The FCC recently announced that Broadband companies are not deploying high-speed internet fast enough. With the new consumer demand for media online the FCC upgraded the previous definition of broadband from 4Mbps/1Mbps to 25Mbps/3Mbps. This is a substantial increase in the minimum requirements to qualify as a broadband provider. They estimate that around 17% of the population in America don’t have access to broadband internet under the new definition and that the ISP’s are not deploying internet fast enough to supply internet to customers.

What does this mean?

Well it means that DSL and cable companies have to offer higher speeds at affordable rates if they are to comply with the new broadband requirements. DSL companies are going to be hit particularly hard because DSL lines run off existing phone lines which don’t have the capacity to transmit that much data. This requires them to lay additional lines to reach customers which is a costly endeavor. Cable companies will also have to extend cable lines to more customers, but they have the capability of offering high capacity lines to current customers. The FCC wants people to have access to high speed internet, but they are only looking at the choices people have for internet. Basically as long as your cable/DSL provider offers 25Mbps/3Mbps your area has broadband internet regardless of whether or not you choose to buy it. This FCC ruling helps push ISP’s to provide the option of higher speed internet to currently undeserved areas.

This also helps create some competition which has been lacking for the past decade or so. For instance in my area we have two choices DSL/Cable, DSL only offers 4Mbps/1Mbps where cable offers up to 50Mbps/5Mbps. With this ruling DSL might start offering higher service because they are no longer “broadband” which makes them compete with the cable companies. There is no choice in my area, you either get cable or you deal with slow internet. Now this is even more true for area’s who don’t currently have anything other than DSL. If you only have the one option for internet this is great news because either DSL will increase their bandwidth or cable will start making a moving towards your direction, at least in theory.

The FCC has the authority to take “immediate action” if broadband is not “being deployed to all Americans in a reasonable and timely fashion”. So I suspect we will see companies fighting the FCC over the next few years but eventually giving in and providing high-speed broadband to more customers.