Federal Communications Commission FCC 22-103 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Communications Marketplace Report ) GN Docket No. 22-203 2022 COMMUNICATIONS MARKETPLACE REPORT Adopted: December 30, 2022 Released: December 30, 2022 By the Commission: Commissioner Carr approving in part, concurring in part, and issuing a statement. TABLE OF CONTENTS Heading Paragraph # I. INTRODUCTION AND EXECUTIVE SUMMARY ........................................................................... 1 II. ASSESSMENT OF THE STATE OF COMPETITION ........................................................................ 8 A. The Fixed Broadband Services Marketplace ................................................................................. 14 1. Overview of the Fixed Broadband Marketplace ..................................................................... 16 2. Competitive Trends in Fixed Broadband ................................................................................ 37 B. The Mobile Wireless Marketplace ................................................................................................. 62 1. Overview of the Mobile Wireless Marketplace ....................................................................... 64 2. Mobile Wireless Spectrum ...................................................................................................... 82 3. Wireless Infrastructure ............................................................................................................ 92 4. Pricing Levels and Trends ....................................................................................................... 99 5. Non-Price Factors .................................................................................................................. 112 6. Network Coverage ................................................................................................................. 144 7. Relationship between Fixed and Mobile Broadband Service ................................................ 156 C. Voice Telephone Services ............................................................................................................ 168 D. The Satellite Marketplace ............................................................................................................ 174 1. Overview of Commercial Satellite Services .......................................................................... 174 2. Spectrum for Satellite Services ............................................................................................. 180 3. Satellite Industry Current Status and Participants ................................................................. 188 4. Satellite Industry Dynamics and Key Characteristics ........................................................... 203 E. The Video Marketplace ................................................................................................................ 212 1. Overview of the Video Programming Marketplace .............................................................. 212 2. Multichannel Video Programming Distributors .................................................................... 216 3. Online Video Distributors ..................................................................................................... 236 4. Broadcast Television Stations ............................................................................................... 262 5. Competition in Video ............................................................................................................ 276 6. Report on Cable Industry Prices ............................................................................................ 291 F. The Audio Market ........................................................................................................................ 295 1. Overview of the Audio Programming Market ....................................................................... 295 2. Terrestrial Radio Broadcasters .............................................................................................. 299 3. Satellite Radio ....................................................................................................................... 309 4. Online Audio Providers ......................................................................................................... 312 Federal Communications Commission FCC 22-103 5. Competition in Audio Programming ..................................................................................... 318 III. ASSESSMENT OF BROADBAND DEPLOYMENT ...................................................................... 329 A. Access to Advanced Telecommunications Capability ................................................................. 330 1. Broadband Deployment Estimates ........................................................................................ 337 B. International Broadband Data Report .......................................................................................... 351 1. Broadband Deployment Comparison .................................................................................... 353 2. Broadband Speed and Performance Comparison .................................................................. 357 3. Broadband Pricing Comparison ............................................................................................ 361 4. International Regulatory Developments ................................................................................ 364 IV. ENTRY AND EXPANSION CONDITIONS IN THE COMMUNICATIONS MARKETPLACE .............................................................................................................................. 385 A. The Fixed Communications Marketplace .................................................................................... 386 B. The Mobile Wireless Communications Marketplace ................................................................... 392 C. The Satellite Marketplace ............................................................................................................ 399 D. The Video and Audio Communications Marketplace .................................................................. 405 V. CONNECTIVITY AND COVID-19 .................................................................................................. 419 VI. COMMISSION ACTIONS ALREADY TAKEN TO PROMOTE COMPETITION, ENCOURAGE UNIVERSAL DEPLOYMENT OF COMMUNICATIONS SERVICES AND ENSURE INCLUSION ...................................................................................................................... 442 A. The Fixed Communications Marketplace .................................................................................... 443 B. The Mobile Wireless Marketplace ............................................................................................... 462 C. The Satellite Marketplace ............................................................................................................ 484 D. The Video and Audio Communications Marketplace .................................................................. 488 VII. COMMISSION AGENDA TO FURTHER PROMOTE COMPETITION, ENCOURAGE UNIVERSAL DEPLOYMENT OF COMMUNICATIONS SERVICES, AND ENSURE INCLUSION ...................................................................................................................................... 494 A. The Fixed Communications Marketplace .................................................................................... 495 B. The Mobile Wireless Communications Marketplace ................................................................... 499 C. The Satellite Marketplace ............................................................................................................ 504 D. The Video and Audio Communications Marketplace .................................................................. 508 VIII. PROCEDURAL MATTERS............................................................................................................ 512 APPENDIX A: LIST OF COMMENTERS APPENDIX B: FIXED BROADBAND SERVICES APPENDIX C: MEASURING BROADBAND AMERICA REPORT APPENDIX D: MOBILE WIRELESS SERVICES APPENDIX E: REPORT ON CABLE INDUSTRY PRICES APPENDIX F: DEPLOYMENT AND ADVANCED TELECOMMUNICATIONS CAPABILITY APPENDIX G: INTERNATIONAL BROADBAND DATA REPORT 2 Federal Communications Commission FCC 22-103 I. INTRODUCTION AND EXECUTIVE SUMMARY 1. The Commission is required to publish a Communications Marketplace Report every two years that assesses generally the state of competition across the broader communications marketplace.1 The Commission must evaluate competition to deliver voice, video, audio, and data services among providers of telecommunications, providers of commercial mobile service, multichannel video programming distributors, broadcast stations, providers of satellite communications, Internet service providers (ISPs), and other providers of communications services.2 As part of its evaluation, the Commission must consider all forms of competition, including “the effect of intermodal competition, facilities-based competition, and competition from new and emergent communications services.”3 The Commission also must assess whether laws, regulations, regulatory practices, or marketplace practices pose a barrier to competitive entry into the communications marketplace or to the competitive expansion of existing providers of communications service.4 2. With this 2022 Communications Marketplace Report,5 the Commission fulfills its mandate to provide a comprehensive evaluation of the state of competition in the communications marketplace in the United States.6 As required, this third Report7 assesses the state of all forms of competition in the communications marketplace; the state of deployment of communications capabilities, 1 47 U.S.C. §§ 163(a), (b)(1); see also Section 401 of the Repack Airwaves Yielding Better Access for Users of Modern Services Act of 2018, Pub. L. No. 115-141, 132 Stat. 1087 (codified at 47 U.S.C. § 163) (RAY BAUM’S Act of 2018). 2 47 U.S.C. §§ 163(a), (b)(1). 3 Id. § 163(d)(1). 4 Id. § 163(b)(3). In assessing the state of competition under subsection (b)(1) and regulatory barriers under subsection (b)(3) of the Act, the Commission must also “consider market entry barriers for entrepreneurs and other small businesses in the communications marketplace in accordance with the national policy under section 257(b).” Id. § 163(d)(3). The Commission must include the International Broadband Data Report required by section 103(b)(1) of the Broadband Data Improvement Act as part of the Communications Marketplace Report. See RAY BAUM’S Act of 2018 § 402(c), 132 Stat. at 1089; 47 U.S.C. § 163; 47 U.S.C. § 1303(b)(1). 5 See Office of Economics and Analytics Seeks Comment On The State Of Competition In The Communications Marketplace, GN Docket No. 22-203, Public Notice, DA 22-535 (OEA 2022) (2022 CMR Public Notice). The Office of Economics and Analytics (OEA) released the 2022 CMR Public Notice on May 16, 2022. The comment period ended July 1, 2022, and the reply comment period ended Aug. 1, 2022. Appx. A of this Report provides a list of all the parties who filed in this proceeding. 6 47 U.S.C. §§ 163(a), (b)(1); see also RAY BAUM’S Act of 2018. 7 In December 2020, the Commission adopted its second Communications Marketplace Report, providing a comprehensive evaluation of the state of the communications marketplace as of year-end 2019. Communications Marketplace Report et al., GN Docket No. 20-60, Report, 36 FCC Rcd 2945 (2020) (2020 Communications Marketplace Report), https://www.fcc.gov/document/fcc-releases-2020-communications-marketplace-report (last visited Sept. 27, 2022); Communications Marketplace Report et al., GN Docket No. 18-231 et al., Report, 33 FCC Rcd 12558 (2018) (2018 Communications Marketplace Report), https://www.fcc.gov/reports- research/reports/consolidated-communications-marketplace-reports/CMR-2018 (last visited Sept. 27, 2022). The first Communications Marketplace Report was adopted in December 2018, and provided data and information as of year-end 2017. In February 2020, the Commission updated certain figures, maps, and tables contained in the 2018 Communications Marketplace Report to reflect the most recent data available as of year-end 2018. FCC Releases Certain Data Updated as of December 31, 2018 for the Communications Marketplace Report, GN Docket No. 18- 231, Public Notice, 35 FCC Rcd 1479 (OEA 2020), https://www.fcc.gov/communications-marketplace-report- updates (last visited Sept. 27, 2022). 3 Federal Communications Commission FCC 22-103 including advanced telecommunications capability;8 and barriers to competitive entry, including market entry barriers for entrepreneurs and other small businesses. 3. At the outset, we note that the U.S. communications marketplace is in a substantial state of change and re-examination. During the past two years, the COVID-19 pandemic drove millions of people to work and learn remotely, and consumers’ demand for fixed and mobile broadband, video, and audio services increased significantly.9 At the same time, there were considerable developments in the regulatory, technological, and business environment that will likely influence competition in the sector in the coming years. We see an emerging set of issues and opportunities presented by these changes in the marketplace: some trends that are encouraging and others that may pose challenges. 4. First is the potential for more competitive broadband markets. Currently available data demonstrates that millions of Americans lack access to high-speed broadband or can only access high- speed broadband through a single provider. However, this market is on the cusp of generational change. The $1 trillion Infrastructure and Investment and Jobs Act has earmarked $65 billion for continued broadband adoption and deployment throughout the country. The Commission’s effort to develop new broadband maps that will help identify broadband gaps and better target federal support is well underway. New technologies like 5G fixed wireless services are deploying and may provide new competition to traditional fixed broadband services, particularly in rural areas. And while these trends develop, the Commission has taken steps to create more accountability in markets where competition may be lagging. For example, the Commission has adopted new rules that prohibit ISPs from entering into certain agreements with landlords that keep competitors locked out as well as new rules that require them to display clear “nutrition labels” to help consumers comparison shop. More recently, the Commission started a proceeding to combat and prevent digital discrimination and to promote equal access to broadband. 5. Second is change in the wireless sector in the 5G era. The sector landscape has been reshaped in recent years by multibillion-dollar horizontal and vertical acquisitions. T-Mobile acquired Sprint, shrinking the number of U.S. nationwide mobile service providers from four to three. Verizon also completed its acquisition of TracFone, previously the largest wireless reseller in the United States. Meanwhile, DISH has entered the wireless sector, started to deploy a cloud-native 5G Open RAN network, and has committed to emerging as a nationwide competitor. In addition to acquisitions, wireless service providers have spent approximately $108.5 billion in 5G spectrum auctions over the past two years and made multibillion-dollar capital investments to deploy next generation 5G networks, doing so twice as fast as the previous generation of wireless technology. Mobile wireless providers are also increasingly providing fixed, home broadband service. Against this backdrop, there is also rising interest in edge computing and private cellular networks and ongoing work to reassess cybersecurity and risk management in 5G networks and equipment markets. 6. Third is the rapid expansion of LEO satellite constellations and the emergence of new players in the commercial satellite industry. Reductions in launch costs and other innovations have helped make it possible to cheaply put thousands of satellites in orbit. Approximately 98% of all satellite launches in 2021 were deployed into LEO to provide internet connectivity back here on Earth. Starlink has a significant head start, having launched more than 3,350 of its Starlink satellites. However, over roughly the last two years, the Commission also has approved new satellite constellations from Kuiper and Boeing, with applications representing thousands of additional satellites still under review. In addition, the Commission has taken a range of actions to support competition, including making more 8 47 U.S.C. § 1302. The term “advanced telecommunications capability” is defined, without regard to any transmission media or technology, as high-speed switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology. 9 See infra section V. 4 Federal Communications Commission FCC 22-103 spectrum available to support commercial space launches and satellite communications, updating processing round rules for non-geostationary satellites to encourage spectrum sharing and information sharing, and adopting new rules to address orbital debris risks. And the video and audio industries are also experiencing a great deal of change, as technological change and consumer preferences transform the marketplace. 7. In the coming years, the Commission will continue to monitor these trends and what they mean for the state of competition and consumer choice in the communications marketplace, as advanced communications services play an ever-larger role in our lives. II. ASSESSMENT OF THE STATE OF COMPETITION 8. The RAY BAUM’S Act of 2018 requires the Commission to assess the state of competition in the communications marketplace. In section II, we assess the state of competition separately within several specific components of the broader communications marketplace, including the fixed broadband marketplace, the mobile wireless marketplace, the voice services marketplace, the satellite marketplace, the video marketplace, including cable industry prices, and the audio marketplace. In section III, we present information on access to advanced telecommunications capability, and provide a summary of the International Broadband Data Report. 9. In assessing the state of competition, we report on several economic indicators. These include indirect measures of competition—such as the number of providers, along with barometers of market concentration—that are recognized as being associated with the level of competition. We also report, among other things, prices and product offerings. This entails looking at the major factors that affect prices, including inputs such as spectrum, infrastructure, or video content, as well as the quality of the service being offered to consumers and quality-enhancing investment. This Report further recognizes that some markets are interrelated, and so assesses competition between some of these markets, such as between fixed and mobile broadband and between multichannel video programming distributors (MVPDs), online video distributors (OVDs), and broadcast television stations. 10. The Broadband Data Collection (BDC), FCC Form 477, and Network Deployment. As noted above, the Commission is required to assess the state of communications capability deployment, including advanced telecommunications capability. As the Commission has repeatedly stated, having accurate and reliable broadband deployment data is critical, not only to the Commission, but also to other federal policymakers, state policymakers, and consumers.10 11. In August 2019, the Commission adopted new requirements for broadband availability mapping to collect more granular, precise coverage data,11 and in March 2020, Congress enacted the Broadband DATA Act.12 This Act bolstered the Commission’s data collection improvement effort, but also established additional requirements for the Commission to adopt rules and carry out other steps for the collection and publication of data on the quality and availability of broadband Internet access 10 See, e.g., Establishing the Digital Opportunity Data Collection, WC Dockets Nos. 19-195 and 11-10, Second Report and Order and Third Further Notice of Proposed Rulemaking, 35 FCC Rcd 7460, 7461, para. 1 (2020) (BDC Second Order and Third Further Notice); Establishing the Digital Opportunity Data Collection; Modernizing the FCC Form 477 Data Program, WC Dockets Nos. 19-195 and 11-10, Report and Order and Second Further Notice of Proposed Rulemaking, 34 FCC Rcd 7505, 7549, para. 112 (2019) (BDC Order and Second Further Notice); Modernizing the FCC Form 477 Data Program, WC Docket No. 11-10, Further Notice of Proposed Rulemaking, 32 FCC Rcd 6329, 6331-32, para. 8 (2017) (2017 Data Collection Improvement Further Notice). 11 See BDC Report and Order and Second Further Notice. 12 Broadband Deployment Accuracy and Technological Availability Act, Pub. L. No. 116-130, 134 Stat. 228 (2020) (codified at 47 U.S.C. §§ 641-46) (Broadband DATA Act). 5 Federal Communications Commission FCC 22-103 service.13 In July 2020 and January 2021, the Commission adopted additional new requirements for the Broadband Data Collection (BDC) consistent with the Broadband DATA Act,14 and in January 2021, the Commission received an appropriation from Congress for the implementation of the data collection. Chairwoman Rosenworcel established the Broadband Data Task Force (Task Force) in February 2021 to lead the cross-agency effort to implement improvements to the Commission’s broadband data and mapping tools.15 12. During 2021 and 2022, the Commission has continued to develop and refine the BDC and provide guidance regarding the requirements,16 including through the release of a number of items that furthered the Commission’s ongoing effort to improve broadband availability data.17 These efforts have included contracting for the development of the Broadband Serviceable Location Fabric (Fabric), system development, project management consulting services, system testing, a mobile speed test app, and technical assistance; internal policy development; conducting a rulemaking on the mobile challenge, crowdsourcing, and verification processes; and inter-governmental and consumer outreach. In February 2022, the Task Force and the Office of Economics and Analytics (OEA) announced that the first BDC filing window for the collection of coverage data as of June 30, 2022, would open on June 30, 2022 and 13 47 U.S.C. §§ 641-46. Under the Broadband DATA Act, the Commission must establish rules: (1) requiring the collection of granular data from providers on the availability and quality of service of broadband internet access service, which the Commission will use to create publicly available coverage maps; (2) adopting processes for challenging and verifying the coverage maps and submitted data; and (3) instructing mobile providers to submit propagation maps depicting current 4G LTE mobile broadband coverage, along with propagation model details, that consider the effect of clutter and demonstrate minimum specified parameters. Id. § 642 (b)(5), (a)(1)(B)(i), (b)(2)(B). The Broadband DATA Act also requires the Commission to create a common dataset of all locations where fixed broadband Internet access service can be installed. Id. § 642 (b)(1)(A)(i). 14 See Establishing the Digital Opportunity Data Collection, WC Docket Nos. 19-195 and 11-10, Third Report and Order, 36 FCC Rcd 1126, 1127, para. 2 (2021) (BDC Third Report and Order). 15 In March 2021, the Task Force launched a new webpage—www.fcc.gov/BroadbandData—to serve as a central location for information regarding the Broadband Data Collection. The webpage also provides access to a new portal through which consumers can share their experiences with broadband services in their area. 16 Throughout this period, the Task Force and other Commission staff have held numerous briefing sessions with interested stakeholders from federal and state legislators, state, local, and Tribal governments, other federal and state agencies, consumers, and industry to seek input and address concerns and interests, and to keep all stakeholders informed of the Commission’s plans and progress. 17 See, e.g., Broadband Data Task Force, Wireline Competition Bureau, and Office of Economics and Analytics Announce Data Specifications for Bulk Fixed Availability Challenge and Crowdsource Data, WC Docket Nos. 19- 195 and 11-10, Public Notice (BDTF/WCB/OEA Sept. 15, 2022); Broadband Data Task Force, Wireline Competition Bureau, and Office of Economics and Analytics Announce Data Specifications for Bulk Fabric Challenge Data, WC Docket Nos. 19-195 and 11-10, Public Notice (BDTF/WCB/OEA July 1, 2022); Broadband Data Task Force Issues Guidance to State, Local, and Tribal Governmental Entities for Filing Verified Broadband Availability Data as Part of the Broadband Data Collection, WC Docket Nos. 19-195 and 11-10, Public Notice, DA 22-417 (WCB/WTB/OEA/OET Apr. 14, 2022); Broadband Data Task Force and Office of Economics and Analytics Publish Additional Data Specifications for the Submission of Mobile Speed Test and Infrastructure Data Into the Broadband Data Collection, WC Docket No. 19-195, Public Notice, DA 22-242 (OEA Mar. 9, 2022); Broadband Data Task Force and Office of Economics and Analytics Publish Data Specifications for the Broadband Data Collection, WC Docket No. 19-195, Public Notice, DA 22-229 (OEA Mar. 4, 2022); Establishing the Digital Opportunity Data Collection; Modernizing the FCC Form 477 Data Program, WC Docket Nos. 19-195 and 11-10, Order, 36 FCC Rcd 10053 (2021). 6 Federal Communications Commission FCC 22-103 run through September 1, 2022.18 The new Broadband Maps based on the first BDC filing windows were published on November 18, 2022 (for data as of June 30, 2022).19 13. As directed by Congress in the Broadband DATA Act, the Commission has also started two separate challenge processes to improve the data and the maps.20 First, starting in September 2022,21 parties have been able to file bulk challenges to improve the location data contained in the Fabric.22 Improvements to the Fabric are included in the most recent version; since the week of December 27, 2022, providers have been matching their fixed broadband availability data with the new Fabric in preparation for the next BDC filing window for data as of December 31, 2022, which will open on January 3, 2023.23 Next, shortly after the first maps were published in November 2022, the Commission began accepting individual challenges to the Fabric data and challenges to the broadband availability data reflected in that first map. Through these challenge processes, stakeholders including consumers, States, Tribes, local government entities, and ISPs can submit data to improve the accuracy of the Fabric and the BDC broadband availability data. Given that the BDC is still in its early stages, with one collection round complete and the challenge processes in their early stages, we do not rely on the BDC data as the primary source of data for this Report. For purposes of our assessment in this Report, we therefore continue to rely primarily on FCC Form 477 data.24 In the next Report, we expect to rely on the BDC for our analysis of broadband availability. 18 Broadband Data Task Force and Office of Economics and Analytics Announce Inaugural Broadband Data Collection Filing Dates, WC Docket Nos. 11-10 and 19-195, Public Notice, DA 22-182, at 1-2, paras. 3, 22 (BDTF/OEA Feb. 22, 2022). 19 See Inaugural Filing Window for Broadband Data Collection Has Opened; Filers May Begin Submitting Broadband Availability Data, WC Docket Nos. 11-10, 19-195, Public Notice, DA 22-696 (WCB/WTB/OEA June 30, 2022). 20 The Broadband DATA Act mandates that the BDC include a challenge process so that consumers, state, local, and Tribal governmental entities, and other entities or individuals may submit data to verify the accuracy of BDC submissions. 47 U.S.C. § 642(b)(5). Details of the challenge processes are publicly available. BDC Second Order and Third Further Notice, 35 FCC Rcd at 7503-06, paras. 104-09; BDC Third Report and Order, 36 FCC Rcd at 1146-51, 1164-75 paras. 47-60, 97-125; and Establishing the Digital Opportunity Data Collection, Order, DA 22- 241 (WTB/OEA/OET Mar. 9, 2022) (BDC Mobile Technical Requirements Order). Given the timeline for the challenge process, it was not possible to incorporate processed challenge data into this Report. 21 Broadband Data Task Force Announces the Start of the Broadband Serviceable Location Fabric Bulk Challenge Process, Public Notice, DA 22-913 (BDTF/WCB/OEA Sept. 1, 2022). 22 The Fabric is a common dataset of all locations in the United States where fixed broadband Internet access service (BIAS) is or can be installed. 47 U.S.C. § 642(b)(1)(A)(i). The Fabric is to contain geocoded information for each location, to serve as the foundation for which all fixed BIAS availability data are reported and overlaid, and the Commission is required to update it at least every 6 months. Id. § 642(b)(1)(B). 23 We note that for the Dec. 2021 FCC Form 477 filing, AT&T Wireless, T-Mobile, UScellular, Verizon Wireless, and their subsidiaries voluntarily reported FCC Form 477 4G mobile wireless deployment data using the same parameters and assumptions as required in the BDC. 24 See, e.g., Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 19-285, 2020 Broadband Deployment Report, 35 FCC Rcd 8986, 8997-98, para. 24 (2020) (2020 Broadband Deployment Report); 2020 Communications Marketplace Report, 36 FCC Rcd at 2991, para. 67; 2018 Communications Marketplace Report 33 FCC Rcd at 12651, para. 184. The FCC Form 477 deployment data are available to the public, which increases the transparency of our analysis and permits the public to independently assess our broadband service deployment data. The Commission has collected FCC Form 477 deployment data since 2014; thus, these data have provided a consistent yardstick against which to measure year-over-year broadband deployment. 