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FCC Takes a Closer Look at Broadband Deployment

By Martin H. Bosworth
ConsumerAffairs.com

April 18, 2007

Broadband Access • Few Are Neutral in Net Neutrality Battles • Google Petitions FCC Over Verizon's Use of Wireless Spectrum • House Committee Grills FCC Over Wireless Auction • FCC's Martin: No Opening Of Wireless Networks • FCC Releases Broadband Report, Admits Data is Faulty • Verizon Wins Wireless Spectrum Auction • Bush Declares Broadband 'Connection Accomplished' • Google Will Bid In Wireless Spectrum Auction • Verizon Agrees to Stop 'Unlimited' Claims • Google Challenges Verizon Over Lobbying Of FCC • Sen. Kerry Wants New Broadband Policy • Verizon Wireless Challenges Spectrum Auction Rules • FCC Passes Compromise Rules For Wireless Spectrum Auction • Google, AT&T Square Off Over Wireless Broadband • Senate Wants Better Data On Broadband Deployment • FCC Takes a Closer Look at Broadband Deployment • Groups Urge FCC To Create Wireless Broadband Competition • FCC Chair Grilled By Congress Over Favorable Treatment of AT&T, Verizon • FCC Rolls Out New Rules On Video Franchising • FCC Approves AT&T-BellSouth Merger • AT&T Offers Net Neutrality Concessions To Win Merger Approval • FCC Plays Santa for AT&T, Verizon • Consumers Sidelined as Broadband Battles Rage • Wireless Broadband Still Expensive, Service Still Spotty • High-Speed Internet Overtakes Dial-Up in Market Share • U.S. Still Lags In Broadband Access • Municipal Wi-Fi: The Internet's Next Step? • Verizon Limits Its "Unlimited" Wireless Broadband Service • California Bill Seeks to Jumpstart Cable Competition • GAO: Broadband Access Difficult To Measure • Congress Wrestles with Net Neutrality --- More ...

The Federal Communications Commission (FCC) has posted a new "Notice of Inquiry" that it was looking into whether broadband services have been deployed to Americans in "a reasonable and timely fashion." The agency also offered a new "Notice of Proposed Rulemaking" on how to set broadband policy for future issues.

"Among the questions the Commission asks ... in the NOI is how to define broadband in light of the rapid technological changes occurring in the marketplace, including the development of higher speed services and new broadband platforms," the FCC.

"The Commission will also focus on the availability of broadband, including in rural and other hard-to-serve areas; on whether consumers are adopting new services; and on the level of competition in the marketplace."

The FCC has come under harsh scrutiny for not aggressively pursuing the discrepancies in broadband access across the country. Currently, the United States ranks 16th worldwide for broadband penetration levels, with many regions of the country having few or no choices in their Internet access provider whatsoever.

FCC chairman Kevin Martin defended the current state of broadband affairs for America in his own statement, referring to a Pew study showing that overall broadband adoption increased from 60 t0 84 million households between March 2005 and March 2006, and that there was extensive adoption of broadband service by African-American and middle-class households, defined as those making $40,000 to $50,000 a year.

"While we have made progress recently, as I have said before, there is more we can do," Martin said.

The Government Accountability Office (GAO) reported in May 2006 that the FCC uses spotty measurements to determine its own findings, such as measuring broadband deployment in a given region based on subscriber access, rather than on actual infrastructure creation.

FCC commissioner Jonathan Adelstein referenced the GAO report in his own statement, saying that the FCC could do more than merely seek comment on how to improve its practices. "If we are to make sure that all Americans benefit from broadband services, the Commission must do more to assess broadband availability and affordability across our many diverse populations," Adelstein said.

Pressure Picks Up On FCC

Much of the new Democratic Congress agrees with Adelstein's assessment that the FCC has not moved fast or vigorously enough to protect consumers on issues ranging from Net neutrality to video franchising. All five commissioners were harshly grilled at a House Telecommunications Subcommittee hearing last month for decisions such as approving the AT&T/BellSouth mega-merger.

"Pressure from the new Democratic Congress has resulted in Chairman Kevin Martin distributing more than 150 rulemaking items to the other commissioners for consideration -- a record," said former FCC attorney Steve Effros. "That set of hearings is emblematic of what is happening. The commission is following, not leading."

Perhaps as a result of the heavier oversight from Congress, the FCC has made several decisions of late that appear much more consumer-friendly than in previous years. The FCC recently issued guidance mandating that phone companies set up password access for customers who want to view their calling records. The move was touted as a block against "pretexting," the practice of obtaining calling records for third parties using false pretenses.

The FCC has also intervened in the case of FreeConference.Com, a multiple conference call service that has run afoul of the major telecoms over charges that it usurps their lines and leaves them footing the bill. The Commission is hearing testimony from rural carriers that support FreeConference.Com and similar services, who want companies like AT&T to stop blocking their customer access.

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