August 2009
Cable and Telecommunications Policy Newsletter
In This Issue
NTIA BROADBAND MAPPING UPDATE
FCC TELEPHONE COMPETITION REPORT
FCC HIGH SPEED INTERNET DEPLOYMENT REPORT
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NATIONAL BROADBAND MAPPING UPDATE
 
Earlier this month, the National Telecommunications and Information Administration (NTIA) issued a clarification regarding the type of data that will be collected under the federal State Broadband Data and Development Grant Program.  In its initial publication of specifications for grant applications under the program, the NTIA stated that applicants for broadband data mapping grants would be required to collect and provide the following information to the NTIA:
 
1.  Broadband Service Availability by Service Address.  For each facilities-based provider of broadband service, grant applicants had to commit to providing the NTIA a list of all addresses at which broadband service is available to end users.  Due to concerns raised by industry, this requirement was modified.  Grant recipients are now only required to provide a list of all census blocks of no greater than two square miles in area in which broadband service is available to end users.
 
2.  Residential Broadband Service Pricing - Average Revenue per End User and Weighted Average Speed.  The initial specifications issued by the NTIA required grant recipients, for each broadband service provider in the state, to provide:  (a) average revenue per end user for residential subscribers; and (b) subscriber-weighted nominal (advertised) speed.  Under the NTIA's clarification, grant recipients are no longer required to report average revenue per end user.  Grant recipients are still required to report weighted average speed.
 
3.  Broadband Service Infrastructure in Provider's Service Area.  Under the initial guidelines, grant recipients were required to provide: (a) a list of the locations of last mile connection points (i.e. head ends and central offices); and (b) a list of middle-mile and backbone interconnection points.  Under the NTIA's clarification, grant recipients are no longer required to provide last mile connection points.  Grant recipients are still required to provide middle-mile and backbone interconnection points.
 
4.  Community Anchor Institutions.  Grant recipients are also required to provide NTIA a list of all community anchor institutions in their state.  "Community anchor institutions" include such institutions as schools, libraries, medical/health care facilities, public safety facilities, and universities.
 
The NTIA expects grant recipients to provide substantially complete data sets for each state by November 1, 2009.  Grant awards announcements are expected by September 15, 2009.  Connected Minnesota has been certified by the Governor's office as the state's designated eligible entity to perform broadband mapping and provide data to the NTIA.

Links:  Initial NTIA Broadband Mapping Notice of Funds Availability
             NTIA Broadband Mapping NOFA Clarification

 
FCC REPORTS ON TELEPHONE COMPETITION
 
The FCC recently issued its report on competition for local telephone service.  In Minnesota, as of June 30, 2008, the FCC reports that CLECs have a 22% share of the local telephone market.  This figure has leveled off after increasing significantly since the adoption of the Telecommunications Act of 1996.  In 2001, CLEC share was 11%.  CLEC market share reached a high of 24% in December 2005, but has since hovered at roughly the same percentage.  According to the FCC's report, as of June 30, 2008, Minnesota has 8 wireless carriers serving nearly 4.2 million people.  The number of wireless subscribers in Minnesota has more than doubled since 2001.  Competition among CLECs and ILECs in Minnesota is not very widespread geographically.  31% of Minnesota zip codes have no CLEC competitor.  32% of Minnesota zip codes have between 1 and 3 CLECs.  20% of Minnesota zip codes have ten or more CLECs.

Link:  Local Telephone Competition Report

 
FCC REPORTS ON HIGH-SPEED INTERNET DEPLOYMENT
 
The FCC recently issued its report on the deployment of high-speed internet services as of June 30, 2008.  Nationally, the number of advanced service lines (at least 200Kbps x 200Kbps) increased from 80.3 million lines to 88.4 million lines during the first half of 2008.  From June 30, 2007 to June 30, 2008, the number of high speed lines increased from 69.9 million to 88.4 million lines, an annual growth rate of 21%.  Cable has about 42% of this market, DSL, about 30%, and 23.9% of advanced service lines are provided using "other technologies" according to the FCC.
 
In Minnesota, the FCC reports there are 101 providers of "high-speed" lines (at least 200 Kpbs downstream).  Minnesota has 2.1 million high-speed lines, up from the 1.96 million reported at the end of December 2007.  In 1999, the FCC reported only 38,000 high speed lines in Minnesota.  Where cable systems offer cable television service in Minnesota, cable modem service is available to 96% of subscribers.  Where ILECs offer local telephone service, ILECs offer DSL service to 86% of subscribers.
 
This is the last FCC report using the old Form 477 data.  Data will now reported at the Census Tract level rather than the state level.  Providers will now report their broadband connections using a multi-tiered speed schedule.  The FCC will be able to provide a more granular snapshot of broadband deployment progress under the new data reporting requirements.

 
Link:  FCC High Speed Internet Report as of June 30, 2008