Why is broadband more expensive in the US ?

[JHB]

4. Answered three years ago, hasn't really changed...

Why Broadband Service in the U.S. Is So Awful
Scientific American, Oct. 4, 2010

The average U.S. household has to pay an exorbitant amount of money for an Internet connection that the rest of the industrial world would find mediocre. According to a recent report by the Berkman Center for Internet and Society at Harvard University, broadband Internet service in the U.S. is not just slower and more expensive than it is in tech-savvy nations such as South Korea and Japan; the U.S. has fallen behind infrastructure-challenged countries such as Portugal and Italy as well.

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It was not always like this. A decade ago the U.S. ranked at or near the top of most studies of broadband price and performance. But that was before the FCC made a terrible mistake. In 2002 it reclassified broadband Internet service as an “information service” rather than a “telecommunications service.” In theory, this step implied that broadband was equivalent to a content provider (such as AOL or Yahoo!) and was not a means to communicate, such as a telephone line. In practice, it has stifled competition.

Phone companies have to compete for your business. Even though there may be just one telephone jack in your home, you can purchase service from any one of a number of different long-distance providers. Not so for broadband Internet. Here consumers generally have just two choices: the cable company, which sends data through the same lines used to deliver television signals, and the phone company, which uses older telephone lines and hence can only offer slower service.

The same is not true in Japan, Britain and the rest of the rich world. In such countries, the company that owns the physical infrastructure must sell access to independent providers on a wholesale market. Want high-speed Internet? You can choose from multiple companies, each of which has to compete on price and service. The only exceptions to this policy in the whole of the 32-nation Organization for Economic Co-operation and Development are the U.S., Mexico and the Slovak Republic, although the Slovaks have recently begun to open up their lines.

http://www.scientificamerican.com/article.cfm?id=competition-and-the-internet