Defining Broadband: Minimum Threshold Speeds and Broadband Policy

December 4, 2017 (R45039)
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Summary

Broadband—whether delivered via fiber, cable modem, copper wire, satellite, or mobile wireless—is increasingly the technology underlying telecommunications services such as voice, video, and data. Since the initial deployment of high-speed internet in the late 1990s, broadband technologies have been deployed throughout the United States primarily by the private sector. These providers include telephone, cable, wireless, and satellite companies as well as other entities that provide commercial telecommunications services to residential, business, and institutional customers.

How broadband is defined and characterized in statute and in regulation can have a significant impact on federal broadband policies and how federal resources are allocated to promote broadband deployment in unserved and underserved areas. One way broadband can be defined is by setting a minimum threshold speed for what constitutes "broadband service." Section 706 of the Telecommunications Act of 1996 requires the Federal Communications Commission (FCC) to regularly initiate an inquiry concerning the availability of broadband to all Americans and to determine whether broadband is "being deployed to all Americans in a reasonable and timely fashion." If the determination is negative, the act directs the FCC to "take immediate action to accelerate deployment of such capability by removing barriers to infrastructure investment and by promoting competition in the telecommunications market."

Starting in 1999, there have been 10 Section 706 reports, each providing a snapshot and assessment of broadband deployment. As part of this assessment, and to help determine whether broadband is being deployed in "a reasonable and timely fashion," the FCC has set a minimum broadband speed that essentially serves as the benchmark the FCC uses to determine what it considers broadband service for the purposes of its Section 706 determination. In 2015 the FCC, citing changing broadband usage patterns and multiple devices using broadband within single households, raised its minimum fixed broadband benchmark speed from 4 Mbps (download)/1 Mbps (upload) to 25 Mbps/3 Mbps.

On August 8, 2017, the FCC adopted and released its Thirteenth Section 706 Notice of Inquiry (NOI). One proposal under consideration is establishing a lower benchmark speed specifically for mobile broadband. Stakeholders who support an FCC determination that broadband is not being deployed in a reasonable and timely fashion generally oppose lowering the broadband benchmark by considering the presence of either fixed (at 25 Mbps/3 Mbps) or mobile (at 10 Mbps/1 Mbps) broadband as an indication that an area has adequate broadband service. On the other hand, stakeholders who support an FCC determination that broadband is being deployed in a reasonable and timely fashion generally support changing the FCC's broadband benchmark methodology to include the presence of either fixed or mobile broadband as an indication that an area is receiving adequate broadband service.

Three issues for Congress are how broadband benchmarks should be set, whether the FCC will determine that broadband is being deployed in a reasonable and timely fashion, and how that determination and those benchmarks will impact current and future broadband policies and programs intended to improve broadband availability and adoption throughout the nation. As broadband technology advances, commercially available download and upload speeds will likely increase, and the level at which broadband benchmark threshold speeds should be set is likely to remain controversial. Accordingly, the FCC's annual Section 706 determination is likely to be contentious as long as it is seen by stakeholders as providing a justification for current or future FCC regulatory or deregulatory policies.


Defining Broadband: Minimum Threshold Speeds and Broadband Policy

Introduction

Broadband—whether delivered via fiber, cable modem, copper wire, satellite, or mobile wireless—is increasingly the technology underlying telecommunications services such as voice, video, and data. Since the initial deployment of high-speed internet in the late 1990s, broadband technologies have been deployed throughout the United States primarily by the private sector. These providers include telephone, cable, wireless, and satellite companies as well as other entities that provide commercial telecommunications services to residential, business, and institutional customers.

The Federal Communications Commission's (FCC's) 2010 National Broadband Plan identified broadband as a basic infrastructure necessary for improving economic growth, job creation, civic engagement, global competitiveness, and a better quality of life. Broadband enables or enhances applications such as entertainment, telemedicine, distance education, telework, e-commerce, public safety, and energy conservation. Increasingly viewing broadband as a basic infrastructure, Congress and successive Administrations have focused on addressing gaps specifically related to broadband availability and adoption.1 In general, rural areas tend to be less served by broadband than urban or suburban areas.2 Tribal areas and populations stand out as being particularly underserved and unserved by broadband service, as compared to the nation as a whole.3

How broadband is defined and characterized in statute and in regulation can have a significant impact on federal broadband policies and how federal resources are allocated to promote broadband deployment in unserved and underserved areas. The issue of how the FCC defines broadband with respect to minimum threshold speeds has come to the forefront, as stakeholders recognize that minimum speed threshold levels can play a role in determining what steps the FCC may or may not take with respect to an array of broadband policies.

