Broadband Deployment Rates Are Generally Comparable across OECD Countries, but Adoption Rates Vary because of Cost and Other Factors

		Broadband Infrastructure Has Been Deployed to Nearly All Households in Developed Countries despite Significant Demographic and Geographic Differences

In 27 of the 30 OECD countries, including the United States, broadband  has been deployed to 90 percent or more of households regardless of  demographic or geographic differences. Broadband Adoption Rates Are Variable and Are Affected by Cost and Demographic Factors

A number of demographic factors, such as population, cost, and computer  ownership, affect broadband adoption rates. Seventeen OECD countries  have broadband adoption rates that exceed the average of 23.3 subscriber  lines per 100 inhabitants, including the United States, at 26.4 subscriber  lines. Stakeholders in Selected Countries Have Taken a Wide Variety of Similar Actions to Increase Broadband Deployment and Adoption

The seven countries we selected as case studies, all of which had achieved  higher levels of either broadband deployment or broadband adoption than  the United States as of the fourth quarter of 2009, have taken similar  actions to increase deployment and adoption—actions that stakeholders  in these countries told us they considered effective. All Seven Selected Countries Have Instituted Broadband Plans, and Leaders Have Emphasized Broadband Initiatives

All seven selected countries have instituted broadband plans. To Increase Broadband Usage among Targeted Populations, Governments in Several Countries Have Provided Digital Training or Offered Subsidies or Both

Research in the United States has shown that portions of the population  do not use and have not adopted broadband Internet for various reasons,  including lack of knowledge, lack of interest, lack of access to a computer,  or inability to pay for broadband service. Recommendations in the National Broadband Plan Generally Reflect Selected Countries’ Actions to Increase Broadband Deployment, Usage, and Adoption

The National Broadband Plan includes over 200 recommendations, which  the plan’s executive summary groups into four areas—(1) designing  policies to ensure robust competition; (2) managing government assets,  such as rights-of-way, to encourage network upgrades; (3) using  government funds to help subsidize both deployment in high-cost areas  and adoption among low-income groups; and (4) maximizing the benefits  of broadband in the sectors government influences significantly, such as  education, health care, and government operations. These four areas are  not identical to the five types of actions we identified in our case-study  countries, but the areas and the types of actions overlap and represent  similar approaches to expanding broadband deployment and adoption. Implementing the  plan’s recommendations will be challenging, requiring the coordination of  multiple public- and private-sector entities. In all seven of our selected countries, public/private partnerships have  helped fund the deployment of broadband infrastructure. Implementing the National Broadband Plan Will Be Challenging

While the United States plans to take actions similar to those of other  leading countries to achieve the National Broadband Plan’s goals of  universal access and increased usage and adoption, implementing the plan  will be challenging. Furthermore, as the Chairman, FCC, has  acknowledged, implementing the plan will require obtaining sufficient  funding and coordinating the work of multiple federal, state, local, and  private entities, among other actions. It remains to be seen whether and  how effectively federal agencies will be able address these challenges and  implement the plan’s recommendations, as well as what the private sector  will do to further deployment and adoption. FCC  provided technical comments, which we incorporated as appropriate. Appendix I: Scope and Methodology

To determine the status of broadband deployment and adoption in  developed countries, we reviewed data collected by the Organisation for  Economic Co-operation and Development (OECD) for the 30 countries  that were members of OECD as of January 1, 2010. The seven countries we selected for case-study analysis were Canada,  France, Japan, the Netherlands, South Korea, Sweden, and the United  Kingdom. To determine how recommendations outlined in the National Broadband  Plan reflect the actions of selected countries to increase broadband  deployment and adoption, we analyzed the results of our case studies and  placed the actions of the 7 countries in five categories. We placed the  actions to increase deployment in two categories—(1) instituting plans  and policies and (2) providing government funding through public/private  partnerships—and the actions to increase adoption in three categories— (3) increasing competition, (4) implementing strategies to increase the  usefulness of the Internet to citizens, and (5) providing digital literacy  training and consumer subsidies.
Why GAO Did This Study

Increasingly, broadband Internet service is seen as critical to a nation's physical infrastructure and economic growth. Universal access to, and increased use and adoption of, broadband service are policy goals stated in the National Broadband Plan, which the Federal Communications Commission (FCC) released in March 2010. Some recent studies indicate that despite achieving nearly 95 percent broadband deployment and globally competitive adoption rates, the United States has moved from the top to the middle of the international rankings. Other developed countries, which have made universal access and increased adoption priorities, rank higher than the United States in these areas, and their experiences may be of interest to U.S. policymakers. GAO was asked to address (1) the status of broadband deployment and adoption in developed countries, (2) actions selected countries have taken to increase deployment and adoption, and (3) how recommendations in the National Broadband Plan align with the selected countries' actions. GAO analyzed relevant information for 30 developed countries that are members of the Organisation for Economic Cooperation and Development (OECD) and visited 7 of these countries selected for their broadband policies and economic or demographic characteristics. GAO also interviewed public- and private-sector contacts in these countries and FCC officials. FCC provided technical comments on this report.

What GAO Found

Broadband infrastructure has been widely deployed in developed countries, but broadband adoption rates are more variable because of cost and other factors. In 27 of the 30 OECD countries, including the United States, broadband has been deployed to 90 percent or more of households, regardless of differences in demographic and geographic factors, while broadband adoption rates are affected by factors such as population, cost, and computer ownership. In the United States, which ranks 15th for both deployment and adoption, broadband has been deployed to 95 percent of households, with 26.4 subscribers per 100 inhabitants--above the OECD average of 23.3. To increase broadband deployment adoption, the 7 countries GAO selected--Canada, France, Japan, the Netherlands, South Korea, Sweden, and the United Kingdom--have taken actions that stakeholders in these countries considered effective. GAO placed these actions in five categories--(1) instituting plans and policies (2) providing funds through public/private partnerships, (3) increasing competition, (4) expanding online services, and (5) providing digital literacy training, consumer subsidies, or both. All 7 countries have instituted some type of broadband plan. To help increase deployment in areas private enterprise views as unprofitable, national or regional governments in all 7 countries have used public/private partnerships. To help increase usage and thus expand adoption, all 7 have enacted policies to encourage competition and have increased the number of government services available online. Several countries have also offered training or subsidies, often targeting populations with low adoption rates. The recommendations outlined in the National Broadband Plan reflect actions taken in GAO's 7 selected countries to increase broadband deployment and adoption. The plan contains over 200 recommendations for FCC, other government agencies, and Congress, which the plan's executive summary groups in four broad areas. These four areas are not identical to the five types of actions GAO identified in the selected countries, but both represent similar approaches to expanding broadband deployment and adoption. For example, the plan calls for adopting strategies and long-term goals, while the actions taken by the selected countries include instituting plans that contain strategies and goals. Similarly, the plan advocates policies to promote robust competition, just as the selected countries have taken actions to promote competition. While the United States plans to take actions similar to those of other leading countries to achieve the National Broadband Plan's goals of universal access and increased adoption, achieving these goals will be challenging. Actions will be required by governments at all levels and the private sector. Furthermore, implementing the plan's recommendations will require coordinating the work of multiple stakeholders and obtaining sufficient funding, among other actions. How effectively federal agencies will be able to address these challenges and implement the plan's recommendations, as well as what the private sector will do to further deployment, use and adoption, remains to be seen.