Competition/Antitrust

A research note from New Street Research throws a little cold water on a potential 5G fixed wireless competitive threat to cable broadband. Verizon is expected to launch the fixed wireless service later in 2018 in 3 to 5 markets, including Sacramento (CA), a Comcast market.

Over the summer, FiveThirtyEight published two stories on broadband internet access in the US that were based on a data set made public by academic researchers who had acquired data from Catalist, a well-known political data firm. After further reporting, we can no longer vouch for the academics’ data set. The preponderance of evidence we’ve collected has led us to conclude that it is fundamentally flawed. That’s because:

AT&T and Comcast have solidified a court victory over the metro government in Nashville (TN), nullifying a rule that was meant to help Google Fiber compete against the incumbent broadband providers. The case involved Nashville's "One Touch Make Ready" ordinance that was supposed to give Google Fiber and other new Internet service providers faster access to utility poles.

The Federal Communications Commission could vote as soon as Feb or earlier to reduce the speed required for an internet connection to be considered broadband for purposes of the FCC’s annual broadband progress report. If the FCC opts to change the definition of broadband in response to the Notice of Inquiry, it’s important to note that the changes should only impact the annual progress report and not the CAF program. 

The Federal Communications Commission's decision to review what qualifies as high-speed broadband has drawn a crowd of critics armed with smartphones and other devices. Almost a dozen groups including Public Knowledge, New America’s Open Technology Institute, the National Hispanic Media Coalition (NHMC) have launched the #MobileOnly challenge. Between Jan. 1 and Jan. 31, participants will spend an entire day only accessing the internet via a mobile device. The idea is to demonstrate that mobile has various limitations that make it not a sufficient substitute for wired broadband.

In January 2018, the conditions imposed by the US government on Comcast's 2011 purchase of NBCUniversal will begin to expire. Smaller cable companies that compete against Comcast are worried that Comcast will raise the price for carrying "must-have" programming such as regional sports networks, NBC's local TV stations, and NBC's national programming.

One reason why network neutrality is such a big deal is that competition among broadband providers is more limited in the United States than it perhaps has to be. Other countries have found a way to create competition: forcing big internet service providers to sell access to the “last mile” of their infrastructure to other internet service providers.

With a mean global speed of 20.28 Mbps, mobile downloads increased 30.1% over the last 12 months and mobile uploads increased 38.9%. A global average of 40.11 Mbps makes fixed broadband downloads 97.8% faster than mobile and this speed increased 31.6% during the same period. Uploads over fixed broadband showed the smallest increase of 25.9%. 

[Commentary] A forthcoming decision by the Federal Communications Commission to eliminate network neutrality will instantly undermine a decade's worth of public investment in rural broadband — at the exact moment rural America is ready to realize the economic potential of the digital age.

In making the case that most Americans have multiple, competing broadband providers, the government acknowledges that up to 40 percent of them do not.