FOR IMMEDIATE RELEASE: NEWS MEDIA CONTACT:

September 28, 2000 Michael Balmoris at 202-418-0253

Email:

Mike Perko at 202-418-7200

FEDERAL COMMUNICATIONS COMMISSION launches

INQUIRY regarding HIGH-SPEED internet service

Proceeding Seeks to Create National Policy Framework for High-Speed Services

Inquiry Underscores Goal to Promote Widespread Deployment of High-Speed Services

Washington, D.C. – Today, the Federal Communications Commission (FCC) issued a Notice of Inquiry (NOI) to explore issues surrounding high-speed Internet service, particularly that which is provided over cable systems, so-called “cable modem services.” The Commission seeks comment on the appropriate legal and policy approach to be accorded to high-speed Internet service provided over various platforms, including cable, wireline, wireless, satellite, broadcast and unlicensed spectrum technologies, as well as whether or not the Commission should require access to cable and other high-speed systems by Internet Service Providers (ISPs).

With respect to access by ISPs to high-speed cable systems, the Commission 's approach has reflected one of regulatory restraint, which has resulted in an industry movement toward voluntary agreements allowing access to cable modem platforms by ISPs unaffiliated with the cable system operator. However, recent court cases have placed cable modem service under various regulatory classifications, resulting in some uncertainty and confusion in the marketplace.

While the Commission has exercised regulatory restraint in the area of high-speed Internet services, it at the same time has sought to reduce barriers to market entry, to encourage market investment, and to promote the rapid and widespread deployment of high-speed Internet services by all providers. These initiatives have proven successful, as subscribership to high-speed cable systems grew 150% last year, with other high-speed service providers experiencing similar growth.

In this NOI, the Commission inquires whether it should continue its existing policy for cable modem service in the context of a national policy framework for promoting deployment and competition in high-speed Internet services. The Commission’s goals in initiating this proceeding include:

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  1. Promoting widespread and rapid deployment of high-speed services, while at the same time preserving and promoting the vibrant and competitive free market that exists for the Internet.
  2. Creating a legal and policy framework for cable modem service that will foster competitive deployment of new technologies and services by all entities, including cable operators and other high-speed platforms and ISPs alike.
  3. Instilling a measure of regulatory stability in the market to encourage investment in all types of high-speed networks and innovation in high-speed services.
  4. Developing a national legal and policy framework in light of recent federal court opinions that have classified cable modem service in varying manners.

To accomplish these goals, the NOI:

1.  Seeks to develop a factual record regarding the services provided by cable operators and other high-speed platforms and the type of access sought by unaffiliated ISPs.

2.  Seeks comment on potential approaches for classifying cable modem service and the cable modem platform and the implications of classifying cable modem service or the cable modem platform under each category.

3.  Seeks comment on various issues related to multiple ISP access, including definitional issues and how market-based and regulatory approaches potentially affect the availability of high-speed services.

4.  Seeks comment on whether the Commission should pursue any further course of action such as exercising its rulemaking or forbearance authority.

Action by the Commission September 28, 2000, by Notice of Inquiry (FCC 00-355). Chairman Kennard and Commissioners Ness, Furchtgott-Roth, Powell, and Tristani.

GN Docket No. 00-185

-FCC-

Staff Contacts

Johanna Mikes / Christopher Libertelli at 202-418-1580

Carl Kandutsch at 202-418-7200

Robert Cannon at 202-418-2030

Douglas Sicker at 202-418-2478

News about the Federal Communications Commission can also be found

on the Commission’s web site www.fcc.gov.


http://www.crtc.gc.ca/archive/eng/Decisions/1999/DT99-11.htm

Telecom Decision CRTC 99-11

Application concerning access by Internet service providers to incumbent cable carriers' telecommunications facilities

File No.: 8646-C51-01/99

Summary

The Commission is issuing a direction to cable carriers with respect to the resale of retail Internet Services. Cable carriers are cable distribution undertakings that also provide telecommunications services using the same facilities that they use to provide cable service.

The Commission requires each incumbent cable carrier providing higher speed Internet retail services to make these services available for resale within 90 days of the date of this decision. This resale must be provided at a discount of 25% from the lowest retail Internet service rate charged by the cable carrier to a cable customer in its service area during any one month period.

These terms must be maintained until the cable carrier provides competing Internet service providers (ISPs) with access through interconnection according to a tariff approved by the Commission.


http://www.crtc.gc.ca/ENG/publications/reports/PolicyMonitoring/2001/gic2001-09.htm

Visited November 21, 2001

Report to the Governor in Council:

Status of Competition in Canadian Telecommunications Markets Deployment/Accessibility of Advanced Telecommunications Infrastructure and Services

September 2001

(excerpt from Executive Summary)

Canadian cable and telecommunications companies have made considerable investments in broadband infrastructure over the last several years. Approximately three-quarters of

Canadians live in communities where high-speed services are provided by such companies. On a per capita basis, Canada is ahead of all other G8 countries in terms of subscription to high-speed services.

However, continued efforts and expenditures will need to be made. Approximately six million Canadians live in communities that do not have access to high-speed service. Absent programs or incentives to encourage investment in advanced telecommunications

infrastructure, access to high-speed service may not be provided to all unserved communities by 2004.

(excerpt from Chapter 5 – Impact of Competition on Customers)

5.4 Internet services

Internet pricing for residential customers has decreased significantly since Internet service was first offered.

For the past several years, dial-up Internet has been priced at roughly $10 per month for

low-usage and $25 for high usage by both the incumbent telephone companies and major

independent ISPs.48 [Footnote: CRTC Industry Survey - 2001. The CRTC surveyed major independent ISPs. Small ISPs may have different pricing plans.]

The cable companies introduced high-speed Internet service in November 1996. The ILECs or their affiliates followed by offering their own high-speed Internet service. Pricing for residential high-speed service has decreased to $40 per month in most parts of the country.49 [Footnote: Prices may be lower with promotions and special offers.]

Internet service for businesses is more complex as business needs vary widely depending

upon their size and sector of operation. Based on the information provided in the CRTC

Industry Survey - 2001, entry-level business Internet prices range from $65 to $90 per month.


Full report available at http://www.itu.int/osg/spu/ni/broadband/background.html

Visited November 21, 2001

OECD

Directorate for Science, Technology and Industry

Working Party on Telecommunication and Information Services Policies

DSTI/ICCP/TISP(2001)2/FINAL

29-Oct-2001

“The Development of Broadband Access in OECD Countries”

(excerpt – page 14 of report)

Table 4. Broadband status (June 2001)

DSL / Cable / Other / Total broadband subscribers per 100 inhabitants / Rank June 2001 / Rank End 2000
Korea / 4,205,813 / 2,310,330 / 13.91 / 1 / 1
Canada / 702,267 / 1,194,700 / 6.22 / 2 / 2
Sweden / 122,000 / 78,400 / 199,000 / 4.52 / 3 / 4
USA / 3,334,491 / 5,500,000 / 3.24 / 4 / 3
OECD / 10,643,752 / 11,138,333 / 1.96

Source : OECD.