With 95% of U.S. households already having access to broadband service with download speeds of at least 4 Mbps – including 50% of homes with access to cable’s DOCSIS 3.0 speeds of 50 Mbps and faster – broadband in the U.S. is a success story that keeps getting better.  Over the past decade, deployment of broadband throughout most of our country has created millions of jobs, added billions of dollars to our economy and unleashed innovators who are developing creative services and applications that have remarkably improved our quality of life.

While acknowledging these successes, the FCC’s Sixth Broadband Deployment Report – or 706 Report – nevertheless concludes that broadband is not being deployed to all Americans on a “reasonable and timely” basis because five percent of American households don’t have access to broadband with speeds of at least 4 Mbps.

It’s worth noting that the 4 Mbps threshold is new and represents a significant increase from the 768 Kbps used in the 2008 report, and the 200 Kbps used in the first four reports.  We have no problem using a 4 Mbps threshold for defining broadband:  I have argued for several years that 200 or 768 Kbps was an inadequate threshold for a policy definition of broadband (pages 5-6).  But if the 706 Report is to retain any value as a measurement tool, the Commission must heed its own advice and use the definition as “a relatively static point at which to gauge progress and growth… from one Report to the next.” If the Commission continually increases the speed threshold to reflect “current demand patterns” and “estimated future demand” as it did this year, it becomes a circular nullity and it will be a certainty that deployment never will be considered reasonable and timely.

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There’s a video of Louis C.K. that’s been floating around the Internet for the past two years called “Everything’s Amazing and Nobody’s Happy.” In an appearance on Late Night with Conan O’Brien, the comedian observed that despite our technological advances, people still like to complain.

I think about this when I hear people complain bitterly that the U.S. is dangerously behind on broadband – there’s not enough broadband available, it’s too slow, it’s too expensive. Nobody can get online!

Of course, we have to ensure that as many Americans as possible have access to the Internet. Read this February post from Kyle McSlarrow or this one from James Assey in March. The cable industry has deployed broadband to 92% of American households. We continue to regularly increase broadband speeds and we’re rolling out wideband service based on the DOCSIS 3.0 standard (now reaching 65+ million homes). We proposed the Adoption Plus program to bring broadband to lower income households.

This is a time when:

• 95% of U.S. households have availability to Internet access with speeds of 4 Mbps or more
• 82% of HHs can choose from two or more wireline platforms
• More than 90% can choose from several 3G mobile options

Internet access is important. We can and should do more to get Americans connected. But are we really so bad off?

I Don’t Think We’ve Surrendered to Sweden.

Last month, we blogged about how high consumer satisfaction is with their current Internet connections, but all you’ll hear is about how slow our connections are.  Surveys show that an increasing number of people are using mobile devices to access the Web, but some wouldn’t count those consumers when measuring “broadband.”

Adam Theirer pointed out last year that the speed of adoption for Internet access is far faster than other technology developments (See this Pew report). With three-quarters of Americans currently using the Internet, adoption hit 50% in a decade, ahead of multichannel video (35 years), wireless phones (20 years), home computers (20 years), telephone and electricity (50+ years). Are we crawling along or well ahead of schedule?

Nokia Siemens Networks’ annual broadband development index, the Connectivity Scorecard, just came out and it showed that the U.S. just lost the #1 slot to Sweden. Sweden is beating us!

Of course, Sweden’s population is 3% of the U.S. population; it’s 4.57% of our land mass; the Swedish government owns 37% of the incumbent telecom provider (TeliaSonora) and the Finnish government owns another 13%, making the incumbent half-owned by the government.  Still, look at how bad we have it.

It’s not like I can buy a little device for a couple hundred dollars that I can carry around in my pocket and access most of the Internet, anytime and anywhere. It’s not like I can watch one of thousands of movies 24 hours day by firing up my Wii to reach the Netflix library or by tuning to my VOD service. It’s not like I can get on an airplane and fly across the country while surfing the Web.

Oh, wait. Yes, I can.

[NOTE: I should probably mention Louis C.K.'s terrific FX show Louie. And check out George Ou's debunking of the Berkman study – a key tool used to "prove" how the U.S. is behind – here and here.]