Definitions of Broadband

The FCC's working definition of broadband is in Section 706 of the Telecommunications Act of 1996 (P.L. 104-104), which defines "advanced telecommunications capability" as

high-speed, switched, broadband telecommunications capability that enables users to originate and receive high quality voice, data, graphics, and video telecommunications using any technology.4

A similar definition can be found in the statute that authorizes the Rural Broadband Access Loan and Loan Guarantee program in the Rural Utilities Service (RUS) at the U.S. Department of Agriculture (USDA):

The term broadband service means any technology identified by the Secretary as having the capacity to transmit data to enable a subscriber to the service to originate and receive high-quality voice, data, graphics, and video.5

Another way broadband can be defined is by setting a minimum threshold speed for what constitutes "broadband service." Broadband speeds are characterized with respect to both download speeds and upload speeds. The Government Accountability Office (GAO) defines download speed as the rate at which data are transferred to the consumer, and upload speed as the rate at which data are transferred from the consumer to the internet.6 Both are measured by the number of bits of data transferred per second (typically expressed as megabits per second or Mbps).7

Typically, broadband delivered by fixed wired technologies (e.g., cable modem and fiber) provide higher speeds than mobile wireless and satellite broadband technologies. For example, according to the akamai state of the internet report, the average mobile speed in the United States was 10.7 Mbps versus an overall average (for all broadband technologies) of 18.7 Mbps in the first quarter of 2017.8 Similarly, the FCC's Measuring Fixed Broadband Report—2016 shows that cable and fiber provide significantly higher median download speeds than satellite broadband.9

Download and upload speeds can determine what kinds of applications are possible for broadband users. For example, Table 1 shows minimum download speeds for typical online activities, Table 2 shows minimum download speed needs for light, moderate, and high household use, and Table 3 shows baseline download speed requirements for community institutions.

Table 1. Minimum Download Speeds for Typical Online Activities

Activity

Minimum Download Speed (Mbps)

General Usage

 

General Browsing and Email

1

Streaming Online Radio

Less than 0.5

VoIP Calls

Less than 0.5

Student

5 - 25

Telecommuting

5 - 25

File Downloading

10

Social Media

1

Watching Video

 

Streaming Standard Definition Video

3 - 4

Streaming High Definition (HD) Video

5 - 8

Streaming Ultra HD 4K Video

25

Video Conferencing

 

Standard Personal Video Call (e.g., Skype)

1

HD Personal Video Call (e.g., Skype)

1.5

HD Video Teleconferencing

6

Gaming

 

Game Console Connecting to the Internet

3

Online Multiplayer

4

Source: FCC, Broadband Speed Guide, last updated/reviewed September 15, 2017, available at https://www.fcc.gov/reports-research/guides/broadband-speed-guide.

Note: Speeds are based on running one activity at a time. Additional speed may enhance performance.

Table 2. Minimum Download Speed Needs for Light, Moderate, and High Household Use

 

Light Use
(Basic functions: email, browsing, basic video, VoIP, Internet radio)

Moderate Use
(Basic functions plus one high-demand application: streaming HD video, multiparty video conferencing, online gaming, telecommuting)

High Use
(Basic functions plus more than one high-demand application running at the same time)

1 user on 1 device

Basic

Basic

Medium

2 users or devices at a time

Basic

Medium

Medium/Advanced

3 users or devices at a time

Medium

Medium

Advanced

4 users or devices at a time

Medium

Advanced

Advanced

Source: FCC, House Broadband Guide, last updated/reviewed September 22, 2017, available at https://www.fcc.gov/research-reports/guides/household-broadband-guide.

Notes: Basic Service = 3 to 8 Mbps; Medium Service = 12 to 25 Mbps; Advanced Service = more than 25 Mbps.

Table 3. Baseline Download Speed Requirements for Community Institutions

Institution

Typical Application

Download Speeds

Hospital

sharing health records

1 Gbps+

 

performing virtual consultations

 

 

connecting first responders

 

Library

operating public computer centers

100 Mbps-1 Gbps+

 

mobile hotspot lending

 

 

enabling maker spaces

 

School

sharing educational material

100 Mbps-1 Gbps+

 

online testing

 

 

accessing databases

 

Small Business

managing inventory

50 Mbps+

 

operating point-of-sale terminals

 

 

coordinating shipping

 

Home

completing homework

25 Mbps+

 

streaming video

 

 

web browsing

 

Source: BroadbandUSA, National Telecommunications and Information Administration, What Speed Do You Need? available at https://www2.ntia.doc.gov/files/what_speed_061917.pdf.