7 Federal Communications Commission FCC 22-103 A. The Fixed Broadband Services Marketplace 14. We first examine the state of competition in the fixed broadband services marketplace. In this section, we examine the various fixed technologies that ISPs currently deploy, describe the service providers, and provide information on connections/subscribers and adoption rates. Further, we consider competition in fixed broadband, including a discussion of investment trends, pricing, speed, and the number of households that have access to multiple providers. In addition, we describe findings from the latest Measuring Broadband America (MBA) report, which provides a snapshot of fixed broadband Internet access service performance in the United States. 15. We measure fixed deployment using data at the census block level. For purposes of the analysis in this Report, a census block is classified as served if the FCC Form 477 data indicate that service is available in the census block, even if not to every location.25 Therefore, it is not necessarily the case that every household, housing unit, or person will have coverage from a given service provider26 in a census block that this analysis indicates is served.27 As the Commission has previously explained, given the data, this analysis likely overstates the coverage experienced by some consumers, especially in large or irregularly-shaped census blocks.28 Our analysis of deployment for both fixed (and mobile) services uses census block data developed by the U.S. Census Bureau and Commission staff estimates.29 1. Overview of the Fixed Broadband Marketplace 16. In examining the fixed marketplace, we will consider various factors, such as trends in technologies, speed, and pricing. Actual speeds consumers experience vary by connection technology, and, when given a choice, most consumers subscribe to technologies that are capable of providing faster speeds.30 Since the last Report, the number of fixed terrestrial residential connections capable of meeting a download speed threshold of 100 Mbps increased from approximately 66.4 million to 82.9 million, an 25 See, e.g., 2020 Communications Marketplace Report, 36 FCC Rcd at 2992, para. 69. 26 In addition, a provider that reports offering service at a given speed in a particular census block may not offer service at that speed to all locations in the census block. Accordingly, the number of providers presented in this Report does not necessarily reflect the number of choices available to a particular household and does not purport to measure competition. 27 A household consists of all the people who occupy a housing unit. A house, an apartment or other group of rooms, or a single room is regarded as a housing unit when it is occupied or intended for occupancy as separate living quarters; that is, when the occupants do not live with any other persons in the structure and there is direct access from the outside or through a common hall. U.S. Census Bureau, Subject Definitions, https://www.census.gov/programs-surveys/cps/technical-documentation/subject-definitions.html#household (last visited Oct. 6, 2022). 28 See, e.g., 2020 Broadband Deployment Report, 35 FCC Rcd at 8998, para. 26; Inquiry Concerning Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 18-238, 2019 Broadband Deployment Report, 34 FCC Rcd 3857, 3869, para. 25 & n.92 (2019 Broadband Deployment Report). 29 Commission staff developed population estimates for 2011-2020 and for 2021 by updated Census Bureau-level population and household-level data. These estimates are based on annual U.S. Census mid-year county- (or county-equivalent) level population and housing unit estimates for the 50 states, the District of Columbia, and Puerto Rico. These data are used in conjunction with U.S. Census Bureau Topological Integrated Geographic Encoding and Referencing (TIGER) data to indicate new roads, that is, new housing development, to distribute population amongst the census blocks comprising each county (or county-equivalent). FCC, Staff Block Estimates, https://www.fcc.gov/reports-research/data/staff-block-estimates (last visited Oct. 3, 2022) (Staff Block Estimates). 30 Since the 2020 Communications Marketplace Report, the proportion of residential subscribers choosing higher speed services increased significantly. See infra section II.A.1.c. 8 Federal Communications Commission FCC 22-103 increase of approximately 25%.31 Further, approximately 64% of households are located in census blocks that have at least two options for services meeting a 100/20 Mbps speed threshold; and approximately 4% of households are located in census blocks that have at least two options for services meeting a 940/500 speed threshold.32 We note that pricing is a difficult metric to capture, as it is dependent on various product characteristics and can change with time or the bundle offer. This Report provides a snapshot of prices for Internet-only packages. We show that as broadband speeds increase, so do prices across cable, DSL, fiber, and fixed wireless technologies. a. Technologies Deployed 17. Consumers access the Internet through a variety of fixed technologies, including cable broadband service, copper (including DSL), fiber to the premise, terrestrial fixed wireless service, and satellite service. These services differ in their availability, and also in characteristics such as speed, latency, reliability, and price.33 In this Report, as discussed above, we primarily use FCC Form 477 data because the BDC has only undergone one collection round and the challenge and verification processes have been underway for a relatively short period. Further, and unless otherwise explicitly stated, the data we use in our analysis of the fixed marketplace are for the 50 states, the District of Columbia, and Puerto Rico only.34 For purposes of our analysis, a census block is classified as served if the FCC Form 477 deployment data indicate that service can be provided to some, even if not all, locations in the census block. To give context to consumer purchase patterns of these technologies, we also provide an overview of consumer subscription to these services. Figure II.A.1 shows household deployment estimates and residential connections by technology for any speed reported.35 31 Staff calculations are based on FCC Form 477 data as of December 31, 2019 and December 31, 2021 (for the 50 states, the District of Columbia, and Puerto Rico). 32 See infra Fig. II.A.28. Some ISPs advertise 1 GB service; however, these services are not symmetric in terms of download and upload speeds. Further, 1 GB service is often marketed as providing speeds “up to” 1 GB. For example, Verizon Fios 1 GB service has maximum advertised speeds of 940/880 Mbps. See FCC Form 477 Data, as of Dec. 31, 2021; see also FCC, Eleventh Measuring Broadband America Fixed Broadband Report at 11 (2021), https://data.fcc.gov/download/measuring-broadband-america/2021/2021-Fixed-Measuring-Broadband-America- Report.pdf (Eleventh Measuring Broadband America Fixed Broadband Report). The Eleventh Measuring Broadband America Fixed Broadband Report is provided in Appx. C. When reporting speed throughout this Report⸺e.g., 25/3 Mbps⸺the first number is the download speed and the second number is the upload speed. 33 Latency refers to the time it takes for a data packet to travel back and forth through the network. 34 We exclude American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands from our analysis because the U.S. Census Bureau does not plan to release block-level 2020 data until July 2023. See U.S. Census, 2020 Island Areas Censuses Data Products (July 13, 2022), https://www.census.gov/programs-surveys/decennial- census/decade/2020/planning-management/release/2020-island-areas-data-products.html. 35 The FCC Form 477 deployment data are grouped into the following categories: cable (technology codes 40, 41, 42, 43, and 44); Data Over Cable Service Interface Specifications 3.1 (DOCSIS 3.1) (technology code 43); wireline (technology codes 10, 11, 12, 20, 30, and 90); other copper (technology code 30); fiber (technology code 50); satellite (technology code 60); and terrestrial fixed wireless (technology code 70). We include residential connections to other copper (technology code 30), all other (technology code 0) and electric power line (technology code 90) in copper to maintain confidentiality of filer connection data. Other copper includes all copper-wire based technologies other than xDSL (Ethernet over copper and T-1 are examples). FCC Form 477 Local Telephone Competition and Broadband Reporting Instructions for filings as of December 31, 2019 and Beyond, at 30. As of December 31, 2021, there are no reported FCC Form 477 data for DOCSIS 4.0 (technology code 44). The FCC Form 477 residential connection data include only one response category for cable services. This means that we cannot separately report residential connections to a DOCSIS 3.1 technology from residential connections to older cable technologies. The maximum reported speed for deployed services and connections data is capped at 10 gigabytes. As of year-end 2021, there were 130 million households in the United States. See Staff Block Estimates. 9 Federal Communications Commission FCC 22-103 Fig. II.A.1 Deployment (millions) and Total Residential Connections (millions) of Fixed Services in the United States, by Technology, for Any Reported Speed (Dec. 31, 2021) Deployment Residential Residential Technology Households Percentage Connections Take Rate Cable 109.984 84.8% 71.802 64.3% DOCSIS 3.1 101.606 78.4% Copper (incl. DSL) 114.042 88.0% 15.211 13.3% Other Copper 1.807 1.4% Fiber (FTTP) 62.224 48.0% 24.165 38.8% Satellite Services 129.659 100.0% 1.692 1.3% Terrestrial Fixed Wireless 110.127 84.9% 2.672 2.4% Source: FCC Form 477 year-end deployment and connections; Staff Block Estimates. 18. Cable Broadband Service. Cable broadband service delivers broadband using infrastructure originally deployed for cable television. The majority of residential consumers subscribe to cable services. Since the last Report, the number of residential connections to cable services increased from 67.1 million to 71.8 million.36 This service is provisioned over coaxial cables that deliver cable TV programming and Internet service on separate channels (or frequencies). Currently, most providers of cable broadband service have deployed a hybrid fiber-coaxial (HFC) technology that transmits signals over a fiber from the provider’s facility to an optical node near the consumer.37 These providers typically use coaxial cable to send the signal from the optical node to the customer’s end location. Data Over Cable Service Interface Specifications 3.1 (DOCSIS 3.1), the latest cable standard deployed, is deployed to census blocks containing approximately 78% of U.S. households. In terms of speed, the weighted mean advertised download speed for cable broadband subscribers participating in the Commission’s MBA program was approximately 178 Mbps as of October 2020, and participants, on average, experienced speeds that met or exceeded their advertised download speed.38 The weighted mean maximum advertised download speed for residential cable broadband connections reported in the December 2021 FCC Form 477 data was approximately 325 Mbps. DOCSIS 4.0, which will enable services in excess of multiple Gbps, is expected to be rolled out by cable providers in late 2022 and early 2023.39 19. Copper. Copper, including traditional DSL, is the oldest last mile broadband technology still in use. It is commonly used by traditional telephone companies, and transmits data via a modem over traditional copper telephone lines to consumers.40 Since the last Report, residential connections to copper services fell from 17.9 million to 15.2 million, a reduction of almost 15%.41 Although widely available because it is built on the existing telephone network, this service is generally slower than other types of broadband services.42 Copper-based services, such as DSL service, are limited by the distance between 36 See infra Fig. II.A.10; 2020 Communications Marketplace Report, 36 FCC Rcd at 3001, para. 86, Fig. II.B.1. The number of residential fixed connections reported in Fig. II.A.10 may differ from those in the last Report because some filers have updated their connections data and the figures in this year’s Report only include data for the states, the District of Columbia, and Puerto Rico. 2020 Communications Marketplace Report, 36 FCC Rcd at 3001, para. 86, Fig. II.B.1. 37 2020 Communications Marketplace Report, 36 FCC Rcd at 3001, para. 87. 38 See infra Appx. C: Eleventh Measuring Broadband America Fixed Broadband Report at 8, 13, 15. 39 Jeff Baumgartner, Broadband World News, Comcast tests 4-Gig speeds on DOCSIS 4.0 modem prototype, (Jan. 13, 2022), https://www.broadbandworldnews.com/document.asp?doc_id=774597. 40 2020 Communications Marketplace Report, 36 FCC Rcd at 3001, para. 88. 41 See infra Fig. II.A.10. 42 See infra Appx. C: Eleventh Measuring Broadband America Fixed Broadband Report at 13. 10 Federal Communications Commission FCC 22-103 the telephone provider’s central office and the consumer’s home such that the speed of the service decreases as the distance between these two endpoints increases.43 The weighted mean advertised download speed for residential DSL subscribers participating in the Commission’s MBA program was 21 Mbps; however, participants, on average, experienced speed that did not meet their advertised download speed.44 The weighted mean maximum advertised download speed for residential DSL connections reported in the December 2021 FCC Form 477 data was approximately 30 Mbps. 20. Fiber.45 Since the last Report, residential fiber-to-the-premises (FTTP) connections increased from 16.3 million to 24.2 million, a 49% increase in two years.46 FTTP uses optical fiber to deliver a signal from the operator’s equipment to the residential customer.47 This service can offer the consumer the highest speed among all currently available services because the fiber connects directly to the consumer’s residence.48 The weighted mean advertised download speed for residential fiber connections participating in the Commission’s MBA program was 447 Mbps and participants, on average, experienced speeds that met or exceeded their advertised download speed.49 The weighted mean maximum advertised download speed for residential fiber connections reported in the December 2021 FCC Form 477 data was approximately 518 Mbps. 21. Fixed Satellite Service (FSS). FSS is the transmitting and receiving of communications signals from earth stations, including customer stations, that are located at fixed points on earth. One of the benefits of satellite technology is its ability to deliver services in remote areas that are unserved or underserved by terrestrial services, and satellite can play a key role in delivering services in disaster areas and humanitarian efforts, such as the humanitarian crisis resulting from the war in Ukraine.50 Hybrid networks that combine satellite and terrestrial transport are designed to provide broadband service to consumers that reside outside the footprint of cable and fiber networks.51 Since the last Report, residential connections declined from 1.8 million to 1.7 million, a 6% decrease in two years.52 The weighted mean maximum advertised download speed for residential subscriber data reported in the December 2021 FCC Form 477 data was approximately 28 Mbps. 22. Terrestrial Fixed Wireless Broadband. Terrestrial fixed wireless providers deliver broadband service to consumers using licensed, unlicensed, and shared access spectrum, while often 43 2020 Communications Marketplace Report, 36 FCC Rcd at 3002, para. 88. FTTN and FTTC services are reported in FCC Form 477 as DSL service because this service is ultimately delivered to the end-user via twisted- pair copper wiring. FCC, FCC Form 477 Local Telephone Competition and Broadband Reporting Instructions for Filings as of December 31, 2019 and Beyond at 30 (2021) (FCC Form 477 Reporting Instructions). 44 See infra Appx. C: Eleventh Measuring Broadband America Fixed Broadband Report at 8, 13, 15. 45 Fiber-to-the-node (FTTN) and fiber-to-the-curb (FTTC) services rely on a fiber-optic connection from a local central office to the neighborhood (node or curb) and then a twisted-pair copper wiring from the node or utility pole to the consumer’s home. These services are typically slower than FTTP services because the connection to the consumer is over twisted-pair copper, and are reported in FCC Form 477 as a DSL service. See 2020 Communications Marketplace Report, 36 FCC Rcd at 3002, para. 89; FCC Form 477 Reporting Instructions at 30. 46 See infra Fig. II.A.10. 47 2020 Communications Marketplace Report, 36 FCC Rcd at 3002, para. 89. 48 See Diana Goovaerts, Fierce Telecom, Fierce Fundamentals, What is fiber broadband? (May 16, 2022), https://www.fiercetelecom.com/broadband/fierce-fundamentals-what-fiber-broadband. 49 See infra Appx. C: Eleventh Measuring Broadband America Fixed Broadband Report at 8, 13, 15. 50 EchoStar Comments at 3, 5; SIA Comments at 15-16. 51 EchoStar Comments at 3-4; SIA Comments at 9-10; SES and 03B Reply at 2-5; see also n.645. 52 See infra Fig. II.A.10. 11 Federal Communications Commission FCC 22-103 relying on fiber optics to form parts of the rest of their network infrastructure.53 Terrestrial fixed wireless providers receive broadband content from an external distribution point via fiber or microwave connections,54 and then they deliver service to a customer’s fixed antenna from wireless transmitters on towers.55 Since the last Report, residential connections increased from 1.5 million to 2.7 million, a 76% increase in two years.56 The weighted mean maximum advertised download speed for residential fixed wireless connections reported in the December 2021 FCC Form 477 data was approximately 63 Mbps. Moreover, consumers are gaining additional options with the rollout of 5G services.57 (i) Coverage by Technology 23. Figure II.A.2 shows how each fixed broadband technology covers the U.S. population by census block over time. FTTP and DOCSIS 3.1, two technologies that have considerable download speed capabilities, have shown significant growth over the last six years.58 In addition, there has been a sharp increase in the population residing in a census block with terrestrial fixed wireless technology between December 2020 and December 2021. 53 WISPA Comments at 3, 8; 2020 Communications Marketplace Report, 36 FCC Rcd at 3003, para. 91. 54 WISPA Comments at 8; WISPA Comments, Attach. B at 7-8. 55 WISPA Comments at 8; WISPA Comments, Attach. B at 7-8. 56 See infra Fig. II.A.10. 57 FSF Comments at 6-7; CTIA Comments at 14-17. 58 According to USTelecom, U.S. fixed broadband providers invested approximately $86 billion in capital expenditures in 2021, up from nearly $80 billion in 2020. Overall, broadband providers have invested more than $2 trillion in capital expenditures since 1996. USTelecom, 2021 Broadband Capex Report (July 2022), https://www.ustelecom.org/research/2021-broadband-capex-report/. 12 Federal Communications Commission FCC 22-103 Fig. II.A.2 U.S. Population Coverage by Technology Source: FCC Form 477; 2020 Census data. 24. Access to FTTP and DOCSIS 3.1 is significantly lower in rural areas compared to urban areas. Figure II.A.3 shows the change in population coverage of FTTP and DOCSIS 3.1 technology in rural, urban, and Tribal lands. The growth rate of FTTP coverage is similar in rural and urban areas; each area’s FTTP coverage has increased by a factor of two since 2015. Approximately 52% of the population living in an urban census block has access to FTTP technology, compared to approximately 31% of the population living in rural census blocks. Compared to other technologies, DOCSIS 3.1 covers the largest number of individuals in the United States as of December 2020, and DOCSIS 3.1 has seen the largest increase in growth over the last five years. The widespread deployment of this technology is likely one of the drivers of the increase in access to faster speeds, as it is capable of download speeds of up to 10 GB. However, there is some disparity in where providers deploy this technology. Figure II.A.3 shows 87% of the population living in urban census blocks have access to this technology, while approximately only 45% of the population living in rural census blocks and 43% of the population on Tribal lands have access.59 59 These deployment patterns correspond to speed availability metrics from the Fourteenth Broadband Deployment Report, that shows approximately 95% of the urban population, 56% of the rural population, and 50% of the tribal population have access to 250/25 Mbps. See Inquiry Concerning Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 20-269, Fourteenth Broadband Deployment Report, 36 FCC Rcd 836, 858, para. 38 (2021) (Fourteenth Broadband Deployment Report). 13 Federal Communications Commission FCC 22-103 Fig. II.A.3 Rural, Urban, and Tribal Population Coverage for FTTP and Cable DOCSIS 3.1 Technology Source: FCC Form 477; 2010 and 2020 Census data. 25. Figure II.A.4 shows that terrestrial fixed wireless technologies have expanded throughout the United States since 2017. As of December 2021, approximately 84% of the U.S. population lived in a census block that had access to terrestrial fixed wireless technology, compared to approximately 42% in December 2017. In addition to this technology becoming more widespread, the download speeds available through this technology also have increased; however, the speeds available may vary within each census block. Figure II.A.4 shows that in 2017, approximately 22% of the U.S. population lived in census blocks that had access to fixed wireless download speeds of 25 Mbps or less; however, by 2021, that number had fallen to just 4%. Conversely, the percentage of the U.S. population that lived in census blocks had access to download speeds between 25 Mbps and 50 Mbps had more than quadrupled. Notably in 2017, only about 1% of the U.S. population in a census block covered by terrestrial fixed wireless technology had access to download speeds between 250 Mbps and 500 Mbps; however, by 2021, that had increased seven-fold. 14 Federal Communications Commission FCC 22-103 Fig. II.A.4 Percentage of U.S. Population Covered by Terrestrial Fixed Wireless by Download Speed Source: FCC Form 477; 2020 Census data. b. Service Providers 26. As of December 2021, there were 2,201 entities of varying sizes and deployment footprints that reported providing fixed broadband technology services to residential consumers at speeds exceeding 200 kbps in at least one direction.60 Figure II.A.5 presents the total number of providers of fixed broadband services, as well as the number of fixed broadband providers in rural and urban areas, from December 2018 through December 2021. The total number of providers has increased by approximately 10% since December 2018. The growth in the number of providers is similar in urban and rural areas. Between December 2018 and December 2021, the number of providers in urban areas and rural areas increased by approximately 12% and approximately 10%, respectively. 60 The provider information in this section excludes providers who provide FSS only. 15 Federal Communications Commission FCC 22-103 Fig. II.A.5 Total Number of Providers of Residential Fixed Services over Time (Dec. 31, 2021) Source: FCC Form 477 deployment data for residential consumers; 2010 and 2020 Census. 27. Top 11 Providers—Providers that cover at least 5% of the U.S. population. While there are over 2,000 providers of residential services, there is considerable variation in provider size and deployment footprint. The overwhelming majority of providers cover less than 1% of the U.S. population. Figure II.A.6 shows that in December 2021, only 11 providers covered at least 5% of the U.S. population, based on their reported deployment data; this is an increase from nine providers in December 2019. As presented in Figure II.A.7, these providers are: T-Mobile, Verizon, AT&T, Comcast, Charter, Lumen Technologies (CenturyLink), TDS, Frontier, Cox Communications, Altice USA, and Jab Wireless (Rise). T-Mobile covered approximately 60% of the U.S. population through their fixed wireless technology, making it the provider with the largest footprint of fixed broadband. Both Verizon and AT&T covered approximately 40% of the U.S. population, and Comcast and Charter covered approximately 36% and 33%, respectively. There is a large falling-off in deployment coverage after the top five: Lumen Technologies (CenturyLink) covered approximately 17% of the population, followed by TDS and Frontier at approximately 11%. The remaining three providers each covered between approximately 5% and 7% of the U.S. population. 16 Federal Communications Commission FCC 22-103 Fig. II.A.6 Total Number of Providers of Residential Fixed Services of the United States by Population Coverage (Dec. 31, 2021) Source: FCC Form 477 deployment data for residential consumers; 2020 Census. Fig. II.A.7 Top 11 Provider Footprints for Residential Fixed Services in the United States by Population Coverage (Dec. 31, 2021) Source: FCC Form 477 deployment data for residential consumers; 2020 Census data. 17 Federal Communications Commission FCC 22-103 28. The Top 11 Providers Over Time—Population Coverage. Figure II.A.8 shows the change in population coverage over the last two years for each of the top 11 providers, as described above. For the most part, population coverage has remained consistent over this time frame, with a few significant exceptions. For example, T-Mobile jumped from no population coverage in December 2019 to approximately 60% population coverage in December 2021 through newly providing terrestrial fixed wireless services. Verizon increased its population coverage from approximately 17% to 41% over this time frame, also largely due to substantially increasing its terrestrial fixed wireless deployment. Fig. II.A.8 Provider Population Coverage for Residential Fixed Services in the United States Dec. 2019 vs. Dec. 2021 Source: FCC Form 477 deployment data for residential consumers; 2010 and 2020 Census. 29. The Top 11 Providers—Provider Footprint by Technology. As seen in Figure II.A.9, T- Mobile’s entire fixed footprint is through terrestrial fixed wireless technology, whereas Comcast and Charter almost exclusively provide fixed broadband through cable. In contrast, AT&T provides broadband access with a combination of technologies, covering approximately 95% of its service area with DSL in addition to covering approximately 37% of its service area with fiber, and approximately 2% through terrestrial fixed wireless technology. Lumen Technologies (CenturyLink) and Frontier also each use a combination of technologies, covering almost their entire service areas with DSL while covering approximately 18% and 37% of their service areas with fiber. Verizon covers almost 28% of its footprint with fiber, approximately 36% of its footprint with DSL, and approximately 64% of its footprint with terrestrial fixed wireless technology. Figure II.A.9 shows a detailed breakdown of the technology composition of each provider’s deployment footprint. 18 Federal Communications Commission FCC 22-103 Fig. II.A.9 Technology Composition of Provider Footprint for Residential Fixed Services in the United States (Dec. 31, 2021)61 Source: FCC Form 477 deployment data for residential consumers; 2020 Census. TFW is terrestrial fixed wireless. c. Residential Connections 30. This section reports residential fixed connections (subscriptions) in the United States, and includes all technologies for which the FCC Form 477 data are collected. Connection data are collected at the census tract level. Figure II.A.10 shows the number of fixed residential connections for all technologies and for any reported speed for year-end 2018 to year-end 2021. Since 2018, the number of residential fixed connections in the United States has increased over 14%, from approximately 101.3 million connections in 2018 to over 115.5 million connections in 2021. During this time period, residential cable, FTTP and fixed wireless connections also increased, while residential copper-based services, including DSL connections, continued to decline. In contrast, residential satellite connections had periods of growth and decline during this reporting period. Since 2018, FTTP residential connections grew approximately 70%, and terrestrial fixed wireless grew approximately 101%. Cable services continue to be the technology with the largest portion of residential fixed broadband connections. In December 2021, approximately 62% of fixed residential connections were cable, 21% were FTTP, 13% were copper-based, and the remaining 4% were split between satellite, terrestrial fixed wireless, and other technologies. 61 A provider may offer more than one fixed connection technology in some areas, thus the percentages for a provider may total over 100%. 19 Federal Communications Commission FCC 22-103 Fig. II.A.10 Fixed Residential Connections (millions) for Any Reported Speed 2018-202162 2018 2019 2020 2021 Cable 63.774 67.100 72.497 71.802 FTTP (Fiber) 14.202 16.270 18.378 24.165 Copper (including DSL)63 20.184 17.943 16.958 15.211 Terrestrial Fixed Wireless 1.330 1.522 1.943 2.672 Satellite 1.786 1.795 1.752 1.692 Total Fixed 101.277 104.629 111.528 115.541 Source: FCC Form 477 year-end residential connections. 31. Figures II.A.11 and II.A.12 report the percentage of residential connections by technology and download speed as of December 31, 2018 and December 31, 2021, respectively. For purposes of this analysis, we examine maximum advertised download speeds for four speed thresholds: less than 25 Mbps, 25 Mbps to less than 100 Mbps, 100 Mbps to less than 940 Mbps, and at least 940 Mbps.64 Between 2018 and 2021, the percentage of connections meeting the at least 940 Mbps speed threshold increased from over 18% to approximately 40% for FTTP services, and from approximately 1% to almost 9% for cable services. 62 FCC Form 477 defines an Internet access connection as a wired line or wireless channel that terminates at an end- user location or mobile device and enables the end user to receive information from and/or send information to the Internet at information transfer rates exceeding 200 kilobits per second (kbps) in at least one direction. This definition, for purposes of the FCC Form 477, is established in section 1.7001(a)(1) of the Commission’s rules. 47 CFR 1.7001(c)(1). The number of residential fixed connections reported in Fig. II.A.10 may differ from those in Fig. II.B.1 of the last Report. Some filers have updated their connections data and the figures in this year’s Report include Puerto Rico while the prior report excluded all U.S. territories. 