Draft Communications Marketplace Report Getting Applause, Criticism

The FCC's proposed communications market report is drumming up criticisms and fans. The agency on Wednesday also released a draft of appendices that includes data used in developing the report and some broadband speed data from years past. In a docket 18-231 posting Wednesday, New America's Open Technology Institute recapped a meeting with staffers in Commissioner Jessica Rosenworcel's office at which it said until the report fixes methodological flaws and flawed assumptions about competition, commissioners shouldn't adopt it. OTI said Form 477 data "is fundamentally insufficient" for measuring broadband marketplace competition as it overstates the availability of broadband service. The group said the report contains "misguided and vague assumptions" about broadband competition, such as its assertion markets with two providers are competitive. The American Cable Association called the draft "thorough and comprehensive," recommending tweaks including addition of emphasis the cable franchise rulemaking should result in more investment in broadband and other services provided over cable networks. ACA pushed for addition of language making clear vertically integrated MVPDs have incentive and ability to raise costs on rivals like small cable systems, and existing rules can't fix such behavior. Comcast said the report should add Census Bureau and Centers for Disease Control and Prevention data about prevalence of U.S. households relying on smartphones or mobile devices for internet access and of wireless-only phone service. CTIA, recapping meetings with aides to Chairman Ajit Pai and Mike O'Rielly, lauded the report. The draft on the Dec. 12 agenda consolidates a variety of reports into one to fulfill Ray Baum's Act mandate (see 1811210032). In a public notice Wednesday about the report appendices, the agency said the broadband deployment data in the appendices reflect updated data received and processed after the release of the draft report, and that updated data will be used in preparing the final version. According to the broadband data, 94 percent of the U.S. has access to fixed 25 Mbps/3 Mbps speeds, 99.8 percent to mobile LTE 5 Mbps/1 Mbps speeds and 89 percent to mobile LTE 10 Mbps/3 Mbps speeds.