US broadband penetration lags

We're last in the G8 and only 13th in the world in broadband penetration. Countries with higher population densities have a big advantage in the economics of broadband deployment, but this author suggests that we've not been aggressive enough in policy making. Recent legislative fights over whether cities should be allowed to roll out universal WiFi make me wonder whether entrenched interests (e.g., of telcos or other providers) aren't slowing down deployment. The article does a nice job of describing how Japan, which lagged terribly in the late 90's, rapidly surpassed the US.

The point about innovation being driven by small companies in markets where broadband penetration is highest is very true. Consumers react to new technologies in unpredictable ways, so proximity is key to understanding which products and services will succeed. Tech innovators here are keenly interested in what Korean and Japanese kids are doing with their 3G mobiles and home fiber optic connections.

Foreign Affairs: Once a leader in Internet innovation, the United States has fallen far behind Japan and other Asian states in deploying broadband and the latest mobile-phone technology. This lag will cost it dearly. By outdoing the United States, Japan and its neighbors are positioning themselves to be the first states to reap the benefits of the broadband era: economic growth, increased productivity, and a better quality of life.

...The large broadband-user markets of Northeast Asia will attract the innovation the United States once enjoyed. Asians will have the first crack at developing the new commercial applications, products, services, and content of the high-speed-broadband era. Although many large U.S. firms, such as Cisco, IBM, and Microsoft, are closely following developments overseas and are unlikely to be left behind, the United States' medium-sized and smaller firms, which tend to foster the most innovation, may well be.

The Japanese and the South Koreans will also be the first to enjoy the quality-of-life benefits that the high-speed-broadband era will bring. These will include not only Internet telephones and videophones, but also easy teleconferencing, practical telecommuting, remote diagnosis and medical services, interactive distance education, rich multimedia entertainment, digitally controlled home appliances, and much more.