On Tuesday, the FCC announced the results of a survey, showing that “four out of five home broadband users say they do not know the speed of their home internet connection.”

This received a lot of coverage (see this Ars Technica post), but lost in all the hubbub were the findings on consumer satisfaction: 91% of home broadband users report being at least somewhat satisfied with the speed of their service.

• 50% of home broadband users are very satisfied with their home connection speed.
• 41% of home broadband users are somewhat satisfied with their home connection speed.

How Do We Measure Satisfaction?

So, people generally don’t know their speed, but they are largely satisfied. Are these findings at odds? I don’t think so.

I’m a pretty savvy Internet user, but I couldn’t tell you off the top of my head what the speed of my Comcast home connection is. We also have Comcast here at NCTA’s offices, so I can check Speedtest.net and tell you I’m getting 35.74Mbs down / 4Mbs up. A colleague checked it earlier today and got 45 down / 6 up.

But I had to check to get those figures, because I don’t really need to know the speed I’m getting. What I’m interested in is whether I’m having a satisfactory experience. Are web pages loading? Is my streaming video buffering too much?

As NCTA has explained (See this previous post: The Measure of “Measurement”), and the FCC has acknowledged, online speed tests can provide a measure of the speed that a user experiences, but they do not necessarily provide an accurate measure of the performance of a user’s broadband provider because the results also are affected by the performance of home networks and the public Internet.

Occasionally, I’ll download really large files, but I don’t use any low latency applications. Therefore, for email, web browsing and streaming media, a steady connection covers my needs. My Internet experience is also affected by the computer I’m using and the sites I visit, which can only load the content so quickly in any case.

And since my cable provider keeps periodically increasing the speed of my cable modem service at home, I don’t keep up with what it is at any given point (although I know I passed 10 Mps some time ago). As long as it works and I can do all the things I need to do, I don’t otherwise pay attention.

The FCC’s survey suggests that the vast majority of users may have a similar view. In that sense, it is worth noting that the survey seems to present a very different – and more accurate – picture than you would get if you only read the comments that are posted on blogs that cover this issue.

The Future of Fast

Some people need a super-fast connection or do need to worry about latency, such as gamers. And as such applications as telemedicine or high-definition teleconferencing become more prevalent, more people will fall into this category. In the future, I may pay much closer attention to the speed I receive.

Cable operators appreciate that different consumers may need different levels of service and that some customers may be more concerned with the specific details of their service than others. That’s why NCTA has been working closely with the FCC on the testing initiative announced on Tuesday. The SamKnows test should be a good starting point in developing a common method by which all broadband providers can measure the speed they deliver to consumers.

But the reason 80% of users don’t know the speed of their connection may be because that’s not how they measure satisfaction.

The National Broadband Plan has put the spotlight squarely on getting broadband service to the roughly 35% of U.S. households that don’t subscribe.  I don’t think anyone can disagree with this overarching goal, and it’s clear that it will take a multi-pronged approach to bridge this gap.

The good news is that we have significant research which shows why these households haven’t yet subscribed.  In some cases, challenges in reaching these homes have been facilities-based – finding new and innovative ways of getting broadband service to rural and remote areas.

But in many other cases, as Pew Research and other firms have pointed out, the challenges involve “barriers to adoption,” namely, the availability of affordable computers, digital and technical literacy, an understanding of the relevance of broadband service, or the ability to afford the service itself (For further details, see the FCC paper entitled "Broadband Adoption and Use in America.").

We’ve been concerned about these issues for a long time.  Cable ISPs have invested heavily in building out their networks, making broadband service available to 92% of American households.  We’ve also focused on elements of digital literacy to help families better understand how to manage the content coming into their homes.  And, we are sensitive to the affordability of broadband service.  Many cable ISPs have established tiers of broadband service which allow subscribers to buy whatever level of service makes the most sense for them.

Broadband access for the two-thirds of American households that have it wouldn’t have been possible without the leadership of the private sector.  So we strongly agree with the Plan that one of the best ways to help connect more homes is through partnerships in which both the government and private industry bring something to the table.

