The World’s Coming Broadband Divide

Description: Business success, economic development and even international competition is starting to depend on once unimaginably fast Internet speeds.


Date:May 31, 2015


On Tuesday, Charter Communications announced that it would spend, in two separate deals, a combined $67.1 billion to buy Bright House Networks and Time Warner Cable. A big reason for the deal was the opportunity to offer faster online services.

People will watch ultrahigh-definition television programs in one room, the argument runs, while broadcasting interactive video games in another and using a high-speed Wi-Fi terminal in a third. You can charge a lot for providing that kind of capability.   Read Rest of Story 

 Questions for discussion:

1. As Bandwidth has increased over the years can you think of any new or unforeseen businesses that have been created as a result of the increased bandwidth ?

2.  Do you see this “BROADBAND Divide to be an issue of concern for governments and business?  Why or Why Not?


28 thoughts on “The World’s Coming Broadband Divide

  1. Tamara First Charger

    Canada is a developed country, but First Nation men and women living on the Rez tend to be at the lowest end of the economic scale. There have been some efforts made to improve our access to the web through government programs. They have been unforeseen economic opportunities for First Nations.
    The Broadbent Divide is an issue of concern for un-developed countries. Since global upgrades are not even, it negatively impacts poor countries. On the other hand, there are economic opportunities associated with upgrades.

  2. Jennifer B

    We all love internet, and i’m sure i am not the only one who gets grumpy when the video i’m streaming pauses because it’s not downloading fast enough. Sometimes i think to myself i need to get faster internet but then really does it kill me to take a two minute break from obsessive streaming, when i return it’s almost always downloaded and ready for me to watch again. That being said I feel a little skeptical about this article. I believe in the digital divide that we talked about in class, and its importance.Yes the broadband divide will most likely become an issue of concern for governments and businesses in the future.However, I don’t think that countries are going to be worse off and in an economic disadvantage just because they don’t have the fastest of the fastest internet connections. So you can stream super high definition, instead of standard definition. I don’t think that will cause a huge economic disadvantage. But i guess as the internet becomes faster and faster the economy can become more dependent on that faster connection. I mean there are the situations of bidding wars when someone wills by a millisecond, one could attribute that win to a faster internet speed. So i can see how in certain situations it may pay off to have the fastest internet speeds, however, i do not believe anyone will be at a huge economic disadvantage if they do not have the fastest speed.

  3. Dakota Manson

    1. Do you see this “BROADBAND Divide to be an issue of concern for governments and business? Why or Why Not?

    I do see this broadband divide as an issue of concern for governments and businesses. The digital divide is a major problem in today’s economy and this broadband divide only increases its negative impact. We are now living in a globalized world which means we have larger markets in which we must stay competitive in. Small organizations as of now are at a competitive disadvantage when compared with multimillionaire organizations like Walmart since they cannot tap into economies of scale which leads to lower and more competitive prices. Startup businesses in underdeveloped countries will feel the impact most since they are in a critical and vulnerable state. Developed countries with have advantages that include increased productively, improved efficiency and a foot in the door with the ultimate consumer. However, as its stated in the article, “going from zero to 10 is more important than going from 90 to 100” Underdeveloped countries are still establishing themselves in the market and learning and experimenting with technology, as one laptop per child demonstrates. They are essentially playing catch up and we developed countries use technology on a regular basis. This does present issues for under developing countries governments. I guess the saving grace could be the larger players in the game could potentially finance some infrastructure in these developing worlds they within. If these countries governments do not tackle these problems head on, they could miss out on major opportunities for growth!

  4. Taylor Lapierre

    I believe that the “broadband divide” will become an issue for businesses and governments. Even now if a business is planning on competing with current established businesses the requirement for fast internet is sever. However, I do not think that it is detrimental for a developing country to have the fastest internet. In the article someone states that “going from zero to 10 is more important than going from 90 to 100” this makes sense to me. However, the idea of going from zero to 100 just seems unnecessary. This is why i believe before we conquer the “broadband divide” we should focus on the “digital divide”.

