Speeding Ahead: 2011 Broadband Progress Report
This week’s one-year anniversary of the National Broadband Plan has sparked some discussion in telecom policy circles about where the FCC stands with regard to implementing each of the recommendations. But in reviewing the list and checking it twice, we should first not lose sight of tremendous changes that continue to renew and revitalize our broadband ecosystem.
Significant investments by broadband providers are yielding steady gains, increasing the speed and reach of broadband connections and providing consumers with greater value through new, innovative services. So lest we elevate form over substance, we should not divorce our review of the Plan from the substantial progress we, as a nation, are seeing in the daily lives of broadband customers – month-over-month, year-over-year – as the quality and variety of high-speed Internet services continues to grow.
Indeed, in analyzing the rapid change in the broadband marketplace since March 2010, the most appropriate headline could be “2011: Faster and Even More Furious,” which admittedly is borrowed from the popular franchise of movies that feature ridiculously fast cars and non-stop edge-of-your-seat action. But anyone willing to take an honest look at the marketplace would be hard pressed to suggest that consumers aren’t “driving” network providers and suppliers to continue investing and innovating despite tough economic conditions.
Cable certainly isn’t stuck in neutral. As an industry recently estimated to represent roughly 1.8 million in direct and indirect jobs and over $250 billion in economic output, we continue to press forward with new content, new apps, new services, and new network capabilities. During 2010 alone, cable operators invested $12.4 billion in private capital to upgrade their networks, to add new equipment and to maintain and improve their next-generation networks. That brings the total investment to over $170 billion since Congress wisely set a deregulatory course in the 1996 Telecommunications Act.
This massive private investment has resulted in near nationwide deployment of cable’s “standard” broadband service with average download speeds that more than meet the demands of Internet users. But even faster, more ubiquitous broadband speeds are on the horizon as SNL Kagan reports that cable’s ultra-fast wideband service – with speed tiers that exceed 100 Mbps – are now available to 79 million homes, and should reach 94 million by the end of the year. These fast broadband tiers are increasingly utilized by consumers and small businesses to optimize their Internet experience, whatever their needs.
And not surprisingly, consumers respond to and respect this progress. Faster speeds and reliable networks have led to increased consumer satisfaction with their broadband service. A June 2010 FCC survey showed that 91 percent of subscribers are satisfied with the speed of their broadband service, and the research firm Instat reported that broadband providers increased speeds an average of 34 percent versus an average price increase of four percent in 2010.
So, while we all take a minute to reflect on the tremendous work that went into the creation of the National Broadband Plan, let’s also respect our recent successes and remember to grip the wheel a bit tighter – because cable plans to keep its foot on the accelerator in our pursuit to providing consumers with access to faster networks and more innovative services.
Earlier this month, Ookla, the company responsible for