Last December, after consultation with federal policy makers and other stakeholders, we proposed the Adoption Plus (“A+”) initiative.  A+ is a proposed two-year, public-private partnership.  It’s designed to promote sustainable broadband adoption for a vitally important population, middle school-aged children in low income households that don’t currently subscribe to broadband service.  Under the proposal, cable ISPs are prepared to offer deeply discounted broadband service and equipment, in partnership with schools, companies, and digital literacy groups that could help provide – to households where students qualify for free or reduced school meals – a package of affordable hardware and software, and training in digital literacy (See more in this previous post.).

Our strong interest in this kind of collaborative approach is why we’re happy to participate in a new pilot program that includes broadband ISPs, computer technology companies, nonprofits and the U.S. Department of Housing and Urban Development (HUD) to help bring broadband service to low-income homes around the country.

Under the leadership of One Economy, a global nonprofit committed to stimulating broadband adoption efforts in the neediest households, several parties have jointly filed an application to the National Telecommunications & Information Administration for funding through the Broadband Technology Opportunities Program.  The coalition will work with HUD to increase broadband adoption efforts in public housing and multi-family assisted communities. If the stimulus application is approved, federal funding – combined with actual and in-kind contributions from the various members of the coalition – would help bring broadband service to families in up to 250,000 government-supported housing units nationwide.  This target group encompasses many of the same families we propose to reach with the Adoption Plus proposal.

The coalition built around this HUD initiative comprises a unique collection of seemingly strange bedfellows.  There are the non-profits – One Economy and Connected Nation.  There are the hardware and software manufacturers – Intel, Dell, and Microsoft.  Telco ISP AT&T is involved in supporting the application, as are 14 of our member companies – BendBroadband; Bresnan Communications; Bright House Networks; Cablevision Systems Corp.; Charter Communications; Comcast; Cox Communications; Eagle Communications, Inc.; Mediacom Communications Corp.; Midcontinent Communications; Sjoberg’s Cable TV; Suddenlink Communications; Time Warner Cable; and US Cable Group, covering some 85%  of households across the country. Two trade associations – NCTA and USTelecom – also are in the mix.

The concept is simple.  Each entity involved in the initiative plays to its strengths in helping low-income families overcome barriers to adoption.  HUD will identify eligible households for the service.  The computer companies provide affordable hardware – which would be partly subsidized by the stimulus funding – and software, to help make families broadband-ready.  The nonprofits then provide training in digital skills and literacy, to families that are new to broadband.  And once these pieces are in place, the ISPs would offer deep discounts on broadband service, reduced-price or free modems, and free standard installation.

If you have read the Broadband Plan or its executive summary, the rationale behind this coalition may sound familiar.  The Plan highlighted the importance of creating, “public-private partnerships of hardware manufacturers, software companies, broadband service providers, and digital literacy training partners to improve broadband adoption and utilization by working with federal agencies already serving non-adopting communities.”

We think that with the formation of this coalition, and our ongoing efforts around Adoption Plus, we have hit the mark.

Today we are announcing the next step in our industry’s longstanding commitment to use our technologies to improve education in America. We’re proposing a two-year public-private pilot program called Adoption Plus (A+) which could bring broadband to millions of children in low-income households.

Twenty years ago, our industry founded Cable in the Classroom (CIC), which over the past decade has brought free broadband service to thousands of schools and community libraries.

In recent years, our industry has also focused on the digital divide and how to promote broadband adoption.  Cox Communications, for example, has participated in a widely praised program in Santa Barbara, California, in which it provides discounted broadband service to children who participate in the National School Lunch program, together with partners who provide discounted or free computers.

Even though broadband is available to more than 90% of the households in the United States, almost one-third of those households don’t take the service.  Why?  Well, recent studies by the Pew Research Center demonstrate there is no single reason, and some of the multiple reasons – such as understanding the relevance of broadband, digital literacy, computer ownership, and affordability – likely overlap.

Several months ago, with the strong encouragement of FCC Chairman Julius Genachowski, we started working with the FCC’s broadband team to explore how we might help.  They were critical to helping with the data necessary to determine how to really focus in on a concept that could provide the maximum benefit.  Chairman Genachowski and Blair Levin, Executive Director of the FCC’s Omnibus Broadband Initiative, were very supportive of developing a proposal that would help low-income households that do not currently receive broadband.

