MORE AMERICANS CONNECTING TO HIGH-SPEED INTERNET, FCC SAYS
The FCC reported that high-speed connections to the Internet increased 18% in the first half of 2003, raising the total of lines in the U.S. to 23.5 million. The increase was 45% for the 12-month period ended June 30, and cable led among service providers in growth. Although the data showed the uptake to be strong, the pace of growth appeared to ebb a bit. High-speed Internet lines connecting homes and businesses gained 18%, to 23.5 million lines as of June 30 from 19.9 million, compared with a 23% increase, to 19.9 million lines from 16.2 million, in the 2nd half of 2002.
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Cable modem service rose 20% in the first 6 months of this year, to 13.7 million lines from 11.4 million, compared with a 24% increase, to 11.4 million from 9.2 million in the 2nd half of 2002. For the full 12-month period ending June 30, high-speed cable modem connections jumped 49%. High- speed connections over asymmetric digital subscriber line (ADSL) technologies gained 19% in the first half, to 7.7 million lines from 6.5 million, compared with a 27% increase, 5.1 million to 6.5 million lines from 5.1 million in the preceding 6 months. For the year, high-speed ADSL surged 50%.
Among advanced services lines, ADSL lines increased 16% in the first half of 2003, down from a 43% advance for cable modem service. In the preceding 6-month period, the rate of growth of ADSL (18%) was slightly lower than cable modem service (22%). For the full 12-month period, advanced services lines -- service lines provided in excess of 200 kbps in both directions -- for ADSL increased 37% and cable modem connections 75%.
Of the 23.5 million high-speed lines in service, 20.6 million served residential and small business subscribers, a 19% increase from the 17.4 million 6 months earlier. For the full 12-month period, high-speed lines for those categories were up 48%.
Of all high-speed lines, 16.3 million provided advanced services, exceeding 200 kbps in both directions. Advanced services lines increased 32% in the first half to 16.3 million lines from 12.4 million. For the full 12 months, advanced services lines of all technology types increased 56%, with 14.3 million serving residential and small business.
The statistics were based on data provided to the FCC twice a year by facilities-based service providers. The Commission adopted the local competition and broadband data gathering program in March 2000 to assist it in monitoring and implementing the deregulatory provisions of the 1996 Telecom Act. For reporting purposes, high-speed lines were defined as those that provided services at speeds exceeding 200 kbps in at least one direction, while advanced services lines were offering speeds exceeding 200 kbps in both directions. Reporting of state-level data is required for providers with at least 250 high-speed connections in service in a state. The statistics included state-by-state, population density and household income information, ranked by zip codes. The FCC is making the full report available at www.fcc.gov/wcb/stats.
Meanwhile, the FCC also released its annual report on local phone competition that said CLECs reported 12% of total residential and small business switched access lines, up from 8% a year earlier. The report was compiled from state-level data that carriers with at least 10,000 switched access lines, or 10,000 mobile wireless subscribers, must file twice a year. The report was based on data filed as of Sept. 1 and reflected information current as of June 30. It indicated 62% of CLEC end-user switched access lines served residential and small business customers, compared to 78% of ILEC lines.
Total CLEC end-user switched access lines rose 9% in the first half of 2003 to 26.9 million lines from 24.8 million, the report said. By comparison, total CLEC lines increased 14% in the preceding 6 months. For the full year ending June 30, the report said CLEC end-user lines were up 24%. End user customers received local phone services through 155.9 million ILEC switched access lines, 26.9 million CLEC switched access lines and 147.6 million wireless service plans.
Not surprisingly, the report documented a decline in the percentage of switched access lines that CLECs were provisioning through resold services. CLECs reported providing 18% of their switched access lines by reselling the services of other carriers, down from 43% in Dec. 1999. They also said they provided 58% by UNEs leased from other carriers, up from 24% in Dec. 1999. The rest of CLEC lines were provided via local loop facilities owned by competitors. ILECs reported providing 27% more UNE loops with switching to unaffiliated carriers at the end of June than 6 months earlier and 1% fewer UNE loops without switching.
Mobile wireless subscribers rose 6% in the first 6 months of 2003 and 13% for the full year ending June 30, the report said.
Separately, the FCC released its most recent monitoring report on universal service from the staff of the Federal- State Joint Board on Universal Service. The report said disbursements among the various universal service support mechanisms topped $5 billion in 2002. Disbursements were 57.1% for high-cost support, 29.7% for schools and libraries, 12.9% for low-income support and 0.3% for rural health care. The report said the percentage of households subscribing to phone service hit an all-time high of 95.5% last year.
The report found that: (1) Total industry revenue for telecom services provided to end users in 2002 was $232 billion, down slightly from $236 million in 2001. Revenue for fixed local service providers was up to $90 billion from $88 billion. For Wireless service providers, that revenue category rose to $77 billion from $69 billion. (2) Total low-income support rose to $673 million from $590 million. (3) Total high-cost support reached nearly $3 billion, up almost $2.6 billion. The report attributed that mostly to the implementation of a new interstate common line support mechanism, which started in July 2002. (4) Schools and libraries disbursement remained at $1.6 billion. (5) Disbursements for rural health care support remained relatively “modest,” with disbursements of $16.5 million up from $10.3 million.