I think that's the difference - the costs are upfront, not paid by capital/loan with the subscriber having to pay for it eventually.
Rationally, most people wouldn't want to pay that much into a US cable/net provider, considering their historical experience with them.
At that level of competition, it could easily drive the prices down into the $10-20 range for high bandwidth, which would probably break even with current cable internet prices now.
I pay nearly $100/mo for 300Mbps/20Mbps since I have about 9 active users in my home. I pay about $1.2k per year in internet, so $1-2k upfront for cheaper monthly pricing and more competitive features.
What you describe sounds like a great model. It'd be very difficult to do it in the U.S.
What do carriers in Sweden do with people who can't afford to pay the up front fee?
EDIT: Looking at Stokab, it looks like they don't require an up-front payment. But Stokab built its network over two decades, starting out in the core city and expanding based on market demand: https://ec.europa.eu/digital-single-market/sites/digital-age.... That model is illegal in almost every city in the U.S. Any carrier must agree to wire up a whole city on a very short timeline, even areas where there isn't sufficient market demand. Verizon was given less than 8 years to wire up all of New York City.
Stokab is a municipal and non-profit carrier and almost all cities have one of those, competing with the private carriers. The municipal often requires 70% + coverage, witch is very hard to get in a small non tech village with old people. Stokab is a bit different because they have about 1.5 million people living in their area witch is dense compared to the rest of Sweden.
The private carriers don't even bother if they can't get a few hundred subscribers in the area. So if you live in a small village, but not small enough to get a government grant it can be though.
When you start digging up the streets you must allow competitors to also join, so when one carrier has decided to start digging, you often get offers from other Carriers too, with a slightly lower price. So there's usually many carriers in the same area.
There's probably a reasonable market doing this at $10-20k/house. There's clearly a market for multi-family dwellings like condos/apartment buildings (webpass, condointernet, etc. have shown), but maybe the next step will be neighborhoods pre-wired with fiber to some kind of switchbox with your choice of carrier coming in.
Wat. NYC is over 10k/km^2. Manhattan is over 25k/km^2.
https://en.wikipedia.org/wiki/Baltimore%E2%80%93Washington_m...
I mean some people talk about the Northeast megalopolis. https://en.wikipedia.org/wiki/Northeast_megalopolis Boston, New York City, Philadelphia, Baltimore, Washington DC, and some times Richmond. But, that does not mean Boston and DC are somehow the same city.
Not it does not, that is the "Tri-State" area. I have never heard anyone use the term "NYC Urban area." What you are saying makes it sounds as if those places are suburbs of New York City and none of them are. New York City is 5 boroughs.
Also I think you are confusing Manhattan and New York City. Half the daily population of Manhattan are commuters:
http://cityroom.blogs.nytimes.com/2013/06/03/commuters-nearl...
The only metric that matters when building a network is linear route miles of cable per subscriber needed to provide service.
There is a single metric you can use to approximate this for any country: people per mile of road. Every (on-grid) dwelling and business is on a street or a road, so if you put a fiber cable on every road or street, then you will pass every inhabitant in the country.
Sweden has 10 people per mile of road. The US has 30 people per mile of road.
Sweden simply does better, despite having to deploy more infrastructure to provide service.
Also, it looks like you're counting Sweden's vast unpaved road network, which makes up about 75% of its roads. I bet very few of the 60% of households with fiber live on an unpaved road. If you compare paved roads only, the U.S. and Sweden have the same linear density. And even then, it's much less expensive to connect two dense urban areas at either end of a 100 mile road than to serve sparse suburbs and exurbs along a 100 mile stretch of road.
Firstly, Sweden pretty much intends to do so. The official goal is to bring at least 100 Mbps service to at least 90% of the population by 2020. Many municipalities/states have programs to build out fiber to everybody.
Sweden also already has a cable running to almost every premise, so in practice every road and every street is already passed. In 2011 xDSL covered 98,5% of the population and only 1100 households or businesses had no service or less than 1 Mbps service.