2020 Communications Marketplace Report, 36 FCC Rcd at 3001, para. 86, Fig. II.B.1. 63 Copper includes all copper-wire-based technologies and power line technologies. These technologies are combined into a single category to maintain confidentiality. 64 For purposes of this Report, we use a download speed of 940 Mbps because that is the maximum advertised download speed reported by two of the largest providers of residential broadband service. In terms of residential broadband coverage, Verizon is ranked second and Lumen Technologies (CenturyLink) is ranked sixth. 20 Federal Communications Commission FCC 22-103 Fig. II.A.1165 Percentage of Residential Connections by Technology and Maximum Advertised Download Speed (Dec. 31, 2018) Source: FCC Form 477 residential connections. Fig. II.A.12 Percentage of Residential Connections by Technology and Maximum Advertised Download Speed (Dec. 31, 2021) Source: FCC Form 477 residential connections. 32. Figure II.A.13 reports the distribution of all fixed residential connections by maximum advertised download and upload speed for the United States, urban areas, and rural areas.66 For purposes 65 In Figs. II.A.11 and II.A.12, copper includes all copper-wire based technologies and power line technologies. These technologies are combined into a single category to maintain confidentiality. 66 Census tracts that are not urban are designated as rural census tracts. Because many census tracts are composed of urban and rural census blocks, the categorization of census tracts into urban and rural categories will result in some (continued….) 21 Federal Communications Commission FCC 22-103 of this analysis, we use the same methodology to identify urban census tracts as used by the Commission in the urban rate survey.67 As shown in Figure II.A.13, the download/upload speed combination increased between 2018 and 2021 for all percentiles. Between 2018 and 2021, the 50th percentile (median) speed combination purchased by residential consumers increased from 100/10 Mbps to 200/10 Mbps for all census tracts, whereas the 50th percentile speed combination purchased by residential consumers in rural areas increased from 25/3 Mbps to 100/10 Mbps and the 50th percentile speed combination purchased by residential consumers in urban areas increased from 100/10 Mbps to 200/10 Mbps. Fig. II.A.13 Distribution of Fixed Residential Connections in the United States by Consumer’s Service’s Download/Upload Speed Combination and Year (2018-2021) Year 10th Percentile 25th Percentile 50th Percentile 75th Percentile 90th Percentile All Census Tracts 2018 10 / 1 Mbps 25 / 3 Mbps 100 / 10 Mbps 150 / 10 Mbps 250 / 20 Mbps 2019 12 / 1 Mbps 30 / 4 Mbps 100 / 10 Mbps 200 / 10 Mbps 400 / 20 Mbps 2020 15 / 10 Mbps 50 / 5 Mbps 150 / 10 Mbps 300 / 10 Mbps 940 / 880 Mbps 2021 24 / 2 Mbps 50 / 50 Mbps 200 / 10 Mbps 400 / 20 Mbps 1,000 / 35 Mbps Rural Census Tracts 2018 3 / 3 Mbps 10 / 1 Mbps 25 / 3 Mbps 100 / 10 Mbps 150 / 10 Mbps 2019 5 / 1 Mbps 10 / 2 Mbps 30 / 4 Mbps 100 / 10 Mbps 200 / 10 Mbps 2020 6 / 1 Mbps 14 / 6 Mbps 50 / 10 Mbps 150 / 5 Mbps 300 / 20 Mbps 2021 10 / 1 Mbps 25 / 3 Mbps 100 / 10 Mbps 300 / 10 Mbps 800 / 15 Mbps Urban Census Tracts 2018 12 / 2 Mbps 40 / 20 Mbps 100 / 10 Mbps 150 / 15 Mbps 250 / 25 Mbps 2019 15 / 5 Mbps 50 / 10 Mbps 100 / 100 Mbps 200 / 20 Mbps 400 / 20 Mbps 2020 24 / 3 Mbps 75 / 5 Mbps 200 / 5 Mbps 300 / 300 Mbps 940 / 880 Mbps 2021 30 / 5 Mbps 100 / 5 Mbps 200 / 10 Mbps 500 / 10 Mbps 1,000 / 35 Mbps Source: FCC Form 477 year-end residential connections. 33. Figures II.A.14, II.A.15, and II.A.16 report subscribership ratio (the ratio of total fixed residential connections for all technologies to total households, regardless of whether the services are deployed in the area) for each state, the District of Columbia, and Puerto Rico, as of December 31, 2021. Figure II.A.14 shows the subscribership ratio for services with at least 25 Mbps download speed, Figure (Continued from previous page) urban census blocks being included in “rural” census tracts and some rural census blocks being included in “urban” census tracts. 67 For year-end 2018-2020 FCC Form 477 data that are submitted according to 2010 Census block geographies, we define as “urban” all 2010 Census urban areas and urban clusters that sit within a Metropolitan Statistical Area. See Connect America Fund, WC Docket No. 10-90, Order, 28 FCC Rcd 4242, 4244, para. 10 (WCB/WTB 2013). For year-end 2021 FCC Form 477 data, we use the definition used in the urban rate survey being completed this year. See Urban Rate Survey Timeline for 2023, Public Notice, DA 22-859, 1 & n.2 (explaining that the release of the 2020 U.S. Census data required a new definition of “urban”). However, the U.S. Census Bureau redrew census tract boundaries, modified its definition of an urban area, and has not yet published the boundaries of these urban areas. See U.S. Census Bureau, Census Relationship Files, https://www.census.gov/geographies/reference-files/time- series/geo/relationship-files.html#tract (last visited Oct. 18, 2022) (explaining how census tract geographies changed between the 2010 and 2020 Census). Thus, for purposes of this Report, we follow the Commission’s methodology for this year’s urban rate survey and define an urban tract as a 2020 census tract in which at least 80% of housing units are within a 2010 census urban area with a population of 50,000 or more. Reported speeds are rounded to the nearest Mbps. 22 Federal Communications Commission FCC 22-103 II.A.15 shows the subscribership ratio for services with at least a 100 Mbps download speed, and Figure II.A.16 shows the subscribership ratio for services with at least a 940 Mbps download speed. Fig. II.A.14 Subscribership Ratio with at least 25 Mbps Download Speed by State (Dec. 31, 2021) Source: FCC Form 477 residential connections; Staff Block Estimates. Fig. II.A.15 Subscribership Ratio with at least 100 Mbps Download by State (Dec. 31, 2021) Source: FCC Form 477 residential connections; Staff Block Estimates. 23 Federal Communications Commission FCC 22-103 Fig. II.A.16 Subscribership Ratio with at least 940 Mbps Download by State (Dec. 31, 2021) Source: FCC Form 477 residential connections; Staff Block Estimates. d. Adoption Rates 34. Our assessment of adoption of broadband services in the United States from 2018 to 2021 is based upon FCC Form 477 subscriber/connection data that are collected at the census tract level, and FCC Form 477 deployment data that are collected at the census block level. For this analysis, we aggregate data up to the geographic level reported in each figure; e.g., the United States, the tract level, or the county. We evaluate the adoption of fixed terrestrial services at speeds of 25/3 Mbps, 100/20 Mbps, and 940/500 Mbps.68 The reported adoption rates are the number of residential fixed terrestrial connections divided by the number of households located in the census blocks in which the FCC Form 477 deployment data indicate that fixed terrestrial services are deployed and meet the reported speed threshold.69 For purposes of this analysis, we use the same methodology to identify urban tracts as used 68 See infra Appx. B-1 (presenting adoption rates for fixed terrestrial services by state, the District of Columbia and Puerto Rico). 69 In contrast to the adoption rates, the subscribership ratios reported in Figs. II.A.14, II.A.15, and II.A.16 are defined as residential connections divided by total households in the area, regardless of whether services are deployed in the area that meet the reported speed threshold. 24 Federal Communications Commission FCC 22-103 by the Commission in the urban rate survey.70 In addition, for purposes of this Report, we define a census tract as Tribal lands if more than 50% of the land area in the census tract is designated as Tribal lands.71 35. Figure II.A.17 reports adoption rates based on year-end data from 2018 to 2021 for the United States, urban and non-urban areas, and Tribal lands. Figure II.A.17 shows year-to-year increases in the adoption of broadband services across the vast majority of areas, including Tribal lands. As was also evident in the last Report, the adoption rate for higher speed services is greater on Tribal lands in rural areas than on Tribal lands in urban areas.72 This may be the result of the sometimes relatively imprecise categorization of geographic areas as urban or rural at the census tract level (the lowest level for which subscribership data is available) as compared to the census block level. The results of this imprecision may be magnified when applied to a smaller set of census tracts, such as those on Tribal lands. 36. Figure II.A.18 reports average county-level adoption rates for fixed terrestrial services by quartile ranking for median household income, population density, the poverty rate and the proportion of 70 We aggregate deployment data up to the census tract to identify urban and rural areas. A census tract is designated as “Urban” if the tract was designated as urban in the urban rate survey. A census tract is designated as “Rural” if the census tract was not designated as urban in the urban rate survey. Because many census tracts are composed of urban and rural census blocks, the categorization of census tracts into urban and rural categories will result in some urban census blocks being included in “rural” census tracts and some rural census blocks being included in “urban” census tracts. 71 For purposes of the analysis of Tribal lands in this Report, we use the definition that was used in the 2020 Commercial Marketplace Report and in the Commission’s Broadband Deployment Reports since 2012. See 2020 Communications Marketplace Report, 36 FCC Rcd at 3014, para. 103 & n.329; Inquiry Concerning Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 11-121, Eighth Broadband Progress Report, 27 FCC Rcd 10342, 10414-15 (2012). We acknowledge that the Commission has used other definitions of Tribal lands. See, e.g., Transforming the 2.5 GHz Band, WT Docket No. 18-120, Report and Order, 34 FCC Rcd 5446, 5465-66, paras. 51-55 (2019) (2.5 GHz Report and Order); Bridging the Digital Divide for Low-Income Consumers, Fourth Report and Order, Order on Reconsideration, Memorandum Opinion and Order, WC Docket No. 17-287, Notice of Proposed Rulemaking, and Notice of Inquiry, 32 FCC Rcd 10475 (2017); Connect America Fund et al., Report and Order, WC Docket No. 10-90, Further Notice of Proposed Rulemaking, and Order on Reconsideration, 33 FCC Rcd 11893, 11910-11, para. 55 & n.122 (2018); Wireless Telecommunications Bureau Announces Procedures for 2.5 GHz Rural Tribal Priority Window, WT Docket No. 18- 20, Public Notice, 35 FCC Rcd 308, 313, para. 19 (WTB 2020). However, for purposes of this Report, we maintain our definition as previously employed. As identified by the U.S. Census Bureau, Tribal lands fall into one of the following American Indian Area/Alaska Native Area/Hawaiian Home Land Class Code categories: (1) Joint Use Areas; (2) legal federally recognized American Indian area consisting of reservation and associated off-reservation trust land; (3) legal federally recognized American Indian area consisting of reservation only; (4) legal federally recognized American Indian area consisting of off-reservation trust land only; (5) statistical American Indian area defined for a federally recognized Tribe that does not have reservation or off-reservation trust land, specifically a Tribal designated statistical area (TDSA) or Oklahoma Tribal Statistical Area (OTSA); (6) Alaskan Native village statistical area; and (7) Hawaiian Home Lands established by the Hawaiian Homes Commission Act of 1921. We exclude state recognized areas from the analysis of Tribal lands. Tribal Statistical Areas are largely located in Oklahoma, but they also include areas in California, New York, and Washington. Because our subscriber data are submitted at the census tract level, some census tracts will contain a mixture of census blocks on Tribal lands and census blocks that are not on Tribal lands. For example, for 2021, the Tribal lands area category in the figures below contain 94% of households and 85% of the land area of census blocks that are designated as Tribal lands, and 6% of households and 15% of the land area of census blocks that are not designated as Tribal lands. Moreover, because connections data are collected at the census tract level, we have no ability to determine whether the residential connections are for households located on census blocks designated as urban, non-urban (rural), or Tribal lands. 72 See 2020 Communications Marketplace Report, 36 FCC Rcd at 3014-15, para. 103, Fig. II.B.12. 25 Federal Communications Commission FCC 22-103 the population that resides in a rural area.73 The data are further disaggregated by speed tier.74 In general, these data suggest that the average household adoption rate in a county increases with median household income and population density, and decreases with increases in the poverty rate and rural population rate.75 73 This demographic analysis is based upon county-level adoption rates and the most recently available ACS Data; i.e., ACS Five-Year Estimates for 2016-2020 for county-level data for the 50 states, District of Columbia, and Puerto Rico. Median household income is based on 2020 data and is measured in 2020 Inflation-Adjusted Dollars. The household poverty rate is defined as the number of households living below the federal poverty rate divided by the total number of households ACS includes in the poverty calculation. The ACS Five-Year Estimates for 2017- 2021 will not be released in time to be included in this Report. U.S. Census Bureau, 2021 Release Schedule, https://www.census.gov/programs-surveys/acs/news/data-releases/2021/release-schedule.html (last visited June 29, 2022). Population density is defined as the total population residing in the county as of 2020 divided by the square miles of land in the county, where the estimate of land area is based upon the 2020 Census. At this time, the Census Bureau has not yet identified urban and rural 2020 census blocks. We employed the 2020 Crosswalk data and the 2010 Summary file that indicates the UAtype Census variable for each 2010 census block to create a proxy urban/rural identifier for the 2020 Census blocks. A 2010 census block with a UAtype variable value of U (urbanized area) or C (Urban Cluster) is an urban census block. A 2010 census block with a UAtype variable value of 9 is a rural census block. We designate a 2020 census block as urban if any 2010 “urban” census block intersects a 2020 block. For a description of the crosswalk between the 2010 and the 2020 census blocks, see U.S. Census Bureau, 2020 Census Block Relationship Files Record Layouts, https://www.census.gov/programs- surveys/geography/technical-documentation/records-layout/2020-census-block-record-layout.html (last visited Oct. 3, 2022). The rural population rate is defined as the total population residing in the county residing in the “rural” census blocks as categorized for this Report divided by the total population in the county based on the 2020 Census. 74 We note that this analysis is based upon the best data currently available and may not accurately reflect how adoption may be associated with the subscriber’s demographic data. Our connections data are based upon the data submitted by the providers, and we do not know the demographics of the providers’ customers. 75 The adoption of fixed terrestrial broadband varies across demographic groups and households with less income are less likely to subscribe to a fixed broadband service for their home. See Pew Research Center, Internet/Broadband Fact Sheet (Apr. 7, 2021), https://www.pewresearch.org/internet/fact-sheet/internet- broadband/?menuItem=2ab2b0be-6364-4d3a-8db7-ae134dbc05cd. Incomes tend to be lower in rural areas, and subscription to home broadband services is generally lower in rural areas. Counties with a higher proportion of rural population will tend to have lower population density because fewer people live in these counties than in counties with more urban areas. In Fig. II.A.18, the quartile with the lowest population density will likely correspond to the quartile with the highest rural population rate. Thus, the observation that the average overall adoption rate for fixed terrestrial services increases with population density is akin to the observation that the average overall adoption rate for fixed terrestrial services decreases as the rural population rate increases. 26 Federal Communications Commission FCC 22-103 Fig. II.A.1776 Overall Adoption Rate for Fixed Terrestrial Services at Different Speed Tiers 2018 2019 2020 2021 25/3 Mbps United States 64.6% 68.9% 75.6% 79.4% Rural Areas 40.5% 45.1% 49.8% 66.7% Urban Areas 69.2% 73.6% 81.1% 85.2% Tribal Lands 44.0% 46.5% 52.3% 58.6% Rural Areas 29.3% 32.1% 37.4% 49.3% Urban Areas 57.1% 60.7% 68.5% 83.1% 100/20 Mbps United States 15.6% 20.9% 27.5% 32.7% Rural Areas 6.6% 10.6% 15.9% 26.4% Urban Areas 16.9% 22.5% 29.4% 35.3% Tribal Lands 9.9% 15.8% 23.3% 24.5% Rural Areas 7.7% 15.5% 24.1% 26.7% Urban Areas 11.2% 16.0% 22.7% 20.1% 940/500 Mbps United States 7.5% 9.4% 16.1% 15.9% Rural Areas 3.9% 5.0% 6.6% 14.2% Urban Areas 7.7% 9.8% 17.1% 16.3% Tribal Lands 7.7% 7.9% 14.6% 14.9% Rural Areas 13.4% 14.5% 13.5% 15.1% Urban Areas 4.6% 4.2% 15.3% 14.5% Source: FCC Form 477 year-end residential deployment and connections; Staff Block Estimates. 76 The historical figures in Fig. II.A.17 can differ from those reported in the last Report because some filers have submitted revised subscriber and/or deployment data, and the tables are based on slightly different geographic areas. This table includes Puerto Rico whereas the table in the last Report excluded all U.S. territories. In addition, as explained above, we segment urban areas from rural areas by a different method in this Report. In this Report, we use the same methodology to identify urban tracts as used by the Commission in the urban rate survey. 2020 Communications Marketplace Report, 36 FCC Rcd at 3015, para. 103, Fig. II.B.12. 27 Federal Communications Commission FCC 22-103 Fig. II.A.18 Average County Overall Adoption Rate for Fixed Terrestrial Services by County Level Demographic Variable (Dec. 31, 2021) 25/3 Mbps 100/20 Mbps 940/500 Mbps Median Household Income ($2020) First Quartile (Lowest Median Household Income) 42.4% 18.6% 8.8% Second Quartile 54.7% 21.8% 8.8% Third Quartile 60.8% 23.7% 8.1% Fourth Quartile (Highest Median Household Income) 73.1% 30.5% 12.2% Population Density First Quartile (Lowest Population Density) 50.4% 24.1% 6.8% Second Quartile 46.6% 20.7% 9.1% Third Quartile 59.7% 21.5% 9.4% Fourth Quartile (Highest Population Density) 74.2% 28.4% 12.1% Household Poverty Rate First Quartile (Lowest Household Poverty Rate) 68.4% 28.5% 9.9% Second Quartile 61.8% 24.5% 9.8% Third Quartile 56.2% 22.3% 9.9% Fourth Quartile (Highest Household Poverty Rate) 44.5% 19.3% 8.3% Rural Population Rate First Quartile (Lowest Rural Population Rate) 72.6% 28.5% 11.3% Second Quartile 60.3% 22.5% 9.2% Third Quartile 50.1% 20.1% 9.1% Fourth Quartile (Highest Rural Population Rate) 47.8% 23.5% 8.1% Source: FCC Form 477 year-end residential deployment and connections data; Staff Block Estimates; 2020 Census land area estimates; ACS Five-Year Estimates for 2016-2020. 2. Competitive Trends in Fixed Broadband 37. In this section, we consider pricing and data caps, churn, speed, and whether consumers have access to multiple providers. a. Pricing 38. Pricing for fixed services depends on several factors, including competition, speed tier, technology, geographic area, contract length, and whether the broadband service is bundled with other services. To undertake our pricing analysis in this Report, we collected plan information directly from the providers’ webpages. In the future, we expect similar data collections to be facilitated by the Broadband Consumer Labels Order, that adopts rules that require ISPs to display, at the point of sale, labels that disclose certain information about broadband prices, introductory rates, data allowances, and broadband speeds, as well as to include links to information about their network management practices, privacy 28 Federal Communications Commission FCC 22-103 policies, and the Commission’s ACP.77 However, given the difficulty of the current data collection, we focused this analysis on the stand-alone Internet plans of the top 11 fixed broadband providers in the United States: Altice, AT&T, Lumen Technologies (CenturyLink), Charter, Comcast, Cox, Frontier, JAB Wireless, TDS, T-Mobile, and Verizon. Plan information was gathered directly from the provider’s website, and in many cases these plans are not available throughout the provider’s service area.78 In addition, there are likely subscribers on Internet-only plans that are not advertised on the website and would therefore be excluded from this analysis.79 Providers list multiple price points for a product; in most cases the listed price includes a discount for paying with a credit card and/or paperless billing, and in some cases it is difficult to discern what the price would be without these discounts. Further, providers often will publish a promotional and non-promotional price.80 For this collection, we report non- promotional prices that include discounts for paying with a credit card or using paperless billing. A study conducted by Consumer Reports found that “among the 18,359 consumer bills on which an internet price could be identified, the median cost of high-speed internet service was $74.99 per month. Approximately half of the households were paying between $60 and $90 per month.”81 These findings are similar to the range of prices we collected for internet-only service plans. 39. Figure II.A.19 shows the monthly price and download speed for stand-alone Internet plans offered by these 11 providers. The data indicate a positive relationship between price and download speed⸺as download speeds increase, so do prices. The least expensive Internet-only plan is provided by Altice at a price of $40 per month for download speeds of 300 Mbps, while the most expensive Internet- 77 Empowering Broadband Consumers Through Transparency, Report and Order and Further Notice of Proposed Rulemaking, FCC 22-86, at 2, para. 3 (Nov. 17, 2022) (Broadband Consumer Labels Order). 78 Altice, Optimum Internet Plans, Speeds & Prices, https://www.localcabledeals.com/optimum/internet (last visited Sept. 2, 2022); AT&T, AT&T Internet Services, https://www.att.com/internet/internet-service-plans/ (last visited Sept. 2, 2022); Lumen Technologies (CenturyLink), Fiber Internet with unlimited data, https://www.centurylink.com/internet/ (last visited Sept. 2, 2022); Charter Spectrum, Enjoy Faster Starting Speeds with Spectrum Internet (last visited Sept. 2, 2022); Comcast, Xfinity Internet Deals, https://www.xfinity.com/learn/deals/internet (last visited Sept. 2, 2022); Cox, Cox Internet-only Service, https://www.cox.com/residential/internet/internet-only-plans.html (last visited Sept. 2, 2022); Frontier, Transform Your Connected Home, https://www.buyfrontiernow.com/fiber/ (last visited Sept. 2, 2022); JAB Wireless, Check if service is available in your area!, https://www.risebroadband.com/residential/ (last visited Sept. 2, 2022); TDS, Popular TDS Internet Speeds, https://tdstelecom.com/shop/internet-services.html (last visited Sept. 2, 2022); T- Mobile, Reliable Internet $50/month, https://www.t-mobile.com/home-internet (last visited Sept. 2, 2022); Verizon, Get Fios Internet and Save, https://www.verizon.com/home/fios-fastest-internet (last visited Sept. 2, 2022); Spectrum, Bundle for Best Deals on TV, Internet and Phone, https://www.spectrum.com/packages (last visited Sept. 2, 2022); Comcast, Xfinity Internet Deals, https://www.xfinity.com/learn/deals/internet (last visited Sept. 2, 2022); Cox, Cox Internet-only Service, https://www.cox.com/residential/internet/internet-only-plans.html (last visited Sept. 2, 2022); Frontier, Transform Your Connected Home, https://www.buyfrontiernow.com/fiber/ (last visited Sept. 2, 2022); JAB Wireless, Check if service is available in your area!, https://www.risebroadband.com/residential/ (last visited Sept. 2, 2022); TDS, Popular TDS Internet Speeds, https://tdstelecom.com/shop/internet-services.html (last visited Sept. 2, 2022); T-Mobile, Reliable Internet $50/month, https://www.t-mobile.com/home-internet (last visited Sept. 2, 2022); Verizon, Get Fios Internet and Save, https://www.verizon.com/home/fios-fastest-internet (last visited Sept. 2, 2022). 79 Some service providers require an address for price information. FCC staff used sample address information to obtain pricing information for JAB Wireless (also known as Rise Broadband) and TDS. TDS had more plans advertised on their website, but they were excluded from this analysis because they did not have an associated price point available on the website and those plans were not returned in the address checked. 80 Certain providers do label the price as promotional, but only guarantee this price for 12 to 24 months. Because the renewal prices were unavailable, in these cases, the price advertised is considered non-promotional. 81 Jonathan Schwantes, Consumer Reports, Broadband Pricing: What Consumer Reports Learned From 22,000 Internet Bills (Nov. 17, 2022), https://advocacy.consumerreports.org/wp-content/uploads/2022/11/FINAL.report- broadband.november-17-2022-2.pdf. 29 Federal Communications Commission FCC 22-103 only plan is provided by Cox at a monthly price of $133 for download speeds of 1000 Mbps. Figure II.A.19 excludes plans that exceed 1500 Mbps, but we note that Comcast, AT&T, and Frontier offer limited availability plans with speeds above 1500 Mbps. Comcast offers plans with 2 Gbps and 6 Gbps download speeds for approximately $130 and $300 per month, respectively, AT&T offers plans with 2 Gbps and 5 Gbps download speeds for $110 and $180 per month, respectively, and Frontier offers a plan with 2 Gbps download speeds for $150 per month. Fig. II.A.19 Monthly Price for Internet-Only Plans under 1500 Mbps Download Speed Source: Staff analysis of service provider websites. Data collected as of Sept. 2, 2022. 40. Many service providers offer introductory promotional rates for new customers, which can be considerably discounted from the plan’s regular monthly price. Figure II.A.20 provides information on the number of plans offered on the provider’s website, the number of plans offered with a discount, and the average discount percentage across all discounted plans offered by the provider. Six of the 11 providers offer discounts on their stand-alone Internet plans. Across the six providers that offer discounts, the average discount was approximately 29%. 30 Federal Communications Commission FCC 22-103 Fig. II.A.20 Average Discount Percentage for the Largest Ten Providers of Fixed Services Number of Number of plans on plans found provider’s Average on provider’s website with discount Provider website discount percentage Details A one-time rebate is available, Altice 6 0 N/A ranging from $50 to $200, and a monthly rebate of $5 is available Rebates of $5 and rewards valued at AT&T 9 0 N/A $150 are available Lumen No Promotions with no extra Technologies 2 0 N/A charges other than the installation (CenturyLink) fee of $450 A one-year contract required for discounts on 100 and 300 Mbps Charter 3 3 27% plans; a two-year contract required for 500 and 1000 Mbps plans Two-year contract required to Comcast 8 4 36% receive promotional price Discounts only available for plans Cox 4 3 32% with download speeds of 250 to 1000 Mbps One-year contract required to Frontier 3 2 8% receive promotional price Promotional prices last for 12 JAB 2 2 42% months Two-year contract required for TDS 3 3 27% discount A promotional price of $30 is T-Mobile 1 0 N/A available if the subscriber has a mobile line and chooses autopay Promotional prices for fixed wireless plans are available if the Verizon 5 0 N/A subscriber has a mobile line and chooses autopay Source: Staff analysis of service provider websites. Data collected as of Sept. 6, 2022. 31 Federal Communications Commission FCC 22-103 41. Figures II.A.2182 through II.A.24 show the monthly price for stand-alone Internet plans offered by the top 11 Internet providers for the following technologies: DOCSIS, DSL, fiber, and terrestrial fixed wireless. Of all the technologies, fiber plans generally have the highest advertised download speeds with the lowest speed being the 300 Mbps plan offered by multiple providers. AT&T’s 5000 Mbps plan is the most expensive fiber plan priced at $180 per month, and Frontier’s 500 Mbps plan and Verizon’s 300 Mbps plan are the least expensive fiber plans priced at $50. Only two of the 11 providers offer plans through DSL technology: Lumen Technologies (CenturyLink) offers download speeds up to 100 Mbps at $50 per month, and Frontier offers speeds up to 25 Mbps for $50 per month. The provider section of this report shows AT&T and Verizon have significant DSL deployments, yet each provider’s website indicates that their current offers are for plans on a 100% fiber-optic network and that they no longer offer DSL products to new subscribers.83 However, subscribers remain on grandfathered DSL plans.84 Four service providers offer plans through cable technology: Comcast has the most expensive cable plan, priced at $299 for download speeds up to 6000 Mbps, while Altice has the least expensive cable plan at $40 for download speeds up to 300 Mbps. For terrestrial fixed wireless technology, Verizon offers download speeds up to 650 Mbps and AT&T offers download speeds up to 25 Mbps priced at $70, which are the most expensive terrestrial fixed wireless plans, while T-Mobile offers download speeds up to 108 Mbps, JAB Wireless offers download speeds up to 25 Mbps, and Verizon offers download speeds up to 193 Mbps priced at $50, which are the least expensive terrestrial fixed wireless plans.85 82 In some cases, the technology of the plans as presented in Fig. II.A.21 was not specified on the website, and in those cases the predominant technology of the provider was assumed. For example, Comcast did not specify if the Internet-only plan offered was available through DOCSIS or FTTP or both, and in those cases it was assumed the plans were through DOCSIS technology. 