The A+ pilot program builds on the experience of Cox Communications’ Santa Barbara initiative, by proposing a two-year, public-private partnership designed to promote sustainable broadband adoption for a vitally important-but-vulnerable population – middle school-aged children in low income households that do not currently receive broadband service.  The program is called Adoption Plus because it is a comprehensive approach that treats broadband adoption as a multi-faceted problem that requires multi-faceted solutions.  Barriers to adoption – e.g., relevance, digital literacy, computer ownership, affordability – are interwoven and cannot be resolved in isolation.

The goal of the A+ program is to help give millions of students the opportunity to become digital citizens of the 21st Century by driving sustainable broadband adoption and positively and materially affecting educational outcomes.

Here is how it would work (a more detailed summary can be found at NCTA’s website):

• A+ would promote the adoption of broadband service to households that do not currently receive it, by offering comprehensive digital media literacy education, discounted computers, and discounted home broadband service to households representing up to 3.5 million American children in grades 6 through 9 who are eligible to receive a free or reduced-cost meal through the National School Lunch Program.
• We propose that school districts administer the program, apply for federal funding, and partner with non-profit corporations promoting digital media literacy, computer manufacturers and/or retailers, and cable and other broadband Internet Service Providers (ISPs).
• Perhaps the most important role of the school districts is to implement digital media literacy programs, including online safety training, and training on how to use computers and broadband.  Including administration costs, we recommend that $100 million of federal funding be used for school districts which apply to set up an A+ program.
• We also anticipate that computer manufacturers would supply discounted computers as partners in A+, but ask the government to consider whether and to what extent federal funding is appropriate to help further discount the cost of computers.
• For each eligible household, participating ISPs would provide free installation of broadband service; a 50 percent discount off the monthly subscription cost of their entry level broadband service; and a 50 percent discount off the cost of modem equipment, whether purchased or rented.
• It is important to note that, while we recommend federal funding for digital media literacy training and administration of this program by school districts, we are not seeking any government funding of the ISPs’ contribution to A+.

While the A+ program is open to other broadband ISPs who wish to participate, so far, all of the cable ISPs represented on NCTA’s Board of Directors have agreed to participate in the A+ program as outlined above.  Those companies also have committed to air public service announcements explaining and promoting local A+ programs.  We estimate the value of the cable ISP contribution to the A+ program, with full student participation, at well over $500 million.

Our industry will continue to creatively harness the power of technology, including broadband, for educational purposes in other ways as well.

For example, A&E Television Networks, through HISTORY, has partnered with more than a dozen major cable operators around the country in creating Take a Veteran to School Day, where veterans are welcomed into local schools for special assemblies and oral history projects – a program that was recognized by President Obama at the White House just a few weeks ago.  And Viacom has partnered with the Bill & Melinda Gates Foundation in the Get Schooled initiative to identify effective approaches to increase high school and college graduation rates, improve post secondary readiness and promote the fundamental importance of education.

With the nation’s new emphasis on science, technology, engineering, and mathematics (STEM) education, major cable companies have stepped up with new commitments, such as the $100 million Connect a Million Minds initiative launched in November by Time Warner Cable, to introduce young people to opportunities and resources that inspire them to develop the STEM skills that will help solve our economic, environmental, and community challenges of the future. Discovery Communications is supporting STEM education by offering a commercial-free programming block for middle schoolers on the Science Channel, and through Discovery Education, which will provide STEM Connect, a new broadband delivered curriculum-based career development resource helping students link their science, math, engineering and technology education to their future careers. President Obama recently recognized both Time Warner Cable and Discovery in a White House announcement on STEM initiatives.    Earlier this year, Comcast teamed with One Economy to launch the Comcast Digital Connectors program in more than 20 markets nationwide, an initiative designed to teach broadband technologies to young people ages 14-21 from diverse, low-income backgrounds, who then put that knowledge to work in their local communities.

And Cablevision offers teachers important tools for using broadband and interactive technology as part of its Power to Learn program.

There are many other examples of creative initiatives that recognize how broadband can positively affect education of America’s children.  What they have in common is an understanding that partnerships and collaboration among interested stakeholders is required for success.  A+ is an ambitious step forward in this tradition, and we look forward to working with interested government agencies and other stakeholders to make it a reality.