Last week McDonald’s made news in the Wall Street Journal as a gathering place in a small southern Alabama town for high school students who want to access free Wi-Fi that many of the restaurants provide. And most likely for access to a safe, clean, fun gathering place for group study and projects as well. However, the article implies that the price and availability of Internet connectivity are the barriers for these students gaining broadband access at home. While price may be a barrier for about 17 percent of households, according to Pew Internet, the article needs some context.
A Big Mac and a small Coke with tax go for around $5. Assuming kids might need access three times a week, that racks up to a super-sized $65 a month. In that price range options abound for fixed and wireless broadband, from a 6 mbps cable hookup for $49.95 a month, to a $30 a month phone data plan. But kids might just order the soda off the Dollar Menu, with free refills, and so spend only about $13.65, which would just about be covered by a $10 a month charge to convert a mobile phone into a Wi-Fi hotspot. And at less than $10 a month, cable’s Connect2Compete program offers in-home broadband access.
For those who claim the price would have to come down before they paid for home Internet service, publicly available Wi-Fi may be an acceptable substitute for them, especially if they don’t use the service frequently and until other coverage options become available.
As for access, fixed broadband alone is available to 93 percent of households, with wireless covering much of the same area, and will be nearing 100 percent soon.
To be sure, some areas do not have broadband access yet because the cost to service those areas is higher than what people would pay for access. In those cases, defining the areas as a “Broadband Enterprise Zone,” which encourages broadband build out with tax breaks, combined with replacing subsidies with means-tested support direct to consumers so that they can choose what works best for them, could be a solution.
Ultimately, the unproductive and distracting handwringing over broadband pricing is premature. The rollout is still proceeding apace. Patience and an honest desire to solve problems rather than use proxies to fight for social engineering goals needs to take precedence. Broadband is crucial to the economy, for jobs, and yes, for education. For those who really believe that, the present and future are bright for all.
February 7, 2013