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U.S. Official Says OECD Survey Omits Non-Subscriber Data

The U.S., ranked 15th in broadband takeup in a survey (CD April 24 p1) by the Organization for Economic Cooperation & Development (OECD), said Tues. the methodology behind that ranking may be faulty. In a letter to OECD Secy.-Gen. Angel Gurria, U.S. Coordinator for International Communications and Information Policy David Gross said under-reporting of broadband penetration could affect policy decisions in nations relying on the body for accurate analysis.

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The U.S. had the largest total number of broadband subscribers in the OECD, 58.1 million as of Dec. 2006, the survey found. U.S. broadband subscribers now represent 29% of broadband connections in the organization, it said. Even so, the U.S. ranking dropped from 12th place, now held by Luxembourg, to 15th, according to the OECD.

The survey ignores key factors, relying too heavily on user subscriptions to gauge broadband use, Gross said. To account for OECD member demographics, geography and trends in technology, it also should factor in, among other things, the “remarkable non-subscriber access to broadband services” achieved in the U.S. and other nations, he said. Millions get broadband services through multiple platforms and access points, he said. By ignoring that, the OECD may be failing to consider “tens of millions” of users in America and elsewhere who have broadband but aren’t subscribers.

Gross offered an example. The U.S. has more Internet broadband users and more WiFi hotpots than any other nation, he said. Many hotspots are on college campuses, but the OECD analysis seems to exclude millions of student-age users because they're not “subscribers,” he said. The survey also appears to ignore millions of govt. workers and corporate employees who use broadband in their offices, he said.

The world needs a more balanced picture, Gross wrote: “This point is particularly relevant because the OECD’s analysis is designed to also benefit non-OECD members in many policy choices.” Many developing countries use community centers, grid computing and mobile telephony access to the Internet to “leapfrog their current limitations” and move into the digital age, he said. The OECD should understand more fully the context in which broadband services are being accessed, offered and used, and reflect that information in its analyses, he said.

The OECD Information, Computers & Communications Policy (ICCP) Committee, which authored the broadband penetration study, is starting work on a report on member countries’ success at implementing policies to boost broadband use. In Feb., the OECD Secretariat floated a work plan for comment.

In an April 20 response, the U.S. seconded Australian, Norwegian and other nations’ stated concern over “frequent misinterpretation and misuse of the statistics on broadband deployment published by the OECD.” Data on broadband subscribers per 100 people, as currently presented, “inspire needless competition among the OECD members and are used by many to cast an ill light on many OECD govts., including the U.S.,” the State Dept. document said.

The report’s statistical comparisons of broadband development should include geographic and demographic diversity, the U.S. said. It asked that in drafting its report the OECD consider 3 points: (1) Population distribution may be a key factor for countries’ rankings. Those with more dispersed populations might be expected to have lower broadband populations, so the OECD should create a new ranking which accounts for population distribution.

(2) The demand side of the broadband market should be examined, and the report should compare govt. subsidy of prices, any correlation between subsidies and penetration and whether the subsidies are causing price distortions, the U.S. said. (3) The OECD should emphasize the multiplatform competition present in the U.S. broadband market. The report is expected to be finalized this year.