Report: U.S. Broadband Providers' Pay-TV Focus May Be Killing The …

The U.S. risks falling behind on online product innovation because it isn’t gaining a critical mass of subscribers to superfast broadband services (of 25Mbps+). That’s the scenario being painted by the Broadband Stakeholder Group, an advisory group to the U.K. government, writing in a new report 1examining global demand for superfast broadband services.

In a section on services, the report notes that in order to develop a new generation of internet services that utilise superfast broadband speeds Internet companies need a critical mass of subscribers in place before they can launch services — in the same way that demand for first generation broadband prefigured the creation of successive waves of online companies

The problem facing the next wave of U.S. Internet innovators is that uptake of superfast broadband is relatively low — the BSG calculates it’s less than three percent of total U.S. households — meaning it’s a long way from reaching the necessary critical mass of users. Why is demand so low?

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