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Wheeler
FCC chairman Thomas Wheeler considers mobile broadband a poor substitute for fixed/wired Internet access. A fact sheet released by Wheeler’s office shows he is convinced America still has a broadband problem — speeds are too slow, competition is lacking, and 4G/LTE wireless broadband is so usage-capped or speed throttled, it is not a serious substitute for traditional wired broadband.
Wheeler claimed, “approximately 34 million Americans still lack access to fixed broadband at the FCC’s benchmark speed of 25Mbps for downloads, 3Mbps for uploads,” and has previously said those that do often find those speeds from only a single provider, typically a cable company.
Wheeler doesn’t dismiss the need for wireless Internet access, but he considers it an add-on for customers on the go. Other highlights from the fact sheet:
- A persistent urban-rural digital divide has left 39 percent of the rural population without access to fixed broadband. By comparison, only 4 percent living in urban areas lack access;
- 41 percent of Tribal Lands residents lack access;
- 41 percent of schools have not met the Commission’s short-term goal of 100Mbps per 1,000 students/staff;
- Only 9 percent of schools have fiber connections capable of meeting the FCC’s long-term goal of 1Gbps per 1,000 students.
Wheeler also said that U.S. broadband continues to lag behind other developed nations, only ranking 16th out of the top 34 countries.
Wheeler thinks wireless broadband is an essential service for many, but it should not be compared with wired broadband, as the two services are distinct from one-another:
- Fixed broadband offers high-speed, high-capacity connections capable of supporting bandwidth-intensive uses, such as streaming video, by multiple users in a household. But fixed broadband can’t provide consumers with the mobile Internet access required to support myriad needs outside the home and while working remotely.
- Mobile devices provide access to the web while on the go, and are especially useful for real-time two-way interactions, mapping applications, and social media. But consumers who rely solely on mobile broadband tend to perform a more limited range of tasks and are significantly more likely to incur additional usage fees or forego use of the Internet.
I wonder what the response will be from AT&T and Verizon since both companies want completely OUT of the wireline business.
This is “let’s punch Powell” month. First partially opening up cable boxes and then revealing that Emperor Powell wore no clothes when he revealed that wireless was indeed a competitor to wireline broadband 10+ years ago. Ha! Bravo Mr. Chairman.
And to think we were all against this industry lobbyist when he was appointed…
@Lucy, there’s a telling story about Chairman Wheeler. In the last few years of his tenure at CTIA he constantly harangued the cellular carriers to implement “intercarrier sms”. He literally dragged them kicking and screaming to an ecosystem that would save their voice businesses years later in 2003-2004 when effective voice per minute revenue yield fell to 4 cents from $0.50-1.50 in 1995. Had texting not become mass market by then and had subscribers not ponied up the additional $10-20/month for a service that cost at most 10 cents per active sub to layer on the voice model many carriers… Read more »
Wow, this really wasn’t what I expected when I made such an offhand comment. I was just reflecting the mood around here back when he was appointed.
I think we are all surprised by his conviction to represent consumers for a change. At the same time, I have to wonder how much of this is being pushed by the White House during Obama’s second term. With so much gridlock, regulatory policy is something the Obama Administration can impact without running into the Republicans in the House or Senate. The Commission can adopt all sorts of things because the Dems have a single vote advantage. Of course the next administration could undue everything. Seconds after President Obama made it clear he wanted Net Neutrality, Chairman Wheeler went all… Read more »
Phillip, I really applaud your work. But on the Chairman you and many others didn’t do your homework. As a student of Abe Lincoln and one who led two industries when they were new entrants and then finally blogging about his perspectives as a venture backer of upstarts it was pretty clear where things would end up. My only criticism of his tenure to date is that he hasn’t gone far enough with interconnection and also reversing course on an inevitably disastrous bill and keep policy (which began before he was appointed). Don’t people understand that without inter-network settlements sending… Read more »
I exhaustively reviewed his blog after he was nominated, wrote about it extensively, and have been aware of Tom Wheeler all the way back to his days at the NCTA. I have covered the cable industry since 1988. He was the consummate industry insider and his involvement in both the NCTA and CEO of the Cellular Telecommunications & Internet Association (CTIA) were all clear warning bells. He then turned into an Obama money bundler, raising $700k for the president’s election. Ick. Past precedent shows us these industry insiders are RARELY pro-consumer, and are usually more comfortable representing the interests of… Read more »
“But I’m not convinced he began his term at the FCC thinking he’d be the guy to bring Title II enforcement to broadband and blowing up the long-comfortable cable equipment monopoly.” Just how successful would he have been had he done this from the get-go? That’s my point. One needs to understand the man. Read between the lines. Have met him. Have worked with him, before one can really judge. And even then, there are these writers called Machiavelli and Sun Tsu that should be read. Put Lincoln’s strategies and lessons in their camps. My other point. Also, when reading… Read more »
One of the funny things about the current debate is that communities everywhere are asking for better wireline broadband, but you don’t see many people asking for better wireless broadband or wireless service in general. The other day I was driving on a state highway and there was a car accident involving a motorcycle, which blocked the road. Even though we were quite close to two very prominent and well-built towers, nobody had a cellphone working in the area. Instead the message got carried by car to the volunteer fire department a few miles down the road. For years I… Read more »
Paul, part of this stems from the industry’s infatuation with vertical models and the govt-granted quasi-monopoly structure stemming from spectrum sales and auctions. A better strategy in the future is to grant RoW access for wired and wireless networks, but mandate interconnection and then have a very small tax for universal service. The auction proceeds have just gone to fuel govt waste and we in turn pay an implicit tax with higher cellphone bills. Your coverage issue is also addressed in part with mandated interconnection and sharing. The other aspect is to mandate and foster market driven intercarrier settlements. But… Read more »