Why Switzerland's Internet Speed Leaves America Behind

Why Switzerland's Internet Speed Leaves America Behind

The US has some of the fastest internet speeds among developed countries – but it's still a far cry from the blistering speeds found in Switzerland. According to a report by Cable.co.uk, the average fixed broadband speed in the US is around 143 Mbps, while in Switzerland it's a whopping 1,111 Mbps. To put that in perspective, that's like the difference between a 4K Netflix stream and a 1080p one.

But what's behind this disparity? After digging into the numbers and regulatory frameworks of both countries, I believe the culprit lies in the US's outdated telecommunications infrastructure and its lax approach to internet regulation. Specifically, I argue that the 1996 Telecommunications Act, which deregulated the telecom industry, has led to a lack of investment in fiber optic infrastructure. This, in turn, has stifled innovation and limited access to high-speed internet.

Deregulation and the Lack of Fiber Investment

The 1996 Telecommunications Act was designed to promote competition and investment in the telecom industry. However, its unintended consequence was to lead to a lack of investment in fiber optic infrastructure. A report by the Open Technology Institute found that the Act's deregulatory provisions led to a decline in fiber deployment, as telecom companies shifted their focus to more profitable wireless services. This has resulted in the US having one of the lowest fiber penetration rates in the developed world.

In contrast, Switzerland has taken a very different approach. The country's strong focus on fiber optic networks has enabled the widespread adoption of high-speed internet. According to the Swiss Federal Office of Communications, over 80% of households have access to fiber-to-the-home (FTTH) connections. This is a key factor in Switzerland's much faster average internet speeds.

The Consequences of No Net Neutrality

Another significant factor contributing to the US's slower internet speeds is the absence of net neutrality rules. In 2017, the Federal Communications Commission (FCC) repealed the Open Internet Order, which had established net neutrality as a guiding principle for internet regulation. This has created an environment in which internet service providers (ISPs) can prioritize their own content and services, potentially stifling innovation and limiting access to high-speed internet.

Columbia University law professor Tim Wu has argued that the lack of net neutrality has led to a "fast lane" and "slow lane" internet, where ISPs can charge extra for prioritized traffic. This can create a barrier to entry for new companies and innovations, as they may not be able to afford the premium rates demanded by ISPs.

A Contrarian Perspective

Some argue that the US's slower internet speeds are not solely due to regulatory and infrastructural issues, but rather the country's larger geographic size and more complex demographic landscape. A study published in the Journal of Regulatory Economics suggests that the US's slower speeds are actually a result of its unique geography, which makes it more difficult to deploy high-speed internet infrastructure.

However, while this perspective has some merit, it doesn't explain why other countries with similar geography, such as Canada and Australia, have managed to achieve faster average internet speeds. Furthermore, the study's findings are based on a narrow definition of "speed" and don't account for the quality and reliability of internet connections.

What Most People Get Wrong

One common misconception is that the US has a "free market economy" when it comes to internet regulation. While it's true that the US has a more laissez-faire approach to regulation, this doesn't mean that the market is entirely free from government intervention. In fact, the 1996 Telecommunications Act was a deliberate attempt by the government to shape the telecom industry and promote competition.

Furthermore, many assume that the US's slower internet speeds are simply a result of "bad luck" or "circumstance". However, as we've seen, the issue is deeply rooted in the country's regulatory and infrastructural framework.

A Path Forward

So what can be done to address the US's slow internet speeds? I argue that the country needs to take a more proactive approach to promoting fiber investment and net neutrality. This could involve revisiting the 1996 Telecommunications Act and implementing stricter regulations to promote fiber deployment.

Additionally, the government could establish a national broadband strategy that aims to bring high-speed internet to rural and underserved areas. This could involve investing in fiber optic infrastructure and providing incentives for private companies to deploy high-speed internet networks.

In conclusion, the US's slow internet speeds are not just a matter of circumstance, but rather a result of the country's outdated telecommunications infrastructure and lax approach to internet regulation. By taking a more proactive approach to promoting fiber investment and net neutrality, the US can catch up with Switzerland and other countries and provide its citizens with the fast and reliable internet they deserve. To start, policymakers should focus on revisiting the 1996 Telecommunications Act and implementing stricter regulations to promote fiber deployment.