83 Verizon, Get Verizon Fios, https://www.verizon.com/home/fios-fastest-internet/ (last visited Oct. 2, 2022); AT&T, AT&T Fiber, https://www.att.com/internet/fiber/ (last visited Oct. 2, 2022). 84 FCC Form 477 data shows that many service providers have other technologies deployed that are not associated with a plan advertised on their website. 85 Verizon indicates speeds for their fixed wireless products range between 85 and 300 Mbps or 300 and 1000 Mbps, depending on the plan; thus, we refer to these plans as offering approximately 193 and 650 Mbps, respectively, because they are the midpoints between the two bounds of the given range. Verizon, Important Information about Verizon Broadband Internet Access Services, https://www.verizon.com/support/broadband-services/ (last visited Oct. 2, 2022). T-Mobile indicates speeds for their fixed wireless product range between 33 and 182 Mbps; thus, we refer to this plan as offering approximately 108 Mbps because it is the midpoint between the two bounds of the range. T-Mobile, Policies Open Internet, https://www.t-mobile.com/responsibility/consumer-info/policies/internet- service (last visited Oct. 2, 2022). 32 Federal Communications Commission FCC 22-103 Fig. II.A.21 Monthly Prices for Stand-Alone Internet Offered by the Largest 11 Providers: Through DOCSIS Source: Staff analysis of service provider websites. Data collected as of Sept. 2, 2022. Fig. II.A.22 Monthly Prices for Stand-Alone Internet Offered by the Largest 11 Providers: Through DSL Source: Staff analysis of service provider websites. Data collected as of Sept. 2, 2022. 33 Federal Communications Commission FCC 22-103 Fig. II.A.23 Monthly Prices for Stand-Alone Internet Offered by the Largest 11 Providers: Through FTTP Source: Staff analysis of service provider websites. Data collected as of Sept. 2, 2022. 34 Federal Communications Commission FCC 22-103 Fig. II.A.24 Monthly Prices for Stand-Alone Internet Offered by the Largest 11 Providers: Through Terrestrial Fixed Wireless Source: Staff analysis of service provider websites. Data collected as of Sept. 2, 2022. b. Data Caps 42. Many fixed providers offer service plans that enforce a data cap, which means those who subscribe to that plan will be limited in the amount of data they can use each month. Those plans could be less expensive for consumers than unlimited plans depending on their data usage. Once a customer reaches their data cap, they are either charged for additional data they use or are subject to their speeds being reduced or throttled. BroadbandNow reports 133 fixed internet providers and one satellite provider that utilize data caps on at least one of their service plan offerings.86 Figure II.A.25 shows the 15 providers with the largest population coverage from BroadbandNow’s list of providers with data caps; the largest five (excluding satellite) that specify data caps on at least one service offering are: Ultra Home Internet, EarthLink, AT&T, Comcast (Xfinity), and Cox Communications. There are 133 providers with data caps who offer service plans through cable, DSL, FTTP, or terrestrial fixed wireless technologies.87 86 BroadbandNow, Internet Providers with Data Caps (Nov. 14, 2022), https://broadbandnow.com/internet- providers-with-data-caps. 87 79 of these providers offer terrestrial fixed wireless service, while 34 offer cable service. 35 Federal Communications Commission FCC 22-103 Fig. II.A.25 The Largest 15 Service Providers with Data Caps Company Population Technologies Data Cap Amount Covered (in Millions) HughesNet * 308.7 Satellite 10 – 100 GB Ultra Home Internet 120.5 Fixed Wireless 25 – 100 GB EarthLink 5G Home Internet 120.5 Fixed Wireless 50 – 150 GB AT&T Internet * 120.4 DSL, Fixed Wireless 350 – 1000 GB Comcast (Xfinity) * 107.8 Cable 1200 GB Cox Communications * 21.6 Cable 1280 GB Wide Open West (WOW!) * 7.1 Cable 1000 – 3000 GB Mediacom Cable 6.5 Cable 200 – 6000 GB Sparklight (formerly Cable One) 4.3 Cable, Fiber 350 – 1500 GB Ranch Wireless 3.2 Fixed Wireless 30 – 375 GB Astound Broadband Powered by 2.1 Cable 400 – 1000 GB Wave * Phoenix Broadband 1.5 Fixed Wireless 50 GB All Points Broadband 1.2 Fixed Wireless 100 GB Vyve Broadband 1.2 Cable 1000 – 2000 GB DLS Internet Services 1.0 Fixed Wireless 50 – 175 GB Armstrong 1.0 Cable, Fiber 600 – 2500 GB Source: Broadband Now. * Providers that BroadbandNow has noted as having data caps that may vary by region. 43. Data cap amounts vary by service plan and provider. Figure II.A.26 illustrates the average minimum data cap by technology. Of the 72 providers who offer only terrestrial fixed wireless, the starting data cap amount averages 325 GB per month, the lowest of the four fixed broadband technologies. The next lowest is for the 25 providers who only offer cable services, which averages 477 GB per month. Conversely, there are 14 providers who offer only FTTP and utilize data caps, and the average starting data cap amount for these providers is 714 GB per month. Fig. II.A.26 Average Minimum Data Cap Amount by Technology Average Data Cap Amt Technology (minimum range of GB) Total Providers Cable only 477 25 DSL only 638 6 FTTP only 714 14 Fixed Wireless only 325 72 Satellite only 10 1 Multiple Technologies 400 16 Total 415 134 Source: Broadband Now. c. Churn 44. Customer churn is the percentage of customers who stop paying for a service or product over a specific time period. Companies aim for lower churn rates because higher customer churn leads to 36 Federal Communications Commission FCC 22-103 a reduction in revenue. A study conducted by Recurly Research, for example, determined the churn rate for subscription based services or products averaged 5.57% per month.88 However, the average churn rates for the fixed broadband market tend to be lower than the typical subscription-based product. Analysys Mason reports “fixed broadband monthly churn rates in Western European markets tend to hover at around 0.9–1.2%, while those in high-income Asian markets are generally 0.8–1.0%,” yet, “fixed broadband churn in North America is higher than that in other developed markets;” specifically, “churn was 1.8% in Canada between 2015 and 2019.”89 This is in line with Frontier Communications’ reported churn of 1.52% in 2021, which was a decline from their 2019 churn of 2.07%.90 45. Many factors impact customer churn in the fixed broadband market. Contract length and automatic payment options are two factors that impact churn, and both are common features in the U.S. fixed broadband market. Providers can also use bundles as a strategy to reduce churn for fixed broadband. In March of 2021, Comcast reported that their streaming strategy led to a “15 to 20% reduction in churn for a broadband customer only with Flex versus a broadband customer without.”91 One study found that bundling reduces churn in markets “where a significant amount of turnover in services and/or service providers exists.”92 46. Quality and competition are two additional factors that impact churn rates. A report by Analysys Mason found that “churn rates are higher in markets with high levels of competition and a wide choice of retail service providers, all other things being equal.”93 Subscribers receiving higher quality services are more likely to be satisfied and thus less likely to switch to a new provider. For the United States and Europe, an Analysys Mason survey indicates that “the benefits of higher speeds in terms of churn reduction grew between 2019 and 2020,”94 and in the United States, subscribers with higher download speeds are less inclined to churn due to higher satisfaction and reliability scores.95 88 Recurly Research, What is a Good Churn Rate, https://recurly.com/research/churn-rate-benchmarks/ (last visited Nov. 10, 2022). We note that the “study examined a sample of over 1,900 subscription sites processing subscription billing on the Recurly platform. The study period ran over 19 months (January 2021 to July 2022). Transaction data aggregated and anonymized; no personally-identifiable data was used in the study. Churn rates are monthly, calculated by dividing the number of subscribers who churn during the month by the number of subscribers at the beginning of the month. Study uses median, 25th, and 75th percentile values which eliminate outliers and provide a more accurate representation of the data. The involuntary churn number excludes sites that may choose to leave a subscription active despite declined payments.” Id. 89 Analysys Mason, There is Still Scope for Many Operators to Reduce Their Fixed Broadband Churn Rates (July 16, 2021), https://www.analysysmason.com/research/content/articles/fixed-churn-reduction-rdmb0/ (Analysys Mason 2021 Report). We note that the “fixed broadband churn refers to the number of disconnections from the operator during the period divided by the average number of subscribers during the period, expressed on a monthly basis. Where an operator reports annualized churn we have converted the reported figure to monthly churn using the formula monthly% = 1-((1-annual%)^(1/12)). Operators generally do not include a subscriber moving house and continuing to take a service from the same operator at their new address as churn.” Id. 90 Statista, Customer Monthly Churn Rate of Frontier Communications from 2014 to 2021, https://www.statista.com/statistics/692110/frontier-communications-monthly-churn/ (last visited Nov. 10, 2022). 91 Bernie Arnason, Telecompetitor, Comcast CFO: Our Streaming Strategy is Reducing Broadband Churn (Mar. 10, 2021), https://www.telecompetitor.com/comcast-cfo-our-streaming-strategy-is-reducing-broadband-churn/. 92 Prince, J. and Greenstein, S., Does Service Bundling Reduce Churn?, Journal of Economics & Management Strategy, 23: 839-875 (2014). 93 Analysys Mason 2021 Report. 94 Inigo Barker, Analysys Mason, Connected Consumer Survey 2020: Fixed Broadband Retention and Satisfaction in Europe and the USA (Apr. 27, 2021), https://www.analysysmason.com/research/content/reports/fixed-broadband- europeusa-rdmb0/. 95 Id. 37 Federal Communications Commission FCC 22-103 d. Measuring Broadband America (MBA) Report 47. Our assessment of non-price competition in fixed broadband services also considers quality measures including the actual speed of service experienced by consumers, consistency of actual speeds experienced as compared to advertised speeds, latency, and packet loss. Each of these measures focuses on a different aspect of the consumer experience. Every page, image, and video on the Internet comes to home devices as small pieces of data or packets. Upload and download speed refer to throughput, the rate at which packets reach their destination within a specific time period. Different types of online applications require different minimum speeds. The speed experienced by a consumer may fluctuate during the day, typically due to variations in traffic demand and the resulting stress on different parts of the network infrastructure. Consistency measures examine how dramatic these fluctuations are across a particular network. Moreover, a significant reduction in speed for more than a few seconds can reduce video resolution or cause intermittent lapses in service. Latency is the time it takes for a data packet to travel from one point on the network to another. Consumers using services with high latency may experience reduced quality for interactive services; e.g., video chat, video conferencing, and online multiplayer games. Finally, packet loss measures the fraction of data packets sent that fail to be delivered to the intended destination. If packet loss occurs with interactive services and streaming applications, it may affect the consumer’s quality of service. 48. The discussion below summarizes results from the Commission’s recently released Eleventh Measuring Broadband America Report.96 The Eleventh Measuring Broadband America Report provides a snapshot of fixed broadband Internet access service performance in the United States. The Eleventh Measuring Broadband America Report is based on data collected from 12 ISP/technology configurations between September 2 and September 24, 2020 (inclusive) and September 26 and October 2, 2020 (inclusive).97 We measure the network performance delivered on selected service tiers to a representative sample set of the population. The volunteer panelists are drawn from subscribers of the ISPs that collectively serve a large percentage of the residential fixed broadband consumers in the United States.98 The results presented in the Eleventh Measuring Broadband America Report suggest that consumer experience varies noticeably with the connection technology.99 96 See Eleventh Measuring Broadband America Fixed Broadband Report. The MBA program is a rigorous, ongoing, nationwide study of consumer broadband performance that relies upon a sample that aims to include those tiers that constitute the top 80% of the subscriber base per ISP. Eleventh Measuring Broadband America Fixed Broadband Report at 7. The Eleventh Measuring Broadband America Fixed Broadband Report is based on data gathered from 2,488 volunteer panelists across the United States and includes only panelists that are subscribed to the tiers that were tested as part of the sample plan. Id. at 22. 97 Eleventh Measuring Broadband America Fixed Broadband Report at 7. An isolated server outage forced the exclusion of data on September 25 to avoid anomalous results. Id. at 7 & n.1. The Eleventh Measuring Broadband America Fixed Broadband Report is based upon data for ten ISPs: Altice Optimum, Lumen Technologies (CenturyLink), Charter, Cincinnati Bell, Comcast, Cox, Frontier, Mediacom, Verizon, and Windstream. Id. at 11. The participants in the Eleventh Measuring Broadband America Fixed Broadband Report provide service by DSL, cable, or fiber (FTTP). Id. at 11. Hawaiian Telecom also participated in the Fixed MBA program, but the number of panelists receiving its service was insufficient to result in a statistically valid dataset and thus, this report excludes measurement results for this ISP. Id. at 21. Participation in the program by ISPs is voluntary. For purposes of satisfying the Commission’s transparency requirements that apply to ISPs, fixed providers that choose to participate in the MBA program may disclose their results as a sufficient representation of the actual performance their customers can expect to experience. 98 Eleventh Measuring Broadband America Fixed Broadband Report at 7. The measurements that provide the underlying data for the report were conducted between MBA measurement devices and MBA measurement servers. The measurement devices (known as whiteboxes) were situated in the homes of the panelists that receive services from the participating ISPs. Id. at 22. 99 Id. at 15-19. 38 Federal Communications Commission FCC 22-103 49. Actual Speed. The Eleventh Measuring Broadband America Report presents an actual speed for each provider, for each of the advertised tiers that were included in the study.100 As reported, this actual speed is the median speed experienced by the sampled panelists within a specific speed tier, by ISP. Further, overall performance is calculated for each ISP/technology configuration by determining the ratio of the median speed for each tier to the advertised tier speed and then calculate the weighted average of these based on the subscriber count per tier.101 The analysis shows that consumers’ actual broadband service speeds for most ISPs are close to or exceed the advertised speed.102 Of the 12 ISP/technology configurations included in this report, nine met or exceeded their advertised download speeds, two reached at least 90% of their advertised speed, and one performed below 90% of its advertised download speed.103 50. Consistency. Consistency of speed may be more important to consumers using applications such as video content that are both high-bandwidth and sensitive to variations in actual speed.104 The Eleventh Measuring Broadband America Report considers two metrics of speed consistency. The first metric is the percentage of an ISP’s sampled panelists who experience an actual monthly average download speed that was greater than 95% of the pertinent advertised speed. The results show that consumers’ actual broadband service speeds for cable and fiber ISPs provide more consistent speeds than DSL ISPs based on this metric.105 Cable and fiber ISPs provided speeds equal to or better than 95% of their advertised speeds to 89-98% and 53-98% of their subscribers, respectively.106 However, between 3% to 75% of DSL ISP subscribers experienced speeds greater than or equal to 95% of their respective ISP’s advertised download speeds during peak hours.107 51. The second metric, the “80/80 consistent speed” metric, considers how speeds experienced by an ISP’s sampled panelists vary during the day. The “80/80 consistent speed metric” measures the percentage of the advertised speed that at least 80% of subscribers experience at least 80% of the time over peak periods. Cable and fiber ISPs performed better than DSL ISPs with respect to their provision of consistent speeds. Cable and fiber ISPs provided greater than 95% of the advertised speed during peak usage period to more than 80% of their panelists for more than 80% of the time.108 In contrast, the 80/80 consistent download speed for a DSL provider was 46% of the advertised speed.109 52. Latency. The differences in median latency among services offered by the participating wireline ISPs are relatively small. Median latencies ranged from 8 ms to 28 ms in our measurements 100 The service tiers that are included in Eleventh Measuring Broadband America Fixed Broadband Report represent the top 80% (therefore, ”most popular”) of an ISP’s set of tiers based on subscriber numbers. Eleventh Measuring Broadband America Fixed Broadband Report at 11. The measurement tests for download speed (upload speed) measures the download speed (upload load) of each whitebox over a 10-second period, once per hour during peak hours (7:00 pm to 11:00 pm) and once during each of the following periods midnight to 6:00 am, 6:00 am to noon, and noon to 6:00 pm. Id. at 24. 101 Id. at 11. 102 Id. at 15. The ISP/technology configurations are: DSL (Lumen Technologies (CenturyLink), Cincinnati Bell DSL, Frontier DSL, and Windstream); Cable (Altice Optimum, Charter, Comcast, Cox, and Mediacom); and FTTP (Lumen Technologies (CenturyLink), Cincinnati Bell Fiber, Frontier Fiber, and Verizon Fiber). See Id. at 11. 103 Id. at 15. 104 Id. at 16. 105 Id. at 15-17. 106 Id. at 16. The ranges given represent differing results by ISP. 107 Id.. The ranges given represent differing results by ISP. 108 Id. at 17. 109 Id. 39 Federal Communications Commission FCC 22-103 (with the exception of one provider which had median latencies of 37 ms).110 Measured DSL latencies (between 21 ms to 37 ms) were slightly higher than those for cable (12 ms to 26 ms) and median latencies for fiber ISPs were lowest of the ISPs (8 ms to 13 ms).111 53. Packet Loss. The MBA program denotes a packet as lost if the latency exceeds three seconds or if the packet is never received, and that a 1% standard for packet loss is the point at which highly interactive applications such as Voice over Internet Protocol (VoIP) would experience significant degradation in quality according to industry publications and International Telecommunications Union (ITU) standards.112 ISPs using fiber technologies have the lowest packet loss (0% to 5%), while ISPs using copper-based technologies, e.g., DSL, have the highest packet loss (4% to 8%).113 54. MBA Performance During COVID-19 Pandemic. Examining test results from March 1, 2020 (pre-pandemic benchmark) through April 30, 2020 show some degradation of service for download speed, upload speed and latency, but no degradation of service with respect to packet loss. Most of the ISPs experienced between a 2% to 4% reduction in average measured download speed compared to the benchmark.114 Test results for upload speeds showed all participating ISP performing within +/- 3% of the average on March 1, 2020 (the pre-pandemic benchmark).115 Test results for latency show a general deterioration of latency during this test period by most of the ISPs and up to 10% for some of the ISPs.116 e. FCC Form 477 and Speed 55. Breakdown of the Maximum Advertised Speed Reported by Providers with the Largest Footprints. Based upon FCC Form 477 deployment data, we present a breakdown of the maximum advertised download speed data, by technology, for the ten providers with the largest footprints in the United States. For purposes of this figure, we report only those technologies that account for at least 5% of the provider’s footprint, and we segment the reported maximum download speeds for residential services into the five categories: less than 25 Mbps; at least 25 Mbps and less than 100 Mbps; at least 100 Mbps and less than 400 Mbps; at least 400 Mbps and less than 940 Mbps; and at least 940 Mbps.117 As shown in Figure II.A.27, only six (Altice, AT&T, Charter, Comcast, Cox, and Frontier) of the top ten providers offer services approaching 1 Gbps service to more than one-third of households in their respective footprints. The data indicate that Charter, Comcast, and Cox are capable of providing services approaching 1 Gbps across their respective cable footprints. AT&T can provide services meeting this speed threshold to 37% of the households within its fiber footprint, and Frontier can provide services meeting this speed threshold to 35% of the households within its fiber footprint. T-Mobile can provide 110 Id. Satellite providers no longer participate in the program; however, the Eighth Measuring Broadband America Fixed Broadband Report stated that, “Technology-determined latencies are typically small for terrestrial broadband services and are thus unlikely to affect the perceived quality of applications. The higher latencies of geostationary satellite-based broadband services may impair the perceived quality of such highly interactive applications.” FCC, Eighth Measuring Broadband America Fixed Broadband Report at 8 (2018), https://www.fcc.gov/reports- research/reports/measuring-broadband-america/measuring-fixed-broadband-eighth-report. 111 Eleventh Measuring Broadband America Fixed Broadband Report at 18. 112 Id. at 18. 113 Id. at 19. 114 Id. at 59. 115 Id. at 60. 116 Id. at 61-62. 117 We report 400 Mbps download as a breakpoint because, as of December 31, 2021, 400 Mbps download is the 75% percentile for residential connections. See supra Fig. II.A.13. We report 940 Mbps download as a breakpoint because it is the maximum advertised download speed reported by two of the largest providers of residential broadband services. Staff analysis of provider data. 40 Federal Communications Commission FCC 22-103 service of at least 25 Mbps to less than 100 Mbps service to approximately 99% of its fixed wireless footprint. Fig. II.A.27 Percentage of Top Ten Fixed Terrestrial Provider’s Residential Footprint by Technology and Reported Maximum Advertised Download Speed in the United States (Dec. 31, 2021) At least 25 At least 100 At least 400 Mbps & less Mbps & less Mbps & less Less than than 100 than 400 than 940 At least Technology 25 Mbps Mbps Mbps Mbps 940 Mbps Altice Cable 1% 1% 7% 0% 34% Fiber 0% 0% 0% 0% 58% AT&T Inc. Copper 31% 24% 41% 0% 0% Fiber 0% 0% 0% 0% 37% Charter Communications Cable 0% 0% 0% 0% 100% Comcast Corporation Cable 0% 0% 0% 0% 95% Fiber 0% 0% 0% 0% 5% Cox Communications, Inc. Cable 0% 0% 0% 0% 98% Fiber 0% 0% 0% 0% 8% Frontier Communications Copper 58% 27% 12% 0% 0% Corporation Fiber 0% 0% 0% 0% 35% Lumen Technologies Copper 36% 34% 27% 0% 0% (CenturyLink) Fiber 0% 0% 1% 0% 18% Telephone and Data Fixed 96% 0% 0% 0% 0% Systems, Inc. Wireless T-Mobile USA, Inc. Fixed 1% 99% 0% 0% 0% Wireless Verizon Communications Copper 37% 0% 0% 0% 0% Inc. Fiber 0% 0% 1% 0% 26% Fixed 0% 49% 16% 0% 0% Wireless Source: FCC Form 477 year-end deployment data; Staff Block Estimates. The sum of the percentages for some providers (e.g., AT&T, Cox, Verizon) will exceed 100% because these filers have deployed more than one technology in the same geographic areas. We report technologies that account for at least 5% of the providers’ residential footprint. f. Access to Multiple Providers 56. We provide an assessment of the number of fixed broadband provider options available to consumers in the United States using year-end FCC Form 477 deployment data from 2018 to 2021.118 118 ACA Connects Comments at 8 (suggesting that we present historical data covering a longer time period). We reject ACA Connects’ argument that we should project potential gains in competition. See ACA Connects Comments at 9-12. We have insufficient information to conduct this type of analysis, and moreover, we do not agree that it is reasonable to base the calculation of the share of households subject to various levels of competition for the periods between June 2021 and Dec. 2025 on the assumption that the share of households not having access (continued….) 41 Federal Communications Commission FCC 22-103 Our analysis considers options for fixed terrestrial services meeting three minimum speed thresholds— 25/3 Mbps, 100/20 Mbps, and 940/500 Mbps.119 Using these data and ACS demographic data,120 we also analyze the demographics of areas where consumers have access to multiple broadband providers. As noted by the Commission, a provider indicating that it provides service in a census block does not mean that the provider can provision services to all locations in the census block, or that it can provide the speed to all locations in the census block.121 Accordingly, the number of providers reported in the figures below does not necessarily reflect the number of choices available to a particular household and does not purport to measure actual head-to-head competition. 57. Figure II.A.28 reports estimates of the percentage of U.S. households who live in census blocks where FCC Form 477 data indicate that zero, one, two, and three or more providers of fixed terrestrial broadband services are deployed.122 (Continued from previous page) to that level of competition continues to decrease at the same percentage rate that it has decreased over the last two years for which actual data are available. See ACA Connects Comments, Attach. at 11. In addition, we reject their argument that we should bootstrap consumers’ options for faster service based on the availability of providers offering slower speed services (i.e., consumers of 100/20 Mbps service who would switch to 25/3 Mbps service as the price of 100/20 Mbps service increases). ACA Connects offers no evidence that a significant portion of consumers of 100/20 Mbps service would switch to 25/3 Mbps service in the event of a small but significant price increase for 100/20 Mbps service. Moreover, Form 477 residential connections data show that 90% of residential connections are to services faster than 25/2 Mbps, 75% of residential connections are to services faster than 50/50 Mbps and 50% of residential connections are to services faster than 200/10 Mbps. See supra Fig. II.A.13. 119 See USTelecom Comments at 6-10 (reporting the percentage of housing units with two or more options of fixed broadband services meeting various speed thresholds). 120 For this analysis, we examine population density, the number of households, and median household income. We rely upon the 2016-2020 ACS 5-Year Estimates for median household income (in 2020 inflation-adjusted dollars) reported at the census block group level. The 2017-2021 ACS 5-Year Estimates will not be released in time for use for this Report. See U.S. Census Bureau, 2021 Data Release New and Notable, https://www.census.gov/programs- surveys/acs/news/data-releases/2021/release.html (last visited Oct. 6, 2022). 121 See, e.g., 2020 Communications Marketplace Report, 36 FCC Rcd at 2992-93, para. 69; 2018 Communications Marketplace Report, 33 FCC Rcd at 12651, para. 184; FCC, Internet Access Services: Status as of June 30, 2019 at 6 (2022), https://www.fcc.gov/internet-access-services-reports. 122 The FCC Form 477 year-end data from 2018 to 2020 are based on the 2010 census geographies; whereas the FCC Form 477 year-end 2021 are based on 2020 census block geographies. Due to this discrepancy, it is not possible to hold constant the underlying configuration of census blocks or the characteristics of the census blocks. We therefore caveat our results for changes between 2021 and earlier periods. The percentage of households with an estimated number of fixed terrestrial provider options in a census block is measured as the number of households covered by the specific number of providers (e.g., zero, one, two, and at least three) within the geographic area divided by the total number of households with access to the service in the census block. Throughout this section, percentages provided may not sum to exactly 100% due to rounding. We separately provide estimates of the percentage of the population with multiple provider options for fixed terrestrial broadband services, for each state, the District of Columbia, and Puerto Rico, as of December 31, 2021. See infra Appx. B-2, Appx. B-3, and Appx. B- 4. For these figures, we aggregate census blocks within a state by competitor count category, i.e., we group census blocks within each state by the number of competitors in the census block and then sum the households in these census blocks by competitor count category. The census blocks within a state are aggregated by the number of provider options (zero, one, two, and at least three). 42 Federal Communications Commission FCC 22-103 Fig. II.A.28 Percentage of U.S. Households Living in Census Blocks with Multiple Provider Options for Fixed Terrestrial Services (2018 - 2021) Provider Options 2018 2019 2020 2021 25/3 Mbps Zero 5.4% 4.3% 2.4% 1.6% One 27.1% 22.3% 10.8% 8.5% Two 45.9% 44.5% 33.3% 20.6% At Least Three 21.6% 29.0% 53.5% 69.3% 100/20 Mbps Zero 11.6% 10.2% 8.3% 5.4% One 39.4% 36.9% 34.3% 30.5% Two 34.2% 41.1% 41.6% 42.8% At Least Three 14.8% 11.8% 15.7% 21.3% 940/500 Mbps Zero 72.3% 67.8% 63.9% 54.9% One 25.4% 29.5% 31.1% 41.0% Two 2.2% 2.5% 4.6% 3.7% At Least Three 0.2% 0.2% 0.5% 0.4% Sources: FCC Form 477 year-end deployment data; Staff Block Estimates. 