Issue:
SIA supports the widespread adoption of broadband by embracing inter-modal competition between cable, digital subscriber line (DSL), satellite, and wireless.
As a participant in the High Tech Broadband Coalition (HTBC), SIA supports a deregulatory environment that encourages investment in broadband facilities and regulatory parity among competing platforms. In 2003 the Federal Communication Commission accepted the coalition's argument that incumbent local exchange carriers should be allowed to invest in new last-mile broadband facilities without having to share those lines with competitors.
The FCC has also acted consistent with the HTBC's recommendation to establish parity and treat both cable modem and wireline broadband Internet access services as information services subject only to minimal regulation.
As a member of the High Tech DTV Coalition, SIA also supported the passage of a "hard date" of February 17, 2009 for the conclusion of the digital television transition in order to free up critical spectrum for wireless broadband and first responders and provide better TV viewing quality for American consumers.
Importance:
These FCC's "last mile" deregulatory actions has accelerated the transition to universal broadband – from dial-up Internet access of approximately 56 Kbps to current broadband speeds averaging approximately 1.5 Mbps. Broadband subscribership has increased by nearly a factor of 10, from 4.5 million in 2000 to 41.3 million in 2005, while dial-up subscribership peaked at 47.0 million in 2002 and has since declined to about 38.7 million subscribers. Incumbent local exchange carriers and other competitors have begun to invest in deep fiber networks – again, encouraged by the FCC's largely deregulatory actions. As of January 2006, fiber-to-the-premise facilities passed approximately 3.6 million homes, with 550,000 of those homes taking service. The next generation of broadband services supported by some of these investments will be characterized by a rapid increase in speed, from the current 1.5 Mbps to between 15 and 100 Mbps.
Among the many benefits of broadband deployment, innovation has flourished with the introduction of new services for consumers and businesses, such as Voice over Internet Protocol ("VoIP").
While significant progress has been made, the competitor nations have also made great strides in installing broadband infrastructure. According to the Organization for Economic Cooperation and Development (OECD), the U.S. ranked 12th among industrialized nations, with 16.8 broadband subscribers per 100 inhabitants. As recently as December 2001, the U.S. came in fourth in the OECD rankings..
Establishing a date certain for the transition to digital TV will accelerate the release of much needed spectrum for public safety communications and for the auctioning of spectrum for commercial uses. Wireless broadband in rural and underserved areas is anticipated to be an ideal use for the 700 MHz spectrum because this band allows communication signals to travel long distances, substantially reducing the cost of deploying broadband to those communities.
Consumers will enjoy new services, and business will see new productivity improvements, from the continued roll out of DSL and wireless broadband. Over time, the policies supported by SIA will enable investments in connection speeds that are multiples of today's connections.
SIA Position/Action:
SIA will continue to support the deregulatory actions of the High Tech Broadband Coalition (HTBC).