  5. Jason Cousins

    I do believe that this broadband divide is a major concern for governments and businesses. I feel the main concern with this divide is the ability for countries and businesses to keep up with broadband improvements within themselves and with each other. The article identifies how different countries reach different levels of broadband; America 16.9 Mbps vs. Africa 14.9 Mbps for example. The article doesn’t identify this problem, but I feel that counties compete with each other to see who can get the highest broadband to show global dominance. This would occur especially between non-friendly countries. I also feel that varying levels will affect global economy in the sense of interrupting global collaboration. If one country or a business in a country has a lower broadband than another country or business, then there will be inefficient business transactions, potentially reducing the amount of potential productivity between the two or having a non-existent collaboration. This problem can also occur even within a business because bandwidth has a major affect on productivity. Meaning if a country does not upgrade its bandwidth, it is not functioning at its highest potential and the company is losing revenue on potential sales. I feel it is important for countries and business who are not on the same broadband level as majority of the others should because of the potential business and global collaboration that can result from it.

  6. Nidhi Patel

    One primary point of concern for governments and businesses around the globe is the digital divide. The growing gap between developing countries and fully-developed first world countries is a hazard on it own. Businesses existing in developing or under-developed countries may have a lack of improvement due to the insufficient Internet resources provided. Areas with high speed broadband have a better chance at improving their businesses in comparison with those who don’t have many resources available to them. With the ongoing expansions and improvements, consumers are always in search of new and upgraded technology through which they can benefit. Nowadays, most households have laptops, smartphones, house phones, televisions, microwaves, ovens, electronic stoves, electric fireplaces. These are all devices that benefit consumers in one way or another. Over half of these devices aren’t available to countries in the eastern part of the world. It should be a government’s responsibility to allow for more resources to enter underdeveloped countries. This might help with the poverty in the according nation as well as businesses that are currently not doing so well.

  7. Nathan Watmough

    I feel a little skeptical about this article. I believe in the digital divide that we talked about in class but I don’t think that countries are going to be in a severe economic disadvantage just because they don’t have super fast internet speeds. Maybe I just don’t know all of the things that I am missing by using a slow internet connection but the only specific example that this article used was that with broadband, you can stream ultra-high-defineition, instead of standard definition. I don’t think that will cause a huge economic disadvantage. But i guess as the internet becomes faster and faster we and the economy will become more dependent on fast internet. Who knows…

  8. Fernanda Oseguera

    It is clear that internet has taken over everything we do. Specially in the western culture (and you can see that just by taking a look at the speed of our internet) Internet has set the bases to a whole new life style. Nowadays is not only businesses that are emerging, but all sorts of organizations; amnd every day this is expanding world wide. It seems that it wont be long before the entire world (and I mean, the most remotes end to earth, too) is connected through the web.
    At the rate the world is moving, having internet connection has gone from being a luxury, to a necessity, and it is clear that that philosophy is moving around pretty quick. Many people each day use the internet to conduct their every day lives and that has facilitated the emersion of what it seems to be thousands of entrepreneurs. Every day we see many businesses coming to life thanks to the facilitating use of the internet. The increase of the bandwidth will only add to the revolution of believing that anything is possible. And to be honest, it seems to be. With the increase of the bandwidth, everything on the internet will be easier to reach and that expands the market of everything to whole new levels. People are forgetting that in the past, internet was not needed but with every passing day, everything is turning into the web and reaching people in higher scales, which is changing the way every business is conducted and perceived.

  9. Wancong Lu

    Broadband divide already become the most important connect system, even it is much important than cellphone. People can use internet to do research, connect their friends, etc.
    It is being more and more helpful for government and any kinds of business. At the ska time, people start to care about the speed about their internet. and it does matter in any organization or person. A good example of this is the military use internet to control their weapon, you can image that lower internet can cause a significant different in target, they may fire that later or earlier, and non of government allow that happen. Also, in the business like stock market, people must check the price of stocks every second in some specific time, if the internet is not fast, those better stock will be sold or bought by some other companies or people.
    The article take about the different speed in different countries and areas. As a result, we can see that developed countries have faster speed, and people can get free and fast internet in everywhere. On the other hand. Development countries have lower speed internet, and it is hard to find free internet in most of their place.

