GN Docket No. 18-231 Background: Title IV of RAY BA
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November 21, 2018 FCC FACT SHEET* Communications Marketplace Report Report; GN Docket No. 18-231 Background: Title IV of RAY BAUM’S Act of 2018 directs the Commission to publish in the last quarter of every even-numbered year a comprehensive evaluation of the state of the communications marketplace in the United States. With this first Communications Marketplace Report, the Commission fulfills that statutory requirement to consolidate several previously separate reports into a single report addressing the state of the broader communications market in the United States. What the Report Would Do: • Promote transparency by consolidating a number of the Commission’s reports, which historically had been issued as separate documents assessing different aspects of the communications marketplace. • Provide a holistic overview of competition in mobile wireless communications, fixed broadband communications, audio, video, and satellite communications markets. • Assess the state of deployment of communications capabilities. • Assess barriers to competitive entry, including market entry barriers for entrepreneurs and other small businesses. • Compile a list of geographic areas that are not served by any provider of advanced telecommunications capabilities. • Describe the Commission’s actions to address challenges and opportunities in the communications marketplace during the previous two years. • Discuss the Commission’s agenda for continuing to address those challenges and opportunities over the next two years. * 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 GN Docket No. 18-231, 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-CIRC1812-07 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Communications Marketplace Report ) GN Docket No. 18-231 ) The State of Mobile Wireless Competition ) WT Docket No. 18-203 ) Status of Competition in the Market for the ) MB Docket No. 17-214 Delivery of Video Programming ) Status of Competition in the Marketplace for ) Delivery of Audio Programming ) MB Docket No. 18-227 ) Satellite Communications Services for the ) Communications Marketplace Report IB Docket No. 18-251 REPORT* Adopted: [] Released: [] By the Commission: TABLE OF CONTENTS Para. I. INTRODUCTION .................................................................................................................................. 1 II. ASSESSMENT OF COMPETITION AND DEPLOYMENT ............................................................... 4 A. The Mobile Wireless Market ........................................................................................................... 5 1. Characteristics of the Mobile Wireless Industry ....................................................................... 6 2. Pricing Levels and Trends ....................................................................................................... 14 3. Non-Price Competition ............................................................................................................ 23 4. Entry Conditions and Market Concentration ........................................................................... 29 5. Mobile Wireless Spectrum ...................................................................................................... 31 6. Service Providers’ Spectrum Holdings ................................................................................... 33 7. Wireless Infrastructure ............................................................................................................ 34 8. Network Coverage ................................................................................................................... 37 * This document has been circulated for tentative consideration by the Commission at its December 2018 open meeting. The issues and data referenced in this document, as well as the Commission’s ultimate resolution of those issues remain under consideration and subject to change. The data relied upon in the report may be updated as appropriate. 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 FCC’s ex parte rules apply and presentations are subject to “permit-but-disclose” ex parte rules. See, e.g., 47 C.F.R. §§ 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. Federal Communications Commission FCC-CIRC1812-07 B. The Video Market .......................................................................................................................... 47 1. MVPDs .................................................................................................................................... 50 2. OVDs ....................................................................................................................................... 76 3. Broadcast Television Stations ................................................................................................. 90 4. Intermodal Competition ........................................................................................................ 114 5. Marketplace Factors Relevant to Entry, Competition, and Expansion .................................. 128 C. The Audio Market ........................................................................................................................ 137 1. Terrestrial Radio Broadcasters .............................................................................................. 140 2. Satellite Radio ....................................................................................................................... 151 3. Online Audio Providers ......................................................................................................... 154 4. Intermodal Competition ........................................................................................................ 161 5. Marketplace Factors Relevant to Entry, Competition, and Expansion .................................. 166 D. The Fixed Broadband Market ...................................................................................................... 168 1. Overview of the Fixed Broadband Communications Marketplace ....................................... 170 2. Fixed Broadband Competition Data ...................................................................................... 182 3. Regulatory and Market Barriers ............................................................................................ 191 4. Investment Trends ................................................................................................................. 199 E. Voice Telephone Services ............................................................................................................ 202 F. The Satellite Market ..................................................................................................................... 207 1. Overview of the Commercial Satellite Services Industry ..................................................... 208 2. Satellite Revenues ................................................................................................................. 214 3. Examination of Satellite Communications Services and Providers ...................................... 216 4. Recent Changes and Trends .................................................................................................. 228 G. Broadband Deployment ............................................................................................................... 235 1. Scope of Reporting ................................................................................................................ 237 2. Data Sources and Methodologies .......................................................................................... 240 3. Broadband Deployment Estimates ........................................................................................ 246 4. Demographic Data ................................................................................................................. 254 5. Tribal Lands Data .................................................................................................................. 258 6. Adoption Data ....................................................................................................................... 261 H. International Broadband Data Report .......................................................................................... 264 1. Background ..........................................................................................................................