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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