The Politics of Numbers:
A Second Look at the FCC's Second Broadband Report

"Not everything that can be counted counts, and not everything that counts can be counted."
               —Albert Einstein (1879-1955)

by Patricia Fusco ISP-Planet Managing Editor [August 9, 2000]

There is some good news surrounding the Federal Communication Commission's recent report, which attempted to measure the deployment of high-speed and advanced telecom services in the U.S.

The FCC's ambitious quantitative undertaking determined in its 1999 "Broadband Report" that there were more than 2.8 million broadband subscribers in the nation at the end of last year. Based on these findings, the Commission reached several conclusions that could break through bandwidth bottlenecks.

Point of departure
The FCC indicated that it would examine current line-sharing and unbundled network rules to ensure that rivals could gain access to 'remote terminal' digital subscriber line build-outs.

This is great news for Rhythms NetConnections, Inc., which fought to thwart SBC Communication's "Project Pronto" DSL build-out with remote terminals access. RTAs previously remained outside of the FCC's November line-sharing order.

The Commission's look-see means that SBC and other carriers constructing remote-terminal DSL expansion plans would have to allow for collocation and connectivity with competitive carriers, just as incumbents are required to do at the regional central offices.

Wireless watershead
Of equally great significance is the FCC's initiative to streamline the equipment-approval process for wireless and customer-premise equipment with advanced telecommunications capabilities. As if the red-tape cutting aspiration were not exciting enough, the Commission said it would also consider making more spectrum available for wireless broadband services in both licensed and unlicensed bands.

Freeing broadband access from the wires that bind us is going to be one of the greatest technological accomplishments since Edison made his first call to Watson. Unfortunately, spectrum efficiency remains an illusive goal, no matter what burst or laser-based systems contribute to wire-free broadband transport. Gen3 wireless broadband remains nestled snug in its test-bed, waiting for Gen2 to be realized.

Policy play
Of greatest consequence to the FCC "Broadband Report," is that the federal regulators plan to initiate a proceeding on the issue of establishing a national policy that would mandate shared access to cable platforms.

Cable players at Time Warner and America Online are in the process of testing shared cable systems in Ohio and invited rival ISPs to sign-up for co-op coax deals.

If the FCC steps up to the plate to regulate cable access among competing providers, it may be at the expense of Excite@Home's exclusive wheeling and dealing that's held AT&T Cable and others in a holding pattern.

The FCC's sweeping reviews could hold the promise of high-speed communications in the 21st century, about which Chairman William Kennard prophesizes and pontificates.

Flies in the ointment
However, it is with deepest regrets that we, at ISP-Planet inform you, that the Commission's "Broadband Report" is bunged.

Michael Balmoris, FCC Common Carrier Bureau public affairs director, was kind enough to enlighten us as to the minimum threshold for providers to participate in the survey.

"The Commission's 'Broadband Survey' required any facilities-based firm that provides 250 or more high-speed service lines (or wireless channels) in a given state to report basic information about its service offerings and customers. As part of the Broadband Survey, providers reported the total number of high-speed lines (or wireless channels) -- broken down by type of technology -- for each state in which they exceeded the reporting threshold."

"For each of these 'technology subtotals,' providers reported additional details concerning the percentage of lines connected to residential and small business users, (as opposed to large business and institutional users). Providers also reported the percentage of lines that met the Commission's definition of advanced services (as opposed to one-way high-speed lines)."

Finally, the participating providers also reported a list of the zip codes where they had at least one customer subscribed to its high-speed services.

The first problem with the report is that the survey excluded companies with less than 250 high-speed customers in any given state. This means that secondary market-targeting DSL providers like New Edge Networks, small competitive carriers and ISPs did not make the cut to participate in reporting their high-speed clients.

Additionally, New Edge Networks struck a deal with the rurally focused ISP OneMain.com to dole out DSL services. EarthLink is in the process of wrapping up its acquisition of OneMain.com's subscriber base. The second largest fee-based service provider in the U.S. did not participate in the FCC survey, so its 80,000 high-speed subscribers remain aren't tallied on the federal regulators' broadband scorecard.

Go to page 2: God in the details