  10. Spencer Boles

    You can stream many things with enough bandwidth. Video games, there are many things that can be delivered via the internet. Years ago things like streaming movies that are now streamed everyday with no problem were a figment of the imagination. The more bandwidth that can be utilized the more possibilities there are for the internet. Pretty soon people will be able to do large volume file transfers over the internet in not time. It will also just make the current thing you can do on the internet faster. Increased internet would be a huge benefit for internet backbone providers to do their job more effectively. Also people can offload large processing tasks to other computers that are not connected by a server or mainframe. This would provide numerous benefits for the government and corporations for thing such as data mining as well as make outsourcing it services better.
    One field it would have a huge impact in is the medical field with things such as remote medical monitoring. Hospitals could literally monitor patients from their homes and receive all of their medical information in real time. Which if they did it now would be and incredible amount of data which could cause the system to lag. Another area in the medical field is perhaps robotics surgeries. It would require an extremely large amount of data for someone to perform a surgery from hundreds of miles away. This could potentially allow specialized doctors to save patient half way around the world.

  11. Ben Lo

    As Bandwidth has increased over the years can you think of any new or unforeseen businesses that have been created as a result of the increased bandwidth? Over the years as bandwidth speed has started to increase there have been new or unforeseeable businesses that have been created. All of the companies that provide some sort of streaming service have been created and this would not have been possible in the past. Streaming sites such as Netflix, Youtube, Pandora music, and etc would not be as popular as it is now if we had the internet speed 10 years ago. The wait time for a tv series to load would be unbearable and would not would. Even loading a music mp3 track would take longer than it is worth. Another industry that prospered from the increase of bandwidth over the years is the video game industry. Video games today mostly need an internet connection in order to play, also the internet connects users throughout the world. For example a North American video gamer could connect to a user across the planet and have good quality connection to play. 10 years ago it was even hard to connect to those that are on the East coast if you lived in the west coast. This bandwidth increase has led to worldwide gaming tournaments and franchises that hire professional gamers to compete for their company. Also customers can buy video games, movies, or even music straight from their homes. Online stores such as Steam and iTunes are new businesses that were unforeseeable in the past due to low bandwidth.

  12. Gordon Entz

    The broadband divide is not a major concern but it is at the very least a disadvantage for some countries. There are countries where the people do not even have food or water much less high speed internet. So even though the digital divide exists and will continue to exist the food,shelter, and water divide is a real divide that exists and should be a way bigger concern.
    The one thing this divide does is it takes away an opportunity to learn as well as other opportunities to make a living that would otherwise be there. As the article points out “its not just the latest episode of House of Cards that people are missing out on. Having access to the internet is essential for many reasons not only for its educational purposes. In an ideal world the broadband is something that everyone wishes didn’t exist but in the countries where it does it certainly is not the most pressing concern.

  13. Katrin Saballa

    Broadband (digital) divide is the inequality in people’s access to information and communication technologies. It can be found within a country where the richer is able to get faster Internet speeds, larger bandwidths and etc., and also know how to utilize the technology available to them. The digital divide can also be found between different countries. For example, countries like Canada and the United States has a more developed broadband connection and more knowledge and access to technology, in general, compared to poorer countries.

    The digital divide exists because each individual is different. We have different incomes, different races, different education and skills, different geographic location, and etc. Faster broadband speeds are available in the market for those who can pay the extra fee for them but not everyone can and that’s where we see the divide. There are several projects around the world that try to conquer the digital divide by providing them the technology needed. However, the digital divide still cannot be eliminated because even though people are given access to technology, not everyone has the knowledge and skills to use the technologies provided for them. Also, their Internet (broadband) connection may not be as good as what we are used to having due to the state of where they live.

    Although it is important to solve the issue of global digital divide between countries, governments of each countries have other problems that can be considered more important than the lack of Internet (digital) prowess in their country. For example, countries like Africa need to eradicate poverty and improve their healthcare system first. They need to think about their people’s state of living before worrying about conquering the digital divide because if people keep on dying, there is no point in having improved technology that no one can use.

  14. Fangbo He

    Atter I read this article, I think that think that the digital divide has already a huge concern for governments and businesses around the world. A digital divide is an economic and social inequality according to categories of persons in a given population in their access to, use of, or knowledge of information and communication technologies. The divide within countries may refer to inequalities between individuals, households, businesses, or geographic areas, usually at different socioeconomic levels or other demographic categories. Broadband Divide is becoming increasingly important to national economies and the personal lives of users. However, broadband availability and adoption are not diffusing in rural and urban areas at the same rates. The global digital divide is a special case of the digital divide, the focus is set on the fact that Internet has developed unevenly throughout the worll causing some countries to fall behind in technology, education, labor, democracy, and tourism. The truth is businesses will continue to improve their productivity, and companies are finding that they can be increasingly productive by implementing tasks used by fast internet speeds.

