On Wednesday, President Obama spoke about access to faster Internet nationwide in a warehouse in Cedar Falls, Iowa. The President has pushed for such reforms in the past, but today’s speech was good news for proponents of cheaper and faster Internet.
President Obama commended the community of Cedar Springs in his speech for the community’s efforts to invest in local broadband infrastructure. The city’s effort to invest in Internet as a utility has resulted in fast Internet for cheaper prices. Competition between the local and private Internet service providers has been beneficial for the citizens. However, not all communities are allowed to do the same, according to the President. Currently, 19 states have laws that do not allow for such competition.
The White House released a report in January that detailed the President’s views and reasons for promoting faster Internet speeds. President Obama hopes to promote more competition between Internet service providers, as well as establish infrastructure for fast Internet in rural areas of the United States.
“Competition has also been slow to emerge at higher speeds. Nearly forty percent of American households either cannot purchase a fixed 10 Mbps connection (i.e. a wired, land-based connection), or they must buy it from a single provider. And three out of four Americans do not have a choice between providers for Internet at 25 Mbps, the speed increasingly recognized as a baseline to get the full benefits of Internet access,” the report stated.
“Affordable, reliable access to high speed broadband is critical to U.S. economic growth and competitiveness,” continued the report. “Many markets remain unserved or underserved. Others do not benefit from the kind of competition that drives down costs and improves quality.”
Internet speed, according to the President, must improve for the sake of the American people. Faster Internet speeds help promote investment and commerce, according to the report. “Economic studies confirm that broadband Internet creates significant value for consumers and makes an important and rapidly growing contribution to GDP,” it stated.
Back in November, the President promoted net neutrality, which prevents Internet service providers from bottlenecking Internet speeds, and reclassifies the Internet as a utility. President Obama encouraged the Federal Communications Commission to adopt new rules protecting net neutrality. The FCC will decide on new regulations in February.
“Without strong competition, providers can (and do) raise prices, delay investments, and provide sub-par quality of service. When faced with limited or nonexistent alternatives, consumers lack negotiating power and are forced to rely on whatever options are available. In these situations, the role of good public policy can and should be to foster competition and increase consumer choice,” stated the report.