Notes: Download speeds in this table are suggested by BroadbandUSA, which states that "download speed requirements vary based on the activity, location and number of users, and these needs will continue to change as technology advances."

Minimum Speeds in Federal Broadband Programs

Currently, there are two primary streams of federal funding to support broadband infrastructure deployment in rural areas: the FCC's Universal Service Fund programs and the portfolio of RUS broadband grant and loan programs at USDA (see Table 4). Each of these programs has set a minimum broadband speed threshold to determine which areas are or are not eligible for support. As Table 4 shows, minimum broadband speed thresholds are not uniform across programs—they differ based on the particular needs and goals of the individual program.

Because broadband technology is always advancing, the statutes that have established these programs have built in flexibility for the implementing agency to set minimum threshold broadband speeds. For example, the 2012 farm bill (P.L. 113-79), which authorizes the Rural Broadband Access Loan program, established a "minimum broadband acceptable level of broadband service for a rural area" of at least 4 Mbps downstream transmission capacity and 1 Mbps upstream transmission capacity.10 However, the statute states that

At least once every 2 years, the Secretary shall review, and may adjust through notice published in the Federal Register, the minimum acceptable level of broadband service ... to ensure that high quality, cost-effective broadband service is provided to rural areas over time.11

The statute further adds that in adjusting the minimum acceptable level of broadband service, the Secretary may consider establishing different transmission rates for fixed broadband service and mobile broadband service, and that the Secretary shall not establish requirements for bandwidth or speed that have the effect of precluding the use of evolving technologies appropriate for rural areas.12 Accordingly, the latest Notice of Funds Availability (NOFA) for the Rural Broadband Access Loan program defined existing broadband service as a minimum of 25 Mbps (download)/3 Mbps (upload) for both fixed (wired) and mobile (wireless) broadband.13

Table 4. Federal Broadband Programs and Minimum Broadband Speeds

Program

Description

Minimum Broadband Speeds

Federal Communications Commission

Connect America Fund (High Cost Program)

Program provides support for eligible telecommunications carriers to help offset the higher-than-average costs of providing telecommunications services in rural, insular, or other high cost areas.

Requires providers to offer a minimum speed of 10 Mbps (download)/1 Mbps (upload).a

Schools and Libraries (E-rate)

Provides discounts to providers offering telecommunications services, internet access, and internal connections to qualifying K-12 schools and libraries.

100 Mbps per 1,000 users (short term goal); 1 Gbps per 1,000 users (long term goal).b

Rural Health Care

Provides support to qualifying rural public and nonprofit health care providers for telecommunications and broadband connectivity.

No minimum bandwidth requirement for supported services; however, certain types of support are limited to connections that provide actual speeds of 1.5 Mbps (symmetrical) or higher.c

Low Income Program (Lifeline)

Provides support to assist eligible households pay monthly service charges. Support is not given directly to the subscriber but to their designated telecommunications provider, who in turn charges the subscriber lower rates.

Minimum service standard for fixed broadband speed set at 15 Mbps (download)/2 Mbps (upload). Minimum is 4 Mbps/1 Mbps in cases where the provider does not offer any generally available residential fixed broadband package that meets the 15 Mbps/2 Mbps standard.d

USDA Rural Utilities Service

Farm Bill Broadband Loans

Provides loans for the costs of construction, improvement, or acquisition of facilities and equipment needed to provide broadband service in rural areas.

Existing broadband service is defined as a minimum of 25 Mbps (download)/3 Mbps (upload) for both fixed (wired) and mobile (wireless) broadband. Funded projects must provide minimum speeds of 25 Mbps (download/3 Mbps (upload) for fixed and mobile broadband.e

Telecommunications Infrastructure Loans

Provides loans for the construction, maintenance, improvement and expansion of telephone service and broadband in extremely rural areas (less than 5000 population).

Required to fund telecommunications systems that provide broadband capability at a minimum speed of 1 Mbps for both transmission and reception.f

Community Connect Grants

Provides grants to fund broadband deployment into rural areas where it is not yet economically viable for private sector providers to deliver service.