  15. Raman Sidhu

    Broadband Divide can definitely be seen as an issue of concern for governments and business especially globally. Businesses that exist globally with a lack of improvement with the speed of the Internet may be the most affected. Those areas that are introduced to the fast speed have a better opportunity to increase their business enhancements with new upgrades. As mentioned in the article, “ broadband gets upgraded, expect economic opportunity to follow”, there is continuous change and improvement with technology. With the constant changes and improvements, people are always looking to explore the newest and upgraded developments. There is access to so much more using the Internet today compared to many years ago. Today, it is common for households to be using different entertainment devices within their homes in different rooms for different leisure purposes. Most devices that are commonly used include laptops, smart TV’s, smartphones, tablets, etc. From the ability to stream live TV, games, and videos on these entertainment devices, there is such a high possibility that companies will continue to enhance their services as bandwidth increases.

  16. Kendra Bloomberg

    Yes the broadband divide will most likely become an issue of concern for governments and businesses in the future. The biggest reason for this is that with the broadband divide, many countries and businesses will be at a disadvantage because they will not have the same opportunities as countries with a higher broadband. A slower internet means that these countries won’t be able to participate in online activity important in the global economy. Additionally, over the years there has been a constant increase in the reliance people put on fast internet. Most businesses use the internet for the majority of their affairs and faster internet is important because it helps businesses function’ quickly and more effectively. Faster internet also means a greater competitive advantage over businesses with smaller broadband. This means that businesses with slower internet will be put at a disadvantage and it will be difficult for them to compete with those who have a larger broadband. Additionally, countries with slower internet will miss out on economic opportunities, the opportunity to increase communication efficiency, increase productivity, and increase convenience. All of these factors are important and will hinder businesses and governments in countries who do not have access to increased broadband.

  17. Kim Sikhosana

    I believe that since the bandwidth has increased it has also increase the amount of jobs. I think that now it is easier to find work. Also, there are more options to choose from. As the article mentioned that most people now categorize themselves as freelancers, the increased bandwidth makes it easier to find jobs and they can advertise their business on the internet. I think that the broadband divide should be an issue of concern to the government because it means that those countries who are behind and developing will always be behind. The Western countries will have better access to resources and ways of finding work, while the third world countries continue to struggle to catch up to the developed countries.

  18. Brad Andrus

    I do see the “broadband divide” as being a huge concern for government and business. Progress in technology that relies on an internet connection is rapidly improving and will continue to rapidly change. It should be a concern to government, in most countries, to ensure that their populace is uniformly moving forward and reaping the advantages of faster broadband. However, I do not believe it is the governments responsibility to provide every individual with state of the art internet speed, although I do believe there should exist a minimum level of broadband that each individual should be entitled to regardless of their socioeconomic status. This aforementioned minimum broadband speed should be constantly analyzed and maintained to safeguard against a possible “broadband divide”. I believe this is important because moving forward as a society will increase everyones dependence on the internet and broadband to ensure the management of all their connectable media devices. Soon, when most peoples utilities, appliances, and home security are interconnected, I believe it’s important to ensure them sufficient broadband that isn’t regulated and gamed by corporations to reap money from those on the bottom half of the divide.

    In addition, I believe it’s important for the government to team up with companies like Google, who are attempting to provide incredibly fast broadband to individuals everywhere via satellite. The benefit for google to provide sufficient broadband for relatively no cost through programs such as google fiber means that google gets to safeguard themselves for future use by the internet users and also puts them in a position to venture into becoming an internet provider.

  19. Kayla Rothe

    As the article states, when “broadband gets upgraded, expect economic opportunity to follow”. With this being said, there are constantly new improvements being made within technology. Customers are always looking for the newest improvements, and are now looking to get ultrahigh-definition television. However, a number of individuals are now reaching for their laptops and personal devices for their favourite weekly shows rather than using a traditional television. With this, companies like Netflix or Hulu Plus have definitely taken advantage of the always increasing bandwidth. In class, we looked at an overview of the services Netflix provided to their customers when they originally started up. This is a prime example of how increased bandwidth has proved companies with opportunities to create and expand the services they provide to their customers. In the past, even simply shopping on Amazon or EBay would be a great ordeal in itself. Now, pages are able to load at significantly faster rates, allowing customers to shop with ease.

