Wireless Growth Fuels U.S. Broadband Expansion
Wireless broadband easily outpaced wireline last year in new high-speed broadband connections, the FCC said in its twice-yearly report on U.S. broadband data. The commission’s numbers echo reports from wireless carriers about rapid growth in their data offerings. Wireless carriers hope the FCC will view the report as evidence it shouldn’t cap Universal Service Fund payments to competitive eligible telecommunications carriers (CETCs).
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The FCC reported that in 2006 mobile wireless high-speed subscribership grew fast, almost doubling the number of wireless subscribers to 21.9 million from 11 million in just the last six months of the year. Mobile broadband made up 62 percent of the net growth in high-speed lines the second half of 2006. “I think it shows that wireless is important in helping the deployment of broadband, and it would be a mistake to impose a cap on CETCs,” said a wireless carrier source.
“Clearly the competitive wireless market is proving its value to consumers, and these astounding statistics are evidence that more and more Americans can use mobile wireless as their high-speed on-ramp to the internet,” said Steve Largent, president of CTIA. “Only wireless allows consumers to communicate and connect while on the move, and it is this ability to conduct your work and play from wherever you are that is so appealing to people of all walks of life.”
“Once again, the numbers show that the Commission’s forward-looking policies have helped spur broadband delivery,” said Walter McCormick, president of USTelecom. “The latest FCC numbers show that landline residential broadband connections increased by 11.5 million, almost 27 percent, in 2006 alone. The numbers also point to exponential growth in the mobile wireless broadband market with 18.5 million new customers.”
About 82.5 million high-speed Internet lines with downlink speeds at least 200 kbps were in service at the end of 2006, the FCC said. There were 51.2 million at 2006’s start and 65 million by the end of June. The 61 percent year-over-year increase is larger than the 37 percent jump reported for 2005.
About 70.5 percent of the 82.5 million lines “served primarily” residential end users, the report said. About 54.6 percent were cable modem connections, 39.2 percent asymmetric DSL, 1.3 percent fiber and 0.2 percent symmetric DSL. The other 5.8 percent used satellite, mobile wireless, electric power line and other technology types, it said. ADSL added 2.8 million lines in the second half and 5.9 million in 2006. Cable added 3.2 million and 5.5 million. Advanced services lines, a subset of the high-speed category that hits speeds of at least 200 kbps upstream and down, grew to 59.5 million lines in 2006 from 43.9 million the previous year. About 63 percent of connections were at least 2.5 Mbps in the faster direction. Nearly 90 percent served home users. About 57.7 percent were cable modem connections, 1.4 percent fiber and 0.2 percent SDSL or “traditional wireline connections”; the remaining 5.4 percent used other technologies, it said.
The FCC estimated that high-speed DSL connections were available to 79 percent of households where incumbent LECs provide local telephone service. Cable-modem service was available to 96 percent of households that cable systems pass. More than 99 percent of U.S. ZIP codes have at least one high-speed connection service, and more than 99 percent of Americans live in those places, FCC said. Satellite services are available in 91 percent, ADSL in 84 percent and cable modem in 65 percent. ADSL or cable modem connections are available in about 90 percent, it said.