58. Provider options in rural and urban areas and on Tribal lands. We next evaluate the percentage of households that that have a choice among multiple fixed terrestrial broadband service providers in rural and urban areas, and on Tribal lands.123 As shown in Figure II.A.29, for services meeting a 100/20 Mbps speed threshold, the data suggest improvements in the proportion of households with at least two provider options. However, there is a significant difference in the percentage of households with at least two provider options in urban areas compared to those in rural areas and on Tribal lands.124 While almost 72% of the households living in census bocks in urban areas have at least two provider options for 100/20 Mbps service, less than 30% of households living in census blocks in rural areas and less than 34% of households on Tribal lands have at least two options in their census blocks for this service tier. Currently, for services meeting a 940/500 Mbps threshold, 4.5% of households in census blocks in urban areas have at least two options, compared to 2.6% of households in rural areas and 3.6% of households on Tribal lands. 123 The FCC Form 477 year-end data from 2018 to 2020 are based on the 2010 census geographies; accordingly, we use the 2010 Census urban/rural designation for these data. The FCC Form 477 year-end 2021 data are based on 2020 census blocks; however, the U.S. Census Bureau has not yet released urban/rural designations for the 2020 census data. Thus, for purposes of this analysis, we designate a 2020 census block as urban if any “urban” 2010 census block intersects the 2020 block. See infra Section III.A.1 (for an explanation of the method we used to segment urban and rural areas for year-end 2021 data). Because of the change in census geographies during our data collection period, caution should be exercised when interpreting the change in the number of provider options between 2020 and 2021 for urban and rural areas. Our assessment of Tribal lands is conducted by examining the census blocks that have been identified by the U.S. Census Bureau as federally recognized Tribal lands for the decennial Census in place for the time period covered by the FCC Form 477 data (i.e., year-end data for 2018 to 2020 were collected using 2010 census block geographies, whereas year-end data for 2021 were collected using 2020 census block geographies). 124 See INCOMPAS Comments at 5-8. 43 Federal Communications Commission FCC 22-103 Fig. II.A.29 Percentage of U.S. Households Living in Census Blocks in Rural Areas, Urban Areas, and Tribal Lands with Multiple Provider Options for Fixed Terrestrial Services (2018-2021) Provider 2018 2019 2020 2021 25/3 Mbps Rural Areas Zero 22.0% 17.1% 8.9% 7.1% One 44.0% 40.3% 23.7% 22.3% Two 25.8% 29.5% 32.1% 28.2% At Least Three 8.2% 13.1% 35.3% 42.5% Urban Areas Zero 1.3% 1.0% 0.7% 0.3% One 22.8% 17.8% 7.6% 5.4% Two 51.0% 48.2% 33.6% 18.9% At Least Three 25.0% 33.0% 58.1% 75.4% Tribal Lands Zero 25.6% 19.3% 11.8% 7.7% One 36.4% 35.4% 24.2% 18.6% Two 23.7% 27.9% 26.0% 23.9% At Least Three 14.3% 17.4% 37.9% 49.9% 100/20 Mbps Rural Areas Zero 41.5% 37.5% 31.6% 23.0% One 45.1% 46.0% 47.1% 47.1% Two 11.8% 14.4% 18.2% 23.9% At Least Three 1.7% 2.1% 3.1% 6.0% Urban Areas Zero 4.1% 3.4% 2.5% 1.4% One 38.8% 34.6% 31.1% 26.7% Two 45.2% 47.8% 47.6% 47.1% At Least Three 11.8% 14.2% 18.9% 24.8% Tribal Lands Zero 48.8% 43.7% 38.0% 23.4% One 37.6% 37.7% 38.9% 43.0% Two 13.1% 17.7% 21.6% 30.0% At Least Three 0.5% 0.9% 1.4% 3.5% 940/500 Mbps Rural Areas Zero 89.4% 86.1% 81.8% 73.3% 44 Federal Communications Commission FCC 22-103 Provider 2018 2019 2020 2021 One 10.1% 13.2% 16.9% 24.1% Two 0.4% 0.7% 1.3% 2.4% At Least Three 0.0% 0.0% 0.0% 0.2% Urban Areas Zero 68.0% 63.2% 59.3% 50.7% One 29.3% 33.5% 34.7% 44.8% Two 2.6% 3.0% 5.4% 4.0% At Least Three 0.2% 0.2% 0.6% 0.5% Tribal Lands Zero 88.0% 84.7% 79.0% 71.5% One 11.3% 14.5% 19.1% 24.9% Two 0.7% 0.8% 1.9% 3.3% At Least Three 0.0% 0.0% 0.0% 0.3% Sources: FCC Form 477 year-end data; FCC Staff Block Estimates. 59. Figures II.A.30 to II.A.32 present a demographic analysis of the average percentage of households with coverage by zero, one, two, and three or more providers; broken out by population density quartile, median household income quartile, and household count quartile.125 We present this analysis for 25/3 Mbps, 100/20 Mbps, and 940/500 Mbps. We observe that the number of provider options increases with the number of housing units in the census block group, population density, and median household income. In general, the census block groups in rural areas will tend to have the lowest population density and the lowest number of households and are likely to have the largest percentage of the households with zero provider options, i.e., no deployment of the reported service. 125 For these figures, we include only the areas for which we have complete data. We aggregate census blocks within a census block group by provider count category; that is, we group census blocks within a census block group by the number of providers and then sum the households in these census blocks by provider count category. The census blocks within census block group are aggregated by the number of competing providers offering a particular category of service (zero, one, two, and at least three). The census block group is the smallest geographic area for which income data are available. We use the 2016-2020 ACS 5-Year Estimates for income measures for census block groups. Median household income is based on 2020 data and is measured in 2020 inflation-adjusted dollars. Population density is the total population residing in the census block group as of 2020 divided by the square miles of land in the census block group, with the estimate of land area based on the 2020 Census. Household count is the number of households in the census block group. See also infra Appx. F-7 (reporting population density, per capita income, and percent of the population covered for deployment of 25/3 Mbps, 100/20 Mbps, and 940/500 Mbps by state, county, and county equivalent). 45 Federal Communications Commission FCC 22-103 Fig. II.A.30 Average Percentage of Households Living in Census Blocks with Multiple Provider Options for 25/3 Mbps by Census Block Group Demographic Variable (Dec. 31, 2021) At Least Zero One Two Three Population Density First Quartile (Lowest Pop. Density) 7.1% 22.4% 28.5% 42.0% Second Quartile 0.5% 8.1% 23.8% 67.6% Third Quartile 0.2% 4.8% 18.8% 76.2% Fourth Quartile (Highest Pop. Density) 0.2% 3.2% 15.3% 81.4% Median Household Income ($2020) First Quartile (Lowest Median Household Income) 2.9% 11.8% 23.2% 62.1% Second Quartile 2.6% 11.6% 22.5% 63.2% Third Quartile 1.5% 9.1% 20.9% 68.5% Fourth Quartile (Highest Median Household Income) 0.5% 5.2% 19.3% 75.0% Household Count First Quartile (Lowest Household Count) 3.3% 12.8% 24.3% 59.5% Second Quartile 2.2% 10.3% 22.3% 65.2% Third Quartile 1.6% 8.8% 21.0% 68.5% Fourth Quartile (Highest Household Count) 0.9% 6.5% 18.8% 73.8% Source: FCC Form 477 year-end data; Staff Block Estimates; ACS 2016-2020 Five Year Estimates. 46 Federal Communications Commission FCC 22-103 Fig. II.A.31 Average Percentage of U.S. Households Living in Census Blocks with Multiple Provider Options for 100/20 Mbps by Census Block Group Demographic Variable (Dec. 31, 2021) At Least Zero One Two Three Population Density First Quartile (Lowest Pop. Density) 21.9% 48.8% 23.5% 5.8% Second Quartile 2.4% 36.8% 45.5% 15.3% Third Quartile 1.0% 27.1% 49.9% 22.0% Fourth Quartile (Highest Pop. Density) 0.5% 15.7% 46.9% 37.0% Median Household Income ($2020) First Quartile (Lowest Median Household Income) 7.8% 37.4% 36.6% 18.2% Second Quartile 8.9% 35.4% 38.4% 17.3% Third Quartile 6.2% 31.7% 42.3% 19.7% Fourth Quartile (Highest Median Household Income) 2.2% 23.3% 49.5% 25.0% Household Count First Quartile (Lowest Household Count) 9.3% 36.1% 37.8% 16.8% Second Quartile 7.3% 33.0% 40.5% 19.2% Third Quartile 5.7% 31.8% 42.1% 20.4% Fourth Quartile (Highest Household Count) 3.5% 27.6% 45.3% 23.6% Source: FCC Form 477 year-end data; Staff Block Estimates; ACS 2016-2020 Five Year Estimates. 47 Federal Communications Commission FCC 22-103 Fig. II.A.32 Average Percentage of U.S. Households Living in Census Blocks with Multiple Provider Options for 940/500 Mbps by Census Block Group Demographic Variable (Dec. 31, 2021) At Least Zero One Two Three Population Density First Quartile (Lowest Pop. Density) 75.6% 22.4% 1.8% 0.2% Second Quartile 58.3% 38.2% 3.2% 0.3% Third Quartile 50.6% 45.1% 3.8% 0.5% Fourth Quartile (Highest Pop. Density) 42.5% 52.6% 4.3% 0.6% Median Household Income ($2020) First Quartile (Lowest Median Household Income) 63.8% 33.6% 2.3% 0.2% Second Quartile 61.1% 35.8% 2.7% 0.4% Third Quartile 56.6% 39.5% 3.4% 0.5% Fourth Quartile (Highest Median Household Income) 44.8% 50.0% 4.7% 0.5% Household Count First Quartile (Lowest Household Count) 60.5% 36.5% 2.6% 0.3% Second Quartile 57.7% 38.9% 3.0% 0.4% Third Quartile 56.7% 39.7% 3.2% 0.4% Fourth Quartile (Highest Household Count) 52.1% 43.1% 4.3% 0.5% Source: FCC Form 477 year-end data; Staff Block Estimates; ACS 2016-2020 Five Year Estimates. 60. Alternative estimates of the number of provider options. Because of the limitations of the FCC Form 477 data, we provide alternative estimates of the number of provider options available to households in an attempt to present a more comprehensive assessment. To reduce the effect of the factors that could result in an understatement or overstatement of the proportion of households with a choice of multiple providers,126 we incorporate information from our confidential subscriber data before assessing the number of providers in each census block. In Figure II.A.33, we present alternative estimates of the number of provider options for 25/3 Mbps, 100/20 Mbps, and 940/500 Mbps based on three scenarios that include all fixed technologies.127 These alternative estimates include satellite service, as well as any of the other fixed technologies, to the extent that the service meets the speed threshold and the scenario criteria. For comparison purposes, Scenario I presents fixed broadband coverage for all reported technologies, and takes the filer’s data as released by the Commission. The two remaining scenarios 126 Our assessment of deployment requires only filer in the census block. However, a census block is classified as served if the FCC Form 477 data indicate that service is available in a census block, even if not to every location. It is not necessarily the case that every household will have coverage from a given provider in census block that the analysis indicates is served. The Commission has found that this type of analysis could overstate the coverage experienced by some consumers, especially in large or irregularly shaped census blocks. See, e.g., 2020 Broadband Deployment Report, 35 FCC Rcd at 8998, para. 26; 2019 Broadband Deployment Report, 34 FCC Rcd at 3869, para. 25 & n.92. 127 These estimates include fixed satellite services. The estimates for Scenarios II and III rely on confidential residential connections (subscriber) data. 48 Federal Communications Commission FCC 22-103 include the filer’s block-level data only if the filer’s residential connections data meet the minimum penetration rate for the scenario.128 Scenario II compares each filer’s FCC Form 477 deployment data to its residential connections data and excludes the filer’s deployment data from the block if the filer does not attain a 1% penetration rate.129 Scenario III increases the penetration rate in Scenario II from 1% to 5%. Scenarios II and III analyze penetration rates without regard to subscription speed to account for consumers opting to subscribe to slower speed services than the maximum advertised speed offered by a provider.130 We reiterate that, in Scenarios II and III, our decision to exclude a filer’s FCC Form 477 deployment data does not mean that such service is not available in particular census block, only that the filer failed to attain the relevant penetration rate for purposes of these alternate estimates. 61. The first column of Figure II.A.33 replicates the last column of Figure II.A.28 for comparison purposes. Comparing Scenario I to Scenario II and Scenario III shows the impact of penetration adjustments on the estimates of the number of provider options when a filer failed the penetration rate criteria for the scenario and its deployment data are excluded. For example, comparing Scenario I to Scenario II for 100/20 Mbps suggests that the percentage of households living in census blocks with at least two provider options would fall from 64.9% to 53.6%, while comparing the Scenario I to Scenario III suggests that the percentage would fall from 64.9% to 50.5%. We note, however, that these alternate scenarios have not been included in previous versions of this report; therefore, we are unable to provide any historical context regarding the extent to which individual results may have varied across time. 128 Because there are fewer technology codes reported for the subscriber data than for the deployment data for copper and cable technologies, we recode the deployment data for copper-based technology codes 10, 11, 12, 20 and 30 to technology code 10, and we recode the cable modem technology codes 40, 41, 42, and 43 to technology code 40. 129 We define the penetration rate as the filer’s total number of residential connections in the tract divided by the filer’s number of deployed households meeting the speed threshold in the census tract. 130 See supra Fig. II.A.17, reporting Overall Adoption Rates for the United States; see also infra Fig. III.A.6, reporting alternative deployment estimates. The percentages reported in Fig. III.A.6 are based on population whereas the percentages reported in Fig. II.A.33 are based on households. 49 Federal Communications Commission FCC 22-103 Fig. II.A.33 Alternative Estimates for the Percentage of Households Living in Census Blocks with Multiple Provider Options for Fixed Services (Dec. 31, 2021) Provider Options From Fig. Scenario I: All Scenario II: All Scenario III: All II.A.28 Technologies Technologies; 1% Technologies; 5% (Excludes Penetration Rate Penetration Rate Satellite) 25/3 Mbps Zero 1.6% 0.0% 1.0% 2.6% One 8.5% 0.0% 18.4% 30.3% Two 20.6% 1.3% 51.1% 56.4% At Least Three 69.3% 98.7% 29.5% 10.7% 100/20 Mbps Zero 5.4% 5.3% 6.9% 7.5% One 30.5% 29.8% 39.6% 41.9% Two 42.8% 42.9% 45.6% 44.5% At Least Three 21.3% 22.0% 8.0% 6.0% 940/500 Mbps Zero 54.9% 54.9% 59.0% 60.8% One 41.0% 41.0% 38.3% 37.1% Two 3.7% 3.7% 2.5% 2.1% At Least Three 0.4% 0.4% 0.1% 0.1% Scenario I: Includes all technologies, including satellite services, and uses the filer data as released by the Commission. Scenario II: Compares each filer’s FCC Form 477 deployment data to its confidential residential connections data, and excludes the filer’s deployment data from the block analysis if the filer does not attain a 1% penetration rate in the tract to which the block belongs. (Penetration rate= filer’s total residential connections in the tract/Filer’s deployed households in the census tract that meet the speed threshold). Scenario III: Increases the test penetration rate to 5%. Source: FCC Form 477 year-end deployment and confidential residential connections data; Staff Block Estimates for 2021 (2020 Census Blocks). B. The Mobile Wireless Marketplace 62. In the period covered by this Report, consumers have relied more heavily on wireless services than ever and mobile wireless services increasingly are an essential part of Americans’ daily lives. In addition to the three facilities-based nationwide mobile wireless service providers, the mobile wireless marketplace consists of numerous regional and local facilities-based providers, mobile virtual network operators (MVNOs) that purchase mobile wireless services wholesale, cable providers that rely on a hybrid wholesale/hotspot arrangement to offer service, and mobile satellite providers that currently focus primarily on niche services like tracking services for aircraft and ships and operations in remote locations. In addition, as one condition for the Commission’s approval of the merger between T-Mobile and Sprint, the parties agreed to divest Boost, T-Mobile's MVNO subsidiary, to DISH; and DISH in turn committed to building its own independent nationwide 5G mobile network. 63. In this section, we consider various competitive factors in the mobile wireless marketplace. For example, while the prices of wireless services have remained largely stable since 2020,131 there was a notable decrease in the wireless churn rates for nationwide service providers in early 131 See infra section II.B.4. 50 Federal Communications Commission FCC 22-103 2020.132 The churn rates started trending up again in mid-2021, but remained at a relatively low level compared with previous years for two of the three nationwide providers.133 A number of factors may have contributed to this decline in churn rates, including the beginning of the COVID-19 pandemic in 2020, the T-Mobile-Sprint merger, and improved network quality due to the rapid build out of 5G networks. The Commission will pay close attention to competitive indicators and trends as the mobile wireless marketplace continues to evolve, including those indicators that reflect the competitive effects of mergers and acquisitions.134 In this section, we present available 2021 data for all mobile wireless services, including voice, messaging, and broadband, and we also present certain information as of mid-2022. Further, we summarize the recent major transactions that have had and will continue to have an effect on the competitive landscape. 1. Overview of the Mobile Wireless Marketplace a. Service Providers 64. Facilities-Based Service Providers. As of December 31, 2021, there were three facilities- based mobile wireless service providers in the United States that this Report refers to as “nationwide service providers”: AT&T, T-Mobile, and Verizon Wireless. Although none of these three nationwide service providers has a network that is truly ubiquitous, the three service providers have networks that they report cover a substantial majority of the country—each reports covering at least 93% of the U.S. population and at least 58% of U.S. road miles with their 4G Long-Term Evolution (LTE) networks, and at least 67% of the U.S. population and at least 25% of road miles with their 5G networks.135 Collectively, these three nationwide service providers account for over 453 million connections.136 UScellular, currently the fourth largest facilities-based service provider in the United States, is best characterized as a multi-regional service provider. It has deployed wireless networks and customer service operations in portions of 21 states,137 and, as of December 31, 2021, it accounted for approximately five million connections.138 Two other larger regional service providers are: C Spire, 132 See infra section II.B.1.c. 133 Id. 134 To mitigate the likelihood of public interest harm, the Commission on occasion accepts pricing commitments as part of a transaction’s conditions. See, e.g., Applications of T-Mobile US, Inc. and Sprint Corporation for Consent to Transfer Control of Licenses and Authorizations, WT Docket No. 18-197, Memorandum Opinion and Order, Declaratory Ruling, and Order of Proposed Modification, 34 FCC Rcd 10578, 10801-28, Appx. G (2019) (T- Mobile-Sprint Order) (“New T-Mobile will make available the same or better rate plans as those offered by T- Mobile or Sprint as of today’s date for three years following the merger[, which ended in November 2022].”); Application of Verizon Communications Inc. and América Móvil, S.A.B. de C.V. for Consent To Transfer Control of International Section 214 Authorization, GN Docket 21-112, Memorandum Opinion and Order, FCC 21-121, at 57- 64, Appx. B (Nov. 22, 2021) (Verizon-TracFone Order) (“Verizon, directly or through its affiliates, will continue to offer Lifeline services for at least seven years from the close of the transaction over the same service area where TracFone currently offers Lifeline service[, until November 2028] . . . . Verizon will continue to offer and advertise existing TracFone Lifeline rate plans for at least three years after the transaction closes unless the plan no longer meets Lifeline MSS standards[, at least November 2024].”); see also Applications of Charter Communications, Inc., Time Warner Cable Inc., and Advance/Newhouse Partnership For Consent to Assign or Transfer Control of Licenses and Authorizations, MB Docket No. 15-149, Memorandum Opinion and Order, 31 FCC Rcd 6330, 6539- 62, para. 9, Appx. B (2016) (Charter/Time Warner Cable Order) (“[F]or seven years[, until May 2023], we prohibit New Charter from imposing data caps or charging usage-based pricing for its residential broadband service.”). 135 See infra section II.B.6.a. 136 See infra Fig. II.B.3. 137 United States Cellular Corp., 2021 SEC Form 10-K at 1 (filed Feb. 17, 2022). UScellular is a majority-owned (82%) subsidiary of Telephone and Data Systems, Inc. Id. 138 Id. 51 Federal Communications Commission FCC 22-103 which provides service to nearly one million subscribers in the southeastern United States,139 and Claro, which provides service to just over one million subscribers in Puerto Rico.140 There are also dozens of other facilities-based mobile wireless service providers throughout the United States, many of which provide service in a single, often rural, geographic area.141 65. MVNOs. Traditionally, MVNOs have not owned any network facilities, but instead purchase mobile wireless services on a wholesale basis from facilities-based service providers and resell these services to consumers.142 In 2021, Verizon purchased the largest of these companies–TracFone, previously an América Móvil subsidiary.143 With the sale of TracFone to Verizon, and setting aside Boost Mobile (discussed below), the largest remaining traditional MVNO is Consumer Cellular, which has approximately four million customers.144 Other major MVNOs include Google’s Google Fi, which has an estimated two million customers,145 and Ultra Mobile, which has an estimated two to three million customers across its brands, including Mint Mobile.146 66. DISH. On July 1, 2020, T-Mobile divested its Boost Mobile brand and its approximately nine million customers to DISH,147 as a condition imposed by the Commission and the U.S. Department of Justice on their approval of T-Mobile’s merger with Sprint.148 Through 2021, Boost operated solely as 139 C Spire, About C Spire, C Spire Celebrates 30 Years of Customer Inspiration This Month (Feb. 13, 2018), https://www.cspire.com/company_info/about/news_detail.jsp?entryId=29600003. 140 América Móvil, América Móvil’s Fourth Quarter of 2021 Financial and Operating Report at 27 (Feb. 8, 2022), https://www.americamovil.com/investors/reports-and-filings/quarterly-results/default.aspx. 141 Examples of regional facilities-based service providers include Appalachian Wireless, Carolina West Wireless, Cellcom, Choice Wireless, GCI, Nex-Tech Wireless, and Sagebrush Cellular. Annual Report and Analysis of Competitive Market Conditions With Respect to Mobile Wireless, Including Commercial Mobile Services, WT Docket No. 17-126, Twentieth Report, 32 FCC Rcd 8968, 8975, para. 14 & n.50 (2017) (Twentieth Wireless Competition Report). 142 2020 Communications Marketplace Report, 36 FCC Rcd at 2951, para. 12. The Commission is not able to provide an exact figure of the number of MVNOs that currently offer services. There are several reasons for this. First, as resellers of service offered by facilities-based service providers, MVNOs are not licensees and typically do not file section 214 applications. Second, MVNOS do not take their own telephone numbers. Finally, as the Commission has found in prior wireless competition reports, “[c]omprehensive data on MVNO subscribers are generally not reported by either MVNOs or facilities-based providers that host MVNOs. Estimates of the number of MVNOs operating in the United States vary considerably. Many MVNOs are privately held companies that do not publicly report financial or subscriber data.” Implementation of Section 6002(b) of the Omnibus Budget Reconciliation Act of 1993; Annual Report and Analysis of Competitive Market Conditions With Respect to Mobile Wireless, Including Commercial Mobile Services, WT Docket No. 11-186, Sixteenth Report, 28 FCC Rcd 3700, 3739, para. 32 (2013). 143 Verizon Wireless, Verizon Completes Tracfone Merger (Nov. 23, 2021), https://www.verizon.com/about/news/verizon-completes-tracfone-wireless-inc-acquisition. 144 Consumer Cellular, Fact Sheet, https://www.consumercellular.com/assets/press/Consumer_Cellular_Fact_Sheet.pdf (last visited Sept. 14, 2022). 145 prepaidcompare, Google Fi Profile, https://prepaidcompare.net/profiles/google-fi.html (last visited Aug. 8, 2022). 146 Mike Dano, Light Reading, Mint Mobile, Backed by Ryan Reynolds, Is Up for Sale (June 24, 2022), https://www.lightreading.com/5g/mint-mobile-backed-by-ryan-reynolds-is-up-for-sale/d/d-id/778513. 147 DISH, DISH Enters Retail Wireless Market with Close of Boost Mobile, Advances Build of the Nation’s First Standalone 5G Network (July 1, 2020), http://about.dish.com/2020-07-01-DISH-enters-retail-wireless-market-with- close-of-Boost-Mobile-advances-build-of-the-nations-first-standalone-5G-network. 148 T-Mobile-Sprint Order, 34 FCC Rcd at 10591-92, 10661, paras. 33-34, 189; see also DISH, DISH to Become National Facilities-based Wireless Carrier (July 26, 2019), http://about.dish.com/2019-07-26-DISH-to-Become- National-Facilities-based-Wireless-Carrier. 52 Federal Communications Commission FCC 22-103 an MVNO,149 which made it the largest MVNO in the United States after Verizon acquired TracFone.150 The MVNO agreement between T-Mobile and DISH allows DISH to use T-Mobile’s wireless network to provide service to its customers, offers DISH the option to construct and use its own network, and requires T-Mobile to interconnect with DISH’s network.151 In addition, in July 2021, DISH entered into an agreement with AT&T to provide wholesale services to DISH’s wireless customers.152 67. Unlike traditional MVNOs, however, DISH committed to building its own independent 5G network,153 using its AWS-4, Lower 700 MHz, and H Block spectrum licenses.154 On June 15, 2022, DISH claimed that it had met its commitment to the Commission to cover at least 20% of the U.S. population with 5G coverage, using Open RAN by June 14, 2022.155 DISH asserts that its Project Genesis service, which operates on its own facilities-based network in addition to relying on its facilities- based partners when necessary, is available in more than 120 cities.156 68. Cable. In recent years, cable providers have also entered the mobile wireless market through MVNO arrangements, as well as beginning to deploy their own facilities-based networks. These service offerings rely on combining the mobile networks of facilities-based partners with hotspot or small-cell networks that send traffic through the cable provider’s infrastructure.157 In 2016, both Comcast158 and Charter,159 the nation’s two largest cable providers, activated MVNO options they held with Verizon Wireless. Comcast launched its Xfinity Mobile wireless service in the spring of 2017, 149 T-Mobile-Sprint Order, 34 FCC Rcd at 10591-92, paras. 33-34. 150 Verizon Wireless, Verizon Completes Tracfone Merger (Nov. 23, 2021), https://www.verizon.com/about/news/verizon-completes-tracfone-wireless-inc-acquisition. 151 T-Mobile-Sprint Order, 34 FCC Rcd at 10592-93, para. 34. 152 Monica Alleven, Fierce Wireless, DISH Signs $5B MVNO Deal with AT&T (July 19, 2021), https://www.fiercewireless.com/operators/dish-signs-5b-mvno-deal-at-t. 153 T-Mobile-Sprint Order, 34 FCC Rcd at 10594, 10740, paras. 37, 369; see also DISH, DISH Enters Retail Wireless Market with Close of Boost Mobile, Advances Build of the Nation’s First Standalone 5G Network (July 1, 2020), http://about.dish.com/2020-07-01-DISH-enters-retail-wireless-market-with-close-of-Boost-Mobile-advances- build-of-the-nations-first-standalone-5G-network. 154 T-Mobile-Sprint Order, 34 FCC Rcd at 10829-41, Appx. H. 155 DISH, DISH’s Smart 5G Wireless Network is Now Available to Over 20 Percent of the U.S. Population (June 15, 2022), https://about.dish.com/2022-06-15-DISHs-Smart-5G-TM-Wireless-Network-is-Now-Available-to-Over-20- Percent-of-the-U-S-Population. 156 Id. 157 Chris Mills and Fiona Armstrong, Tutela, Special Report: State of MVNOs, at 18 (Oct. 2019), https://www.tutela.com/blog/usa-state-of-mvnos-19 (“The most immediate solution for wireless traffic offload are the networks of public or semi-public hotspots operated by the cable companies. Comcast . . . claims to operate a network of 18 million ‘xfinitywifi’ hotspots nationwide”); see also id. at 21 (“Altice Mobile is also well positioned to exploit future technology improvements and spectrum deployments to embrace the ‘hybrid MVNO’ model. Altice operates the core network, device SIMs, and in some cases has infrastructure agreements in place with Sprint for small cells.”). 158 Colin Gibbs, Fierce Wireless, Comcast to Launch Wireless Service in 2017 with Verizon MVNO, 15M Wi-Fi Hotpots (Sept. 20, 2016), http://www.fiercewireless.com/wireless/comcast-to-launch-wireless-service-2017-verizon- mvno-15m-wi-fi-hotspots. As of the end of 2021, this service had not yet utilized spectrum owned by the cable operators, but may in the future, at which point they might become Hybrid MVNOs similar to the one launched by DISH. See Diana Goovaerts, Fierce Wireless, Comcast Doesn’t Want to Put a Label on CBRS Work with Charter (Sept. 24, 2021), https://www.fiercewireless.com/operators/comcast-doesn-t-want-to-put-a-label-cbrs-work-charter. 159 Diana Goovaerts, Fierce Video, Rutledge: Charter Has Asked Verizon to Activate MVNO Agreement (Sept. 21, 2016), https://www.fiercevideo.com/cable/rutledge-charter-has-asked-verizon-to-activate-mvno-agreement. 53 Federal Communications Commission FCC 22-103 which grew to more than 4 million subscribers by year-end 2021.160 Charter began offering its Spectrum Mobile service in the summer of 2018, which grew to approximately 3.6 million customers by year-end 2021.161 Altice,162 another cable provider, launched its Optimum Mobile service in September 2019, and had acquired 186,000 subscribers by the end of 2021.163 In July 2022, Cox Communications, the nation’s fourth-largest cable company, began registering customers for a pilot launch of an MVNO service expected to launch in late 2022.164 69. T-Mobile-Sprint Transaction. In April 2018, T-Mobile and Sprint announced their intent to merge.165 Because the proposed transaction involved the transfer of multiple spectrum licenses and authorizations, it was subject to Commission review to determine whether the transaction would serve the public interest, convenience, and necessity.166 Accordingly, the Commission initiated a proceeding to examine the extent to which this merger of two firms that compete in many of the same geographic and product markets might lessen competition, and whether any potential harms would be outweighed by the potential benefits of the transaction. 