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Broadband Access Federal Communications Commission FCC 12-90 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Inquiry Concerning the Deployment of Advanced ) GN Docket No. 11-121 Telecommunications Capability to All Americans ) in a Reasonable and Timely Fashion, and Possible ) Steps to Accelerate Such Deployment Pursuant to ) Section 706 of the Telecommunications Act of ) 1996, as Amended by the Broadband Data ) Improvement Act ) EIGHTH BROADBAND PROGRESS REPORT Adopted: August 14, 2012 Released: August 21, 2012 By the Commission: Chairman Genachowski and Commissioners Clyburn and Rosenworcel issuing separate statements; Commissioners McDowell and Pai dissenting and issuing separate statements. TABLE OF CONTENTS Para. I. INTRODUCTION.................................................................................................................................. 1 II. BACKGROUND.................................................................................................................................... 8 III. BENCHMARKING BROADBAND ................................................................................................... 18 IV. STATUS OF BROADBAND DEPLOYMENT AND AVAILABILITY............................................ 26 A. Broadband “Deployment” and “Availability” Are Broader Than Physical Deployment .............. 27 B. Technologies and Data Sources Included ...................................................................................... 28 C. Broadband Deployment Estimates................................................................................................. 44 1. Americans Without Access to Fixed Broadband Meeting the Speed Benchmark .................. 45 2. Rural Areas Without Access to Fixed Broadband Meeting the Speed Benchmark................. 47 3. Tribal Lands Without Access to Broadband Meeting the Speed Benchmark ......................... 49 4. U.S. Territories Without Access to Broadband Meeting the Speed Benchmark..................... 55 5. Americans Without Access Between June 2010 to June 2011................................................ 57 6. Broadband Deployment By Technology ................................................................................. 59 7. Section 706 Fixed Broadband Deployment Map .................................................................... 61 8. Demographic Analysis of the Areas Without Access to Broadband Meeting the Speed Benchmark............................................................................................................................... 62 a. Demographics Required by Statute of the Unserved Areas (Population, Population Density, and Per Capita Income) .................................................................... 67 b. Demographics of Non-Urban Areas ................................................................................. 69 c. Demographics of Tribal Lands ......................................................................................... 71 d. Other Demographic Measures (Median Household Income, Poverty Rate, Education, and Race) ........................................................................................................ 73 (i) All Americans............................................................................................................. 74 (ii) Americans Residing in Non-Urban Areas.................................................................. 76 (iii) Americans Residing on Federally Recognized Tribal Lands ..................................... 78 e. Graphical Representation of the Relationship Between Broadband Deployment and Demographic Characteristics ..................................................................................... 80 Federal Communications Commission FCC 12-90 (i) Broadband Deployment Increases with Median Household Incomes........................ 81 (ii) Broadband Deployment Increases with Population Density ...................................... 83 9. Mobile Deployment and Trends.............................................................................................. 85 10. Section 706 Mobile Deployment Map..................................................................................... 91 11. Next Generation Broadband Services...................................................................................... 92 D. Broadband Adoption...................................................................................................................... 94 1. Broadband Adoption Rates Between June 2010 and June 2011 ............................................. 97 2. Broadband Adoption Rates in the U.S. Compared to Adoption Rates in Non-Urban Areas........................................................................................................................................ 99 3. Broadband Adoption Rates in the U.S. Compared to Adoption Rates on Tribal Lands........ 103 4. Broadband Adoption Rates in the U.S. Compared to Adoption Rates in the U.S. Territories .............................................................................................................................. 107 5. Distribution of County Level Broadband Adoption Rates .................................................... 111 a. Graphical Representation of the Relationship Between Adoption Rate and Demographic Characteristics .......................................................................................... 113 (i) Adoption Rate Increases with Median Household Income ...................................... 114 (ii) Adoption Rate for Broadband Increases with Population Density........................... 115 E. International Broadband Service Capability ................................................................................ 117 F. Other Indicators of Availability to All Americans....................................................................... 119 1. Home Broadband Adoption................................................................................................... 120 2. Measuring Broadband America Reports Found that Residential Wireline Broadband Services Deliver Quality Service and Speeds Reasonably Commensurate with Advertised Offerings ............................................................................................................. 123 3. Elementary and Secondary Schools May Lack a Sufficient Level of Broadband Service................................................................................................................................... 131 G. Broadband Is Not Yet Being Deployed to All Americans in a Reasonable and Timely Fashion......................................................................................................................................... 135 V. REMOVING BARRIERS TO INFRASTRUCTURE INVESTMENT & PROMOTING COMPETITION ................................................................................................................................. 139 VI. ORDERING CLAUSE....................................................................................................................... 157 APPENDIX A—Commenters APPENDIX B—Data Sources and Definitions APPENDIX C—Americans Without Access to Fixed Broadband Meeting the Speed Benchmark by State APPENDIX D—Americans Without Access to Fixed Broadband Meeting the Speed Benchmark by County APPENDIX E—Tribal Lands Without Access to Fixed Broadband Meeting the Speed Benchmark by State APPENDIX F—Americans Without Access to Fixed Broadband Meeting the Speed Benchmark on Certain Tribal Lands APPENDIX G—Overall Fixed Broadband Deployment Rates by State APPENDIX H—Overall Fixed Broadband Adoption Rates by State APPENDIX I—Section 706 Fixed Broadband Deployment Map APPENDIX J—Section 706 Mobile Deployment Map APPENDIX K—Commission’s Report on Internet Access Services: Status as of June 30, 2011 2 Federal Communications Commission FCC 12-90 I. INTRODUCTION 1. This is the Commission’s Eighth Broadband Progress Report issued under section 706 of the Telecommunications Act of 1996.1 Section 706 requires the Commission to determine and report annually on “whether advanced telecommunications capability [(ATC)] is being deployed to all Americans in a reasonable and timely fashion.”2 Over the past year, the private and public sectors have taken significant and substantial steps to accelerate the deployment and availability of broadband; all the while, the utility of and demand for broadband continue to grow as Americans find benefits in devices, applications, and services that use broadband in their homes, schools, businesses, and on the road. The Commission adopted transformative changes to the high-cost universal service program to propel deployment of broadband networks and initiated a Lifeline pilot to promote broadband adoption by low- income Americans. Implementation of these changes is underway. But as of now, our analysis of the best data available—the data collected by the National Telecommunications and Information Administration (NTIA) for the National Broadband Map—shows that approximately 19 million Americans live in areas still unserved by terrestrial-fixed broadband.3 For these and other reasons, we must conclude that broadband is not yet being deployed “to all Americans” in a reasonable and timely fashion. 2. The efforts to bring broadband to all Americans are significant, and wireless and wireline broadband providers have made great progress. These providers invest tens of billions of dollars annually in the
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