Why Internet connections are fastest in South Korea

People in the United States basically invented the Internet. So U.S. connections must be the fastest and cheapest in the world, right?

Not so much.

Broadband Internet speeds in the United States are only about one-fourth as fast as those in South Korea, the world leader, according to the Internet monitoring firm Akamai.

And, as if to add insult to injury, U.S. Internet connections are more expensive than those in South Korea, too.

The slower connection here in the U.S. costs about $45.50 per month on average, according to the Organization for Economic Cooperation and Development. In South Korea, the much-faster hookup costs $17 per month less. An average broadband bill there runs about $28.50.

So why is U.S. Internet so much slower and pricier than broadband connections in South Korea? The question is timely, as the U.S. government pushes forward with a "broadband plan" that aims to speed up connections, reduce costs and increase access to the Internet, especially in rural areas.

Korean competition

Countries with fast, cheap Internet connections tend to have more competition.

In the U.S., competition among companies that provide broadband connections is relatively slim. Most people choose between a cable company and a telephone company when they sign up for Internet service.

In other countries, including South Korea, the choices are more varied.

While there isn't good data on how many broadband carriers the average consumer has access to, "I think we can infer that South Korea has more [competition in broadband] than the United States," Faris said. "In fact, most countries have more than the United States."

Some academics, including Yochai Benkler, co-director of the Berkman Center, have criticized the U.S. government's broadband plan as not doing enough to create the kind of competition that is present in other countries.

In a New York Times editorial, Benkler says competition will reduce costs for broadband consumers.

"Without a major policy shift to increase competition, broadband service in the United States will continue to lag far behind the rest of the developed world," he writes.


Culture and politics

There are stark cultural differences between hyper-connected Korea, where more than 94 percent of people have high-speed connections, according to the OECD, and the United States, where only about 65 percent of people are plugged into broadband, according to an FCC survey.

The South Korean government has encouraged its citizens to get computers and to hook up to high-speed Internet connections by subsidizing the price of connections for low-income and traditionally unconnected people.

One program, for example, hooked up housewives with broadband and taught them how to make use of the Web in their everyday lives.

Parents in Korea, who tend to place high value on education, see such connections as necessities for their children's educations, said Rob Atkinson, president of the Information Technology & Innovation Foundation.

These cultural differences mean Korea has a more insatiable demand for fast Internet connections, he said. That demand, in turn, encourages telecommunications companies to provide those connections.