70. T-Mobile Merger Conditions. In November 2019, the Commission approved the applications for the transfer of control of licenses, authorizations, and spectrum leases from Sprint to T- Mobile, reducing the number of nationwide providers from four to three.167 As part of its approval, the Commission imposed as conditions various commitments made by T-Mobile.168 These conditions included 5G buildout commitments, drive-testing commitments to verify whether the buildout commitments were met, in-home broadband commitments, and a pricing commitment to make available the same or better rate plans for three years.169 On June 1, 2021, T-Mobile submitted its first annual progress report.170 On May 23, 2022, the Wireless Telecommunications Bureau (WTB) released a public 160 Linda Hardesty, Fierce Wireless, Comcast Sees $157M Wireless Profits in 2021, Downplays Fiber Competition (Jan. 27, 2022), https://www.fiercewireless.com/wireless/comcast-sees-157m-wireless-profits-2021-downplays- fiber-competition. 161 Diana Goovaerts, Fierce Wireless, Charter Tops Comcast with 380k Wireless Net Adds in Q4 (Jan. 28, 2022), https://www.fiercewireless.com/wireless/charter-tops-comcast-380k-wireless-net-adds-q4. 162 Altice describes itself as an “infrastructure-based Mobile Virtual Network Operator,” as it operates its own core network infrastructure to provide wireline broadband, though it does not have its own for its mobile offering. The distinction in Altice’s ability to leverage its own facilities has allowed it to obtain numbers directly under waiver. See Numbering Policies for Modern Communications; Number Resource Optimization, WC Docket No. 13-97; CC Docket No. 99-200, Order, 33 FCC Rcd 12501 (WCB 2018). 163 Diana Goovaerts, Fierce Wireless, Altice USA Near New MVNO Deal with T-Mobile (Feb. 17, 2022), https://www.fiercewireless.com/wireless/altice-usa-nears-new-mvno-deal-t-mobile. 164 Mobile World Live, Cox Communications Readies MVNO Launch (July 20, 2022), https://www.mobileworldlive.com/featured-content/home-banner/cox-communications-tees-up-mvno-fall-launch/. 165 Press Release, T-Mobile, T-Mobile and Sprint to Combine, Accelerating 5G Innovation & Increasing Competition (Apr. 29, 2018), https://www.t-mobile.com/news/press/5gforall. 166 47 U.S.C. §§ 214(a), 310(d). 167 T-Mobile-Sprint Order, 34 FCC Rcd at 10578. 168 Id, at 10746-47, paras. 387-93. 169 Id. at 10801-28, Appx. G. 170 First Annual Progress Report on T-Mobile’s 5G Network, Rural 5G Coverage, and In-Home Broadband Commitments, WT Docket No. 22-211, Nancy J. Victory, Counsel for T-Mobile US, Inc., to Joel Taubenblatt, Acting Chief, Wireless Telecommunications Bureau (June 1, 2021). 54 Federal Communications Commission FCC 22-103 notice that opened a new docket for the purpose of monitoring compliance with these conditions.171 On May 31, 2022, T-Mobile submitted its second annual progress report.172 71. DISH Compliance. When WTB opened the T-Mobile compliance docket, it also opened a new docket concerning DISH’s compliance with the conditions associated with the T-Mobile-Sprint Order.173 As part of this order, the Commission concluded that significant public interest benefits would flow from DISH’s deployment of 5G broadband services over its spectrum holdings and that the acquisition of Sprint’s Boost Mobile would help DISH achieve that deployment.174 The DISH commitments, which were imposed as conditions, included the monitoring of DISH’s nationwide 5G network deployment buildout and coverage requirements as well as verification and enforcement.175 On July 14, 2022, DISH filed its buildout status report, in which it claimed that it is offering 5G broadband service to over 20% of the U.S. population.176 72. Verizon-TracFone Order. In November 2021, the Commission approved Verizon’s application for the transfer of control of TracFone’s international section 214 authorization to Verizon.177 After an extensive review, the Commission found that the proposed transaction, as modified by Verizon’s enforceable commitments, would make Verizon and TracFone stronger providers of prepaid and Lifeline services.178 The Commission adopted conditions to ensure the continued provision of Lifeline service by TracFone—“one of the most significant participants in the Lifeline program.”179 For example, the Commission imposed conditions to “protect low-income consumers from price increases and to ensure that TracFone remains a supportive Lifeline participant.”180 171 Docket Established for Monitoring T-Mobile’s Compliance with Conditions Imposed in the T-Mobile-Sprint Transfer of Control Order, WT Docket Nos. 18-197 and 22-211, Public Notice, DA 22-571 (WTB May 23, 2022). 172 Second Annual Progress Report on T-Mobile’s 5G Network, Rural 5G Coverage, and In-Home Broadband Commitments, WT Docket No. 22-211, Nancy J. Victory, Counsel for T-Mobile US, Inc., to Joel Taubenblatt, Acting Chief, Wireless Telecommunications Bureau (May 31, 2022). 173 Docket Established for Monitoring DISH’s Compliance with Conditions Granting an Extension of Time to Complete Construction of Facilities and Buildout Commitments, WT Docket Nos. 18-197 and 22-212, Public Notice, DA 22-572 (WTB May 23, 2022). 174 T-Mobile-Sprint Order, 34 FCC Rcd at 10739-45, paras. 364-83. 175 Id. at 10747, paras. 394-98, Appx. H. 176 DISH Network Corporation 5G Buildout Status Report, WT Docket No. 22-212 (July 14, 2022) (complying with the June 14, 2022 AWS H Block, AWS-4, and Lower 700 MHz E Block deployment obligations set forth in the T- Mobile-Sprint Order). 177 Verizon-TracFone Order at 2, paras. 1-2. 178 Id. at 2-3, paras. 3-4; see also FCC, Press Release, FCC Grants Approval of Verizon-TracFone Transaction Subject to Conditions to Protect Consumers at 1 (Nov. 22, 2021), https://www.fcc.gov/document/fcc-approves- verizon-tracfone-consumer-protections (Verizon-TracFone Press Release). 179 Verizon-TracFone Order at 2-3, paras. 1-4. 180 Id. at 2, para. 4. These conditions included, among other things, requiring Verizon to: (i) continue to offer TracFone’s Lifeline-supported services over the same service areas for at least seven years; (ii) continue to offer and advertise existing Lifeline plans, with no added co-pays to TracFone’s existing no-cost Lifeline plans, for at least three years; (iii) make available to existing and new Lifeline prepaid customers a 5G plan and offer a range of cost- effective 5G devices to existing and new Lifeline customers; and (iv) establish and maintain a dedicated website with information about the Lifeline program and a dedicated customer service line for Lifeline customers. Id. at 50- 51, paras. 131-35. 55 Federal Communications Commission FCC 22-103 b. Connections/Subscribers and Market Share 73. To estimate the number of mobile wireless subscribers/connections, this Report uses Numbering Resource Utilization/Forecast (NRUF) data,181 which track how many phone numbers have been assigned to mobile wireless devices,182 and CTIA⸺The Wireless Association (CTIA) data.183 As shown in Figure II.B.1 below,184 NRUF estimates of mobile wireless connections at year-end 2020 were approximately 439 million, an increase of around 2% from year-end 2019. At year-end 2021, NRUF estimates of mobile wireless connections were approximately 457 million, an increase of around 4% from year-end 2020. CTIA estimates of mobile wireless connections at year-end 2020 were approximately 469 million, an increase of around 6% from year-end 2019, and at year-end 2021 the figure was approximately 499 million, an increase of approximately 6% from year-end 2020. 181 NRUF data indicate the number of phone numbers that a wireless service provider has assigned in a particular rate center (there are approximately 18,000 rate centers in the country). See 47 CFR § 52.15(e)(5). Rate centers are geographic areas used by local exchange carriers for a variety of reasons, including the determination of toll rates. Harry Newton, Newton’s Telecom Dictionary at 660 (19th ed. 2003). The Commission calculates the total number of wireless subscribers from the total number of assigned phone numbers reported by wireless service providers in their required NRUF reports. For purposes of geographical analysis, the rate center data can be associated with a geographic point, and all points that fall within a county boundary can be aggregated together and associated with much larger geographic areas based on counties. We note that the aggregation to larger geographic areas, such as to whole counties or groups of counties, reduces the level of inaccuracy inherent in combining non-coterminous areas, such as rate center areas and counties. 182 While NRUF provides a measure of the number of wireless connections or connected devices that have assigned telephone numbers, the data have limitations, like providing only the quantity of mobile wireless connections that have a telephone number, rather than the number of consumers subscribed to mobile broadband or voice service. Twentieth Wireless Competition Report, 32 FCC Rcd at 8977-78 & n.65. If a mobile broadband or voice subscriber uses a device that does not have a telephone number assigned to it (e.g., a tablet), then that subscriber will not be recorded. See 2017 Data Collection Improvement Further Notice, 32 FCC Rcd at 6337, para. 26 & n.38. These data also do not reflect when consumers move to a different state and retain the same telephone number. See BDC Order and Second Further Notice, 34 FCC Rcd at 7530-31, para. 60. 183 Different sources refer to their data as connections or subscribers, and when discussing the different data, we will use the terminology most currently used by the source and, where possible, provide a definition of this term. For example, CTIA explains its use of the terms “subscribers” and “connections” as follows: “Traditionally, the term ‘subscribers’ was used as a term of art, reflecting the number of revenue-generating units, equally describable as ‘wireless connections’—the equivalent of wired telephone ‘lines.’ The term ‘subscriber’ does not indicate a unique individual person. Indeed, the growing number and variety of non-traditional devices and machine-to-machine (M2M) applications mean that the term ‘subscribers’ is increasingly less descriptive of a growing share of the universe of active units.” CTIA, CTIA’s Wireless Industry Indices Report, Year-End 2021 Results at 17 (CTIA Year-End 2021 Wireless Industry Indices Report). 184 For details of total mobile wireless connections over time, see Appx. D-1 of this Report. 56 Federal Communications Commission FCC 22-103 Fig. II.B.1 Source: NRUF; CTIA Year-End 2021 Wireless Industry Indices Report. 74. Figure II.B.2 presents data on the use of connected devices compared with traditional handsets (i.e., phones). Connected devices, which include data-only devices such as tablets, laptops, and wireless modems, as well as connected cars, wearables, and other IoT devices, have been an integral driver of the growth in connections over the past several years. In 2021, they accounted for approximately 42% of all wireless connections, up from approximately 34% in 2018. Fig. II.B.2 Source: CTIA Year-End 2018-2021 Wireless Industry Indices Reports. 57 Federal Communications Commission FCC 22-103 75. Figure II.B.3 presents data on total mobile wireless connections for the largest publicly traded service providers operating in the United States, including an estimate of their respective market shares as of year-end 2021.185 Fig. II.B.3 Reported Total Connections for Publicly Traded Facilities–Based Mobile Wireless Service Providers (in thousands): 2018–2021 Service Providers EOY 2018 EOY 2019 EOY 2020 EOY 2021 EOY 2021 (% Market Share) AT&T 151,921 165,889 182,558 201,791 44.0 Verizon Wireless 117,999 119,761 120,880 142,806 31.2 T-Mobile 63,656 67,894 102,064 108,719 23.7 UScellular 4,988 4,899 4,911 4,893 1.1 Sprint 54,495 54,165 0 0 0.0 Top Providers Total 393,059 412,608 410,413 458,209 Source: Quarterly and Annual Reports from AT&T, Sprint, T-Mobile, UScellular, and Verizon. Totals were calculated from all reported wireless connections for all U.S. segments from company filings (e.g., Consumer, Business, etc.). Total estimated connections figure includes data only for the service providers reported in this table. 76. Estimates of the number of net additions in 2020 and 2021 vary by source, which is likely due to differences in the way connections are measured. As shown in Figure II.B.4, in 2020, there were approximately 8.4 million net additions based on NRUF data, compared with 26.4 million based on CTIA data. In contrast, mobile voice subscriber data as reported by service providers on FCC Form 477 show that subscribers fell by approximately 3.2 million in 2020. In 2021, NRUF showed 18.2 million additions, CTIA showed 30 million additions, and FCC Form 477 showed 9.2 million additions.186 185 The size of a company, typically measured by service revenues or subscribers, relative to the total size of the industry determines its market share. See, e.g., The MIT Dictionary of Modern Economics at 268 (4th ed. 1992). 186 Based on preliminary December 2021 FCC Form 477 data, the total number of mobile voice telephone subscriptions at year-end 2021 was approximately 362 million, as compared to approximately 353 million at year- end 2020 (Preliminary Dec. 2021 FCC Form 477 Voice Subscriptions). We again note that the year-end FCC Form 477 data are preliminary only, are subject to corrections as appropriate by the service provider, and the final data will be published in due course by the agency. See, e.g., FCC, Office of Economics and Analytics, Voice Telephone Services: Status as of June 30, 2021 (Aug. 1, 2022), https://www.fcc.gov/voice-telephone-services-report (June 30, 2021 Voice Telephone Services Report). These data do not include non-voice devices. 58 Federal Communications Commission FCC 22-103 Fig. II.B.4 Source: NRUF; CTIA Year-End 2021Wireless Industry Indices Report; FCC Form 477. 77. Figure II.B.5 shows net subscriber additions by the nationwide service providers from 2018 through 2021. T-Mobile’s 2020 subscriber additions reflect the effect of its merger with Sprint, while Verizon Wireless’s 2021 subscriber additions reflect Verizon’s acquisition of TracFone. AT&T’s subscriber additions reflect its increasing number of connected devices. 59 Federal Communications Commission FCC 22-103 Fig. II.B.5 Source: Quarterly and Annual Reports from AT&T, Sprint, T-Mobile, UScellular, and Verizon. Totals were calculated from all reported wireless connections for all U.S. segments from company filings (e.g., Consumer, Business, etc.). 78. Market Concentration. High market concentration levels in any market may raise some concern that a market is not competitive.187 To measure mobile wireless market concentration, the Commission employs the Herfindahl-Hirschman Index (HHI), widely used in competition analysis.188 The HHI is calculated by summing the squared market shares of all firms in the given market. In this Report, we calculate HHIs based on the NRUF data by Economic Area (EA) to maintain continuity with past reports and to ensure that we do not compromise the confidential information found in the NRUF data. As of year-end 2017, prior to the announcement of the T-Mobile-Sprint merger in April 2018, the weighted average HHI (weighted by population across the 172 EAs in the United States) for mobile 187 The increased market concentration arising from a transaction involving the transfer of subscribers is an indicator of potential harm to competition, and in antitrust analysis, triggers a presumption that the merger is likely to enhance market power. U.S. Department of Justice and the Federal Trade Commission, Horizontal Merger Guidelines at § 5.3, 19 (2010), http://www.justice.gov/atr/public/guidelines/hmg-2010.pdf (2010 DOJ/FTC Horizontal Merger Guidelines). 188 To the extent that this section uses the term “markets,” we do not intend it to be interpreted as synonymous with the antitrust concept of the “relevant market,” which the Commission defines in the context of secondary market transactions review. See, e.g., T-Mobile-Sprint Order, 34 FCC Rcd at 10601, para. 55. 60 Federal Communications Commission FCC 22-103 wireless services was 3,106.189 As of year-end 2021, the weighted average HHI for mobile wireless services by EA was 3,596.190 c. Churn 79. Churn measures the percentage of connections that are disconnected from mobile wireless service during a given time period.191 The churn rate is a business metric that measures the turnover of a service provider’s subscriber base. A low churn rate indicates low customer attrition. A service provider’s churn rate depends on many factors, such as the distribution of its customers between postpaid and prepaid service plans,192 customer satisfaction with their service provider,193 and switching costs.194 High levels of industry churn can indicate that consumers are not only willing but are also able to switch easily between service providers. For 2021, CTIA reported an annual industry-wide churn rate of 16.7%, and a monthly rate of 1.39%.195 Figure II.B.6 shows the weighted average churn rates of prepaid and postpaid service plans, according to UBS, for the nationwide providers by quarter. There was a notable decline in the churn rates for all nationwide mobile wireless providers from 2019 to 2020 that persisted through the first half of 2021. Although the churn rate for Verizon Wireless has since rebounded, churn has remained relatively low for both AT&T and T-Mobile.196 189 2020 Communications Marketplace Report, 36 FCC Rcd at 2961, para. 25. 190 Antitrust authorities in the United States generally classify markets into three types: Unconcentrated (HHI < 1500), Moderately Concentrated (1500 < HHI < 2500), and Highly Concentrated (HHI > 2500). 2010 DOJ/FTC Horizontal Merger Guidelines at § 5.3, 19. In January 2022, DOJ and FTC launched a public inquiry aimed at modernizing the merger guidelines, specifically seeking “information on whether concentration thresholds should be adjusted to improve the efficiency and effectiveness of enforcement.” U.S. Department of Justice, Press Release, Office of Public Affairs, Justice Department and Federal Trade Commission Seek to Strengthen Enforcement Against Illegal Mergers (Jan. 18, 2022), https://www.justice.gov/opa/pr/justice-department-and-federal-trade- commission-seek-strengthen-enforcement-against-illegal. 191 CTIA defines churn as “a measure of the number of subscribers disconnecting from service during the period.” CTIA Year-End 2021 Wireless Industry Indices Report at 36. Churn is calculated by dividing the aggregate number of wireless connections that terminated service, including both voluntary and involuntary disconnects, during a time period by the average of total number of wireless connections at the beginning and the end of that time period. For an annual calculation, if a service provider has an average monthly churn rate of 2%, the service provider would lose 24% of its subscribers over the course of a year. Service providers publish their monthly churn rate information as part of their quarterly filings with the SEC. 192 Prepaid service plans tend to have higher churn rates than postpaid service plans. Therefore, if a service provider had a relatively large share of prepaid consumers in their customer mix, that service provider would have a higher weighted average churn rate than a service provider with a small foothold in the prepaid market. 193 The top reasons for customers to leave a wireless service provider include high prices (“too expensive”), inferior plan features (find “a better plan”), and slow speeds (“slow data speed”). See Letter from Roger Entner, Recon Analytics, to Marlene H. Dortch, Secretary, FCC, WC Docket No. 22-203, Attach. A at 4 (filed Aug. 26, 2022) (Recon Analytics Ex Parte). 194 2020 Communications Marketplace Report, 36 FCC Rcd at 2691, para. 26. 195 CTIA Year-End 2021 Wireless Industry Indices Report at 37. For prepaid services, CTIA reported an annual industry-wide churn rate of 30.2% and a monthly churn rate of 2.52%. Id. at Appx. C, 15-6. 196 See Emily Bary, MarketWatch, AT&T tops earnings expectation as wireless churn matches record low (July 22, 2021), https://www.marketwatch.com/story/at-t-tops-earnings-expectation-as-wireless-churn-matches-record-low- 11626952315; see also Iskra Petrova, Phone Arena, T-Mobile celebrates low churn rate for Q2 2021 (Aug. 13, 2021), https://www.phonearena.com/news/t-mobile-low-churn-rate-q2-2021_id134320. 61 Federal Communications Commission FCC 22-103 Fig. II.B.6 Source: UBS Investment Research. Published with permission of UBS. d. Data Usage 80. As shown in Figure II.B.7, monthly data usage per smartphone subscriber rose to an average of 12.1 GB per subscriber per month, an increase of approximately 12% from year-end 2020 to year-end 2021.197 Figure II.B.8 further shows that total network annual data usage increased by approximately 26% from 2020 to 2021, while total messaging traffic198 and total minutes of voice use both experienced declines, falling approximately 19% and approximately 9%, respectively.199 197 CTIA Year-End 2021 Wireless Industry Indices Report at 63. 198 Id. at 67. This provider-reported messaging traffic does not include traffic from OTT messaging applications and services, which would only appear in the total data traffic figures, thereby contributing to the total MB of data traffic. Id. at 63. 199 Id. at 67. 62 Federal Communications Commission FCC 22-103 Fig. II.B.7 Source: CTIA Year-End Wireless Industry Indices Report at 63. Fig. II.B.8 Source: CTIA Year-End Wireless Industry Indices Report at 67, Chart 28. 81. This growth in data usage is primarily driven by the increase in data demanded per device. According to a 2021 Pew survey, smartphone and tablet ownership were 85% and 53%, respectively, largely unchanged from the 81% and 52% ownership figures reported in 2019.200 Pew reported that 15% of American adults are “smartphone-only” Internet users—they own a smartphone, but do not have traditional fixed home broadband service—a two-point decrease from 2019, and a five-point 200 Pew Research Center, Mobile Fact Sheet (Feb 8, 2021), http://www.pewinternet.org/fact-sheet/mobile/ (Pew Mobile Fact Sheet). 63 Federal Communications Commission FCC 22-103 decrease from the 20% surveyed in 2018, which was the peak rate found by Pew.201 In comparison, the U.S. Census Bureau’s ACS found that, as of 2019, approximately 10% of total U.S. households subscribed to a cellular data plan with no other type of Internet subscription.202 Many consumers also choose to depend on some combination of fixed and mobile broadband access while discontinuing their landline telephone services. In fact, according to preliminary data from the Centers for Disease Control and Prevention (CDC), as of December 2021, the percentage of U.S. adults living in households that were identified as having wireless-only telephone service (no landline telephone service) was approximately 69%.203 For children, the CDC found that an even greater number, approximately 79%, live in wireless- only households.204 Further, a Recon Analytics survey estimated that the median age when a child first receives a cellphone is approximately 10 years old.205 2. Mobile Wireless Spectrum 82. Spectrum is a critical input in the provision of mobile wireless services.206 It can affect whether, when, and where existing service providers and potential entrants will be able to expand capacity or deploy networks.207 Incumbent service providers may need additional spectrum to increase their coverage or capacity, while new entrants need access to spectrum to enter a geographic area at all. Spectrum bands vary in breadth and in their propagation characteristics, and these variations have implications for how spectrum is deployed.208 The effective supply of spectrum capacity available for mobile wireless service depends on several aspects of spectrum policy, including allocation and licensing policies, as well as interference and technical rules.209 Increasing the total supply of spectrum bandwidth that the Commission allocates and licenses to mobile wireless service providers can increase network 201 See Pew Mobile Fact Sheet. 202 U.S. Census Bureau, 2019 American Community Survey 1-Year Estimates, Types of Computers and Internet Subscriptions, https://data.census.gov/cedsci/table?q=S2801%3A%20TYPES%20OF%20COMPUTERS%20AND%20INTERNET %20SUBSCRIPTIONS&tid=ACSST1Y2019.S2801&hidePreview=true (last visited Sept. 7, 2022). We note that Pew surveys U.S. adults while ACS relies on sampling households, which is a likely source of divergence for these respective statistics. 203 CDC, NCHS, Stephen J. Blumberg and Julian V. Luke, Wireless Substitution: Early Release of Estimates from the National Health Interview Survey, July-December 2021 at 4 (2022), https://www.cdc.gov/nchs/data/nhis/earlyrelease/wireless202205.pdf. 204 Id. 205 Letter from Roger Entner, Lead Analyst, Recon Analytics, to Marlene H. Dortch, Secretary, FCC, GN Docket No. 22-203, Attach. 4, at 5 (filed Aug. 26, 2022) (Recon Analytics Ex Parte). 206 Non-spectrum inputs in the provision of mobile wireless services include cellular base stations and towers to carry transmissions and backhaul, which routes voice and data traffic from base stations to mobile switching centers. Backhaul may be provided via wireless spectrum, copper, or fiber, though we note copper may lack sufficient capacity for current data demands. 207 2020 Communications Marketplace Report, 36 FCC Rcd at 2964, para. 29; Policies Regarding Mobile Spectrum Holdings Expanding the Economic and Innovation Opportunities of Spectrum Through Incentive Auctions, WT Docket No. 12-269, GN Docket No. 12-268, Report and Order, 29 FCC Rcd 6133, 6134, para. 2 (2014) (Mobile Spectrum Holdings Report and Order). 208 Spectrum below 1 GHz (low-band spectrum) has certain propagation advantages for network deployment over long distances, and for penetrating buildings and urban canyons, while mid-band (and high-band) spectrum allow for the better transmission of large amounts of information as the spectrum bandwidths are larger. Mobile Spectrum Holdings Report and Order, 29 FCC Rcd at 6135, para. 3. 209 2020 Communications Marketplace Report, 36 FCC Rcd at 2964, para. 29; 2018 Communications Marketplace Report, 33 FCC Rcd at 12584-85, para. 31. 64 Federal Communications Commission FCC 22-103 capacity and reduce the degree of frequency reuse required to achieve a given level of capacity.210 The efforts of the Commission to make available more spectrum to meet consumer demand for mobile broadband services and to fuel innovation and investment in the mobile wireless market are detailed in sections VI and VII below. 83. Subject to Commission approval, licensees may transfer licenses, in whole or in part (through partitioning and/or disaggregation), on the secondary market.211 In reviewing proposed transfers of control of spectrum, the Commission uses an initial spectrum screen212 to help identify, for case-by- case review, local markets where changes in spectrum holdings resulting from the transaction may raise competitive concerns.213 In addition, the Commission has determined that increased aggregation of below-1-GHz spectrum would be treated as an “enhanced factor” under its case-by-case review of license transfers if post-transaction the acquiring entity would hold approximately one-third or more of the currently suitable and available spectrum below 1 GHz.214 84. In the past decade, in the context of its review of secondary market transactions, as well as in rulemakings, the Commission periodically has determined that additional spectrum was suitable and available for mobile wireless use, and therefore subject to inclusion in the spectrum screen.215 The current 210 See Theodore Rappaport, Wireless Communications: Principles and Practice at 58 (2d ed. 2002). 211 As part of its secondary market policies, the Commission also permits mobile wireless licensees to lease all or a portion of their spectrum usage rights for any length of time within the license term and over any geographic area encompassed by the license. 212 The Commission includes spectrum that it finds suitable and available for the provision of mobile wireless services in the spectrum screen. See, e.g., T-Mobile-Sprint Order, 34 FCC Rcd at 10607-08, paras. 70-72; Mobile Spectrum Holdings Report and Order, 29 FCC Rcd at 6169, para. 71. 213 See, e.g., T-Mobile-Sprint Order, 34 FCC Rcd at 10607-08, paras. 70-72; Mobile Spectrum Holdings Report and Order, 29 FCC Rcd at 6221-22, para. 225. In the case of transfer of business units, the Commission’s initial Herfindahl-Hirschman Index (HHI) screen identifies, for further case-by-case market analysis, those markets in which, post-transaction: (1) the HHI would be greater than 2800 and the change in HHI would be 100 or greater; or (2) the change in HHI would be 250 or greater, regardless of the level of the HHI. See, e.g., T-Mobile-Sprint Order, 34 FCC Rcd at 10614-15, para. 87 & n.277; Mobile Spectrum Holdings Report and Order, 29 FCC Rcd at 6140-41, para. 13 & n.34. 214 See, e.g., T-Mobile-Sprint Order, 34 FCC Rcd at 10614-15, para. 87; Mobile Spectrum Holdings Report and Order, 29 FCC Rcd at 6240, paras. 282-88. 215 See Facilitating Shared Use in the 3100-3550 MHz Band, WT Docket No. 19-348, Second Report and Order, Order on Reconsideration, and Order of Proposed Modification, 36 FCC Rcd 5987, 6025-26, paras. 108-09; Expanding Flexible Use of the 3.7 to 4.2 GHz Band, GN Docket No. 18-122, Report and Order and Order of Proposed Modification, 35 FCC Rcd 2343, 2383-84, paras. 87-88; 2.5 GHz Report and Order, 34 FCC Rcd at 5481, 5482-83, para. 96 & n.279, paras. 