|
Washington, D.C. - Today, the Federal
Communications Commission (FCC) released a report
concluding that advanced telecommunications capability is being deployed
in a reasonable and timely fashion overall, although the Commission
identified certain groups of consumers that are particularly vulnerable to
not receiving service in a timely fashion. This is the Commission's second
inquiry, as required by Congress, into whether "advanced
telecommunications capability" is being deployed to all Americans in a
reasonable and timely fashion. Advanced telecommunications capability is
the availability of high-speed, switched, broadband telecommunications
that enables users to originate and receive high-quality voice, data,
graphics, and video using any technology.
The Commission identified the following groups as being particularly
vulnerable of not having access to advanced services if deployment is left
to market forces alone:
- rural Americans, particularly those outside of population centers;
- inner city consumers;
- low-income consumers;
- minority consumers;
- tribal areas; and,
- consumers in U.S. territories.
The data in the report is
based largely on the first systematic, nationwide "Broadband Survey" of
subscription to high-speed and advanced services, begun by the Commission
earlier this year. The Commission's nationwide "Broadband Survey" required
any facilities-based company that provided 250 or more broadband service
lines (or wireless channels) in a given state to report basic information
about their service offerings and customers.
Comparison with data on high-speed subscribership included in the
Commission's first advanced services report issued last year suggests that
there has been appreciable growth in the deployment of high-speed services
to residential consumers. These figures reveal that, although high-speed
services are available in many parts of the country, rural and low-income
areas are particularly vulnerable to not receiving timely access to such
services.
Report Summary The Report answers four basic
questions the Commission laid out in the Notice of Inquiry that it issued
earlier this year:
- What is advanced telecommunications capability?
The
Commission retains its current definition: infrastructure capable of
delivering a speed of 200 kilobits per second (Kbps) in each direction,
while the Commission denominates as "high-speed" those services with
over 200 Kbps capability in at least one direction.
- Is advanced telecommunications capability being deployed to all
Americans?
- There were a total of approximately 2.8 million high-speed and
advanced services subscribers, as of December 31, 1999.
- 1.8 million of these subscribers are residential or small business
customers.
- Approximately 1.0 million of the 1.8 million subscribers subscribe
to services which meet the Commission's definition of advanced
services (services with speeds in both directions of at least 200
Kbps) - this is a three-fold increase from the previous year.
- In the First Report there were approximately 375,000 subscribers
to advanced services as of late 1998. This total consisted of at least
350,000 subscribers to cable modem service and at least 25,000
subscribers to DSL.
- The penetration rate for advanced services more than tripled from
0.3% of households at the end of 1998 to 1.0% at the end of 1999 (the
penetration rate for high-speed and advanced services was 1.6% at the
end of 1999).
- Of the 1.0 million subscribers to advanced services, approximately
875,000 subscribed to cable-based services and approximately 115,000
subscribed to asymmetric DSL, with the remaining balance subscribed to
other media. Compared to the totals in the First Report, cable
companies increased their subscribership approximately three-fold and
local exchange carriers increased their DSL subscribership
approximately four-fold.
- Fifty-nine percent (59%) of the zip codes in this country have at
least one subscriber to high-speed services, and ninety-one percent
(91%) of the country's population lives in those zip codes.
- Is overall deployment reasonable and timely?
- The Commission concludes that the deployment of advanced
telecommunications capability to all Americans is reasonable and
timely at this time, although it identified certain groups of
consumers that are particularly vulnerable to not receiving advanced
services in a timely manner.
- Those outside of population centers, including rural customers,
are particularly vulnerable to not being served by market forces alone
(there is at least one subscriber to high-speed service in 57% of our
sample of small town zip codes, compared to 19% of the most
sparsely-populated zip codes).
- Survey data indicates that low-income consumers are particularly
vulnerable to not having affordable access to high-speed services. Of
the zip codes with the lowest household income, only 42% include a
high-speed subscriber. On the other hand, data show that, of zip codes
with the highest household income, 90% include a high-speed
subscriber.
- While our data indicates many low-income, inner city neighborhoods
are in zip codes with broadband subscribers, we can not tell from our
data if infrastructure is evenly available within these zip codes.
- The survey data, collected by zip code, does not provide the
detail necessary to reveal whether subscribers are members of minority
groups. Consequently from that data, we cannot draw conclusions about
the availability of high-speed services to discrete minority groups.
However, looking more broadly at certain statistics about minority
households, the Commission concludes they provide a strong indication
that minority customers are particularly vulnerable to not having
access to advanced services.
- What actions will accelerate deployment?
The following
recommendations, among others, will promote access to advanced services
for those identified as being particularly vulnerable to not having
affordable access to high-speed services by encouraging competition,
promoting infrastructure investment and addressing the affordability of
advanced services.
- The Commission will examine its rules to ensure that competitors
can access remote terminals.
- The Commission will streamline the equipment approval process for
wireless and customer premise equipment with advanced
telecommunications capability.
- The Commission will continue its commitment to the e-rate and
consider reviewing its program to determine whether it can do even
more to promote high-speed connections in schools, libraries, and the
surrounding communities.
- The Commission will consider making more spectrum available for
broadband services - both licensed and unlicensed.
- The Commission will initiate a proceeding on the issue of whether
to establish a national policy to mandate access by multiple Internet
service providers to a cable company's platform.
Action by the Commission August 3, 2000, by
Second Report (FCC
00-290). Chairman Kennard
and Commissioners Ness and Powell, with Commissioners Furchtgott-Roth and
Tristani concurring in the result, and Commissioners Ness,
Furchtgott-Roth
and Tristani
issuing statements.
CC Docket No. 98-146
-FCC-
Common Carrier Bureau contact: Ellen Blackler at (202) 418-1500
News about the Federal Communications Commission can also be
found on the Commission's web site http://www.fcc.gov/.
|