POWELL CALLS BROADBAND ‘ONE OF OUR HIGHEST PRIORITIES’

Comr. Copps was lone dissenter against endorsing report, saying he was unable to decide whether broadband was, indeed, being deployed in timely and reasonable manner based on this report. He said data compiled by all of agency’s bureaus weren’t detailed enough to make determination. Copps called for Commission to create “broadband action plan” to obtain concrete, nationwide data. Comr. Martin endorsed report, but said he remained concerned that deployment lagged in rural and other underserved areas. He also expressed reservations about report’s measure of “high-speed” as 200 kbps, citing its recognition that speed was “an evolving measure” that perhaps was merely transition to much higher speeds. Comr. Abernathy, who also endorsed report, said gap between “haves” and “have-nots” was narrowing but it wasn’t FCC’s job to increase take rates.

Report came out on same day Consumers Union and Consumer Federation of America issued update on state of telecom services 6 years after Telecom Act. Update said consumers across nation had little choice, high prices and poor service for even basic telecom services. David Butler, spokesman for Consumers Union, said broadband deployment was perhaps timely, but not timely enough, and reasonable, but not quite reasonable enough. He said take rates for many advanced services, particularly high-speed Internet service, had lagged in many places because of high prices. That often is result of monopoly of market, he said.

FCC report said there were 9.6 million high-speed subscribers, 36% increase in the first half of 2001, and 250% jump from agency’s 2nd report, in Aug. 2000. About 7.8 million of those subscribers were residential or small business customers, up from 5.2 million in first half of 2001 -- 51% increase. Some 4.3 million of 7.8 million residential or small business customers were subscribers to advanced services -- 54% increase in first half of 2001. There were 5.9 million advanced services subscribers as of June 30, 2001, up 38% in first half of 2001. The report said 7% of households subscribed to high-speed, up from 4.7% since Jan. 2001 and 1.6% in FCC’s 2nd report.

Report also looked at platforms used and found that high-speed asymmetric DSL (ADSL) lines totaled 2.7 million, up 36%. Cable was leading platform provider, increasing 45% to 5.2 million lines. High speed over satellite or fixed wireless technologies increased at fastest rate, 73% in first half, to nearly 200,000. Of 5.9 million subscribers to advanced services, 3.3 million were for cable modem -- up 52% -- and 1 million for ADSL, 48% increase, with remaining subscribers adopting other technologies. Of 2.7 million high-speed DSL lines, 93% were from incumbent local exchange carriers (ILECs), 86% from Regional Bell Operating Companies (RBOCs) and 7% from non-ILECs.

Looking at deployment, the report found significant “digital divide,” although it said that was narrowing. Researchers said 78% of zip codes in nation had at least one subscriber to high-speed services, up from 73% in Jan. 2001, and 58% of zip codes had many providers. High-speed subscribers were found in 97% of most densely populated zip codes and in 49% of codes with lowest population densities. Among top zip codes ranked by median family income, 96% had high-speed subscribers. But high-speed subscribers also were reported in 59% of zip codes with lowest median family income. However, report said “digital divide” was narrowing -- in FCC’s 2nd report, 42% of zip codes with lowest median household income reported at least one high-speed subscriber along with 91% of codes with highest median income.

Report defined advanced services as high-speed, switched broadband telecom that enables users to originate and receive high-quality voice, data, graphics and video using any platform. Those services and facilities have upstream (customer-to-provider) and downstream (provider-to-customer) transmission speed exceeding 200 kbps per sec. Data in report were gathered from wireline companies, cable companies, wireless, satellite, and any other facilities- based providers of 250 or more high-speed service lines or wireless channels in given state.

As part of Commission’s continuing effort to speed broadband deployment, agency said it planned to open inquiry called the Broadband Notice on classification of wireline broadband Internet access services. FCC said it would examine what regulations, if any, would be appropriate if wireline broadband Internet access services were found to be information services or other services. Commission said it would examine implications for universal service, access and interconnection, and other issues. It already has several proceedings pending on broadband. They include notice to define and set regulatory classification for cable modem service, notice examining the appropriate regulatory requirements for ILECS and review of ILECs’ obligations to make their facilities available to competitors.

AT&T said report data “underscore the irrelevance of legislation like Tauzin-Dingell that purports to solve a deployment problem.” There isn’t deployment problem, AT&T said. Company called Tauzin-Dingell power grab by Bell companies such as BellSouth, SBC and Verizon. Those companies say there are barriers to deployment, that “open access” rules that force them to open their facilities to competitors provide disincentive to deployment. USTA Pres. Walter McCormick said report confirmed his group’s belief that cable companies were dominating market for broadband services by margin of more than 3 to 1. “The FCC should stop imposing its heaviest regulations on wireline providers whose market share trails far behind the dominant cable companies,” he said.

NCTA, meanwhile, issued letter to Congress marking 6th anniversary of Telecom Act and celebrating cable’s $55 billion investment in advanced broadband technologies. “Cable industry investment has resulted in comprehensive deployment of advanced broadband services to more than 70 million homes,” giving consumers choice of video, competitive telephone service and high-speed Internet access, letter said.