99-100; Incentive Auction Closing and Channel Reassignment, AU Docket No. 14-252 et al., Public Notice, 32 FCC Rcd 2786 (WTB 2017); Applications of SprintCom, Inc., Shenandoah Personal Communications, LLC, and NTELOS Holdings Corp. for Consent To Assign Licenses and Spectrum Lease Authorizations and To Transfer Control of Spectrum Lease Authorizations and an International Section 214 Authorization, WT Docket No. 15-262, Memorandum Opinion and Order, 31 FCC Rcd 3631, 3637-38, paras. 15-16 (WTB/IB 2016); Mobile Spectrum Holdings Report and Order, 29 FCC Rcd at 6172-90, paras. 82-134; Applications of AT&T Mobility Spectrum LLC, New Cingular Wireless PCS, LLC, Comcast Corporation, Horizon Wi-Com, LLC, NextWave Wireless, Inc., and San Diego Gas & Electric Company for Consent To Assign and Transfer Licenses, WT Docket No. 12-240, Memorandum Opinion and Order, 27 FCC Rcd 16459, 16470-71, para. 31 (2012); Amendment of Part 27 of the Commission’s Rules to Govern the Operation of Wireless Communications Services in the 2.3 GHz Band, WT Docket No. 07-293, Report and Order, 25 FCC Rcd 11710, 11711, para. 1 (2010); Applications of Sprint Nextel Corporation and Clearwire Corporation for Consent To Transfer Control of Licenses, Leases, and Authorizations, WT Docket No. 08-94, Memorandum Opinion and Order, 23 FCC Rcd 17570, 17598- 99, paras. 70, 72 (2008); Applications of AT&T Inc. and Dobson Communications Corporation for Consent To Transfer Control of Licenses and Authorizations, WT Docket No. 07-153, Memorandum Opinion and Order, 22 FCC Rcd 20295, 20307-08, para. 17 (2007). 65 Federal Communications Commission FCC 22-103 suitable and available spectrum included in the spectrum screen, with an associated spectrum trigger of 385 megahertz, is shown in Figure II.B.9.216 Fig. II.B.9 Spectrum Included in the Spectrum Screen Spectrum Band Megahertz (Amount) 600 MHz 70 700 MHz 70 Cellular 50 SMR 14 Broadband PCS 130 AWS-1 90 AWS-3 65 AWS-4 40 H Block 10 WCS 20 BRS 67.5 EBS 116.5 3.7 GHz 280 3.45 GHz 100 Total Amount of Spectrum 1123.0 85. Regarding high-band spectrum, the Commission has made available nearly 19 gigahertz of licensed and unlicensed mmW spectrum. The 57-71 GHz band is available for unlicensed use,217 and an additional 4950 megahertz is available for licensed use, as shown in Figure II.B.10 below.218 The Commission adopted a separate threshold for mmW spectrum holdings, with an associated trigger of 1850 megahertz, as an initial analytical tool to aid in identifying certain markets for further review in proposed secondary market transactions.219 216 3.7 GHz and 3.45 GHz spectrum are not available for use in Hawaii, Alaska, and the territories. In these areas, the total amount of suitable and available spectrum is 743 megahertz, and the associated spectrum screen trigger is 250 megahertz. 217 See 47 CFR § 15.255. 218 See Use of Spectrum Bands Above 24 GHz For Mobile Radio Services, et al., Third Report and Order, Memorandum Opinion and Order, and Third Further Notice of Proposed Rulemaking, 33 FCC Rcd 5576 (2018) (Spectrum Frontiers Third Report and Order); Use of Spectrum Bands Above 24 GHz For Mobile Radio Services, GN Docket No. 14-177, Second Report and Order, Second Further Notice of Proposed Rulemaking, Order on Reconsideration, and Memorandum Opinion and Order, 32 FCC Rcd 10988, 10990, para. 2 (2017) (Spectrum Frontiers Second Report and Order); Use of Spectrum Bands Above 24 GHz for Mobile Radio Services, et. al., GN Docket No. 14-177, Report and Order and Further Notice of Proposed Rulemaking, 31 FCC Rcd 8014 (2016) (Spectrum Frontiers Report and Order). 219 See, e.g., T-Mobile-Sprint Order, 34 FCC Rcd at 10614-15, para. 87; Application of Verizon Communications Inc. and Straight Path Communications, Inc. for Consent To Transfer Control of Local Multipoint Distribution Service, 39 GHz, Common Carrier Point-to-Point Microwave, and 3650-3700 MHz Service Licenses, Memorandum Opinion and Order, 33 FCC Rcd 188, 194-95, paras. 18-19 (WTB 2018); Spectrum Frontiers Second Report and Order, 32 FCC Rcd at 11009-11, paras. 70, 74 & n.189; Spectrum Frontiers Report and Order, 31 FCC Rcd at 8082, para. 185. 66 Federal Communications Commission FCC 22-103 Fig. II.B.10 Spectrum Included in the mmW Spectrum Threshold Spectrum Band Megahertz (Amount) 24 GHz 700 28 GHz 850 Upper 37 GHz 1000 39 GHz 1400 47 GHz 1000 Total Amount of Spectrum 4950 86. Service Providers’ Spectrum Holdings. Figure II.B.11 presents average megahertz holdings by service provider in the mmW spectrum bands. Figures II.B.12 and II.B.13 present spectrum holdings by service provider in the spectrum bands included in the spectrum screen.220 As of July 2022, the three nationwide service providers, AT&T, T-Mobile, and Verizon Wireless, together held approximately 78% of all the spectrum included in the spectrum screen, measured on a MHz-POPs basis. Figure II.B.14 shows the population-weighted average megahertz spectrum holdings of licensees by frequency band.221 Fig. II.B.11 Population-Weighted Average Megahertz Holdings by Licensee, by mmW Frequency Band Upper 37 TOTAL 24 GHz 28 GHz GHz 39 GHz 47 GHz AT&T 254 - 4 784 - 1,042 DISH 17 29 8 0.4 609 663.4 T-Mobile 335 123 - 321 381 1,160 UScellular 26 24 4 26 - 80 Verizon 1,724 Wireless 7 618 975 124 - Other 60 56 9 145 10 280 220 The population-weighted average megahertz for each provider is calculated by multiplying that provider’s spectrum in a county by the county’s population (MHz-POPs), summing for all counties, and then dividing by the 2010 total U.S. population. 221 We consider population-weighted spectrum holdings in order to account for customer density in different geographic areas. A spectrum license in Los Angeles or New York City, for example, covers more customers than a spectrum license over the same amount of land area in White Sands, New Mexico. 67 Federal Communications Commission FCC 22-103 Fig. II.B.12 Percentage Spectrum Holdings, Measured on a MHz-POPs Basis by Licensee, by Frequency Band 600 700 Spectrum MHz MHz Cellular SMR PCS H Block AWS-1 AWS-3 AWS-4 WCS BRS EBS 3.45 3.7 GHz AT&T 0.0% 42.2% 44.6% 0.0% 29.0% 0.0% 16.1% 33.4% 0.0% 99.0% 0.0% 0.0% 40.1% 28.5% DISH 26.3% 6.6% 0.0% 0.0% 0.0% 100.0% 0.0% 34.7% 100.0% 0.0% 0.0% 0.0% 31.0% 0.0% T-Mobile 44.9% 15.0% 0.1% 96.5% 51.0% 0.0% 41.5% 5.4% 0.0% 0.0% 93.1% 79.9% 11.9% 9.8% VZW 0.1% 31.1% 47.9% 0.0% 17.2% 0.0% 40.4% 20.2% 0.0% 0.0% 0.0% 0.0% 0.0% 57.4% UScellular 2.5% 3.3% 3.8% 0.0% 1.1% 0.0% 0.8% 1.7% 0.0% 0.0% 0.0% 0.0% 3.8% 1.8% Other 26.1% 1.7% 3.7% 3.5% 1.7% 0.0% 1.4% 4.6% 0.0% 1.0% 6.9% 20.1% 13.2% 2.5% Staff estimates as of July 2022. Numbers may not sum to 100% due to rounding. Abbreviations for spectrum bands: Cellular, SMR (Specialized Mobile Radio Service), PCS (Personal Communications Service), BRS (Broadband Radio Service), and EBS (Educational Broadband Service). 68 Federal Communications Commission FCC 22-103 Fig. II.B.13 Population-Weighted Average Megahertz Holdings by Licensee, by Frequency Band 600 700 3.45 3.7 TOTAL Spectrum MHz MHz Cellular SMR PCS H Block AWS-1 AWS-3 AWS-4 WCS BRS EBS GHz GHz AT&T 0.0 29.6 23.6 0.0 37.8 0.0 14.5 20.3 0.0 19.7 0.0 0.0 39.3 79.8 264.6 DISH 17.9 4.6 0.0 0.0 0.0 10.0 0.0 21.1 40.0 0.0 0.0 0.0 30.4 0.0 124.0 T-Mobile 30.5 10.5 0.0 13.8 66.4 0.0 37.3 3.3 0.0 0.0 62.8 93.1 11.7 27.4 356.8 UScellular 1.7 2.3 2.0 0.0 1.4 0.0 0.7 1.0 0.0 0.0 0.0 0.0 3.7 4.9 17.7 VZW 0.1 21.8 25.4 0.0 22.4 0.0 36.3 12.3 0.0 0.0 0.0 0.0 0.0 160.7 279 Other 17.7 1.2 1.9 0.5 2.2 0.0 1.2 2.8 0.0 0.2 4.7 23.4 12.9 7.1 75.8 Staff estimates as of July 2022. The total for AWS-3 sums to 60.8 megahertz because some licenses have not been granted. 69 Federal Communications Commission FCC 22-103 Fig. II.B.14 Spectrum Holdings by Band Weighted by Population Staff estimates as of July 2022. 87. CBRS. The Commission has made continued efforts to improve the efficient use of limited spectrum resources, including through spectrum sharing mechanisms. One notable example is the Commission’s adoption of innovative rules to allow shared federal and non-federal use of the 3.5 GHz band. In 2015, the Commission adopted rules to create a three-tiered access and authorization framework.222 The Incumbent Access users, including authorized federal users in the 3550-3700 MHz band, Fixed Satellite Service earth stations in the 3600-3650 MHz band, and for a finite period, grandfathered wireless broadband licensees in the 3650-3700 MHz band, were designated with the first- tier protection from harmful interference from Citizens Broadband Radio Service (CBRS) users. The CBRS consists of two tiers—Priority Access Licenses (PALs) and General Authorized Access (GAA). While PALs, which are licensed on a county-by-county basis through competitive bidding to access one or more unspecified 10-megahertz licenses, receive protection from GAA operations, licensees must protect and accept interference from Incumbent Access tier users. GAA is licensed-by-rule and must avoid causing harmful interference to higher tier users and must accept interference from all other users.223 PALs and GAA operations are authorized by a Spectrum Access System (SAS) which dynamically coordinates and assigns specific frequencies among CBRS users in the 3.5 GHz band.224 222 Amendment of the Commission’s Rules with Regard to Commercial Operations in the 3550-3650 MHz Band, GN Docket No. 12-354, Report and Order and Second Further Notice of Proposed Rulemaking, 30 FCC Rcd 3959 (2015) (3.5 GHz First Order). 223 3.5 GHz First Order, 30 FCC Rcd at 3962, para. 4. 224 Id. at 3962, paras. 4-5. 70 Federal Communications Commission FCC 22-103 88. The CBRS spectrum sharing framework allows users to access the full 150 megahertz on a dynamic basis to help unlock the potential of the mid-band spectrum.225 This revolutionary innovation has created many use cases, including wireless service providers enhancing their networks in dense urban areas, cable operators that have wholesale MVNO agreements with facilities-based providers, but also provide facilities-based off-loading to their wholesale providers, and enterprises using the spectrum to build their own 4G or 5G private wireless networks.226 CBRS also offers opportunities for fixed Wireless Internet Service Providers (WISPs) and Fixed Wireless Access networks.227 Some WISPs reported fixed wireless speeds of at least 100 Mbps in rural areas over distances as great as six miles using CBRS spectrum.228 A RootMetrics’ CBRS Spotlight Report further documented strong performance gains that wireless providers can achieve when adding CBRS to existing spectrum.229 For instance, in Philadelphia, Verizon’s median download speed on CBRS of 135.1 Mbps was over twice as fast as its non-CBRS median download speed of 64.2 Mbps, and its maximum download speed on CBRS of 692.1 Mbps was nearly 300 Mbps faster than its maximum speed of 404.9 Mbps without CBRS.230 The cumulative 2020- 2025 CBRS 5G Radio Access Network investments are expected to approach $500 million to $1 billion, according to the Dell’Oro Group.231 89. Unlicensed Spectrum Use. The demand for wireless broadband continues to grow over time. A large proportion of this mobile data traffic is delivered on an unlicensed basis through Wi-Fi, Bluetooth and similar protocols. According to Cisco, 59% of mobile data traffic will be offloaded to Wi- Fi by 2022.232 Verizon stated that Wi-Fi offloading would be between 70% and 75% of mobile data traffic, and Charter reported that 80% of its wireless data was transmitted over Wi-Fi.233 90. In order to meet the increasing consumer demand for low-cost wireless connectivity, the Commission, on April 23, 2020, adopted the 6 GHz Order and Further Notice, which makes 1,200 megahertz of spectrum in the 6 GHz band (5.925–7.125 GHz) available for unlicensed use.234 By making 225 Mohamed Daoud et al., On the Performance of CBRS Fixed Wireless Access: Coverage and Capacity Field Study at 5 (2019), https://www.nctatechnicalpapers.com/Paper/2019/2019-on-the-performance-of-cbrs-fixed- wireless-access. 226 Linda Hardesty, Fierce Wireless, What is CBRS? (June 23, 2020), https://www.fiercewireless.com/private- wireless/what-cbrs. 227 Blinq Networks, What the CBRS Transition Means for Wireless Internet Service Providers, https://blinqnetworks.com/what-the-cbrs-transition-means-for-wireless-internet-service-providers- wisps/#:~:text=One%20of%20the%20promising%20use,using%20low%2Dcost%20LTE%20solutions (last visited Sept. 7, 2022). 228 Joan Engebretson, Telecompetitor, WISPs Get CBRS Range as Great as Six Miles at 100 Mbps Speeds (Sept. 22, 2020), https://www.telecompetitor.com/wisps-get-cbrs-range-as-great-as-six-miles-at-100-mbps-speeds/. 229 Kurt Schaubach, Federated Wireless, Rootmetrics’ CBRS Spotlight Report Shows Major Performance Increase (Mar. 11, 2021), https://www.federatedwireless.com/blog/this-just-in-cbrs-spells-high-performance/. 230 Id. 231 Monica Alleven, Fierce Wireless, CBRS 5G RAN forecast approaches $1B by 2025 (July 27, 2021), https://www.fiercewireless.com/private-wireless/cbrs-5g-ran-forecast-approaches-1b. 232 Cisco Systems, Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2017-2022 at 17 (2019), https://s3.amazonaws.com/media.mediapost.com/uploads/CiscoForecast.pdf. 233 New America, The Rise of 5G and the Imperative of Gigabit-Fast Wi-Fi at 5 and 6 GHz, https://www.newamerica.org/oti/reports/59-ghz-band/the-rise-of-5g-and-the-imperative-of-gigabit-fast-wi-fi-at-5- and-6-ghz/ (last visited Aug. 29, 2022). 234 Unlicensed Use of the 6 GHz Band, ET Docket No. 18-295, Report and Order and Further Notice of Proposed Rulemaking, 35 FCC Rcd 3852 (2020) (6 GHz Order and Further Notice), review denied in part and granted in part sub nom. AT&T Services, Inc. v. FCC, 21 F.4th 841 (D.C. Cir. 2021). 71 Federal Communications Commission FCC 22-103 this spectrum available for unlicensed use, the Commission serves the American public’s need for additional network capacity while safeguarding the licensed systems that will continue to use the 6 GHz band.235 The 6 GHz Order and Further Notice authorizes two different types of unlicensed operations— standard-power and low-power indoor operations.236 Standard-power access points are authorized by using an automated frequency coordination (AFC) system.237 These access points can be deployed anywhere as part of hotspot networks, rural broadband deployments, or network capacity upgrades where needed. Low-power indoor access points are authorized across the entire 6 GHz band.238 These access points are ideal for connecting devices in homes and businesses, such as smartphones, tablet devices, laptops, and Internet-of-Things (IoT) devices, to the Internet.239 These new rules accelerate the adoption of Wi-Fi 6, which increases data rates, capacity, and power efficiency to support network environments with many connected devices.240 By enabling unlicensed devices to transmit with bandwidths of up to 320 megahertz, the 6 GHz unlicensed rules lay the groundwork for the next generation of Wi-Fi, Wi-Fi 7.241 Wi-Fi 7 will provide data rates of up to 5.8 Gbps while decreasing the latency and increasing reliability to support cutting-edge applications, such as industrial automation, artificial reality/virtual reality, advanced video conferencing, and virtual work.242 6 GHz band unlicensed will play a major role in the growth of IoT;243 connecting appliances, machines, meters, wearables, and other consumer electronics, as well as industrial sensors for manufacturing.244 As has occurred with Wi-Fi in the 2.4 GHz and 5 GHz bands, 6 GHz unlicensed devices are becoming a part of most peoples’ everyday lives.245 235 6 GHz Order and Further Notice, 35 FCC Rcd at 3854, para. 4. 236 Id. at 3854, para. 3. 237 Id. 238 Id. 239 Id. 240 See Jacob Kastrenakes, The Verge, Wi-Fi is getting its biggest upgrade in 20 years (Apr. 23, 2020), https://www.theverge.com/2020/4/23/21231623/6ghz-wifi-6e-explained-speed-availability-fcc-approval; see also Gavin Phillips, Make Use Of, What is 6GHz Wi-Fi? Is It the Same as Wi-Fi 6E? (Jan. 8, 2022), https://www.makeuseof.com/what-is-6ghz-wifi/; Wi-Fi Alliance, Discover Wi-Fi, Wi-Fi Certified 6, https://www.wi-fi.org/discover-wi-fi/wi-fi-certified-6 (last visited Aug. 29, 2022). 241 47 CFR § 15.407(a)(10); Simon Hill, Wired, What is Wi-Fi 7? Everything you need to Know (May 24, 2022), https://www.wired.com/story/what-is-wi-fi-7/. 242 Monica Paolini, Fierce Wireless, Wi-Fi 7: The Next Generation in the Evolution of Wi-Fi (Sept. 28, 2022), https://www.fiercewireless.com/sponsored/wi-fi-7-next-generation-evolution-wi-fi; Qualcomm, Our innovative Wi- Fi-7 solutions set the standards for next-generation Wi-Fi, https://www.qualcomm.com/products/technology/wi- fi/features/wi-fi-7 (last visited Nov. 11, 2022); Intel, Wi-Fi 7: The Next Era in Wireless, https://www.intel.com/content/www/us/en/products/docs/wireless/wi-fi-7.html (last visited Nov. 11, 2022). 243 Wi-Fi Alliance, Wi-Fi 6 and Wi-Fi 6E drive global market opportunities (May 11, 2022), https://www.wi- fi.org/news-events/newsroom/wi-fi-6-and-wi-fi-6e-drive-global-market-opportunities (“Since its introduction in 2019, Wi-Fi Certified 6 has seen rapid adoption, surpassing 50 percent market share in three years compared to four years for Wi-Fi 5. This accelerated adoption is driven by demand for high performance Wi-Fi in phones, tablets, and PCs, and advanced features and capabilities are bringing new opportunities for IoT, service provider deployments, and dense public areas to deliver better experiences.”). 244 6 GHz Order and Further Notice, 35 FCC Rcd at 3854, para. 4; Intel, Developing Solutions for the Internet of Things, https://www.intel.com/content/dam/www/public/us/en/documents/white-papers/developing-solutions-for- iot.pdf (last visited Aug. 24, 2022). 245 6 GHz Order and Further Notice, 35 FCC Rcd at 3854, para. 3. 72 Federal Communications Commission FCC 22-103 91. In December 2019, the Commission adopted an NPRM that proposed rule changes to allow unlicensed and innovative uses like next-generation Wi-Fi in the 5.850-5.925 GHz band.246 The Commission allocated this 75 megahertz of spectrum for Dedicated Short-Range Communications (DSRC) over 20 years ago.247 Since that time, the technology has not enjoyed widespread commercial adoption or deployment.248 On November 18, 2020, the Commission adopted the 5.9 GHz Report and Order, designating the lower 45 megahertz of the band for unlicensed use and the upper 30 megahertz of spectrum for Intelligent Transportation System services, in particular Cellular Vehicle-to-Everything technology.249 The Commission allowed for immediate indoor, unlicensed use of the lower 45 megahertz,250 while also creating a regulatory process for outdoor operations contingent upon protection for federal incumbents.251 Considering the existing Wi-Fi spectrum in the adjacent 5 GHz band, the Commission’s action allows for the deployment of a high-throughput 160-megahertz channel that enables gigabit connectivity for schools, hospitals, small businesses, and other consumers.252 On August 12, 2022, the D.C. Circuit Court of Appeals upheld the 5.9 GHz Report and Order and the Commission's broad authority to manage the nation's airwaves in the public interest.253 3. Wireless Infrastructure 92. Wireless infrastructure facilities constitute another major input in the provision of mobile wireless services.254 In addition to towers and other tall structures, such as lattice towers, guyed towers, monopoles, rooftops, water towers, and steeples, wireless infrastructure also includes distributed antenna systems (DAS) and small cells.255 In order to expand or to improve coverage in existing service areas, and to accommodate newer technologies, mobile service providers have deployed additional cell sites. 246 See Use of the 5.850-5.925 GHz Band, ET Docket No. 19-138, Notice of Proposed Rulemaking, 34 FCC Rcd 12603 (2019) (5.9 GHz NPRM). 247 5.9 GHz NPRM, 34 FCC Rcd at 12604, para. 3. 248 Id. at 12604-05, para. 4. 249 Use of the 5.850-5.925 GHz Band, ET Docket No. 19-138, First Report and Order, Further Notice of Proposed Rulemaking, and Order of Proposed Modification, 35 FCC Rcd 13440 (2020) (5.9 GHz Report and Order); see also FCC, Press Release, FCC Modernizes 5.9 GHz Band for Wi-Fi and Auto Safety (Nov. 18, 2020), https://docs.fcc.gov/public/attachments/DOC-368228A1.pdf. 250 5.9 GHz Report and Order, 34 FCC Rcd at 13466, para. 21. 251 Id. at 13477, para. 86. 252 Claus Hetting, Wi-Fi Now, FCC adopts new 5.9 GHz rules unlocking gigabit Wi-Fi in 5 GHz (Nov. 22, 2020), https://wifinowglobal.com/news-and-blog/fcc-adopts-new-5-9-ghz-rules-unlocking-gigabit-wi-fi-in-5-ghz/. 253 ITS America v. FCC, No. 21-1130 (D.C. Cir. 2022). 254 Another component is the backhaul connections that link a mobile wireless service provider’s cell sites to the mobile switching centers that provide connections to the provider’s core network, the public switched telephone network, or the Internet, carrying wireless voice and data traffic for routing and onward transmission. Backhaul facilities are generally provided by incumbent local exchange carriers (ILECs), competitive local exchange carriers (CLECs), competitive fiber and microwave wholesalers, cable providers, tower companies, and independent backhaul operators. See, e.g., Twentieth Wireless Competition Report, 32 FCC Rcd 8968, 8997-98, para. 42 & n.135; see also American Tower 2021 Annual Report, Part I at 1 (“We also hold . . . fiber . . . that we lease primarily to communications service providers and third-party tower operators.”); Crown Castle 2021 Annual Report, Part I at 4 (“We refer to our towers, fiber and small cells assets collectively as “communications infrastructure”). 255 For a full description of DAS and small cells, see Twentieth Wireless Competition Report, 32 FCC Rcd at 8997, para. 42 & n.133, n.134. 73 Federal Communications Commission FCC 22-103 According to CTIA, cell sites in commercial use increased from 323,448 in 2017 to 349,344 in 2018, 395,562 in 2019, 417,215 in 2020, and 418,887 at year-end 2021.256 93. Mobile service providers have increased deployment of small cells and DAS sites to fill local coverage gaps, to densify networks and increase local capacity, and to build their 5G networks.257 Mobile service providers deploy small cells in cities across the country, often through attaching small- scale antenna/radios near the top of light or small utility poles.258 Small cells mostly have fiber backbones.259 CTIA estimates that 80% of future wireless infrastructure deployments will be in the form of small cells.260 New deployments and upgrades of small cells and DAS in the United States are expected to increase from 811,000 in 2020 to 1,161,000 in 2027.261 256 CTIA Year-End 2021 Wireless Industry Indices Report, Chart 19, at 54. The reported cell sites include small cells and DAS which may be located on rooftops, monopoles, and other pre-existing structures as well as on lattice towers. In addition, multiple cell sites can be collocated in the same “tower” site. Therefore, the reported cell sites should not be equated with “towers.” Id. 257 Twentieth Wireless Competition Report, 32 FCC Rcd at 8998, para. 43; see also T-Mobile 2021 Annual Report, Part I, at 7 (“102,000 macro cell sites and 41,000 small cell/distributed antenna system sites”) and at 50 (“We have committed to an annual volume commitment to execute and deliver 35,000 small cell contracts, including upgrades to existing locations, over the next five years); AT&T 2021 Annual Report, at 24 (“The industry-wide deployment of 5G technology . . . will involve significant deployment of “small cell” equipment.”); Verizon Q4 2021 Earnings Call Transcript, at 4 (Jan. 25, 2022) (“We also brought more than 15,000 additional 5G Ultra Wideband small cells in service”), https://www.verizon.com/about/investors/quarterly-reports/4q-2021-earnings-conference-call-webcast; Crown Castle Q4 2021 Earnings Call, Edited Transcript, at 3 (Jan. 27, 2022) (“[W]e secured commitments for more than 50,000 new small cell nodes. This is in addition to the 55,000 small cell nodes we have on air today”), https://investor.crowncastle.com/static-files/c657e5ae-3e19-4724-bfee-50e80e795d73. 258 See 2020 Communications Marketplace Report, 36 FCC Rcd at 2970 & n.107; see also City of San Jose, Broadband Strategy and Small Cell Deployment (“Small cells are small radio antenna equipment installed on streetlights, rooftops, and other locations as a primary way to deliver 5G (Fifth Generation) mobile technology”), https://www.sanjoseca.gov/your-government/department-directory/office-of-the-city-manager/civic- innovation/broadband-strategy-and-small-cell-deployment-5147 (last visited May 6, 2022); City of Fremont, California, Small Cell Project (“has two executed Master License Agreements (MLA) and is continuing to work with local wireless service providers to allow the installation of small cells on City-owned street lights”), https://www.fremont.gov/government/departments/engineering/development-utilities/small-cell-project (last visited Oct. 6, 2022); City of Naperville’s (IL), Small Cell Location map, https://experience.arcgis.com/experience/0f705ec3ad7d415db8c3fa4e4e4aa82b/ (last visited May 6, 2022); City of Carmel (IN), Small Cell Location map, https://carmelgis.carmel.in.gov/maps/apps/webappviewer/index.html?id=76464dbd4e5b4410b93c316cd4f86e89 (last visited May 6, 2022); Crown Castle, Small Cells 101 (“Small cells are . . . usually attached to existing infrastructure in the public right of way like utility poles or streetlights”), https://www.crowncastle.com/communities/small-cell-information (last visited May 6, 2022). 259 See, e.g., Fiber Optic Association, Reference Guide (“Small cells are designed to operate on fiber backbones”), https://www.thefoa.org/tech/ref/appln/SmallCells.html (last visited Apr. 22, 2022); see also Crown Castle, Small Cells 101 (“Small cells are always connected by fiber optic cable”), https://www.crowncastle.com/communities/small-cell-information (last visited Apr. 22, 2022). 260 CTIA, The Wireless Industry Data (Topic=Small Cell), https://www.ctia.org/the-wireless-industry/infographics- library?topic=60 (last visited May 6, 2022). 261 See Small Cell Forum, SCF market forecast, at 9, Fig. 1-2 (2022), https://scf.io/en/documents/050_- _Small_cells_market_forecast.php. 74 Federal Communications Commission FCC 22-103 94. Today, there are more than 130 tower and DAS operators in the United States,262 and a majority of towers are now owned or operated by independent tower companies rather than by mobile wireless service providers.263 In most cases, tower operators and property owners lease antenna, rooftop, and other site space to multiple wireless service providers.264 The three largest publicly traded neutral host providers are American Tower, Crown Castle, and SBA Communications. According to one estimate, as of April 2022, these three infrastructure providers owned or operated approximately 99,759 towers (not including DAS and small cells).265 At the end of December 2021, Crown Castle and SBA had an average of 2.3 and 1.8 tenants per tower site, respectively.266 The three tower companies also have significant capacity available for additional antennas or tenants.267 95. Virtualized RAN (vRAN). A wireless communication system’s Radio Access Network (RAN) is the network component that links wireless handsets and other devices to the core network. A major area of research is virtualization of the RAN components of a wireless network, vRAN. Traditional RAN depends heavily on hardware embedded with particular network functionalities. vRAN virtualizes network functions on a software platform based on general purpose processers.268 This virtualization reduces the hardware required for sites, lowers maintenance costs, and facilitate upgrades.269 With greater flexibility about where exactly functionalities are in the network, network management can be more 262 Wireless Estimator, Top 100 Tower Companies in the U.S., http://wirelessestimator.com/top-100-us-tower- companies-list/ (last visited May 6, 2022). 263 Major nationwide wireless service providers have sold their towers to neutral third-party tower companies. See 2020 Communications Marketplace Report, 36 FCC Rcd at 2971 & n.112. 264 See, e.g., American Tower 2021 Annual Report, Part I, at 1 (“Our primary business is the leasing of space on communications sites to wireless service providers . . . .”); see also Crown Castle 2021 Annual Report, Part I, at 4 (“Our core business is providing access, including space or capacity, to our shared communications infrastructure via long-term contracts”); Verizon Wireless 2021 Annual Report, at 61 (“We lease network equipment including towers, DAS, small cells . . . .”); T-Mobile 2021 Annual Report, at 50 (leasing towers from Crown Castle). 265 Wireless Estimator, Top 100 Tower Companies in the U.S., https://wirelessestimator.com/top-100-us-tower- companies-list/ (last visited Oct. 6, 2022) (Crown Castle at 40,567, American Tower at 42,965, and SBA at 17,395, not including DAS and small cells); see also American Tower 2021 Annual Report, Part I, at 1 (43,308 sites in the United States and Canada as of Dec. 31, 2021); Crown Castle 2021 Annual Report, at 4 (more than 40,000 towers and other structures such as rooftops); SBA Communications, Annual Report, at 3 (2022), https://d18rn0p25nwr6d.cloudfront.net/CIK-0001034054/e94e5a45-8db4-4c01-9aac-9bfe3b7b0deb.pdf (SBA 2021 Annual Report) (17,356 sites as of Dec. 31, 2021). 266 Crown Castle 2021 Annual Report, at 8 (average of 2.3 tenants per tower), https://investor.crowncastle.com/static-files/8e62e78b-eacc-4aed-8d36-e13f2d475b8a; SBA 2021 Annual Report, Item 1, at 1 (average of 1.8 tenants per tower). 267 American Tower 2021 Annual Report, Part I, at 5 (“We believe that the majority of our towers have capacity for additional tenants and that substantially all of our towers that are currently at or near full structural capacity can be upgraded or augmented to meet future tenant demand with relatively modest capital investment.”); SBA 2021 Annual Report, Item 1, at 1 (“Most of our towers have significant capacity available for additional antennas.”); and Crown Castle 2021 Annual Report, Part I, at 1 (“We seek to increase our site rental revenues by adding more tenants on our shared communications Infrastructure.”). 268 See Promoting the Deployment of 5G Open Radio Access Networks, GN Docket No. 21-63, Notice of Inquiry, 36 FCC Rcd 5947, 5949, para. 5 (2021) (Open RAN Notice of Inquiry). 269 IBM, What is vRAN? (Mar. 31, 2021), https://www.ibm.com/cloud/blog/what-is-vran; Young Lee, Hyunjeong Lee & Jai-Jin Lim, Samsung, vRAN Value Proposition and Cost Modeling (Oct. 15, 2020), https://www.samsung.com/global/business/networks/insights/white-papers/vran-value-proposition-and-cost- modeling/. 