Secondly, it's an estimate, but it's a far better estimate than population density or any other single metric presented so far. It correlates with the linear miles of cable needed to pass all premises, which is the deciding factor in determining costs. It is also readily available and it measures compratively how hard it would be wire up a nation.
By this measure Sweden does far better, even having a need for more infrastructure per inhabitant to reach the same end result, i.e. broadband service for everyone.
Is this just a guess or do you have anything to back this up with?
> You could probably cover 98.5% of the population without covering much of the road network.
Here's a map of xDSL coverage: http://www.europarl.europa.eu/document/activities/cont/20110...
Let's see how you propose to cover that land area without also covering much of the road network.
Looking at the map, the northernmost county has barely any HSPA coverage. Nevertheless that county has a population of a quarter of a million inhabitants. To get 99.6% coverage, you'd still have to cover over 200 000 of those and everybody else in the country. That's clearly impossible as 100 000 inhabitants in that county live outside the ten largest "metro" areas.
There's just no way of not covering a lot of roads if if you aim for coverage in the high nineties with such a dispersed population.
That's a fair point.
> And even then, it's much less expensive to connect two dense urban areas at either end of a 100 mile road than to serve sparse suburbs and exurbs along a 100 mile stretch of road.
Not necessarily. Build costs in dense urban areas are high, but there are more subscribers. Suburbs and exurbs are cheaper to build per mile, but have less customers. It averages out fairly well.
While this is probably true in an absolute sense, Sweden is also a much smaller, more homogeneous country than the U.S.; I don't think governments scale very well, so a small affluent country can likely be more nimble and innovative than a large affluent country (think startups vs enterprises).
Democracies aren't businesses. Getting some kind of consensus from a huge, diverse populace is hard. I think you end up with diseconomies of scale.
> If there are diseconomies of scale then you can organise it at the state level or municipal level
This requires the federal government to now maintain 50 distinct sets of policy, or delegate to regional bureaucrats. Both of these are diseconomies of scale.
These kinds of problems are hard to solve within a large enterprise with a hierarchical power structure; the United States is a much larger, more diverse entity with a distributed/consensus-driven power structure.
The argument that it is merely an option assumes that you are able to rationally choose the best option from the ones available. Not the case when we're talking about government. And the larger the government, the more political power is at stake, the less rational the decision making becomes.
Sometimes you can get DSL, but since Verizon employees get fired for fixing outages now, that will be gone soon.
http://arstechnica.com/information-technology/2016/10/verizo...
"The wireless home phone service, VoiceLink, is not a proper replacement for copper phone lines because it doesn’t work with security alarms, fax machines, medical devices such as pacemakers that require telephone monitoring, and other services, the union said."
Really? Verizon should be maintaining and repairing obsolete infrastructure so people can keep using fax machines? GMAFB.
There isn't that much fiber in the forests, but anywhere there is a city there is. Sweden has a goal to give 90% of the population fiber before 2020 even if that is probably not going to happen.
You can use the same trick to come to the surprising conclusion that LA is denser than NYC. Population-weighed density is definitely a better way to measure density if you want numbers that reflect intuition about how dense a place "feels" rather than merely reflecting what arbitrary political boundaries were chosen
If they're actually uninhabited, then there is no need to build fiber out there, and you shouldn't count them in the density measure. What you're really interested in is the population-weighted density (i.e. the density of the places where people live).
Compare the list of U.S. urban areas to that of Sweden: https://en.wikipedia.org/wiki/List_of_urban_areas_in_Sweden; https://en.wikipedia.org/wiki/List_of_United_States_urban_ar.... The vast majority of the population of Sweden lives in urban areas with between 2,000 to 3,500 people per square kilometer. No urban area in the U.S. is as dense as Stockholm's (3,500). NYC is at the low end of that range (2,000), and is less dense than a bunch of Swedish cities with just ~50-100k people.
Major U.S. urban areas like Atlanta, Boston, Charlotte, and St. Louis are under 900 people per square kilometer. Major cities like Houston, Dallas, and Philly are just north of 1,000. That's 1/3 the density of Stockholm.