PCCA Journal|1
st
Quarter 2010
34
News Briefs
Continued from page 33
T
he task force gathering data and developing
draft proposals for the Federal Communica-
tions Commission’s National Broadband Plan
has identified critical gaps in the nation’s
policies, programs, and practices that must
be filled before America can take advantage
of the technological advantages that universal adop-
tion and deployment of affordable, robust broadband
can bring. These gaps range across all elements of the
broadband ecosystem, including networks, applica-
tions, devices, and end-user adoption.
The task force developed the list of challenges from
data gathered in a series of nearly 40 workshops and
field hearings, from more than 10,000 comments on
the National Broadband Plan Notice of Inquiry and 15
public notices, and in the analysis of existing studies
and data. The process of gathering and analyzing infor-
mation is ongoing and includes a new survey com-
missioned by the task force that will, for the first time,
provide extensive data about households that don’t
adopt broadband.
The task force is developing a range of options for
consideration by the commission for bridging the gaps
in the pathway to universal broadband. The FCC is
required by the American Recovery and Reinvestment
Act of 2009 to submit the National Broadband Plan to
Congress by February 17.
Following are key gaps identified by the task force.
Federal Universal Service Fund (USF) Structure
Doesn’t support broadband deployment and adop-
tion despite more than $7 billion spent to subsidize
telecommunications annually
The majority of USF funding supports affordable
1.
phone service, not broadband.
The four USF programs (high-cost support for rural
2.
phone service, support for advanced services in
schools and libraries, support for phone service to
low-income families, and rural health care support)
are not coordinated to maximize deployment op-
portunities to fill broadband gaps.
High-cost funding mechanism rewards inefficiency
3.
and funding not determined by broadband needs.
An unsustainable funding mechanism and increased
4.
demands for support have doubled the amount paid
by consumers since 2000.
Accountability is limited for use of high-cost fund
5.
for broadband support.
Broadband Adoption Gap
Increases the cost of digital exclusion to society
Broadband adoption levels vary widely across demo-
1.
graphic groups.
Nearly 90 percent of families with incomes of
2.
$100,000 or more subscribe to broadband services,
compared to 35 percent with incomes of $20,000 or
less.
Rural households are less likely to subscribe than
3.
urban households.
Only 40 percent of Hispanic households subscribe,
4.
followed by 46 percent of African-American house-
holds, while 65 percent of white households sub-
scribe.
Consumer Information Gap
Undermines competition, innovation, and choice
Consumers lack information about actual perfor-
1.
mance of their broadband service compared to the
advertised speeds.
Consumers can’t accurately compare performance
2.
of competing service.
Application providers lack knowledge of network
3.
performance, dampening innovation.
Spectrum Gap
Frustrates mobile broadband growth
Smart phone sales are expected to overtake stan-
1.
dard mobile phones by 2011.
Smart phone subscriptions have increased by 690
2.
percent since 1998, while over-the-air TV viewer-
ship decreased by 56 percent.
Identifying available spectrum, reallocating it, and
3.
assigning it is often a long, multi-year process.
Spectrum is also critical for public safety, telemedi-
4.
cine, smart grid, and civic engagement applications.
Deployment Gap
High costs can limit broadband deployment
“Middle mile” costs for transit and transport of in-
1.
ternet traffic can cost rural providers up to $150 per
subscriber annually, almost three times as much as
network operations, and can be a serious barrier to
rural broadband.
The lack of efficient coordination when digging
2.
trenches for fiber and other expensive infrastructure
FCC Identifies Critical Gaps in
Path to Future Universal Broadband