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Twentieth Mobile Wireless Competition Report WT Docket No

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Twentieth Mobile Wireless Competition Report WT Docket No September 7, 2017 FCC FACT SHEET* Twentieth Mobile Wireless Competition Report WT Docket No. 17-69 Background: The Communications Act requires the Commission to report annually to Congress on the state of competition in mobile wireless services and to include an analysis of whether there is effective competition. The 20th Mobile Wireless Competition Report fulfills the Commission’s obligation, presenting a variety of data from 2016, as well as certain information for early 2017 and additional supporting information from prior years. The Report conducts an analysis of that data and an assessment of various generally-accepted metrics of competition for mobile wireless services. What the Report Would Do: Analyze a number of facts, trends, and characteristics that taken together indicate there is effective competition in the marketplace for mobile wireless services. Among other factors, consider: o Service options and pricing. Providers continue to expand and adjust data plans and pricing; including adding new plans and reintroducing unlimited data plans to the marketplace. o Network speeds. The mean LTE download speed increased well over 60 percent from the first half of 2014 to the first half of 2017. o Access and availability. A substantial majority of consumers have access to four nationwide service providers, and there are numerous smaller providers that play an important competitive role in local and regional markets. o Network investment. Wireless service providers in the United States have made capital investments of more than $200 billion over the past seven years; although investment declined approximately 9% from 2015 to 2016. Cover other industry developments, including rising consumer demand and increased data output, falling prices, and access to additional spectrum. * This document is being released as part of a “permit-but-disclose” proceeding. Any presentations or views on the subject expressed to the Commission or its staff, including by email, must be filed in WT Docket No. 17-69, which may be accessed via the Electronic Comment Filing System (https://www.fcc.gov/ecfs/). Before filing, participants should familiarize themselves with the Commission’s ex parte rules, including the general prohibition on presentations (written and oral) on matters listed on the Sunshine Agenda, which is typically released a week prior to the Commission’s meeting. See 47 CFR § 1.1200 et seq. Federal Communications Commission FCC-CIRC1709-08 Before the FEDERAL COMMUNICATIONS COMMISSION WASHINGTON, D.C. 20554 In the Matter of ) ) Implementation of Section 6002(b) of the Omnibus ) Budget Reconciliation Act of 1993 ) WT Docket No. 17-69 ) Annual Report and Analysis of Competitive Market ) Conditions With Respect to Mobile Wireless, ) Including Commercial Mobile Services ) TWENTIETH REPORT* Adopted: [] Released:[] By the Commission: TABLE OF CONTENTS Heading Paragraph # I. INTRODUCTION .................................................................................................................................. 1 II. CHARACTERISTICS OF THE MOBILE WIRELESS INDUSTRY ................................................. 11 A. Service Providers ............................................................................................................................ 12 1. Facilities-Based Service Providers .......................................................................................... 13 2. Resellers/Mobile Virtual Network Operators and Other Service Providers ............................ 15 B. Connections and Subscribers .......................................................................................................... 19 1. Total Connections and Subscribers .......................................................................................... 19 2. Net Additions ........................................................................................................................... 23 3. Churn ....................................................................................................................................... 25 4. Penetration Rates by Geographic Area .................................................................................... 27 5. Subscriber Demographics ........................................................................................................ 28 C. Market Shares and Concentration .................................................................................................. 30 D. Profitability ..................................................................................................................................... 33 E. Facilitating Access to Spectrum ..................................................................................................... 34 1. Service Providers’ Spectrum Holdings .................................................................................... 40 F. Wireless Infrastructure ................................................................................................................... 42 III. ELEMENTS OF INTER-FIRM RIVALRY ......................................................................................... 47 A. Pricing Levels and Trends .............................................................................................................. 48 1. Postpaid Service ....................................................................................................................... 49 a. Pricing Trends and “Unlimited” Data Plans ...................................................................... 50 b. Video Content Not Counted Towards Data Limits ........................................................... 52 * This document has been circulated for tentative consideration by the Commission at its [XX] open meeting. The issues referenced in this document and the Commission’s ultimate resolutions of those issues remain under consideration and subject to change. This document does not constitute any official action by the Commission. However, the Chairman has determined that, in the interest of promoting the public’s ability to understand the nature and scope of issues under consideration, the public interest would be served by making this document publicly available. The Commission’s ex parte rules apply and presentations are subject to “permit-but-disclose” ex parte rules. See, e.g., 47 CFR §§ 1.1206, 1.1200(a). Participants in this proceeding should familiarize themselves with the Commission’s ex parte rules, including the general prohibition on presentations (written and oral) on matters listed on the Sunshine Agenda, which is typically released a week prior to the Commission’s meeting. See 47 CFR §§ 1.1200(a), 1.1203. The draft document makes several references to a website containing web appendices. These “Web Appendix” documents are provided in draft form at the end of this document. Federal Communications Commission FCC-CIRC1709-08 2. Prepaid Service ........................................................................................................................ 53 3. Price Indicators for Mobile Wireless Services ......................................................................... 57 B. Differentiation in Mobile Wireless Devices/Services and Advertising/Marketing ........................ 62 1. Differentiation in Mobile Wireless Devices and Services ....................................................... 62 2. Advertising and Marketing ...................................................................................................... 66 C. Investment ...................................................................................................................................... 68 D. Nationwide Network Coverage and Technology Upgrades ........................................................... 69 1. Overall Mobile Wireless Network Coverage (Any Technology) ............................................ 74 a. Overall Coverage By A Certain Number of Service Providers ......................................... 74 b. Overall Coverage By Individual Service Provider ............................................................ 76 2. LTE Mobile Broadband Coverage ........................................................................................... 77 a. LTE Coverage By A Certain Number of Service Providers ............................................. 77 b. LTE Coverage By Individual Service Provider ................................................................. 78 3. Rural/Non-Rural Comparisons ................................................................................................ 79 a. Rural and Non-Rural Overall Coverage By A Certain Number of Service Providers ...... 81 b. Rural and Non-Rural Overall Network Coverage By Individual Service Provider .......... 82 c. Rural and Non-Rural LTE Coverage By A Certain Number of Service Providers ........... 83 d. Rural and Non-Rural LTE Coverage By Individual Service Provider .............................. 84 4. Coverage and Technology Upgrades by Service Provider ...................................................... 85 E. Speed of Service ............................................................................................................................. 87 1. Ookla ........................................................................................................................................ 90 2. RootMetrics ............................................................................................................................
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