QUESTION -- U.S. vs. Japan: Residential Internet Service Provision Pricing

[David Farber <dave () farber net>]

Begin forwarded message:

From: jonathan () pobox com
Date: June 28, 2009 10:12:19 AM EDT
To: dave () farber net
Subject: Re: [IP] U.S. vs. Japan: Residential Internet Service  
Provision Pricing

Dave,

I have FIOS at home.  The service is great - speedy and reliable.

I wonder if anyone has data on the marginal cost to Verizon to crank  
up the bandwidth they offer?  If they were to start offering  
100/250/500Mbps to customers over the existing Verizon FIOS  
15/25/50Mbps infrastructure, would they really take a hit?

--
Jonathan Goldstein, Esq.
c: 215-266-5948

THE CONTENTS OF THIS COMMUNICATION
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PRIVILEGE OR THE ATTORNEY WORK PRODUCT
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From:   David Farber <dave () farber net>
To:     "ip" <ip () v2 listbox com>
Date:   06/28/2009 08:00 AM
Subject:	[IP] U.S. vs. Japan: Residential Internet Service Provision  
Pricing






Begin forwarded message:

From: dewayne () warpspeed com (Dewayne Hendricks)
Date: June 25, 2009 4:26:26 PM EDT
To: Dewayne-Net Technology List <xyzzy () warpspeed com>
Subject: [Dewayne-Net] U.S. vs. Japan: Residential Internet Service
Provision Pricing

U.S. vs. Japan: Residential Internet Service Provision Pricing
U.S. Residents Pay More and Receive Lower Speeds
By Chiehyu Li, New America Foundation
New America Foundation | June 23, 2009
<http://www.newamerica.net/publications/policy/u_s_vs_japan_residential_internet_service_provision_pricing
>

                • The following chart lists the price, download and  
upload speeds of
residential Internet services in the U.S. and Japan.

                • NTT (Nippon Telegraph and Telephone) is the major  
incumbent
telephone operator in Japan. NTT has focused on fiber-optic business
while Yahoo! BB (a subsidiary of SoftBank Telecom Corp.) has had first-
mover advantage for DSL Internet. Due to unbundling requirements,
Yahoo! BB and @nifty provide DSL service by renting NTT’s telephone
lines at low prices.

                • Cable/DSL service
                                 • In the U.S., the price for cable  
or DSL (1Mbps-7 Mbps) ranges from
roughly $20-45/month. Comcast has higher speed Internet,
15Mbps-50Mbps, and costs $43-$140 per month
                                 • In Japan, the typical Internet  
speed is higher than the U.S.
(8Mbps-50Mbps), and costs $30-60 per month. J:COM, a large cable
Internet provider, has cable Internet up to 160Mbps, costs $63 ($0.4
per megabit).
                                 • The high-speed Internet market is  
very competitive in Japan.
Customers who pay two dollars more can upgrade from 8Mbps to 12Mbps or
even more. For this reason, customers tend to choose higher speed
Internet because the marginal costs are low.
                • Fiber-optic service
                                 • In the U.S., Verizon is the only  
large provider of fiber-optic
service, FiOS. There are three options of the service, 15Mbps, 25Mbps,
and 50Mbps, $50-$145 per month.
                                 • In Japan, the average of fiber- 
optic speed is up to 100Mbps~1Gbps,
costs from $25 to $56 per month ($0.06-0.7 per megabit) for condo
residences (up to 6 households or so) depending on VDSL/LAN/Fiber
distribution; single house residences are charged higher rates,
$55-67($0.03-0.6 per megabit), which is both much cheaper and much
faster than the U.S.

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