Silicon Valley is fed up with slow Internet speeds

Americans are consuming ever-greater amounts of data online — especially streaming video — and the aging cable network infrastructure is ill-equipped to handle the increased load.

That’s why Internet providers are scrambling to keep up with the demand for data by investing in new infrastructure in the form of fiber-optic lines, a technology made from thin threads of glass or plastic that can carry even more bandwidth than metal cable lines.

The problem with fiber networks is that they’re hugely expensive to install and maintain, requiring operators to lay new wiring underground and link it to individual homes. Since 1996, cable operators have invested $210 billion in broadband networks and other infrastructure, according to the National Cable and Telecommunications Association.

Since there’s little competition in the broadband industry, some industry experts believe that there’s little incentive for broadband providers to dramatically beef up their bandwidth and drastically improve their infrastructure to adequately provide for online video demands.

“These guys are all in harvesting mode — they’ve made their investments and they’re simply reaping the rewards,” said Susan Crawford, a professor at Cardozo Law School.

Silicon Valley, which relies on the Internet as a portal to its customers, is unsatisfied. Just as services like Netflix and massive open online courses never would have been possible on dial-up connections, the technology sector’s services of the future will demand even greater speeds than we have now.

That’s why Google is building out its Fiber network, offering speeds of roughly 1000 megabits, or 1 gigabit, per second. Comparatively, the average U.S. connection speed in the third quarter of last year was 9.8 megabits per second, according to research from Akamai Technologies.

“Abundant high-speed Internet can provide the foundation for economic growth and educational opportunity, and it’s crucial for innovation,” said Google Fiber spokesperson Jenna Wandres. “We believe that the next generation of Web applications will be built on gigabit speeds.”

Google isn’t running a charity, of course. Its Fiber program puts pressure on the broadband industry to upgrade, and gives it a hedge against potential moves by ISPs to charge a toll for delivery of its services.

Netflix, unsurprisingly, runs faster on Google Fiber than on any other broadband provider, according to the company’s speed tracker. It’s unlikely that Google will provide the entire country with broadband anytime soon. But as consumer demand for bandwidth-hungry applications grows and congestion continues to result in slower speeds, don’t expect Silicon Valley to sit on its hands.

Coverage Type: reporting