Existing broadband service is defined as a minimum of 4 Mbps (download)/1 Mbps (upload) for both fixed and mobile broadband. Funded projects must provide minimum speeds of 10 Mbps (download)/1 Mbps (upload) for both fixed (wired) and mobile (wireless) broadband.g

 

 

 

Source: CRS, compiled from agency program regulations and documents.

a. FCC, "In the Matter of Connect America Fund, Report and Order, FCC 14-190, WC Docket No. 10-90, adopted December 11, 2014, p. 6, available at https://apps.fcc.gov/edocs_public/attachmatch/FCC-14-190A1.pdf.

b. FCC, "In the Matter of Modernizing the E-rate Program for Schools and Libraries," Report and Order and Further Notice of Proposed Rulemaking, FCC 14-99, WC Docket No. 13-184, adopted July 11, 2014, p. 16, available at https://transition.fcc.gov/Daily_Releases/Daily_Business/2014/db0723/FCC-14-99A1.pdf.

c. FCC, "In the Matter of Rural Health Care Support Mechanism," Report and Order, FCC 12-150, WC Docket No. 02-60, adopted December 12, 2012, p. 52, available at https://apps.fcc.gov/edocs_public/attachmatch/FCC-12-150A1.pdf.

d. FCC, Public Notice, "Wireline Competition Bureau Announced Updated Lifeline Minimum Service Standards and Indexed Budget Amount," June 26, 2017, available at https://apps.fcc.gov/edocs_public/attachmatch/DA-17-619A1.pdf.

e. Department of Agriculture, Rural Utilities Service, "Rural Broadband Access Loan and Loan Guarantees Program," Notice of Funds Availability (NOFA), 82 Federal Register 34473-34475, July 25, 2017, available at https://www.gpo.gov/fdsys/pkg/FR-2017-07-25/pdf/2017-15497.pdf.

f. 7 CFR 1735.12.

g. Department of Agriculture, Rural Utilities Service, "Announcement of Grant Application Deadlines and Funding Levels," Notice of Solicitation of Applications (NOSA), 82 Federal Register 2940-2945, January 10, 2017, available at https://www.gpo.gov/fdsys/pkg/FR-2017-01-10/pdf/2017-00194.pdf.

Section 706 and the FCC's Definition of Minimum Broadband Speed

Section 706 of the Telecommunications Act of 1996 requires the FCC to regularly initiate an inquiry concerning the availability of broadband to all Americans and to determine whether broadband is "being deployed to all Americans in a reasonable and timely fashion." If the determination is negative, the act directs the FCC to "take immediate action to accelerate deployment of such capability by removing barriers to infrastructure investment and by promoting competition in the telecommunications market."14

Starting in 1999, there have been 10 Section 706 reports, each providing a snapshot and assessment of broadband deployment. As part of this assessment, and to help determine whether broadband is being deployed in "a reasonable and timely fashion," the FCC has set a minimum broadband speed that essentially serves as the benchmark it uses to determine what constitutes broadband service for the purposes of its Section 706 determination. Table 5 shows each Section 706 report, the date adopted, the FCC determination of whether broadband was being deployed in a reasonable and timely fashion, the minimum broadband benchmark speed used in that FCC determination, and the vote of the FCC Commissioners. As Table 5 shows, the minimum speeds have risen, from 200 kbps in 1999, to 4 Mbps/1 Mbps in 2010, to 25 Mbps/3 Mbps in 2015.

As Table 5 also shows, there has seldom been agreement among FCC commissioners as to whether broadband is being deployed in a timely and reasonable manner. During the George W. Bush administration, the finding that broadband deployment was reasonable and timely was associated with the FCC's deregulatory policies, whereas during the Obama Administration, the finding that broadband deployment was not reasonable and timely has been associated with FCC policies favoring a greater level of government intervention in the marketplace.

An important factor in the Section 706 determination has proven to be how the FCC chooses to define broadband service in terms of minimum speed. In 2015, the FCC, citing changing broadband usage patterns and multiple devices using broadband within single households, raised its minimum broadband benchmark speed from 4 Mbps/1 Mbps to 25 Mbps/3 Mbps. Critics asserted that the FCC excessively raised broadband benchmark speeds in order to produce a negative finding and to justify the FCC's pursuit of policies addressing such regulatory issues as Universal Service Fund reform and net neutrality.

The FCC's latest Section 706 report, the 2016 Broadband Progress Report,15 was released on January 29, 2016, and determined that broadband deployment is not being deployed to all Americans in a timely and reasonable fashion. According to the report, as of December 31, 2014, approximately 10% of all Americans (34 million) lacked access to fixed broadband speeds of 25 Mbps download and 3 Mbps upload. The FCC also reported 39% of rural Americans lacking access to 25 Mbps/3 Mbps broadband service, as compared to 4% of Americans living in urban areas.

