The FCC Communications Marketplace Report: More Must Be Done to Enable Broadband Competition and Choice
Big kudos to the Federal Communications Commission (FCC) for the release of its Communications Marketplace Report at the end of 2022. There is a lot of new data in the report, and it is great to see these improvements. First, to provide some background, Congress requires the FCC to publish its Report every two years to assess the state of competition across the communications marketplace. In its Report, the agency gives an overview of the various markets it oversees, including fixed broadband (home internet), mobile broadband (wireless), voice telephone, satellite, video, and audio.
This is the first Communications Marketplace Report released under FCC Chairwoman Rosenworcel’s leadership, so none of us should be surprised that there are vast improvements in the information covered. For example, the FCC is reporting prices from the top 11 home broadband providers, showing that the range of prices collected from each provider’s website was consistent with a recent Consumer Reports study. That study finds that the median cost of high-speed internet service was $74.99 per month, and approximately half of the households are paying between $60 and $90 per month.
For the first time, the Report also offers a snapshot of providers that are using data caps for home internet service — three of the top providers do so, as well as 130 additional providers across the U.S., including smaller companies. The Report also includes detail about the technologies offered by the 11 largest home providers. It shows, for example, that Altice has more fiber than cable (coax) technology, and AT&T has more fiber coverage in its footprint than Verizon (37% v. 28%). T-Mobile has made a lot of progress on its home internet coverage with fixed wireless technology — covering approximately 60% of the population. The Report also breaks down home internet subscribership by technology. Not surprisingly, almost 72 million (of about 115 million households) are on cable (coax) — by far the most, and about 24 million households are on fiber, 15 million on copper (DSL), 2.7 million on fixed wireless, and 1.7 million on satellite.
Another improvement by the agency — recognizing that the data it relies on for home (fixed) network coverage has significant limitations. As such, it added a layer of analysis based on whether customers are subscribing to service in the area rather than just relying on providers’ claims that they have deployed their networks and could provide service. In other words, the Report actually considers if customers are subscribing to the service, and it then analyzes this data to show that U.S. consumers lack adequate choice for home internet options. Most consumers only have one or two options of home internet providers, and they often have zero or only one option at higher speeds. At 100/20 Mbps, about 45% of households have two options, while 40% have one. Only approximately 7% of households have three options, and about 7% have zero options. The next tier of speed reported 940/500 Mbps is bleak — only two percent of households have two options. About 60% have no option, and 38% have one option.
The FCC finds that there is insufficient choice for home (fixed) broadband by stating: “[c]urrently available data demonstrates that millions of Americans lack access to high-speed broadband or can only access high-speed broadband through a single provider.” However, the agency claims that “this market is on the cusp of generational change” based on federal investment in broadband deployment and adoption. It also sees promise in 5G fixed wireless service and low earth orbit satellite services — although I would note that only 4% of all home internet subscribers currently take these options. The FCC also touts its work to deliver more competitive choice through policies that enable faster deployment — such as access to customers who reside in multi-tenant environments, which INCOMPAS has fully supported and agrees is important — as well as its implementation of broadband transparency labels that will help customers compare their internet options.
The Report assesses the state of competition for mobile broadband (wireless) separately from fixed broadband and finds that over 94% of the U.S. population live in areas with 4G LTE coverage by at least three service providers and 58% of the population have at least three 5G providers. Citing INCOMPAS’ comments, the FCC finds that many households continue to subscribe to both fixed and mobile broadband service, “suggesting that these separate services offer benefits that are either complementary or independent of each other.” It also notes that mobile-only households have been declining to about 12% and tend to be younger in age and in lower income brackets.
The Report notes that overall the U.S. communications marketplace is in a substantial state of change and re-examination and that the COVID-19 pandemic showed the necessity for broadband connectivity and affordability in the U.S. INCOMPAS supported Congressional investment in broadband during the pandemic, and Congress and the Administration should be commended for investing about $100 billion in funding through the CARES Act, the American Rescue Plan Act, and the Infrastructure Investment and Jobs Act.
The FCC’s Report highlights the need for more action to lower the barriers to building broadband networks. The FCC understands that we need new, fast networks fast. INCOMPAS agrees. Our members are deploying fiber, fixed wireless, mobile, and satellite networks that are delivering more choice to customers and speeding broadband deployment is essential. INCOMPAS advocates at the federal, state, and local levels that to compete globally, the U.S. must deploy gigabit-capable networks that can support fast service at home and on-the-go for mobile 5G (and beyond) service. Also, customers — whether they are residential, business or government — expect to have choices for their broadband provider.
To achieve our nation’s goals of bringing high-speed internet to everyone — what the Administration now calls “Internet for All” — we must embrace streamlined processing and reasonable access at low-cost to public rights-of-way. Speeding access to poles, ducts, and conduits so that networks can be built is hard work, but this effort also will enable competitors who are bringing fiber, fixed wireless, and mobile options to more communities to offer choice where so many customers still need it. Real choice for fast networks will enable greater economic growth for our cities and towns and will help secure our nation’s economic future.
