Federal Communications Commission FCC 18-181 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 ) MB Docket No. 18-227 Delivery of Audio Programming ) ) Satellite Communications Services for the ) IB Docket No. 18-251 Communications Marketplace Report ) REPORT Adopted: December 12, 2018 Released: December 26, 2018 By the Commission: Chairman Pai and Commissioners O’Rielly and Carr issuing separate statements; Commissioner Rosenworcel concurring and issuing a statement. 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 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 12558 Federal Communications Commission FCC 18-181 4. Intermodal Competition ........................................................................................................ 161 5. Marketplace Factors Relevant to Entry, Competition, and Expansion.................................. 167 D. The Fixed Broadband Market ...................................................................................................... 169 1. Overview of the Fixed Broadband Communications Marketplace ....................................... 171 2. Fixed Broadband Competition Data...................................................................................... 183 3. Regulatory and Market Barriers............................................................................................ 192 4. Investment Trends ................................................................................................................. 200 E. Voice Telephone Services............................................................................................................ 203 F. The Satellite Market..................................................................................................................... 208 1. Overview of the Commercial Satellite Services Industry ..................................................... 209 2. Satellite Revenues ................................................................................................................. 215 3. Examination of Satellite Communications Services and Providers ...................................... 217 4. Recent Changes and Trends .................................................................................................. 229 G. Broadband Deployment ............................................................................................................... 236 1. Scope of Reporting................................................................................................................ 238 2. Data Sources and Methodologies .......................................................................................... 241 3. Broadband Deployment Estimates ........................................................................................ 247 4. Demographic Data................................................................................................................. 255 5. Tribal Lands Data.................................................................................................................. 259 6. Adoption Data ....................................................................................................................... 262 H. International Broadband Data Report .......................................................................................... 265 1. Background ........................................................................................................................... 266 2. Discussion ............................................................................................................................. 267 III. COMMISSION ACTIONS ALREADY TAKEN TO CLOSE DIGITAL DIVIDE, ENHANCE COMPETITION, AND ENCOURAGE DEPLOYMENT OF COMMUNICATIONS SERVICES ................................................................................................... 290 A. The Mobile Wireless Market ....................................................................................................... 291 1. Universal Support Challenges and Commission Actions...................................................... 291 2. Spectrum Challenges and Commission Actions.................................................................... 293 3. Wireless Infrastructure Siting Challenges and Commission Actions.................................... 297 B. The Fixed Communications Market ............................................................................................ 301 C. The Video and Audio Markets..................................................................................................... 313 D. The Satellite Market..................................................................................................................... 321 IV. COMMISSION AGENDA TO FURTHER ENCOURAGE INVESTMENT, INNOVATION, DEPLOYMENT, AND COMPETITION .......................................................................................... 326 A. The Mobile Wireless Market ....................................................................................................... 327 B. The Fixed Communications Market ............................................................................................ 335 C. The Video and Audio Markets..................................................................................................... 339 D. The Satellite Market..................................................................................................................... 344 V. PROCEDURAL MATTERS.............................................................................................................. 349 I. INTRODUCTION 1. With this first Communications Marketplace Report, the Commission fulfills the requirement set forth in RAY BAUM’S Act of 2018 to streamline its numerous and varied public reports into a single document providing a comprehensive evaluation of the state of communications in the United States.1 This Report consolidates the Commission’s historical, statutorily required reports, all of which had been issued in separate documents and at different times, and which assessed different aspects 1 Section 401 of the Repack Airwaves Yielding Better Access for Users of Modern Services Act of 2018 (RAY BAUM’S Act), Pub. L. No. 115-141, 132 Stat. 1087 (codified at 47 U.S.C. § 163) (RAY BAUM’S Act). 12559 Federal Communications Commission FCC 18-181 of the diverse communications technologies the Commission oversees. For the first time, the Report places essential information