According to a study released by the Communications Workers of America, the average Internet download speed in the United States is improving, but it is still slower than in 27 other countries. The CWA (News - Alert) study pegs the average download Internet speed in the United States at 5.1 Mbps in 2009, an increase of 1.6 megabits per second from 2007. 

 

In-Stat's (News - Alert) annual survey of U.S. consumer broadband speeds likewise puts U.S. average download speeds at 5.6 Mbps, quite close to the CWA's 5.1 Mbps.

 

However, In-Stat believes measuring raw broadband speeds across nations is less meaningful than many often suppose. For example, population density and population distribution both play an important role in determining national broadband speeds, In-Stat says.

 

"It is much easier to deliver higher-speed broadband services in a metropolitan area like Tokyo or Seoul than it is in suburban or rural areas of the US, where the majority of the population resides," In-Stat says.

 

"In addition, broadband speeds are often a function of demand, something that is usually ignored in these country comparisons," says In-Stat. For example, consumer demand for speedier broadband services almost always drives increases in bandwidth.

 

In that regard, note that In-Stat's February 2009 report on broadband services showed that 78 percent of U.S. broadband subscribers were "satisfied" with the speed of their current broadband connection, In-Stat says.

 

So while there certainly are countries where demand for higher broadband speeds is strong, In-Stat does not see that kind of demand trend in the U.S. market.

 

Most critics of U.S. broadband criticize availability, speeds, price or some combination of the three. None of those measures speaks to demand for broadband. The analogy is arguing that not enough U.S. consumers buy luxury automobiles, and that therefore more luxury automobiles must be produced, prices reduced and more dealerships opened.

 

In-Stat's research is a demand-focused look at the situation, not a supply-focused look at the "problem." Other studies suggest that just about everyone in the United States who uses the Internet already buys broadband. About 90 percent of all at-home users already buy broadband, not dial-up service.

 

One statistic most people are not aware of is that although consumers in the United States pay about 2.2 to 2.5 percent of household incomes on all communications services, Japanese consumers pay nearly seven percent of their household incomes on communications. Japan is a leader in broadband, no doubt. It also is a leader in many mobile applications, at least when measuring usage. But Japanese consumers also spend 300 percent more than U.S. consumers on their communications services.

 

Supply is an issue, but demand might be the dominant driver.

 

Incremental investments in broadband speeds will continue, of course. But when 80 percent of customers indicate they are satisfied with the speeds they already are getting, it might be difficult to justify across-the-board increases that might or might not satisfy the other 20 percent. Sure, all things being equal faster is better. But price is an issue.

 

Most service providers who actually sell 50 Mbps services say demand is limited, at best, for example.