    I think that the broadband divide can definitely create issues for governments and businesses. It would be a substantial difference to be using a bandwidth of 14.9 Mbps in Africa compared to the bandwidth of over 40 Mbps in Western Europe. I think that many problems could arise when looking at communication between international companies. For example, when doing a video conference, there could be issues with connections if one country’s bandwidth is significantly poorer than the others.

  20. Bola Fowosere

    As bandwidth has increased over the year, it has not only created new opportunities, but has become a huge factor for productivity and efficiency. There are so many things we now do on the internet that we simple could not do years ago. Personally, I simply do not watch TV anymore, but prefer to do things and watch shows that are probably not available on my TV channel. It has also become a great way for this young generation to express their creativity as most people have and are relying on YouTube in making and sharing their creative side and ideas from fashion, style to food and so much more. Sometimes when I get stuck with an assignment especially, an assignments that involve calculations, I simply watch several videos on You Tube to help me out rather than wait the next day or next week for my instructor to explain, which I might probably not understand even he or she explains. As much as we take it for granted, all this would not have been possible. Although it benefit outweighs it risk, it leads to a tremendous digital divide between first and third world countries.

  21. Ajuot

    Yes, the “Broadband divide” is an issue of concern for both governments and businesses. FCC, for example, puts much consideration on the digital divide as the FCC Chairman Julius Genachowski once said in his statement that the “persistent gaps between the digital haves and digital have-nots will be the top priority for the FCC”. By promising to make the digital divide “the top priority” to handle, the government is at least showing its seriousness here. On the other hand, though their goal is not to reduce the digital divide as to that of the governments, the intense competition that businesses are doing in providing internet would provide opportunity to those who could not afford the internet. As they are competing in supplying the best and fastest internet they could, the price will go down and the digital have-not individuals would be able to get internet, too. Thus, the gap is likely to be reduced especially in the developed world.

  22. Krysten Lumsden

    As broadband has increased over the years it has allowed new business to become successful and created new opportunities. When I think of Skype, online video games, Netflix, Facebook, iTunes, Spotify, viral games like Angry Birds and Candy Crusher, YouTube and just the fact that my computer and smartphone have taken over from my TV. Do I even use my TV to watch TV anymore? Hardly. There are lots of other things that we now do on the internet that we take for granted which would simply not be possible without increased broadband.
    I am really looking forward to what the future holds. I mean when really high speeds become the new norm that will be a great time, and by that time what we consider superfast will be the new ‘slow’. Imagine that most everyone can download a movie in mere seconds, or even instantaneously – that will be pretty cool.
    Applications involving virtual reality using the internet will be pretty awesome I imagine. Imagine holographic conference calls where the details are so HD-like that it feels like the person you are talking to is right in the room with you. Imagine the applications for science, medicine, engineering, space and deep sea exploration, not to mention education. With such technology will most people even go to physical universities anymore? Will most people even go into an office to work anymore? Will you need to even go to a hospital anymore, unless something physical is being done that requires your actual presence? I think super high speed broadband and virtually reality will become a match made in heaven that will completely transform the way we live.

  23. Arth Patel

    Digital divide is already a significant concern for governments and business worldwide. The gap between developing countries and the countries like US will grow even more because the need for increase in broadband. Sure people in the developing countries have computes but the type of information they need to even further their understanding in the computer world will still be the same as before. Plus there are far less people in those countries that use computers than in the US. Governments in the established countries should help the developing countries bring in more technology that would enable them to shrink the digital divide gap and I think that this is one of the ways that the world would be more interconnected. For businesses, the use of the internet will continue to grow and the amount of capital invested in the internet will continue to grow as well.

  24. Hongyu Xu

    As Bandwidth has increased over the years,there definitely would be some new or unforeseen business have been created. we can imagine things and technologies would be happen around us. For example, we would have more opportunities to enjoy our leisure time. with the bandwidth, there is going to exist better TV, games, movies. as the article has mentioned that “Much the way a house with broadband can host television, gaming and wireless connections, broadband across a city means that thousands of connected objects, including cars, security cameras, lighting and appliances, can be collectively monitored and managed”. In addition, the bandwidth also enhances the internet by providing high speed. Also, it would provide more virtual job opportunities, with the high speed and efficient bandwidth, company would like to hire more virtual employees, which they can lower the salary expense.

