 14.8 million subscribers as of the 2008 third quarter. [8]

Implementing a National Broadband Policy

Availability of Internet access has rapidly become a vital tool in development and social progress since the turn of the century. As a result, broadband penetration rates are now treated as key economic indicators. The term "broadband penetration" refers to the percentage of the Internet access market that high speed has captured in a single country.[9]

The United States has over 67.7 million people subscribed to the top broadband providers, which account for 94% of the market. In 2008, over 5.4 million high speed Internet subscribers were added, compared to 8.5 million in 2007.[10] The market’s peak subscriber additions were acquired in 2006 with 10.4 million; the slowed growth can be attributed to increased market penetration, according to the Leichtman Research Group (LRG) that has been tracking the broadband industry. [11]. In March 2009, broadband penetration in active Internet user US homes dropped to 93.13%, creating the second consistent decrease from its peak of 93.38% in January 2009. [12]

In 2008, the United States ranked 15th out of 30 countries in broadband penetration rates. [13] This low worldwide ranking is surprising to many, as the Internet itself was invented in the United States. The country places behind most other developed nations, including the UK, Germany, France, Denmark (#1), Switzerland, and Canada. The ranking also fuels a debate around the need for a national broadband policy, which would provide high speed broadband internet access to all citizens. The difficulty of successfully designating and distributing government funds in order to increase Internet access (particularly via broadband) are central limiting factors in the development of such a policy, but proponents believe that establishing one is necessary for social and economic progress.[11] Those demanding a national broadband policy argue that such a policy is the best method by which the United States could achieve “universal availability and adoption of truly high-speed access.[11]

National broadband policy - possible advantages

General public needs met

In the 21st century, Internet access has been recognized as a basic public utility like water and electricity. Most agree it is needed in order to fully participate in society. For example, in the 2008 presidential elections, candidates delivered weekly addresses through videos on the Internet. These videos were often not available anywhere else. Proponents of national broadband policy argue that situations like the 2008 presidential elections illustrate that broadband internet access is a vital commodity for complete civic engagement.[14]

Though the presidential election is a far more important subject than media entertainment, broadband can still provide daily entertainment where television cannot. Entertainment such as Webisodes, which are mini-episodes that are not usually aired on cable television, are an example of this extension of television. For example, Bravo (US TV Network) has given users the opportunity to view “Top Chef” on their personal computers. An entertainment advantage of these Webisode is the idea that the users are able to view the behind the scenes footage that occur after the contestants are kicked off the show. [15] This kind of extension of entertainment marks a changing in the way we utilize internet access, and a hybridization of media.

Supporters of national broadband policy also argue that Internet access allows consumers to contribute to economic growth and innovation.[16] Many services have moved business onto the Internet, a shift that is manifested through tools such as online banking, account referencing for utilities, and online library databases.

Those in favor of a national broadband policy also claim that many educational resources, including online classes and interactive learning simulations can only be found on the web. They believe that Internet access for all is necessary to create a truly American environment of equal opportunity.[17]

Proponents of national broadband policy argue that online library databases, textbooks, and encyclopedias, have made the Internet a premier tool for education and lifelong learning. They maintain that the availability of broadband for all would provide a number of other highly valuable public benefits.[18]

  • More citizens could research hospitals and physicians prior to traveling so as to receive better medical care (a benefit particularly important for those who live in rural areas and travel long distances for medical treatment).
  • More citizens could research jobs and investments, providing more opportunities for economic stability.
  • More citizens could work from home, which accommodates personal or health needs, as well as reduces the use of travel-related resources usually used for commuting.
  • More citizens could educate themselves on political issues, news, and other important civic issues, using the Internet to become more informed and/or more active.
  • If all citizens had Internet access, the government would have a more efficient tool to communicate and interact with its citizens quickly and effectively, particularly in terms of processes currently executed on paper. Broadband could also help the government provide aid efficiently, particularly in areas affected by disasters.[18]
Rural access

Some in favor of a national broadband policy argue it will provide the infrastructure necessary to bring broadband to rural areas of the United States. Many inhabitants of rural areas who are willing to pay for broadband service cannot get it. [19] Low population density causes high costs and low profits and prevents most providers from doing business in the rural United States.