The FCC argued that while significant progress had been made, "advances are not occurring broadly enough or quickly enough to achieve our statutory objective," and that "many Americans still lack access to advanced telecommunications capability, especially in rural areas and on Tribal lands." The FCC also found that schools—particularly those in rural areas—continued to lack access to adequate broadband. In light of its finding that broadband was not being deployed in a reasonable and timely fashion, the FCC said that it will "continue working to remove barriers to infrastructure investment, in part by direct subsidies, and in part by identifying and helping to reduce potential obstacles to deployment, competition, and adoption."16

Opponents of the FCC's negative finding, including an FCC dissenting Commissioner,17 stated that contrary to the report's conclusions, data showed steady progress in connecting unserved Americans, and that broadband was being deployed in a timely and reasonable manner due in large part to significant investments in broadband infrastructure made by the private sector.18

Table 5. Section 706 Reports, 1999-2016

 

Date Adopted

Is Broadband Deployed to All Americans in Reasonable and Timely Fashion?

Broadband Definition (threshold speed)

Vote of FCC Commissioners

First Broadband Progress Report

1/28/1999

Yes

200 kbps in both directions

5-0

Second Broadband Progress Report

8/3/2000

Yes

200 kbps in at least one direction

4-0

Third Broadband Progress Report

2/6/2002

Yes

200 kbps in at least one direction

3-1

Fourth Broadband Progress Report

9/9/2004

Yes

200 kbps in at least one direction

3-2

Fifth Broadband Progress Report

3/19/2008

Yes

200 kbps in at least one direction

3-2

Sixth Broadband Progress Report

7/16/2010

No

4 Mbps/1 Mbps

3-2

Seventh Broadband Progress Report

5/20/2011

No

4 Mbps/1 Mbps

3-1

Eighth Broadband Progress Report

8/14/2012

No

4 Mbps/1 Mbps

3-2

2015 Broadband Progress Report

1/29/2015

No

25 Mbps/3 Mbps

3-2

2016 Broadband Progress Report

1/28/2016

No

25 Mbps/3 Mbps

4-1

Source: FCC, Archive of Released Broadband Progress Notices of Inquiry, available at https://www.fcc.gov/general/archive-released-broadband-progress-notices-inquiry.

Thirteenth Section 706 Report Notice of Inquiry

On August 8, 2017, the FCC adopted and released its Thirteenth Section 706 Notice of Inquiry (NOI).19 Comments and data received from the NOI are to be used to develop the FCC's next Section 706 broadband progress report.20

In the NOI, the FCC proposed to maintain the 25 Mbps/3 Mbps benchmark for fixed broadband, while at the same time soliciting comments on how the presence and nature of mobile broadband should factor into the determination of whether broadband is being deployed to all Americans in a timely and reasonable fashion. On the one hand, the FCC is asking for comments on whether the presence of fixed or mobile broadband should indicate that an area is served:

Given that Americans use both fixed and mobile broadband technologies, we seek comment on whether we should evaluate the deployment of fixed and mobile broadband as separate and distinct ways to achieve advanced telecommunications capability. Taking into account the differences between the various services and the geographic, economic, and population diversity of our nation, we seek comment on focusing this Section 706 Inquiry on whether some form of advanced telecommunications capability, be it fixed or mobile, is being deployed to all Americans in a reasonable and timely fashion.21

Alternatively, the NOI is seeking comment on whether the FCC should "evaluate broadband deployment based on the presence of both fixed and mobile services," given that "mobile and fixed broadband have different technical characteristics and limitations, and broadband providers choose to market their fixed and mobile products in different ways."22

Within the context of seeking whether to assess fixed or mobile versus fixed and mobile, the FCC is seeking comment on the benchmarks they should use to define "advanced telecommunications capability." While proposing to maintain the current speed benchmark of 25 Mbps/3 Mbps for fixed broadband, the FCC is seeking comment on potential benchmarks and metrics for mobile broadband:

The Commission has not previously set a mobile speed benchmark. Our consideration of whether and how to set a speed benchmark will be informed by assessing the mobile broadband services and speeds that are available to consumers today, as well as evidence regarding what services consumers are choosing today, and what might be available in the near future.... Should the Commission set a mobile speed benchmark, and if so, what it should be? We anticipate that any speed benchmark we set would be lower than the 25 Mbps/3 Mbps benchmark adopted for fixed broadband services, given differing capabilities of mobile broadband.... We seek comment on whether a mobile speed benchmark of 10 Mbps/1 Mbps is appropriate for mobile broadband services. Would a download speed benchmark higher or lower than 10 Mbps be appropriate for the purpose of assessing American consumers' access to advanced telecommunications capability?23

