Hi there,

According to analysts, an alliance between three major personal computer companies and most of the nation’s largest local telephone companies would enable customers to receive internet data over regular telephone lines with speeds much higher than is currently possible.



Error Analysis

1. Use of “with” is not correct here. This gives the sense of “in addition with”. The correct idiom to use here is “at speeds”.
2. Singular verb “is” does not agree in number with plural subject “speeds”.

POE

Choice A: with speeds much higher than is: Incorrect for the reasons stated above.

Choice B: with speeds that are much higher than are: Incorrect. 1. This choice repeats the idiom error of Choice A. 2. “that are” is not needed in the sentence.

Choice C: at much higher speeds as are: Incorrect. The correct idiom is X much higher “than” Y, and not much higher “as” Y.

Choice D: at much higher speeds than that: Incorrect. Singular “that” does not agree in number with plural “speeds”.

Choice E: at speeds much higher than are: Correct.



Even if Choice D had “those” instead of “that”, Choice E still would have been a better choice because “are” after than clarifies the comparison in the sentence.
The sentence says that the alliance would make the internet speed much higher than the speeds currently are. The presence of “are” makes the comparison clear between the current speeds and the speeds that will be in the future.

And yes, you are correct in saying that "speeds" is understood after "are".

Hope this helps.
Thanks.
Shraddha
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