Competition/Antitrust

Perhaps the biggest news of the week was the agenda for the Federal Communications Commission's July 10 Open Meeting, which FCC Chairman Ajit Pai laid out in a blog post on June 18, 2019. I'm traveling to New York this week; below is a shorter-than-usual weekly that takes a look at how Chairman Pai plans to take education out of the Educational Broadband Service -- and broadcast television.

Charter’s renaming of itself—after a megamerger with Time Warner Cable in 2018—as “Spectrum.” But changing your name doesn’t mean that you aren’t liable for misbehavior under your previous moniker. This is what Charter…er, Spectrum… found recently when, following a lengthy investigation, New York’s attorney general, Eric Schneiderman, filed an extraordinary lawsuit against the company. The company’s 2.5 million New York subscribers (of its 22 million nationwide) have been told they’re getting X (in terms of download and upload speeds) when actually they’re getting a lot less than X.

AT&T saw a whopping 57% growth rate in fiber-to-the-premises (FTTP) subscribers over the last year, according to a new research note about AT&T fiber subscriber growth from financial analysts at Moffett Nathanson. The company’s broadband market share hasn’t increased commensurately, however, according to the researchers. “Despite the dramatic growth at AT&T Fiber, AT&T’s broader IP broadband category has posted only modest subscriber gains over the past year,” the researchers wrote.

In May 31 comments filed with the Federal Trade Commission, ACA Connects (formerly the American Cable Association, an organization that lobbies on behalf of small and mid-size cable operators) explained that, overall, broadband markets in the US are working to the benefit of consumers – some 300 million of whom today have access to robust (100 Mbps) broadband service, most often from multiple Internet Service Providers (ISPs).

Senators Shelley Moore Capito (R-WV), Brian Schatz (D-HI), Jerry Moran (R-KS), and Jon Tester (D-MT) introduced the Broadband Data Improvement Act (BDIA), legislation to improve the accuracy of broadband coverage maps and better direct federal funds for broadband buildout. The bipartisan bill would require broadband providers to report data in a way that more accurately reflects locations they actually serve—a change from current reporting requirements.

SpaceX, Elon Musk’s space company, is planning to launch 60 of its own satellites in a single launch expected May 15, the first of more than 4,000 spacecraft planned for the Starlink network. If successful, the flight will make SpaceX the frontrunner in a tight race to be the first operator of an internet satellite network, as SpaceX is the only competitor with its own rockets. SpaceX is one of several, including OneWeb, Telesat and even Amazon, that are investing in plans to launch thousands of satellites that aim to deliver internet connections to customers below.

The tussle over "network neutrality" started 20 years ago in Portland (OR). Today, Portland and its region are poised to be Ground Zero for resolving the real issues behind public concern over “net neutrality”—the stagnant, uncompetitive, hopelessly outclassed state of internet access in America. Portland is taking seriously the idea of a publicly overseen dark-fiber network over which private providers could compete to offer cheap, ubiquitous internet access.

The lion’s share of discussion around the digital divide has centered around access, but the prices rural consumers are paying for the services available to them are worth paying attention to as well. According to our research, roughly 146 million rural Americans do not have access to a low-priced plan for wired broadband internet. That’s nearly 45 percent of the US population. We define “low-priced” as a broadband plan with a monthly cost less than or equal to the 20th percentile of all plan prices, or around $60 per month.

New research from Parks Associates finds 22 percent of US broadband households have a service speed of 100-999 megabits per second (Mbps), the most common service tier, although 39 percent of US broadband households do not know their broadband speed. The report, Modern Broadband: Competition and Retention at Gigabit Speeds, notes only 6 percent of US broadband households have gigabit-speed services and interest in upgrading to that speed of service has declined over the past two years.