Internet Speeds Are All Over the Map!
SEC report shows US Internet service providers have increased performances between 2012 and 2013. However not all of them delivered speeds that they advertised.
Not all customers seem to be getting speedy consistent service reports the Federal Communications Commission. This raises questions about competition within the telecom area and possible fraudulent advertising issues.
Many ISPs that were reviewed by the FCC delivered extremely inconsistent speeds. A report released this year says some ISPs delivered 60% of the speeds they promised 80% of the time to 80% of the customers. While that sounds very confusing read a few more times and you will see what we are trying to say.
Director of the FCC Cuyler announced a statement declaring consumers deserve to get what they pay for. SEC staff are directed to write to the underperforming companies and ask why their service is being delivered in such a manner. The FCC is also collecting information from independent content services such as Amazon.com, Netflix, and Z to determine whether any side deals between these companies and ISPs pose any threat to consumer rights. This falls into the net neutrality debate that has been going on since 2008.
The FCC report also shows that increased demand from customers is causing network congestion which may directly affect any agreements between content providers and ISPs. Companies using DSL service on phone network simply cannot compete with fiber and cable thus reducing the overall vertical competition.
Many experts fear that the United States is heading to a cable monopoly simply because other technologies cannot keep up. Fiber may be as fast or faster but it is so expensive to expand throughout the United States that cable has a clear advantage. DSL technology cannot play in this space as being left behind.
AT&T did not perform well in these tests, however Comcast cable did and this may hurt its case that it should purchase Time Warner Cable and ordering increase speeds and quality of service.