Fact Sheet: 2016 Broadband Progress Report Chairman’s Draft Background Section 706 of the Telecommunications Act of 1996 requires the FCC to determine whether “advanced telecommunications capability” -- broadband -- is being deployed to all Americans in a “reasonable and timely fashion.” If the answer is negative, the Act requires the FCC to “take immediate action” to speed deployment. Following is a summary of Chairman Wheeler’s draft of the 2016 Broadband Progress Report, which he is circulating to his fellow commissioners for their consideration at the January 28 Open Meeting. The Conclusion ? While the nation continues to make progress in broadband deployment, advanced telecommunications capability is not being deployed in a reasonable and timely fashion to all Americans. Factors leading to this conclusion are as follows: o Approximately 34 million Americans still lack access to fixed broadband at the FCC’s benchmark speed of 25 Mbps for downloads, 3 Mbps for uploads o 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 ? 10 percent lack access nationwide o 41 percent of Tribal Lands residents lack access o 41 percent of schools have not met the Commission’s short-term goal of 100 Mbps per 1,000 students/staff. ? These schools educate 47 percent of the nation’s students, ? A much smaller percentage of schools have met the FCC’s longer-term goal of 1 Gbps per 1,000 students o Internationally, the U.S. continues to lag behind a number of other developed nations, ranking 16 th out of 34 countries Other Findings ? Advanced telecommunications capability requires access to both fixed and mobile broadband o Fixed and mobile service offer distinct functions meeting both complementary and distinct needs ? 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 forgo use of the Internet. o The increasingly dynamic nature of residential and business communications requires both fixed and mobile broadband access. A standard reflecting access to both fixed and mobile broadband reflects current consumer needs, usage, and preference. ? However, given the current record, the FCC does not yet set a mobile speed benchmark, so deployment of mobile broadband is not reflected in the current assessment. Improved Access Percentage of Americans Lacking Access to Fixed Broadband at 25/3 2014 2013 2012 United States 10% 17% 20% Rural Areas 39% 53% 55% Urban Areas 4% 8% 11% Tribal Lands 41% 63% 68% Rural Areas 68% 85% 89% Urban Areas 14% 41% 47% U.S. Territories 66% 63% 100% Ongoing Commission/administration/industry actions to increase broadband deployment ? Acceptance by 10 carriers in August, 2015 of $1.5 billion in annual support from Connect America Fund to expand rural broadband deployment to 3.6 million homes and business by the end of 2020 in 45 states and one territory. ? Authorization by Dec. 2015 of $34 million in support through the Rural Broadband Experiments program in 12 states ? Following modernization of the E-rate program to better support fiber and Wi-Fi in schools and libraries, the FCC has issued more than $2.8 billion in funding commitments, including $1 billion for broadband connections of 100 Mbps and higher, and $1.1 billion for Wi-Fi for Funding Year 2015. ? Further Notice considering modernization of Lifeline program to support broadband ? Open Internet order ensures an open platform for network and application innovations, which drive increased consumer demand for faster, better broadband ? Brought pole attachment rates for cable and telecom companies to near-parity ? HUD ConnectHome program to bring high-speed broadband to low-income housing in 27 cities ? As part of the Commission’s efforts to ensure access to robust and affordable mobile voice and broadband service, the Commission has conducted two Mobility Fund auctions: o Mobility Fund Phase I auction, with winning bidders eligible to receive a total of up to approximately $300 million in one-time support to provide 3G or better mobile voice and broadband services to areas where those services did not exist, and o Tribal Mobility Fund Phase I auction, with winning bidders eligible to receive a total of up to approximately $50 million in one-time support to provide 3G or better mobile voice and broadband services to Tribal lands ? Investment by industry of $78 billion in network infrastructure in 2014 (US Telecom) ? Investment by wireless providers of $32 billion in 2014 (CTIA) -FCC 1/7/16-