Business / Broadband Access Issue Summary

by Terry Brown (plus credit to NAR website)


I've been in several countries over the past few years and it is amazing how slow our internet connections are in comparison to them.    While Phone companies are now launching 4G service here, when I was in London a few years ago when we were just launching 3G in America, they were launching 8G.    Yep - that far ahead of us.   Why?   Bandwidth.    Sure, we can install the same equipment as they do and have the same speeds, only faster services means more data - and more data is bandwidth.    American's currently use more bandwidth that other countries, thus we cannot "handle" faster internet speeds because we run out of bandwidth quickly.     The only way to solve this is to either send up more satellites or install more antennas on towers - or maybe install more towers.   However, the cheapest way to solve bandwidth problems is to only offer limited bandwidth per hookup - which includes smart phones and regular internet connections.   Basically, what they have installed is the same thing as a "governer" on a go-cart or mini-bike - to restrict how fast it can go.    They don't have such electronic devices overseas, or if they do - they have them set much higher than in the USA.

What is the fundamental issue?

The term “broadband” is used to describe high speed Internet access provided by various technology platforms including cable, telephone wire, and wireless technologies. Broadband gives users the ability to send and receive data at volumes and speeds far greater than “dial-up” Internet access provided over traditional telephone lines. While the numbers of new broadband subscribers continue to grow, a new report from the FCC estimates that between 14 and 24 million Americans still lack access to broadband internet service. Moreover, several international rankings indicate that the U.S. is lagging behind other nations in broadband accessibility, speed and cost.

Americans pay more and get less for broadband service than many countries across the globe. Realtors® support a comprehensive national policy to stimulate the deployment of broadband in underserved areas of the U.S., increase data speeds and lower broadband prices.

I am a real estate professional. What does this mean for my business?

Realtors® support policies to encourage the growth of strong viable communities.   A national broadband policy will promote economic growth and expand opportunities for home sales. A recent study concluded that in communities where there is access to high speed internet, property values are 6% higher. Communities prosper when they gain access to high-speed Internet. Property values increase, businesses grow and jobs are created. Broadband forms the infrastructure for the American economy’s digital future. Affordable high-speed broadband will soon become almost as important as water and electricity, and the absence of broadband makes a community a less attractive location for new investment and development. Furthermore, availability of “new economy” jobs is impossible in a community with little or no broadband access.

Those properties in rural areas, such as in Chaffee County, only restricts the buyers who MUST live near high speed internet.    As a satellite user myself, let me tell you - satellite internet doesn't cut it.   There are many, many people who work at home online and would love to move to our great county, but they cannot gain access to reliable Broadband.

National Association of Realtors (NAR)  Policy:

NAR supports the following Broadband Access Principles:

• Every American should have access to a high-speed, world-class communications infrastructure
• High-capacity broadband connectivity should be affordable and widely accessible
• A variety of options should be considered to encourage quality broadband deployment and adoption including action by the public and private sector.

Legislative/Regulatory Status/Outlook

In March, the FCC delivered to Congress its National Broadband Plan. The cornerstone of the Plan is a pledge to connect 100 million households to affordable 100-megabits-per-second broadband service over the next ten years.   (NOTE:  Currently Chaffee County has 20meg download speeds only in select areas - otherwise you can get 6meg download speed via Satellite)

Congress is now considering a number of proposals that would all contribute to increased broadband adoption. One measure aims to improve and modernize the USF (a fund created by an 11.4 percent surcharge on phone bills that is used to subsidizes rural and high-cost telephone service) to apply to rural broadband access. Other measures aim to increase access to wireless spectrum in order to increase the availability of mobile broadband.

Current Legislation/Regulation (bill number or regulation)

S. 74
S. 257
H.R. 1695
H.R. 2163

Legislative Contact(s):

Melanie Wyne, mwyne@realtors.org, 202-383-1234

Samuel Whitfield, swhitfield@realtors.org, 202-383-1131

Regulatory Contact(s):

Melanie Wyne, mwyne@realtors.org, 202-383-1234