CCG Consulting

Over 81% of US households are now subscribed to a broadband speed of at least 200 Mbps. But broadband providers think that we are fixated too much on speed and that consumers don’t need faster speeds – they think that the marketing departments of the big providers have just convinced folks that faster speeds are important. But when talking about rural versus urban broadband speeds, the discussion can’t only be about what people need or don’t need.

Word has been circulating that the National Telecommunications and Information Administration (NTIA) recently informed State Broadband Offices that they must submit a final Broadband Equity, Access, and Deployment (BEAD) plan to the NTIA one year after receiving approval of the Initial Proposal of grant rules. The ugly twist is that the NTIA is expecting the Final Proposal to include a final list of all BEAD grant winners. Everybody has always assumed that the Final Proposal would be just that – a proposal that describes and fine-tunes the rules being used to award grants.

There was an interesting political effort in the Washington State Legislature recently to expand the use of open-access networks. There was language included in Substitute House Bill 1147 that would require that any network funded from Broadband Equity, Access, and Deployment (BEAD) Program grants must become open-access and available to other broadband providers.  Open-access has been a topic in Washington for many years.

The Federal Communications Commission originally budgeted $20.4 billion dollars for the Rural Digital Opportunity Fund (RDOF) subsidy program to be spent over ten years. The original RDOF reverse auction offered $16 billion in subsidies. But in a story that is now well known, some entities bid RDOF markets down to ridiculously low subsidy levels, and only $9.4 billion was claimed in the auction. $2.8 billion of this funding ended up in default, including some of the bidders who had driven the prices so low. That means that only $6.4 billion of the original $20.4 billion has been allocated.

Fiber manufacturers are always trying to make it easier to deploy fiber. One of the most interesting trends is the increasing migration from 250-micron fiber to 200-micron fiber. For those not familiar with the metric system, a micron is one-thousands of a millimeter. A 250-micron fiber has a diameter of 0.25 millimeters, while a 200-micron fiber has a diameter of 0.2 millimeters. That may not sound like a big difference, but when each fiber is thinner, the overall size of a fiber bundle is smaller.

The latest Broadband Insights Report is out from OpenVault providing statistics on average broadband usage at the end of the first quarter of 2023. In looking over the latest statistics I’m starting to see some interesting trends. The average household used 560.5 gigabytes of broadband per month by the end of the quarter. That is the combination of 524.8.2 gigabytes of download and 35.7 gigabytes of upload.

Frontier CEO Nick Jeffery said that the company believes it will be out of the copper business within five years. At the end of the first quarter of 2023, Frontier still had 9.9 million copper passings compared to 5.5 million fiber passings.

Recently Mike Conlow discussed how cellular companies are reporting large numbers of passings on the Federal Communications Commission's broadband maps as having the capability to receive exactly 25/3 Mbps. That isn’t a very fast broadband speed, so why does this make any difference? It turns out that the National Telecommunications and Information Administration (NTIA) is using the number of locations with speeds under 25/3 Mbps to allocate the $42.5 Broadband Equity, Access, and Deployment (BEAD) grant dollars between states. The problem is that, in many cases, the claimed speeds are not

The latest Customer Satisfaction Index is out from the American Customer Satisfaction Index (ACSI), which measures the public satisfaction of a wide range of US industries and institutions. The survey this year continued to show that the public has a poor opinion of internet service providers (ISP). As a group, ISPs had an average ACSI annual rating of 68. The only industry with a lower rating is gas stations at 65. Subscription TV had an average rating of 69, and the US Post Office had a rating of 70. But there is some interesting good news for some ISPs.

I’ve been tracking the number of claimed broadband customers at the largest telephone and cable companies for years. When I was looking at the statistics for the first quarter of 2023, it struck me that the biggest cable companies are now making up for the loss of cable TV customers by increasing broadband rates. For the last decade, the big cable companies have been thriving financially through big annual increases in broadband customers.