The FCC and the Internet
Robert Cannon
Senior Counsel for Internet Issues
FCC Office of Plans and Policy
Where we are…
Internet Subscribers
X 100,000
Residential Internet Use
180
160
140
120
100
80
60
40
20
0
1999
Subs
Source: Nielson-Netrating
2000
2001
Percent
• 16% increase since
last year, down from
41% growth previous
year.
• 10 hrs, 19 min per
month on average
online, up 7%.
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Unique Hits
X 100,000
Top 25 Web Properties
70
60
50
40
30
20
10
0
Hits
Source: Nielsen/NetRatings
July 2001
Top ISPs
Source: Cyberatlas June 2001
35
30
25
20
15
10
5
0
Q2 2001
AOL
MSN
Earthlink
Juno
Netzero
@home
SBC Prodigy
Compuserve
Bluelight
Gateway AOL
ATT Worldnet
ATT Broadband
Road Runner (AOL)
Bell South
Cox
Verizon
Comcast
Charter
Cablevision
PeoplePC
All Others
Consumer Access 2000
3%
9%
88%
Broadband
Dialup
Other
Source: Cahners In-Stat Group
High Speed Lines
(Over 200 kbps in at least one direction)
Source: FCC
8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
Dec-99
DSL
Other Wireline
Jun-00
Cable
Fiber
Dec-00
Satellite & Fix Wireless
Race To Deployment
Percent House Holds
100
90
80
70
60
50
40
30
20
10
0
0
Color TV
5
VCR
10
Cell Phones
Years
15
CD Players
20
Broadband Net*
25
PCs
Source: ebrain.org
DSL by Type of Provider
as of Dec 31, 2000
6%
Source: FCC
8%
86%
RBOC
Other ILEC
Non ILEC
Broadband Access
2000
100
85
80
60
56
0
78
51
39
40
20
87 86
21
14 14
11
1
SOHO
Main Off
Sm Bus
Mid Market
Branch Off
Enterprise
Telecommute
Source: Cahners In-State Group
Preferred Method of Broadband Access
0 10 20 30 40 50 60 70
(Given a choice, what would you choose)
DSL (T1)
ISDN
Cable
In Stat
Fixed
Wireless
CMP
No Pref
Source: Cahners In-State Group
CMP Net Mag Aug 2001
Which Broadband Providers Do You Use?
Business Respondents
70
63
56
60
50
40
33
30
30
28
20
20
10
5
0
ISP
Phone
Cable
CLEC
Long Dist
Wireless
Other
Source: Cahners In-State Group
Where are we going?
3rd Sec. 706 Notice of Inquiry
Comments Due 30 days after Fed Reg Pub
Docket 98-146
• Is advanced telecommunications capability
being deployed to all Americans?
• Is overall deployment reasonable and timely?
• If deployment is not reasonable and timely,
what actions will accelerate deployment?
Open Access NOI
GN Docket No. 00-185
Ex Parte Period
• Classification of Cable Modem Service?
• Issues Surrounding Open Access
– What is Open Access?
– Is It a Desirable Policy Goal?
– Uniform Policy to all High Speed
Providers?
– Technical Issues?
• FCC Options
Computer III FNPRM
Ex Parte Period
• Enhanced Services (Internet) unregulated
• Establish
– Rights of ESPs to Basic Telecom
– Safeguards of ESPs from anticompetitive telephone
behavior
– Open Telecom Platform
• Computer III created non-structural safeguards
– Comparably Efficient Interconnection
– Open Network Architecture
• Public Notice
– Post Telecom Act of 1996 Market?
– Enforceable?
– Is CEI and ONA Used?
Other FCC Proceedings
• Interactive TV
• Improved Telecom
Relay Service Using
IP
• Universal Service
Reform
• Spectrum Reform 3G
•
•
•
•
E-rate
Network Reliability
CALEA
Intercarrier
Compensation
• International: IP
Telephony, ICAIS,
ENUM
Potential Policy Solutions
Texas
High
Ability to Pay
Technology,
Demand
Aggregation
Loan and Tax
Incentive Programs,
Community
Networking, Social
Contracts
Competition
Grant Development,
Economic and
Community
Development
Initiatives
Low
Low
Population Density
High
Source: Brett Perlman, Texas Public Utility Commission
Accelerating Broadband Deployment
Requires Multiple Solutions
Potential Policy Solutions
Hig
h
Satellite and
Wireless
Technology
Competition
MarketDriven
Programs
Community
Technology
Access and
Training
Ability to
Pay
Low
Low
Population Density
High
Thank You . . .
Robert Cannon
Senior Counsel for Internet Issues
FCC Office of Plans and Policy
[email protected]
Standard Disclaimer: Views expressed are my own
and do not necessarily represent those of the FCC,
the Commissioners, its staff, or my dog.