Broadband Policy & Deployment

Roy Lathrop NCTA

NARUC Summer Meeting 2007New York, New York

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Cable Broadband

• Largest US provider: $110b investment in past 10 yrs; ~30m household sub

• Available: 94% of US households

• 45% household penetration 3/07– but 26% hh w/o computer, 21% dial-up

alternative access: hotspots, work, college

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Not interested

Hotspots, corporate and government users

Available,

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Broadband Deployment

• Ubiquitous Deployment– Nonpartisan issue: economic growth,

health & education, news & entertainment

• Is the US “falling behind?”– Internat’l rankings understate progress– Total subs, growth, competition; density differences, etc.– factors beyond policy control: age, income, household size

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State Broadband Initiatives (courtesy NCSL)

Category States

Assessment CA, KY, MI, OH, OR, VA, WY

Demand Aggregation/ Stimulation

AZ, MA, MI, MN, NH, PA, VA

Pub-Pvt Partnership MN, RI, VT, WY

Rural Access AK, AZ, GA, KY, NC, OH, VA

Govt Ownership CT, MO, NJ, PA, NC, SC, VT

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Gov’t BB Initiatives• Federal

– Connected Nation Act– Broadband Data Improvement – RUS grant program

• State / Muni – define extent of muni service

– State bills ’07: CT, MO, NJ, NC, PA, SC, VT

– “barrier to entry” or fiscal responsibility?

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Gov’t BB Initiatives

Target unserved areas– tax credits and incentives for build out– any USF money for broadband – public-private partnerships – retain moratorium on internet access taxes– reform RUS loan program

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Cable Broadband Speed

• 19961 – 1.5 Mbps

• 2007 5 - 6 Mbps standard

15 - 30 Mbps tiers from many

100+ Mbps with “wideband”

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Broadband Speed: is there ever enough?

• YouTube – consumes more bandwidth than all of 2000

• Speed increasing, migrating downstream– the death of dial-up?– mobility

• What’s the next YouTube?– Multitasking HDTV + HD videophone + gaming

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BB Initiatives:Ongoing Challenges

Eyesores or salvation?

free vs. $10–20 / mo

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Summary

• Broadband initiatives–Target unserved areas

–Rely on market forces

• Broadband availability–Rankings understate progress