The NOI is also seeking comment on what kind of benchmarks—aside from setting minimum broadband speeds—would be appropriate for assessing the state of broadband deployment. For fixed broadband, for example, the NOI is seeking comment on whether there should be a relationship between the benchmark and what fraction of subscribers are actually purchasing broadband at that speed, whether a reasonable speed benchmark for fixed broadband should be based on the mean or median speed purchased by consumers, how to consider the interplay between deployment of higher-speed services and customer uptake rates, and whether the FCC should focus on the progress of actual deployment from year-to-year rather than what percentage of the population has access to broadband meeting a particular speed benchmark.24 Additionally, the NOI is seeking comment on appropriate data collection and methodologies which should be used to measure broadband deployment.25

Debate over Broadband Service Benchmarks

How and at what level the FCC sets broadband service benchmarks in its Section 706 reports has been a controversial issue in Congress. For example, in a January 2016 letter to FCC Chairman Tom Wheeler regarding the 2016 Broadband Progress Report, a group of Republican Senators disputed the FCC's determination that broadband was not being deployed to all Americans in a reasonable and timely fashion. They asserted that the benchmark of 25 Mbps/3 Mbps was set at an arbitrarily high level and "fails to accurately capture what most Americans consider broadband." Specifically, the Senators argued that most commonly used applications require speeds considerably below the 25/3 level, that "the majority of Americans who can purchase 25 Mbps service choose not to," and that the use of the 25/3 benchmark "discourages broadband providers from offering speeds at or above the benchmark." The letter also made the point that the FCC's 25/3 benchmark is inconsistent with the Connect America Fund benchmark of 10/1 for rural broadband, and with the FCC's Open Internet Order's definition of broadband, which includes any service above dial-up.26

Conversely, the August 2017 NOI has led other Members of Congress to object that the FCC may be preparing to effectively lower the broadband benchmark speed by potentially deeming an area as served by broadband if it has either fixed broadband (which the FCC proposes to maintain at 25/3 Mbps) or mobile broadband (which the FCC proposes to set at a level of 10 Mbps/1 Mbps). Such a change in setting the broadband benchmark could, they assert, lead to an unwarranted FCC determination that advanced telecommunications services are being deployed to all Americans in a timely and reasonable fashion. For example, an August 2017 letter from a group of Democratic Senators to the FCC noted that "the Commission appears ready to decide that mobile broadband could be a substitute, rather than a complement, to fixed broadband service, and that slower-speed mobile service substitutes as effectively." The letter argued that mobile broadband is not yet equivalent to fixed broadband services and that "such a striking change in policy would significantly and disproportionately disadvantage Americans in rural, tribal, and low income communities across the nation, whose livelihoods depend on a reliable and affordable broadband connection."27 Similarly, a group of Democratic Senators and Representatives, in an October 2017 letter to the FCC, expressed concern "with any effort to weaken the FCC's current policy finding that every American should have access to broadband services with speeds of at least 25 Mbps download/3 Mbps upload," and that "[f]inding instead that only mobile service of 10 Mbps download/1 Mbps upload is sufficient would result in significantly slower and less reliable Internet access for millions of Americans."28

Much of the debate over the FCC's broadband benchmark is playing out in comments and letters filed in response to the FCC's Thirteenth Section 706 NOI. In general, those parties who support an FCC determination that broadband is not being deployed to all Americans in a timely and reasonable fashion are opposed to altering the current broadband benchmark by considering the presence of fixed or mobile broadband as an area that is "served." They assert that mobile broadband is not a satisfactory substitute or replacement for fixed broadband service. Among their arguments are: that mobile broadband currently lacks the capacity, speed, and reliability of fixed broadband;29 that mobile wireless data caps and overage charges make the cost of mobile data prohibitively high;30 that few businesses rely solely on mobile broadband and are unlikely to locate in "mobile-only" communities;31 and that low-income communities and communities of color are more smartphone-dependent than wealthier and white communities, with smartphones not providing full access to the benefits of the internet such as applying for a job, doing homework, or taking online classes or training.32

On the other hand, parties who favor an FCC determination that broadband is being deployed to all Americans in a timely and reasonable fashion are supporting the notion of altering the current broadband benchmark by considering the presence of fixed or mobile broadband as an area that is "served." Among their arguments are: that LTE 4G mobile broadband deployment and usage is ubiquitous, with private sector investment continuing to grow for future deployments such as 5G;33 that the FCC should consider whether progress in broadband deployment is reasonable and timely, as opposed to whether deployment already is complete and ubiquitous;34 that consumers increasingly use mobile devices in fixed locations for many voice, data, graphics, and video applications, and that mobile broadband need not be a perfect or complete economic substitute for fixed broadband for the FCC to determine that both meet the definition of "advanced telecommunications capability";35 and that many consumers in fact do view mobile and fixed broadband as interchangeable substitutes and that the two services provide a competitive constraint on each other and should be considered to be in the same market.36

Concluding Observations

Three issues for Congress are how and at what level broadband benchmarks should be set, whether the FCC will determine that broadband is being deployed in a reasonable and timely fashion, and how that determination and those benchmarks will impact current and future broadband policies and programs intended to improve broadband availability and adoption throughout the nation. As broadband technology advances, commercially available download and upload speeds will likely increase, and the level at which broadband benchmark threshold speeds should be set is likely to remain controversial. Accordingly, the FCC's annual Section 706 determination is likely to remain contentious as long as it is seen by stakeholders as providing a justification for current or future FCC regulatory or deregulatory policies.