  25. kprusky

    As bandwidth has increased over the years it has brought new capabilities in technology that were not first thought of. The opportunity to stream live TV, movies, games, and just about anything you want to watch is now possible, creating many new companies and jobs who specialize in streaming services. Netflix being the most prominent. Aside from entertainment capabilities, the need for more bandwidth has created the need for more specialized and intuitive IT positions and companies who develop and maintain systems that utilize these fast speeds in their internal processes. Virtual education is now possible with high quality videos streamed directly to a students computer at home, and virtual jobs in general are now being offered by many companies in order to save money and resources. There is a definite global broadband divide, and in the example of Charter Communications creating a new conglomerate of broadband companies, this divide is only going to grow. This poses some issues to businesses and the government. New equipment will always need to be upgraded which is costly, and business that is done between high vs. low broadband capable companies may dwindle. Businesses themselves will continue to improve their productivity, and companies are finding that they can be increasingly productive by implementing tasks used by fast internet speeds. Businesses that operate in parts of the world where these broadband capabilities do not exist will face a constant and declining disadvantage. However, these countries should continue to improve their internet services as the decrease or stagnate the divide.

  26. Tolu Adepoju

    I see this an issue for an issue for government and business. I believe people are always wanting better quality videos faster and more efficient service and this will continue to grow for countries that are not capable yet they won’t be able to maybe participate or receive the service that other people might be getting in another country because of the digital divide and this divide will continue to increase. Government in countries that are behind on technology should look at integrating their society so they are too far behind and are foreign to software that could potentially create better efficiency. A lot of business nowadays are constantly increasing their software and technology to serve their customer better and create serve the market place more efficiently for example the most popular movie and tv show subscription company Netflix streams in less than 5seconds rather than waiting and hours for movies to load . In order of other countries to have this same service the government will need to help create and increase broadband speed by investing in this same technology also. This will not also be useful in the business aspect of this but also healthcare being able to pull customer profile faster and sending information from different facilities to another. Also we are as humans we also looking more, better, faster, improve business and no matter what the cost we also pursue the best technology

  27. Glenn ZoBell

    With the increase of bandwidth it seems like there are more developments to current businesses than new businesses entirely. Internet, satellite and cable companies are constantly improving and updating their systems and the capabilities people can have in their home each year. A few years ago it was the best technology ever to be able to pause and rewind a live TV show, now you can record 6 different shows in different rooms of the home at the same time, and then watch them on any of the TVs that are hooked up. Many companies are improving because of the new high-speed capabilities of the Internet. Netflix used to take hours to download a movie to watch; now you can click on any show and instantly watch it with clarity and speed. If the idea of connected cities does develop successfully over time then that will open a door to many new businesses in being able to use that technology and information for anything.
    The broadband divide is a concern for government and businesses. People may argue whether or not the world would operate more efficiently if it were all on the same level, but in terms of government and business I think it would. MNC’s would have a much easier time with control and coordination if other countries had the same technology and bandwidth as the home countries. I agree that going from 1-10 in a third world country would make a much larger difference in the world than going from 90-100 in America.

  28. Shea Josuttes

    I definitely think that the digital divide is already a huge concern for governments and businesses worldwide. This need for increased broadband will most likely increase this gap between first and third world countries. It’s basically like saying even when poor countries overcome the seemingly impossible obstacle of getting computers to everyone that needs them, it STILL won’t be enough to make a difference for the people in that country because they will still be too far behind to catch up. The opportunities brought about by up-to-date technology and fast internet could be absolutely life changing. Entrepreneurship is key in the developing world and without that technology people won’t be able to put their ideas into motion on a large enough scale to make a difference. People in established nations should definitely feel obligated to help with the digital divide because it can only improve the world’s state overall. I don’t have to the answer as to how to do it but I definitely think it should be a priority.
    As for business here in the first world, it’s only going to need the internet more and more. From video streaming services all the way to jobs and education use the internet profusely so alot of money will continue to lie in internet providing services.


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