Jim Henry wrote:

> Just curious, does anyone know if in these countries where 
> broadband is cheaper and more prevalent than the U.S., is it 
> really cheaper or is it subsidized by the government? I honestly 
> don't know the answer.  I would like it to be cheaper here also 
> and more widespread, but not at the expense of free enterprise.  
> If it takes socialism to accomplish this, I don't want it.

I heard that socialism has gone away now that "cialis" is caught 
in the spam filters.  Seriously, though, I have yet to see street 
lights operated on a pay-per-view commercial basis.  Somebody paid 
once-and-for-all to pave and light the streets, and it could be 
tax money.  Does that make it socialism?

In Sweden I pay 320 SEK/mo ($40) for 10 Mbit/s.  This is possible 
because I live in a coop apartment building, where every apartment 
is wired by an ISP, and the in-house switched LAN is connected to 
a municipal fiber in the basement. This ISP (www.bredband.com) was 
founded with venture capital during the dotcom boom and got a 
contract with the largest national association of apartment coops 
(www.hsb.se).  Through this contract, apartment coops that are 
members have a very streamlined procedure for signing up to get 
their apartment buildings wired.

This spring, the ISP is introducing a reduced price 2 Mbit/s 
offering (still over CAT-5 twisted pair ethernet, so I guess it is 
really 10 Mbit/s but bandwidth limited) and at the same time my 
line is upgraded to 100 Mbit/s at unchanged price.

As far as I know, there is no direct government subsidy, but a lot 
of factors work together:

 * Compared to the U.S., more people here live in apartments.  
   People living in private homes cannot get broadband as cheap, 
   simply because wiring a dozen apartments in one building is a 
   lot cheaper than wiring a dozen private homes.

 * Coops is a very common form of apartment ownership in Sweden 
   since the 1930s, and the national associations work pretty 
   well.  The nationwide template contract made it easier for a 
   lot of small coops to sign up, who don't have the technical 
   insights to do their own negotiations.

 * The dotcom boom provided the venture capital for this 
   broadband-only ISP.  You could call this "subsidized by stupid 
   investors".  I guess the stock price has fallen, but at least 
   this company is still around.

 * The old national telco is not involved at all in this solution.

 * The ISP rents dark fiber from the municipal utility between my 
   building and the ISP's facility in this town.  The municipal 
   water, sewer, electricity, and heating utility is operated as a 
   whole-owned corporation (www.tekniskaverken.se) and I don't 
   know exactly how they have financed the build-out of the 
   municipal fiber network.

I guess most of these conditions could also apply to New York 
City, more than to rural or suburban America.


-- 
  Lars Aronsson ([EMAIL PROTECTED])
  Aronsson Datateknik - http://aronsson.se
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