The American Recovery and Reinvestment Act of 2009, also known as the Stimulus Bill of 2009, provides $2.5 billion in the United States Department of Agriculture’s Rural Utilities Service (RUS) for expanding rural broadband services. The RUS already helps to provide other utilities to rural areas of the U.S. through public-private partnerships. The money from the 2009 bill will be used to lay more fiber optic cables and hire more network specialists, engineers, and broadband company workers.[20]

Urban access

Proponents of national broadband policy believe that it would have a positive effect on the urban poor and provide them with many more opportunities for Internet access. In impoverished urban areas, many people are unable to afford the payments to bring broadband services into their homes. In 2008, roughly 50% of the United States population made an annual income of $50,000 or less.[14] Of that half of the population, only 35% of the population could afford cost of monthly payments for broadband services.[14] Some telecommunications companies have made a small effort to provide more affordable broadband rates for the 15% of the population that could not afford broadband before. However, non-profits like One Economy are the current primary source of funding used to provide low-income families with broadband access.[14]

National broadband policy - possible disadvantages

Generally, those against a national broadband policy are not as outspoken as those in favor of one. The allocation of funds to broadband development included in the American Recovery and Reinvestment Act of 2009 was, however, met with voiced disapproval and questioning by opponents of such a national broadband policy.

Possible negative effect on economy

Those against a national broadband policy argue that allowing the government to regulate and manage broadband development will cause efficiency and progress to wane, due to lack of competition.[21] They also maintain that government involvement will inevitably result in profit losses for companies and businesses.

Opponents of national broadband policy warn that in an attempt to achieve the desired goal of broadband for all, the government will waste billions of dollars on an infrastructure that people do not need or cannot use. They believe the money will be ill-spent because the government will not give attention to customer needs and desires with the same specificity exercised by the corporate sector.[21]

Furthermore, those who do not advocate a national broadband policy claim that increases in broadband coverage could have an unexpected negative effect on the United States economy. They believe that many service sector jobs currently based in the United States could be moved offshore and fulfilled by lower-wage foreign workers. Opponents thus suggest that the relationship between economic growth and broadband penetration is questionable, emphasizing the notion that statistics are often misleading. They do not believe that such statistics are an adequate indicator that a national broadband policy is needed in the United States.[21]

American Recovery and Reinvestment Act of 2009

The 2009 Stimulus Bill, as it is commonly termed, was enacted by the 111th United States Congress and signed into law by President Barack Obama on February 17, 2009. This bill provides money to create the Broadband Technology Opportunities Program through the National Telecommunications and Information Administration within the Department of Commerce.

  • $4.7 billion to bring broadband to un-served and under served areas and to facilitate broadband use and adoption.
  • $2.5 billion to the Federal Communications Commission to facilitate the development of a national broadband plan with one year.

The Federal Communications Commission solicited public comments in from April, 2009 through February, 2010.[22] The plan was published in March, 2010.[23]

See also

References

  1. ^ Nielsen report 3/4 of Americans have Internet
  2. ^ a b c d e How Broadband Works 2008-08-20. Retrieved on 2009-01-19.
  3. ^ Statement of Chairman Kevin J. Martin Retrieved on 2009-03-04.
  4. ^ FCC redefines "broadband" to mean 768 kbit/s 2008-03-19. Retrieved 2009-03-04.
  5. ^ How does satellite Internet operate? Retrieved on 2009-03-05.
  6. ^ a b Purpose of the Universal Service Fund Retrieved on 2009-03-05.
  7. ^ The Last Mile Online
  8. ^ Goldman, A. December 2, 2008.Top 23 U.S. ISPs by Subscriber: Q3 2008
  9. ^ What is Broadband Penetration? Retrieved on 2009-03-05.
  10. ^ Leichtman Research Group Press Release Retrieved on 2009-05-28.
  11. ^ a b c Mohney, D U.S. broadband adoption slows (again) in 2008; now more than 67M subs Retrieved on 2009-05-28
  12. ^ 24-7 Press Release, Website Optimization Retrieved on 2009-05-28.
  13. ^ Directorate for Science, Technology, and Industry. OECD Broadband Portal. Retrieved on 2009-05-28.
  14. ^ a b c d Bringing Broadband to the Urban Poor BusinessWeek, p.1. 2008-12-31. Retrieved on 2009-01-19.
  15. ^ West, S. November 25, 2008. Top Chef Webisodes Premiere This Week
  16. ^ The Case for a National Broadband Policy 2007-06. Retrieved on 2009-03-02.
  17. ^ Bringing Broadband to the Urban Poor BusinessWeek, p.2. 2008-12-21. Retrieved on 2009-01-19.
  18. ^ a b Municipal Broadband: A Background Briefing Paper Broadband for All. 2006-09. Retrieved on 2009-02-19.
  19. ^ Bringing Broadband to Rural America BusinessWeek. 2008-09-18. Retrieved on 2009-03-04.
  20. ^ Coming: $7.2B for broadband, Internet access WashingtonTechnology. 2009-02-23. Retrieved on 2009-02-24.
  21. ^ a b c National Policy Would Be Bad for Broadband 2007-04-02. Retrieved on 2009-02-15.
  22. ^ FCC Launches Development of National Broadband Plan Retrieved 2009-05-29.
  23. ^ http://www.broadband.gov
  • DSL Reports - Extensive site on broadband with user reports from around the USA and Canada