The FCC and the InternetThe FCC and the Internet

Robert Cannon

Senior Counsel for Internet Issues

FCC Office of Plans and Policy

Where we are…Where we are…

Internet SubscribersInternet Subscribers

020406080

100120140160180

1999 2000 2001

Subs Percent

• 16% increase since last year, down from 41% growth previous year.

• 10 hrs, 19 min per month on average online, up 7%.

X 1

00,0

00

Source: Nielson-Netrating

Residential Internet Use

Top 25 Web PropertiesTop 25 Web Properties

0

10

20

30

40

50

60

70

Hits

Un

iqu

e H

itsX

10

0,0

00

Source: Nielsen/NetRatingsJuly 2001

Top ISPsTop ISPs

0

5

10

15

20

25

30

35

Q2 2001

AOL

MSN

Earthlink

Juno

Netzero

@home

SBC Prodigy

Compuserve

Bluelight

Gateway AOL

ATT Worldnet

ATT Broadband

Road Runner (AOL)

Bell South

Cox

Verizon

Comcast

Charter

Cablevision

PeoplePC

All Others

Per

cen t

Ma r

k et

Source: Cyberatlas June 2001A

OL

MS

NE

art h

li nk @

Hom

eS

BC

AT

&T

Bel

l Sou

t h

Ver

i zo n

Al l

Ot h

er I S

Ps

Consumer Access 2000Consumer Access 2000

9%

88%

3%

Broadband Dialup Other

Source: Cahners In-Stat Group

High Speed LinesHigh Speed Lines(Over 200 kbps in at least one direction)(Over 200 kbps in at least one direction)

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

Dec-99 Jun-00 Dec-00

DSL Other Wireline Cable Fiber Satellite & Fix Wireless

Source: FCC

Race To DeploymentRace To Deployment

0102030405060708090

100

0 5 10 15 20 25

Color TV VCR Cell Phones CD Players Broadband Net* PCsSource: ebrain.org

Years

Pe

rce

nt H

ou

se H

old

s

DSL by Type of ProviderDSL by Type of Provideras of Dec 31, 2000as of Dec 31, 2000

86%

6%8%

RBOC Other ILEC Non ILEC

Source: FCC

Broadband AccessBroadband Access20002000

14 14

1

5651

39

8578

21

87 86

11

0

20

40

60

80

100

SOHO Sm Bus Mid Market Enterprise

Main Off Branch Off Telecommute

Source: Cahners In-State Group

Preferred Method of Broadband AccessPreferred Method of Broadband Access(Given a choice, what would you choose)(Given a choice, what would you choose)

010203040506070

DSL (T1) ISDN Cable FixedWireless

No Pref

In Stat CMP Source: Cahners In-State GroupCMP Net Mag Aug 2001

Per

cent

Which Broadband Providers Do You Use?Which Broadband Providers Do You Use?Business RespondentsBusiness Respondents

6356

3330 28

20

5

0

10

20

30

40

50

60

70

ISP Phone Cable CLEC Long Dist Wireless Other

Source: Cahners In-State Group

Where are we going?Where are we going?

3rd Sec. 706 Notice of Inquiry3rd Sec. 706 Notice of InquiryComments Due 30 days after Fed Reg Pub

Docket 98-146

• Is advanced telecommunications capability being deployed to all Americans?

• Is overall deployment reasonable and timely?

• If deployment is not reasonable and timely, what actions will accelerate deployment?

Open Access NOIOpen Access NOIGN Docket No. 00-185 Ex Parte Period

• Classification of Cable Modem Service?

• Issues Surrounding Open Access– What is Open Access?– Is It a Desirable Policy Goal?– Uniform Policy to all High Speed

Providers?– Technical Issues?

• FCC Options

Computer III FNPRMComputer III FNPRMEx Parte PeriodEx Parte Period

• Enhanced Services (Internet) unregulated• Establish

– Rights of ESPs to Basic Telecom– Safeguards of ESPs from anticompetitive telephone behavior– Open Telecom Platform

• Computer III created non-structural safeguards– Comparably Efficient Interconnection– Open Network Architecture

• Public Notice– Post Telecom Act of 1996 Market?– Enforceable?– Is CEI and ONA Used?

Other FCC ProceedingsOther FCC Proceedings

• Interactive TV• Improved Telecom

Relay Service Using IP

• Universal Service Reform

• Spectrum Reform - 3G

• E-rate• Network Reliability• CALEA• Intercarrier

Compensation• International: IP

Telephony, ICAIS, ENUM

Potential Policy SolutionsPotential Policy SolutionsTexasTexas

Ab

ility

to P

ay

Population Density

Low

Low

High

High

Technology,Demand

AggregationCompetition

Loan and Tax Incentive Programs,

Community Networking, Social

Contracts

Grant Development, Economic and

Community Development

Initiatives

Source: Brett Perlman, Texas Public Utility Commission

Satellite and Wireless

Technology

Market-Driven

Programs

Community Technology Access and

Training

Competition

Ability to Pay

Population Density

Potential Policy SolutionsHigh

Low

Low High

Accelerating Broadband Deployment Accelerating Broadband Deployment Requires Multiple SolutionsRequires Multiple Solutions

Thank You . . .Thank You . . .

Robert CannonSenior Counsel for Internet Issues

FCC Office of Plans and Policyrcannon@fcc.gov

Standard Disclaimer: Views expressed are my own and do not necessarily represent those of the FCC,

the Commissioners, its staff, or my dog.