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100/20 v. 25/3 - What’s the Difference and Why It Matters Now, More than Ever

100/20 v. 25/3 - What’s the Difference and Why It Matters Now, More than Ever Image Credit: gualtiero boffi/BigStockPhoto.com

Two simple sets of numbers suddenly hold crucial importance in today's world.

How much data do you use daily? Monthly?

Understandably, few of us have an answer. According to an OpenVault Broadband Insights (OVBI) Report, the average U.S. household used over 560 gigabytes (GB) daily in the first quarter of 2023. But talking about broadband technology can be confusing.

We use “gigabytes” to describe the actual data usage or allowance, which a service provider may offer at different caps: A 500GB plan would allow a household to use up to 500 gigabytes of data per month before additional charges apply or slower speeds kick in. Gigabits-per-second describes that speed - the rate at which we can tap into that allowed data at any given moment. For most broadband technologies, we measure that speed in megabytes-per-second (Mbps), but those speeds can vary depending on the type of broadband provider.

Fiber is currently the only technology offering symmetrical gigabyte-per-second upload and download speeds. Cable broadband providers offer asymmetrical speeds: Downloads can reach 1 Gbps, but upload speeds are usually less than half. DSL, the oldest form of broadband technology, offers speeds ranging from the current FCC minimum to their most recently proposed and rejected minimum: 25/3 Mbps to 100/20 Mbps.

But speeds today tell the story: Those who have more get more, and that trend will only continue alongside advancing technology. If we ever hope to eliminate the digital divide, we must redefine minimums and give all homes and businesses a chance to keep up.

The time is now

To change the federal definition of “high-speed broadband,” the Federal Communications Commission (FCC) has to make the call. In 2015, they upgraded their definition to 25/3 Mbps due to “advances in technology, market offerings by broadband providers, and consumer demand.” Five years before that, they boosted it up to 4/1 Mbps from the 1996 minimum of 200/200 Kbps - neither speed would be sufficient today to load an HD video on YouTube. In 2020, FCC Commissioner Jessica Rosenworcel opposed the 25/3 benchmark, but the commission ultimately reaffirmed its applicability.

Since then, a pandemic sped up the digital transformation and more people and businesses are streaming, calling, uploading, and downloading data simultaneously than ever before.

On July 25, Rosenworcel put forth a Notice of Inquiry for a vote to initiate the process of raising the federal definition of broadband from 25/3 Mbps to 100/20 Mbps, but that process could take time. The current FCC commission is short a member at only four, which could result in a deadlocked vote. If the proposal does pass, it still needs to get through the legal red tape, public feedback, adjustments, and approval.

Now that states are about to spend billions in federal funds from the 2021 infrastructure bill on building out high-speed broadband, this definition matters. While the National Telecommunications and Information Administration (NTIA) has already allocated funds to all 50 states based on the old definition, confirming the new one could create pathways to qualify more homes as unserved or underserved and facilitate spending to update more areas. Calling homes “served” with speeds of 25/3 as a metric, on the other hand, creates a false narrative: Ultimately, we will still leave people on the other side of the digital divide.

Technology is changing

So far, technology and society have advanced along a three-ring continuum, starting with the creation of a network, which then drives the creation of new devices to use that network, and finally, the creation of new applications to use the bandwidth on those devices. With gigabit-per-second broadband speeds, we can upload and download more gigabytes, and where these higher speeds are available, users are taking advantage of them. The OVBI Report found average U.S. broadband speeds in the first quarter of 2023 to be over 400/24 Mbps. The number of subscribers receiving speeds of 500 Mbps or faster increased 106% over Q1 of 2022.

Already, businesses using data-intensive AI applications for machine learning, deep learning, and data analytics are more competitive with gigabyte-per-second speeds. Our social landscape has shifted to do more work, learning, and other daily activities from home, increasing our reliance on digital streaming tools to communicate. Home and business plans will grow larger to accommodate greater total usage and more bandwidth-intensive tasks: large file transfers, video conferencing, cloud computing, and security live-streaming; new applications in the mix that we didn’t have only years ago. Soon, the slowest existing speeds will no longer be enough to actively participate in society.

Sooner or later, we have to close the digital divide

One way or another, market forces will shape technology regardless of federal definitions. Most major communications infrastructure built in the last five years has happened through market dynamics, not government investment. A service provider sets up in a certain area, causing a competitor to come in to grab some of that market share, and they ratchet up their offerings to provide more.

Now is the most opportune time to dig up old infrastructure and replace it. On top of billions in public funds about and surging private investment, broadband speeds per bit have never been more affordable, down from $9 per Mbps in 2009 to $0.55 today. That price will likely continue to drop as speeds continue to increase, but upgrading people stuck at 25/3 speeds could cost more money and effort down the line. Ten years from now, gigabyte-per-second services may already be antiquated.

25/3 was a relevant standard during its time, but technology changes. DSL was an upgrade over dial-up modem connections, but its speeds peaked at about 25/3. When faster modes like cable and fiber presented competition, DSL providers resisted but eventually started driving fiber in their networks to stay relevant. Now, the market has shifted again, and soon enough, outdated technology will give in against those forces.

The FCC must prioritize voting to modernize the minimum standard for broadband to 100/20. People living in neighborhoods with 25/3 coverage should stay informed of these proceedings and petition their public officials to consider their communities for high-speed upgrades. Public funding can be a pivotal factor in achieving our goal of universal broadband, but we need to make sure broadband policy keeps up with market dynamics if we hope for it to make a significant impact.

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Author

Cheri Beranek is the CEO of Clearfield, a 2023 EY National Entrepreneur of the Year award winner and a 2021 Minnesota Business Hall of Fame inductee. Under her leadership, Clearfield has grown from a concept to a market cap of more than $500 million providing optical-fiber management and connectivity solutions across North America.

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