The debate over the Thirteenth NOI has followed this paradigm. Stakeholders who support an FCC determination that broadband is not being deployed in a reasonable and timely fashion generally oppose lowering the broadband benchmark by considering the presence of either fixed (at 25 Mbps/3 Mbps) or mobile (at 10 Mbps/1 Mbps) broadband as an indication that an area has adequate broadband service.37 On the other hand, stakeholders who support an FCC determination that broadband is being deployed in a reasonable and timely fashion generally support changing the FCC's broadband benchmark methodology to include the presence of either fixed or mobile broadband as an indication that an area is receiving adequate broadband service.38

Ultimately, the levels at which broadband speed benchmarks are set can have an impact on broadband speeds, particularly those offered in unserved and underserved rural areas served by providers utilizing federal subsidies or assistance such as the Connect America Fund or the loan and grant programs in the RUS. Higher broadband download and upload speeds can translate into more robust and varied applications, but are generally more costly to deploy. Lower broadband speeds, because they are less costly to deploy, may be built out to more rural communities, but may offer less capacity and economic benefits than the typically faster broadband connections available in urban and suburban areas. Given the finite amount of federal funding available, policymakers face a tradeoff between the quality of rural broadband connections versus the quantity of rural areas that will be considered "served."

Author Contact Information

[author name scrubbed], Specialist in Science and Technology Policy ([email address scrubbed], [phone number scrubbed])

Footnotes

1.

Broadband availability refers to whether or not broadband service is offered, while broadband adoption refers to the extent to which American households actually subscribe to and use broadband.

2.

FCC, Fixed Broadband Deployment Data as of June 2016, available at https://www.fcc.gov/maps/fixed-broadband-deployment-data/.

3.

See CRS Report R44416, Tribal Broadband: Status of Deployment and Federal Funding Programs, by [author name scrubbed].

4.

47 U.S.C. 1302(d)(1). Another FCC definition of broadband internet access service can be found in the FCC's Open Internet Order (47 C.F.R 8.2(a)): "A mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all Internet endpoints, including any capabilities that are incidental to and enable the operation of the communications service, but excluding dial-up Internet access service. This term also encompasses any service that the Commission finds to be providing a functional equivalent of the service described in the previous sentence, or that is used to evade the protections set forth in this part."

5.

7 USC 950bb(b)(1).

6.

Government Accountability Office, Broadband Performance: Additional Actions Could Help FCC Evaluate Its Efforts to Inform Consumers, GAO-15-363, April 2015, p. 4, available at http://www.gao.gov/assets/670/669739.pdf.

7.

Other technical characteristics—such as latency or service reliability—could also be used to define and measure the adequacy of broadband service. According to GAO, latency is "a measure of the time that it takes for data to travel from a computer to a server and back again." See Ibid.

8.

Akamai Technologies, Inc., akamai's [state of the internet] Q1 2017 report, p. 24, 44, available at https://www.akamai.com/fr/fr/multimedia/documents/state-of-the-internet/q1-2017-state-of-the-internet-connectivity-report.pdf. Akamai operates global Content Delivery Network services and publishes quarterly state of the internet reports based on data from its global cloud delivery platform.

9.

FCC, Measuring Fixed Broadband Report—2016, December 2016, available at https://www.fcc.gov/reports-research/reports/measuring-broadband-america/measuring-fixed-broadband-report-2016#_Toc458762536.

10.

7 U.S.C. 950bb(e)(1).

11.

7 U.S.C. 950bb(e)(2).

12.

7 U.S.C. 950bb(e)(3).

13.

Department of Agriculture, Rural Utilities Service, "Rural Broadband Access Loan and Loan Guarantees Program," Notice of Funds Availability (NOFA), 82 Federal Register 34473-34475, July 25, 2017, available at https://www.gpo.gov/fdsys/pkg/FR-2017-07-25/pdf/2017-15497.pdf.

14.

47 U.S.C. 1302(b).

15.

Federal Communications Commission, 2016 Broadband Progress Report, FCC 16-6, released January 29, 2016, available at https://www.fcc.gov/document/fcc-releases-2016-broadband-progress-report.

