The arrival of commercial Internet communications in the mid-1990s posed a threat to both the phone and cable companies; eventually, the FCC deregulated the entire sector, thinking that competition among various modalities of Internet access - cable, phone, wireless, satellite - would protect Americans. And in 2002, when the five-year period of deregulation began, there was indeed rough parity in speed and price between the cable companies and telephone companies providing Internet access.

Soon, however, cable companies found a way to upgrade their networks to provide connections perhaps 100 times faster than what was possible over copper wires, and at much lower expense than the phone companies incurred replacing their phone lines.

The American copper wire telephone system is, in fact, becoming obsolete. The physical switches used in the network are reaching the end of their useful lives. But now that cable has won the battle for wired Internet service and consumers are moving to mobile phones for voice service, the telephone companies are looking to shed the obligation to maintain their networks at all.

The United States is rapidly losing the global race for high-speed connectivity, as fewer than 8 percent of households have fiber service. And almost 30 percent of the country still isn’t connected to the Internet at all.

The South Korean government announced a plan to install 1 gigabit per second of symmetric fiber data access in every home by 2012. Hong Kong, Japan and the Netherlands are heading in the same direction. Australia plans to get 93 percent of homes and businesses connected to fiber. In Britain, a 300 Mbps fiber-to-the-home service will be offered on a wholesale basis.

The current 4 Mbps Internet access goal is unquestionably shortsighted. It allows the digital divide to survive, and ensures that the U.S. will stagnate.

n 2011, six Time Warner Inc. lobbyists persuaded the North Carolina legislature to pass a “level playing field” bill making it impossible for cities in that state to create their own high-speed Internet access networks. Time Warner, which reported $26 billion in revenue in 2010, donated more than $6.3 million to North Carolina politicians over four years. Eighteen other states have laws that make it extremely difficult or impossible for cities to provide this service to their residents.

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