Mediatwits #126: Broadband Internet Costs Rising; Zuckerberg to the Rescue?

    by Fannie Cohen
    August 15, 2014
    At Time Warner Cable, the cost of Internet is steadily rising as phone service becomes less expensive. (Via Zach Seward, Quartz.com)

    There’s something upside-down about broadband Internet service in the U.S., the country that helped invent the Internet. Americans in cities are paying more for slower Internet access — both at home and on mobile — than other parts of the developed world, according to a report last year from New America Foundation. And recently, Zach Seward at Quartz found that Time Warner Cable (which Comcast is trying to buy out) has steadily increased broadband prices in recent years as TV and phone service prices have dropped. The demand for high speed Internet at home is growing as people forfeit their cable packages for streaming services. Meanwhile, Facebook’s Mark Zuckerberg has pledged that “connectivity is a human right,” and his Internet.org non-profit arm is planning to offer free mobile broadband to the developing world.

    On this week’s podcast, we’ll discuss rising Internet costs and the chances for free services with special guests Zach Seward from Quartz and David Meyer from GigaOm. Plus, we’ll have regulars Alex Leo from Newsweek and Andrew Lih from American University, with MediaShift’s Mark Glaser hosting and Fannie Cohen producing.



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    mark-glaser-ISOJ-headshot-150x150Mark Glaser is executive editor of MediaShift and Idea Lab. He is a longtime freelance writer and editor, who has contributed to magazines such as Entertainment Weekly, Wired and Conde Nast Traveler, and websites such as CNET and the Yale Global Forum. He lives in San Francisco with his wife Renee and son Julian. You can follow him on Twitter @mediatwit.

    AlexHeadshotSmallAlex Leois a writer and technologist living in New York City. She is an editor-at-large for Newsweek, where she was previously the head of product. Before that she was the head of product for Reuters.com, a senior editor at The Huffington Post and an associate producer at ABC News. She was named one of Forbes 30 Under 30 in 2012 and chosen by NBC New York as one of the top twenty people to follow on Twitter. Her work has appeared on The Atlantic WireElleJezebelCNBCThe HairpinReuters, and more, as well as in the play “Love, Loss and What I Wore.”

    AndrewLih_270x210Andrew Lih is a new media journalist and associate professor of journalism at the American University School of Communication. He is the author of “The Wikipedia Revolution” (Hyperion 2009, Aurum UK 2009) and is a noted expert on online collaboration and journalism. He is a veteran of AT&T Bell Laboratories and in 1994 created the first online city guide for New York City (www.ny.com). Follow him on Twitter @fuzheado.


    David MeyerDavid Meyer is a senior writer for technology blog Gigaom, mainly focusing on Europe but also covering privacy and other aspects of society affected by technological change. He has written about mobile technology for 8 years and, originally coming from South Africa, he has a keen interest in technology in emerging market.

    zms6Zach Seward is senior editor of Quartz, where he focuses on new forms of storytelling and leads a group of journalists with backgrounds in data wrangling, programming, and interaction design. He previously worked at The Wall Street Journal, first as a reporter covering education and health, then as the editor of outreach and social media. Before that, he helped launch the Nieman Journalism Lab at Harvard, covering the media industry. He also currently teaches digital journalism at NYU.


    The pressure to improve and grow networks is coming down on providers — Time Warner has promised their customers faster speeds as other high speed Internet technologies like FiOS and Google Fiber are breaking into what had been cable- and satellite-dominated territory. Time Warner and Comcast both started as cable TV companies that grew into the phone and Internet business. The growing demand for high speed Internet at home makes Time Warner a desirable acquisition for Comcast, as Internet bills for Time Warner customers have gone up 20% in the last 2 years, while the company has added 336,000 Internet subscribers this year.

    And the U.S. trend is counter to prices in other parts of the world, according to a report from New America Foundation, which found that the best price for higher 150Mps speeds at home was $130/month from Verizon FiOS, while most comparable plans in other cities around the globe were about $50/month. And the cheapest mobile broadband price in the U.S. last year was $30/month from T-Mobile, which is twice what people pay in London at $15/month from T-Mobile. “It costs more to purchase 2 GB of data in a U.S. city than it does in any of the cities surveyed in Europe,” according to the New America Foundation researchers.

    Meanwhile Internet.org announced free, limited mobile broadband in Zambia, with plans to expand to more developing countries. But there are some downsides: New users must create Facebook accounts that act as portals to the web. If users want to venture beyond the Zuckerberg-free zone and into the whole of the internet, you’ve got to pay. This makes Facebook a broker between the developing world and the open Internet, one that can set prices for visiting certain sites or could undermine privacy, according to GigaOm’s David Meyer. Similarly, Google has plans to connect some of the two-thirds of the world’s population who remain offline, spending more than $1 billion on low-orbiting satellites, and a balloon-based delivery system called Project Loon.

    What can average Americans do to push for lower broadband bills? Can regulatory oversight help or is it toothless? And can Facebook and Google ride in to the rescue are do they have too many strings attached?

    Fannie Cohen is the managing producer for the Mediatwits Podcast. Her work has appeared on WNYC New York Public Radio and SiriusXM. You can follow her @yofannie

    Tagged: broadband comcast cord cutting facebook FIOS google internet internet.org net neutrality privacy time warner cable zambia

    One response to “Mediatwits #126: Broadband Internet Costs Rising; Zuckerberg to the Rescue?”

    1. Phillip M Wentz says:

      This goes way beyond content. Plain and simple. The LAW states if you are subject to commercials, content is free regardless of the medium.

      This surprises anyone how!? For years the broadband internet
      providers have asked us to upgrade to their service saying “Look what you can
      do!” Now they want to challenge the FCC and make us pay for downloads when we
      agreed contractually to have a flat rate. It is either a huge scam or big
      mistake on their part. But on the note of content provision, let’s just talk
      about that a moment. If we as consumers have to pay for content we download,
      then the providers need to compensate us for all the commercials and channels
      we watch on cable TV.

      The system was setup so that if you watched commercials, you
      got free programs. Somehow this has escaped the FCC and now we pay for content
      with commercials. These “broadcast” companies say they are broadcast. Yet let’s
      take an example. I like Falling Skies. However I go to their website to watch
      the latest episodes and I’m redirected to content providers that I have to pay
      for to watch it. How exactly is this legal!? Without the cable system most of
      these stations couldn’t exist under what is supposed to the LAW.

      Furthermore, if the content providers want to charge us for
      what we watch on our phones and computers, than I think they need to reimburse
      everyone for the 98% of channels on cable we don’t watch but are forced to pay
      for, for all the time we paid for them.

      This is just corporate greed. And how everyone puts up with
      it is beyond me. And it is government corruption as well.

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