16.

Ibid, p. 2-3, 53.

17.

Dissenting Statement of Commissioner Michael O'Reilly, January 28, 2016, available at http://transition.fcc.gov/Daily_Releases/Daily_Business/2016/db0129/FCC-16-6A7.pdf.

18.

Channel Partners, "CenturyLink, U.S. Telecom Blast FCC Broadband Report," January 28, 2016, available at http://www.channelpartnersonline.com/2016/01/28/centurylink-ustelecom-blast-fcc-broadband-report/.

19.

FCC, Thirteenth Section 706 Report Notice of Inquiry, GN Docket No. 17-199, FCC 17-109, August 8, 2017, available at https://transition.fcc.gov/Daily_Releases/Daily_Business/2017/db0808/FCC-17-109A1.pdf.

20.

In two past instances, a Section 706 NOI did not lead to a Section 706 report: the Ninth NOI, released on February 4, 2015, and the Twelfth NOI released on August 4, 2016.

21.

Thirteenth Section 706 Report Notice of Inquiry, p. 5.

22.

Ibid.

23.

Ibid., p. 7.

24.

Ibid., p. 8, 11.

25.

Ibid., p. 12-14.

26.

Letter from 6 Republican Senators to Chairman Tom Wheeler, Federal Communications Commission, January 21, 2016, available at https://assets.documentcloud.org/documents/2697501/Letter-to-Fcc-Chairman-Wheeler-Broadband.pdf.

27.

Letter from 12 Democratic Senators to the Federal Communications Commission, August 31, 2017, available at https://prodnet.www.neca.org/publicationsdocs/wwpdf/0901sen.pdf.

28.

Letter from 9 Democratic Senators and 36 Democratic House Members to the Federal Communications Commission, October 5, 2017, available at https://ecfsapi.fcc.gov/file/100571368034/10.5.2017%20FCC%20Chariman%20Pai%20letter.pdf.

29.

Comments of the California Public Utilities Commission before the FCC, In the Matter of Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 17-199, October 5, 2017, p. 4-5, available at https://ecfsapi.fcc.gov/file/1005131709819/GN%20Docket%2017-199%20CPUC%20Comments%20to%20the%20FCC.pdf.

30.

Comments of the Open Technology Institute at New America before the FCC, In the Matter of Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 17-199, September 21, 2017, p. 8-11, available at https://ecfsapi.fcc.gov/file/10921256530521/OTI%20FCC%20Section%20706%20Comments.pdf.

31.

Comments of NTCA—The Rural Broadband Association before the FCC, In the Matter of Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 17-199, p. i-iii, available at https://ecfsapi.fcc.gov/file/10921173109916/09.21.17%20NTCA%20Comments%20on%20Section%20706%20NOI%2C%20GN%2017-199.pdf.

32.

Leadership Conference on Civil and Human Rights, Letter to the FCC, November 3, 2017, p. 2-3, available at https://ecfsapi.fcc.gov/file/1103708927319/Leadership%20Conference%20706%20Letter%2011-03-17.pdf.

33.

Comments of Verizon before the FCC, In the Matter of Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 17-199, September 21, 2017, p. 2-8, available at https://ecfsapi.fcc.gov/file/10921261086205/2017%2009%2021%20Verizon%20706%20comments_final.pdf.

34.

Comments of CTIA before the FCC, In the Matter of Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 17-199, September 21, 2017, p. 1-2, 4, available at https://ecfsapi.fcc.gov/file/109212607904338/170921%20CTIA%20Section%20706%20Comments.pdf.

35.

Comments of USTelcom Association before the FCC, In the Matter of Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 17-199, September 21, 2017, p. 5-6, available at https://ecfsapi.fcc.gov/file/1092177736005/2016%2013th%20BB%20Progress%20NOI%20Comments.pdf.

36.

Comments of the Free State Foundation before the FCC, In the Matter of Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 17-199, September 21, 2017, p. 3-4, available at https://ecfsapi.fcc.gov/file/1092136091140/FSF%20Comments%20in%20Section%20706%20Inquiry%20-%20Final%20-%20092117.pdf.

37.

For example, those stakeholders typically support policies such as Open Internet and Title II classification, removing state barriers to community broadband, and a more robust Lifeline program to support improved digital inclusion programs.

38.

For example, those stakeholders typically support policies such as removing local and government barriers to wireless and wireline siting; identifying and allocating more licensed and unlicensed spectrum for commercial broadband services; removing Title II requirements; and removing requirements that incumbent providers maintain and lease their legacy networks that employ copper and outdated technology.