Accelerating broadband speed in [Japan] — as well as in South Korea and much of Europe — is pushing open doors to Internet innovation that are likely to remain closed for years to come in much of the United States. The speed advantage allows the Japanese to watch broadcast-quality, full-screen television over the Internet, an experience that mocks the grainy, wallet-size images Americans endure.
Japan enjoys what Gerschenkron called the “benefits of backwardness;” it had to rewire completely after WWII. But it also has a much wiser dirigiste approach to assuring fast and universal access:
In sharp contrast to the Bush administration over the same time period, regulators here compelled big phone companies to open up wires to upstart Internet providers. In short order, broadband exploded. . . . [T]he story of how Japan outclassed the United States in the provision of better, cheaper Internet service suggests that forceful government regulation can pay substantial dividends. (emphasis added)
In Japan, you’ll pay about $37 a month for 100 mbps. In the U.S., on average, you’d pay about $40 for 5 mbps (yes, 5, twenty times less).*
Why the policy divergence? Here’s one part of the story:
The Center for Public Integrity compiled a list of the top 100 money-givers to Congress between 1998 and 2005, and telcos dominate the list: Verizon Communications: $81,870,000, SBC Communications: $58,035,037, AT&T Corp.: $53,349,499, Sprint Corp.: $47,276,585, BellSouth Corp.: $33,732,827, Qwest Communications: $24,523,480
Very impressive lobbying numbers. . . . not so impressive download speeds.