Delaware city wants to compete with world’s fastest Internet speeds

[September 01, 2015]  By Josh Peterson / September 1, 2015
 
 
 NEWARK, Del. — In addition to what seems to be an already saturated broadband market, Delaware residents also have some of the fastest broadband speeds in the nation.

A report by Akamai Technologies published in the spring found that Delaware residents enjoy the fastest peak Internet speeds in the nation, averaging 75.4 Mbps.

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According to a Washington Post analysis of the Akamai report, the Delaware had the third fastest Internet speeds in the world, coming in behind Hong Kong and Singapore, even beating out South Korea, a country regularly praised for its fast broadband speeds.

And BroadbandNow.com, an Austin-based broadband research firm, states that 96 percent of Delawareans “have access to 100mpbs or faster broadband.”

Watchdog.org previously reported that Newark was in the exploratory stages of a project to potentially deploy a government-funded broadband network, with city officials acknowledging that the phase could extend well into the next year.

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While Newark’s current research cites revenue for the city as one potential reason for deploying a government-funded network, another reason the city is looking to do is compete with Verizon and Comcast – two of the area’s major providers for consumers.

BroadbandNow.com showed that Newark “has a total of 17 Internet providers including 2 Cable providers, 4 Copper providers, 4 DSL providers, 2 Fiber providers, 5 Mobile providers.”

Comcast XFINITY subscribers pay nearly $80 per month for download speeds of up to 105 Mbps; Verizon FiOS subscribers $55 per month for download speeds of up to 50 Mbps.

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Advocates favor government-funded networks as a way to increase Internet access in underserved areas and offer competition for major incumbents; critics warn high-infrastructure costs and failed projects ultimately harm taxpayers.

Roslyn Layton, a visiting fellow at the American Enterprise Institute’s Center for Internet, Communications, and Technology Policy, told Watchdog.org, “I would say that the price people pay for broadband from private providers in Newark is one of the best values of anything they consume.”

“What people pay for connectivity is less than housing, energy transportation, food, clothing, and discretionary vacation. If Newark city council knew anything, they would look at the items that take a greater portion of its residents income,” said Layton.

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But the best of intentions also could be counterproductive for consumers and desired economic growth.

“In my observation when a municipality sets up a broadband network, it creates a dead zone where no private provider wants to invest,” said Layton.

Disclosure: Ed McFadden, Verizon Communications’ vice president of external communications, is a board member of Watchdog.org’s parent organization, the Franklin Center for Government & Public Integrity.