75 Federal Communications Commission FCC 22-103 efficient, flexible, and automated.270 Examples of vRAN include Ericsson’s Cloud RAN software solution271 and Nokia’s AirScale Cloud RAN.272 In May 2022, Ericsson announced a joint tech hub with Intel to develop cloud RAN.273 Verizon has also completed trials of vRAN with Samsung technology which Verizon intends to use in its 5G expansion.274 96. Open RAN. Traditional RAN hardware is proprietary to their vendors and has no interoperability with components from other vendors. Wireless service providers are therefore traditionally locked into a single vendor for a local area.275 Open RAN is an alternative architecture in which all components follow standards that allow interoperability with other Open RAN components.276 The elimination of vendor lock-in allows greater flexibility in network design and maintenance, which could increase performance.277 It could also potentially reduce costs by allowing more competition in the component market.278 Open RAN also can facilitate virtualized RAN (vRAN) by allowing network architecture that would not be possible under proprietary closed solutions.279 There have been ongoing developments in Open RAN standards and products in recent years, including by Nokia, Ericsson, Qualcomm, and Samsung.280 270 IBM, What is vRAN? (Mar. 31, 2021), https://www.ibm.com/cloud/blog/what-is-vran. 271 Sibel Tombaz & Gunnar Le Grand, Ericsson, Tech Unveiled: Ericsson Cloud RAN (2022), https://www.ericsson.com/48dca5/assets/local/campaigns/tech-unveiled/doc/tech-unveiled-cloudran-ebook.pdf. 272 Nokia, Airscale Cloud RAN, https://www.nokia.com/networks/mobile-networks/airscale-radio-access/cloud-ran/ (last visited June 13, 2022). 273 Ericsson, Ericsson and Intel launch global Cloud RAN Tech Hub (May 17, 2022), https://www.ericsson.com/en/press-releases/2022/5/ericsson-and-intel-launch-global-cloud-ran-tech-hub. 274 Verizon, Verizon and Samsung complete fully virtualized 5G data session on C-band spectrum (July 27, 2021), https://www.verizon.com/about/news/verizon-samsung-5g-data-session-c-band-spectrum. 275 See, e.g., ARM Comments, GN Docket No. 21-63, at 4 (rec. Apr. 28, 2021); CCA Comments, GN Docket No. 21-63, at 3 (rec. Apr. 28, 2021); ITI Comments, GN Docket No. 21-63, at 5 (rec. Apr. 28, 2021); Mavenir Comments, GN Docket No. 21-63, at 19 (rec. Apr. 28, 2021); ONF Comments, GN Docket No. 21-63, at 19 (rec. Apr. 28, 2021); ORPC Comments, GN Docket No. 21-63, at 10 (rec. Apr. 28, 2021); TIP Comments, GN Docket No. 21-63, at 17 (rec. Apr. 28, 2021); TIA Comments, GN Docket No. 21-63, at 2 (rec. Apr. 28, 2021); VMware Comments, GN Docket No. 21-63, at 7 (rec. Apr. 28, 2021); Cisco Reply, GN Docket No. 21-63, at 9 (rec. May 28, 2021); CTIA Reply, GN Docket No. 21-63, at 1 (rec. May 28, 2021); VMware Reply, GN Docket No. 21-63, at 1-2 (rec. May 28, 2021). 276 Open RAN Notice of Inquiry, 36 FCC Rcd at 5949, para. 5; CTIA Comments at 19. 277 See, e.g., CTIA Comments at 19; Airhop Comments, GN Docket No. 21-63, at 4; ARM Comments, GN Docket No. 21-63, at 4; AT&T Comments, GN Docket No. 21-63, at 11; CTIA Comments, GN Docket No. 21-63, at 9; Fujitsu Comments, GN Docket No. 21-63, at 6; HPE Comments, GN Docket No. 21-63, at 7; Google Comments, GN Docket No. 21-63, at 3; Samsung Comments, GN Docket No. 21-63, at 3-4; Telefonica Comments, GN Docket No. 21-63, at 3; Verizon Comments, GN Docket No. 21-63, at 11; VMware, GN Docket No. 21-63, Comments at 7; OTI Reply, GN Docket No. 21-63, at 1; Vmware Reply, GN Docket No. 21-63, at 2. 278 See, e.g., CCA Comments, GN Docket No. 21-63, at 3; CommScope Comments, GN Docket No. 21-63, at 2; Dell Comments, GN Docket No. 21-63, at 5; Fujitsu Comments, GN Docket No. 21-63, at 6, 12; NTT Comments, GN Docket No. 21-63, at 10; ONF Comments, GN Docket No. 21-63, at 5; ORPC Comments, GN Docket No. 21- 63, at 23; Rakuten Comments, GN Docket No. 21-63, at 3; Samsung Comments, GN Docket No. 21-63, at 3; Telefonica Comments, GN Docket No. 21-63, at 3; Xlinx Comments, GN Docket No. 21-63, at 7; Altiostar Reply, GN Docket No. 21-63, at 2; Dell Reply, GN Docket No. 21-63, at 1; OTI Reply, GN Docket No. 21-63, at 2. 279 Nokia, Update: Open RAN explained (Mar. 30, 2022), https://www.nokia.com/about-us/newsroom/articles/open- ran-explained/; CTIA Comments at 20. 280 CTIA Comments at 20-21. 76 Federal Communications Commission FCC 22-103 97. Currently, the largest Open RAN deployment in the United States is DISH’s 5G network.281 Beginning in 2020, Inland Cellular has also deployed Open RAN in rural areas of Idaho.282 Cellcom had also deployed Open RAN on its Wisconsin network, but then had to decommission the Open RAN components because of supply issues.283 In August 2022, Verizon asserted it would likely begin using Open RAN-compliant equipment in 2022 and “definitely” by 2023.284 In May 2022, AT&T asserted that it is “running proof of concept tests” for Open RAN and will first deploy Open RAN equipment in small cells and private wireless networks.285 98. Integrated Access and Backhaul (IAB). Integrated access and backhaul is the use of wireless spectrum for backhaul instead of wired connections.286 IAB allows more efficient use of spectrum, especially 5G millimeter wave, and can eliminate the need for costly or infeasible wired connections to fill coverage gaps.287 IAB may allow 5G millimeter wave to act as a fiber replacement, which may become more important with further network densification.288 Verizon and Ericsson have completed a proof-of-concept trial that implements 5G using IAB, circumventing the need for a fiber connection.289 4. Pricing Levels and Trends 99. Mobile service providers continue to offer nationwide pricing plans throughout their service areas, with little variation in monthly recurring charges between rural and non-rural markets.290 281 DISH, Press Release, DISH’s Smart 5G™ Wireless Network is Now Available to Over 20 Percent of the U.S. Population (June 15, 2022), https://about.dish.com/2022-06-15-DISHs-Smart-5G-TM-Wireless-Network-is-Now- Available-to-Over-20-Percent-of-the-U-S-Population. 282 Jeanne Whalen, Washington Post, A remote corner of Idaho has become the best hope for the U.S. challenge to Huawei (June 29, 2020), https://www.washingtonpost.com/business/2020/06/29/huawei-alternative-oran-idaho/; see also Letter from Eugina Jordan, VP, Parallel Wireless, to Marlene Dortch, Secretary, FCC, GN Docket No. 21-63, at 2 (filed Nov. 15, 2021). 283 Mike Dano, Light Reading, One of America’s first open RAN networks is being dismantled (Apr. 28, 2022), https://www.lightreading.com/open-ran/one-of-americas-first-open-ran-networks-is-being-dismantled/d/d- id/777101. 284 Mike Dano, Light Reading, Verizon promises O-RAN deployment ‘definitely’ by 2023 (Aug. 15, 2022), https://www.lightreading.com/open-ran/verizon-promises-o-ran-deployment-definitely-by-2023/d/d-id/779709. 285 Mike Dano, Light Reading, AT&T testing open RAN, but CTO won’t offer deployment timelines (May 17, 2022), https://www.lightreading.com/open-ran/atandt-testing-open-ran-but-cto-wont-offer-deployment-timelines/d/d- id/777632. 286 Henrik Ronkainen, Jonas Edstam, Anders Ericsson, & Christer Östberg, Integrated access and backhaul, Ericsson Technology Review #07-2020, (2020), https://www.ericsson.com/49e6f6/assets/local/reports- papers/ericsson-technology-review/docs/2020/introducing-integrated-access-and-backhaul.pdf; Peter Cohen, What is 5G Integrated Access and Backhaul (IAB)? (Mar. 25, 2022), https://www.rcrwireless.com/20220325/5g/what-is-5g- integrated-access-and-backhaul-iab. 287 Henrik Ronkainen, Jonas Edstam, Anders Ericsson, & Christer Östberg, Integrated access and backhaul, Ericsson Technology Review #07-2020 (2020), https://www.ericsson.com/49e6f6/assets/local/reports- papers/ericsson-technology-review/docs/2020/introducing-integrated-access-and-backhaul.pdf; Peter Cohen, What is 5G Integrated Access and Backhaul (IAB)? (Mar. 25, 2022), https://www.rcrwireless.com/20220325/5g/what-is-5g- integrated-access-and-backhaul-iab. 288 CTIA Comments at 24-25. 289 Verizon, Press Release, Deploying the 5G Ultra Wideband Network Just Got a Little Easier (July 7, 2020), https://www.verizon.com/about/news/deploying-5g-ultra-wideband-network-easier. 290 2020 Communications Marketplace Report, 36 FCC Rcd at 2972-93, para. 37. As mobile service providers offer nationwide pricing plans throughout their service area, with little pricing disparity between rural and urban markets, (continued….) 77 Federal Communications Commission FCC 22-103 The majority of mobile wireless subscribers in the United States are “postpaid” subscribers, billed each month after service has been provided, while fewer are “prepaid” subscribers, who pay for services in advance of receiving them.291 a. Postpaid Service 100. In 2021, service providers continued the trend of offering unlimited data plans,292 with major providers offering tiered unlimited data plans.293 In addition, major service providers introduced a high-end rate plan that offers unlimited data without throttling or usage restrictions.294 Certain providers also continued to not count certain types of data towards deprioritization and data limits (T-Mobile’s “Binge On” program, for example).295 101. Since the 2020 Communications Marketplace Report, particular emphasis has been given by nationwide providers to their highest-end multi-line unlimited plans. T-Mobile, for example, introduced a new unlimited plan in February 2021, Magenta MAX.296 Magenta MAX is an upgraded version of Magenta Plus.297 In contrast to Magenta Plus, the MAX plan delivers unlimited Premium (Continued from previous page) it is unnecessary to undertake a separate standalone rate survey authorized in the 2011 Order that modernized the universal service program for awarding support to mobile service providers in high-cost areas. See Connect America Fund, Report and Order and Further Notice of Proposed Rulemaking, 26 FCC Rcd 17663, 17694, 17708- 09, paras. 85, 113, 114 (2011) (USF/ICC Transformation Report and Order and Further Notice). 291 The prepaid and postpaid versions of a given pricing plan or promotion still differ somewhat, largely because prepaid subscribers may lack the credit background or income necessary to qualify for postpaid service. To prevent credit losses and mitigate the credit risk associated with the prepaid segment, service providers require advance payment for both prepaid service and handsets. 2020 Communications Marketplace Report, 36 FCC Rcd at 2972- 93, para. 37. 292 While a majority of unlimited plans are offered to postpaid subscribers, some providers now also offer unlimited plans to their prepaid subscribers. See, e.g., AT&T, AT&T Prepaid Unlimited, https://www.att.com/prepaid/plans/ (last visited Aug. 23, 2022); T-Mobile, T-Mobile Essentials Prepaid, https://prepaid.t-mobile.com/unlimited-prepaid (last visited Aug. 23, 2022); Verizon, Unlimited Plus, https://www.verizon.com/plans/prepaid/ (last visited Aug. 23, 2022). We note that while “unlimited,” such plans may have data allowances, which, if reached, can lead to deprioritization. 293 Postpaid subscribers who use up their plan’s data allowance in a given month generally experience data deprioritization only during network congestion. See, e.g., T-Mobile, Magenta, https://www.t-mobile.com/cell- phone-plans/magenta (last visited June 7, 2022); Verizon Wireless, 5G Do More Unlimited FAQs, https://www.verizon.com/support/do-more-unlimited-faqs/ (last visited June 7, 2022); AT&T, AT&T Unlimited Extra® Plan, https://www.att.com/plans/wireless/ (last visited June 7, 2022). 294 Sue Marek, Fierce Wireless, Marek’s Take: Unlimited data without restrictions is making a comeback (Aug. 4, 2021), https://www.fiercewireless.com/wireless/marek-s-take-unlimited-data-without-restrictions-making-a- comeback. 295 2020 Communications Marketplace Report, 36 FCC Rcd at 2973, para. 38. On all T-Mobile plans, during congestion, a small fraction of customers using more than 50 GB (Essential plan) or more than 100 GB (on Magenta plans) a month may notice reduced speeds until the next bill cycle due to prioritization. See T-Mobile, Unlimited video streaming with Binge On, https://www.t-mobile.com/offers/binge-on-streaming-video (last visited June 7, 2022). 296 T-Mobile, See Ya Speed Bumps. T‑Mobile Unleashes 5G with New Magenta MAX Plan (Feb. 22, 2021), https://www.t-mobile.com/news/un-carrier/magenta-max; T-Mobile, Plans, https://www.t-mobile.com/cell-phone- plans (last visited May 6, 2022). 297 Magenta Plus offered unlimited 4G LTE smartphone data; unlimited talk and text; unlimited smartphone mobile hotspot data (tethering) at 2G speeds; and 200 MB domestic roaming off-network. The plan also offered unlimited HD streaming in the United States; 20 GB of 4G LTE mobile hotspot data with unlimited 3G data; twice the data speeds abroad; unlimited in-flight Wi-Fi on Gogo-enabled flights to, from, or within the United States; voicemail to (continued….) 78 Federal Communications Commission FCC 22-103 Data—4G and 5G—on one’s smartphone. This means that a subscriber’s device cannot be slowed down based on how much data she uses. Magenta MAX comes with 40 GB of mobile hotspot data included for $57 per line per month for three lines with autopay and monthly taxes and fees included. AT&T, in July 2021, updated its largest plan, AT&T Unlimited Elite to include unlimited high-speed data, advanced security, 40 GB of hotspot data, and HBO Max in 4K UHD resolution for $50 per line for four lines.298 102. In January 2022, Verizon Wireless introduced a new lineup of 5G unlimited plans starting at $35 per line for four lines; these include: 5G Start, 5G Do More, 5G Play More, and 5G Get More. Verizon Wireless’s largest plan, 5G Get More, includes unlimited premium network access, along with 720p high definition (HD) video streaming, and 50 GB hotspot data for $90 (1 line) per month.299 UScellular continues to offer its unlimited plans: Basic, Everyday, and Even Better starting at $30 per line for four lines.300 b. Prepaid Service 103. The three nationwide service providers also offer prepaid service under their own prepaid brands in addition to selling mobile wireless service wholesale to MVNOs. Verizon Wireless has the largest share of prepaid subscribers among the nationwide service providers, after the completion of Verizon’s acquisition of the largest MVNO, TracFone.301 TracFone has multiple prepaid brands, including Net10 Wireless, Straight Talk, Clearway, Walmart Family Mobile, SIMPLE Mobile, Total Wireless, SafeLink, Page Plus, and GoSmart Mobile, which target different market and demographic segments, such as premium, Hispanic, or low-income subscribers.302 To varying degrees, the other two nationwide service providers also pursue a multi-brand prepaid strategy.303 104. DISH promotes the Boost Mobile brand.304 DISH will have access to the T-Mobile network for seven years, including the ability to serve DISH customers between T-Mobile’s nationwide network and DISH’s forthcoming standalone wireless network. In addition to its agreement with T- (Continued from previous page) text; and name ID (identify calls from unknown numbers). T-Mobile, Our Magenta Plans, https://www.t- mobile.com/content/dam/t-mobile/assets/pdf/T-Mobile_Rate_Card_November_2019.pdf (last visited June 7, 2022). 298 AT&T, AT&T Unlimited Elite® Customers stay in the Fast Lane with Unlimited High Speed Data, 5G Included and More (July 12, 2021), https://about.att.com/story/2021/att_unlimited_elite.html. 299 Verizon Wireless, The power of Verizon 5G Ultra Wideband coming to 100 million people in U.S. this month (Jan. 4, 2022), https://www.verizon.com/about/news/power-verizon-5g-ultra-wideband- coming?URL=https%3A%2F%2Fwww.verizon.com%2Fabout%2Fnews%2Fpower-verizon-5g-ultra-wideband- coming&CMP=afc_h_p_cj_na_ot_21_99_affiliate- 8532386_11557999____vg__p_22631048__t_w__d_D&cjevent=10bcade5e2c511ec8272a6aa0a82b836&promotion _code=JUNCT/W04&AID=11557999&PID=8532386&SID=___vg__p_22631048__t_w__d_D&cjdata=MXxOfD B8WXww. 300 UScellular’s new Everyday Unlimited Plan comes with bonus features such as HD video streaming, roaming in Mexico and Canada, 15 GB of hotspot access, 25 GB of priority data and one free movie night per month/line through the company’s new entertainment partner, Redbox, for $40 per line/month for four lines. UScellular, Plans, https://www.uscellular.com/plans (last visited June 2, 2022). 301 Verizon Wireless, Verizon completes TracFone Wireless, Inc. acquisition (Nov. 23, 2021), https://www.verizon.com/about/news/verizon-completes-tracfone-wireless-inc-acquisition. 302 TracFone Wireless, Brands, http://www.tracfonewirelessinc.com/en/brands/ (last visited May 17, 2022). 303 AT&T prepaid brands include AT&T Prepaid and Cricket. T-Mobile prepaid brands include Metro by T-Mobile (formerly MetroPCS). 304 DISH, DISH enters retail wireless market with close of Boost Mobile, advances build of the nation’s first standalone 5G network (July 1, 2020), http://about.dish.com/2020-07-01-DISH-enters-retail-wireless-market-with- close-of-Boost-Mobile-advances-build-of-the-nations-first-standalone-5G-network. 79 Federal Communications Commission FCC 22-103 Mobile, DISH signed a long-term strategic Network Services Agreement (NSA) with AT&T, making AT&T the primary network services partner for DISH MVNO customers. Through this agreement, DISH will provide current and future customers of its retail wireless brands, including Boost Mobile, Ting Mobile, and Republic Wireless,305 access to coverage and connectivity on AT&T’s wireless network, in addition to the new DISH network. AT&T is also providing transport and roaming services as part of the agreement, to support DISH’s network.306 105. Further, as postpaid offerings have shifted away from term contracts and equipment subsidies, facilities-based service providers have adopted pricing plans and promotions for their high-end prepaid monthly service offerings that are similar to their postpaid offerings. For example, in January 2021, Verizon Wireless introduced a new unlimited plan that offers 5G Ultra Wideband connectivity starting at $75 per month with the potential to lower those costs to $60 per month with autopay and loyalty discounts. The plan includes 10 GB of 5G Nationwide and a 4G LTE Mobile Hotspot.307 In July 2021, T-Mobile’s Metro by T-Mobile offered customers that switch and upgrade to Metro by T-Mobile a $25 a month plan with a trade-in for one line of unlimited talk, text, and high-speed smartphone data including unlimited 5G.308 AT&T’s Cricket Wireless removed the 8 Mbps speed caps on its $30, $40, and $55 a month plans and added 5G access on all of its plans in October 2021.309 In November 2021, DISH’s Boost Mobile offered its customers a $100 per year 1 GB plan that includes unlimited talk and text.310 Generally, prepaid subscribers who reach the limit of their high-speed data allowance in a given month may continue to use their handsets for data service on an unlimited basis, but at reduced speeds.311 For example, Cricket Wireless reduces data download speeds to a maximum of 128 kbps after the customer’s high-speed data allowance is used.312 c. Price Indicators for Mobile Wireless Services 106. As can be seen from the discussion above, it is difficult to directly compare prices between providers or over time, because providers offer a variety of plans, frequently under multipart pricing and bundling schemes. Plans also vary in non-price terms and features, such as the consequences 305 Monica Alleven, Fierce Wireless, Dish signs $5B MVNO deal with AT&T (July 19, 2021), https://www.fiercewireless.com/operators/dish-signs-5b-mvno-deal-at-t; DISH, DISH selects Tucows as technology partner, acquires Ting Mobile assets (Aug. 3, 2020), https://about.dish.com/2020-08-03-DISH-selects-Tucows-as- technology-partner-acquires-Ting-Mobile-assets; DISH, DISH to acquire Republic Wireless (Mar. 8, 2021), https://about.dish.com/2021-03-08-DISH-to-acquire-Republic-Wireless. 306 DISH, DISH and AT&T Sign Strategic Network Services Agreement (July 19, 2021), https://about.dish.com/2021-07-19-DISH-and-AT-T-Sign-Strategic-Network-Services-Agreement. 307 Verizon Wireless, Verizon Prepaid Unlimited plan now offers 5G Ultra Wideband and 5G Nationwide (Jan. 25, 2021), https://www.verizon.com/about/news/verizon-prepaid-unlimited-plan-5g-ultra-wideband-nationwide. 308 T-Mobile, #5GforAll Comes to Prepaid: Switch to Metro by T‑Mobile, Get a FREE 5G Phone Plus Save Half Off Boost and Cricket’s Top Plans (July 28, 2021), https://www.t-mobile.com/news/offers/switch-to-metro-by-t- mobile-get-a-free-5g-phone. 309 Monica Alleven, Fierce Wireless, AT&T’s Cricket lifts 8 Mbps speed cap, adds 5G (Oct. 29, 2021), https://www.fiercewireless.com/operators/at-t-s-cricket-lifts-8-mbps-speed-cap-adds-5g. 310 DISH, Boost Mobile launches its first Carrier Crusher plans: leading with a full year of service for just $100 (Nov. 18, 2021), https://about.dish.com/2021-11-18-Boost-Mobile-launches-its-first-Carrier-Crusher-plans-leading- with-a-full-year-of-service-for-just-100. 311 2020 Communications Marketplace Report, 36 FCC Rcd at 2975, para. 43. 312 Cricket Wireless, Mobile Broadband Information (Jan. 7, 2022), https://www.cricketwireless.com/legal- info/mobile-broadband-information.html. 80 Federal Communications Commission FCC 22-103 of reaching usage limits.313 Figure II.B.15 presents monthly postpaid prices for the three nationwide service providers’ basic, mid-level, and premium unlimited plans, including now-common discounts for automatic payments.314 Basic unlimited postpaid plans generally offer little more than unlimited talk, text, and data, and speeds that are deprioritized during network congestion. Mid-level postpaid plans typically offer some combination of increased data before deprioritization, some high-speed mobile hotspot data, cloud data storage, discounted or free subscription to online video and/or music streaming services (e.g., Apple Music, Netflix, or Disney+), and improved video streaming quality. Premium postpaid plans typically offer increased mobile hotspot data limits, video quality, and other varying features across the providers. Figure II.B.16 shows the current monthly prices for major prepaid service providers. Unlimited service is also the primary offering of prepaid plans, although postpaid users frequently are given priority over prepaid users on a given network during times of peak congestion.315 Further, both postpaid and prepaid users may also experience deprioritized speeds during periods of peak network congestion after they have exceeded certain monthly data thresholds, depending on their plan type. Notably since the last report, consumers of premium postpaid plans typically no longer experience deprioritized speeds, regardless of monthly consumption. The limits are shown in Figures II.B.17 and II.B.18. Fig. II.B.15 Monthly Postpaid Unlimited Prices for Top 3 Service Providers Plan Type Basic Mid-Level Premium Provider 1 Line 4 Lines 1 Line 4 Lines 1 Line 4 Lines AT&T $65 $140 $75 $160 $85 $200 T-Mobile $60 $105 $70 $140 $85 $170 Verizon Wireless $70 $140 $80 $180 $90 $220 313 It is therefore difficult to identify sources of information that track mobile wireless service prices in a comprehensive and consistent manner. In addition, data on subscribership is not available at the plan level. Thus, a comparison of average prices would require assumptions regarding the number of customers who subscribe to each plan that each company offers, which would not likely be accurate due to a lack of data. See, e.g., 2020 Communications Marketplace Report, 33 FCC Rcd at 12572, para. 18. 314 In addition, T-Mobile incorporates taxes and fees into its advertised prices for its Magenta and Magenta Max plans. As these fees vary by locality, we are unable to fully account for the differences in pricing in Fig. II.B.15 in this Report. 315 For example, Metro in its Terms and Conditions indicates that “[t]o the services we sell, we also prioritize the data of most Metro by T-Mobile Rate Plans after the data for other T-Mobile or Sprint branded rate plans, but before customers who are prioritized as heavy data users.” See Metro by T-Mobile, Metro by T-Mobile Terms and Conditions of Service, https://www.metrobyt-mobile.com/terms-conditions-service (last visited Aug. 15, 2022); see also Cricket, Mobile Broadband Information (Jan 7, 2022), https://www.cricketwireless.com/legal-info/mobile- broadband-information.html (“Congestion Management may affect certain customers on the Cricket Core Plan [sic] that provides unlimited data access. Customers may experience reduced data speeds and increased latency during periods of network congestion as compared to other customers using the same cell site.”). 81 Federal Communications Commission FCC 22-103 Fig. II.B.16 Monthly Prepaid Unlimited Prices for Top 4 Service Providers316 Plan Type Basic Premium Provider 1 Line 4 Lines 1 Line 4 Lines Boost Mobile $50 $140 $60 $180 Cricket $55 $100 $60 $130 Metro $40 $100 $60 $120 Straight Talk $45 N/A $65 N/A Source: The prices for unlimited data plans in Figures II.B.15 and II.B.16 were taken from service providers’ websites on Aug. 15, 2022. Fig. II.B.17 Data Deprioritization Limits for Top 3 Postpaid Service Providers317 Plan Type Provider Basic Mid-Level Premium AT&T Congestion 50 GB No Limit T-Mobile 50 GB 100 GB No Limit Verizon Wireless Congestion 50 GB No Limit Fig. II.B.18 Data Deprioritization Limits for Top 4 Prepaid Service Providers Plan Type Provider Basic Premium Boost Mobile 35 GB 35 GB Cricket Congestion Congestion Metro 35 GB 35 GB Straight Talk Congestion Congestion Source: The deprioritization limits in Figures II.B.17 and II.B.18 were taken from service providers’ websites on Aug. 15, 2022. 107. Since the 2020 Communications Marketplace Report, the prices for wireless service generally have held steady. The single-line pricing for all three nationwide postpaid service providers has remained constant for all tiers of service relative to 2020. Multi-line service has also remained the same 316 Prices include any per line charges indicated by the service provider, but exclude fees and taxes. Prices do not include any additional charges such as for equipment installment plans, insurance, international use, or mobile hotspots. If a service provider includes any such feature as part of its unlimited data plan without extra charge, the above price would include this feature. Further, the above prices do not include any one-time charges paid, such as activation fees and termination fees, nor promotions that are advertised as short-term. Prices and the features of the plans are subject to change. 317 “Congestion” indicates that users are deprioritized when there is congestion on the network, regardless of the amount of data a customer has consumed in a given month. “No Limit” indicates that users are never deprioritized, regardless of the amount of data they have consumed in a given month. 82 Federal Communications Commission FCC 22-103 for AT&T and Verizon Wireless, while falling for T-Mobile.318 For prepaid service, Boost pricing has remained the same, and Straight Talk’s is not directly comparable as it has introduced multiple tiers of plans at different price points (between $45 and $65) which straddle its 2020 pricing of $55. Metro pricing has dropped for both single line and multi-line accounts in its basic tier of service, and for multiple lines only in its premium tier. Cricket is the only provider to have a rate increase between the two periods, with its single-line plans increasing by $5 per month; however, its multiple-line prices have remained the same.319 108. Consumer Price Index (CPI). The CPI is a measure of the average change over time in the prices consumers pay for a fixed market basket of goods and services. As documented in previous Reports, the Wireless Telephone Services CPI320 shows that mobile wireless prices have declined significantly since the mid-1990s.321 However, according to the CPI, the price (in constant dollars) of mobile wireless services increased in 2020 for the first time since 2009, by 2.0%, and again in 2021, by a smaller 1.7%. During those same two years, the broader Telephone Services CPI increased by 3.2% and 2.4%, while the overall CPI increased by approximately 1.3% and 2.9%.322 109. Average Revenue Per Unit. Various measures of Average Revenue per Unit (ARPU) are frequently used as a proxy for price, particularly in industries with multiple pricing plans and complicated rate structures, such as mobile wireless services.323 As shown in Figure II.B.19 below, which is based on 318 See 2020 Communications Marketplace Report, 36 FCC Rcd at 2976, Fig. II.A.18. Single-line pricing for AT&T ranged from $65-$85, and 4 lines from $140-$200; for T-Mobile, a single line ranged from $60-$85, and 4 lines from $120-$200; and for Verizon Wireless, a single line ranged from $70-$90, while four lines ranged from $140- $220. Neither the current Report nor prior reports attempts or have attempted to completely account for all features offered by every plan, nor any fees that may be in addition to the monthly service rates. In addition, T-Mobile committed to not raise prices on its plans as part of the T-Mobile-Sprint transaction for a period of three years, and the conditions expired in November 2022. See T-Mobile-Sprint Order, 34 FCC Rcd at 10745, para. 385 (“We also impose as a condition the Applicants’ price commitment, further ensuring that the transaction will not result in consumer price increases.”). 319 See 2020 Communications Marketplace Report, 36 FCC Rcd at 2976, Fig. II.A.19. Single-line pricing for Boost ranged from $50-$60, and 4 lines from $140-$18; for Cricket, a single line ranged from $50-$55, and 4 lines from $100-$130; for Metro, a single line ranged from $50-60, and 4 lines from $140-$150; and for Straight Talk, a single line was priced at $55, with no discount for four lines. Neither the current Report nor prior reports attempts or have attempted to completely account for all features offered by every plan, nor any fees that may be in addition to the monthly service rates. 320 All CPI figures were taken from U.S. Bureau of Labor Statistics (BLS) databases. U.S. Bureau of Labor Statistics, Home Page, http://www.bls.gov (last visited Aug. 29, 2022). The index used in this analysis, the CPI for All Urban Consumers (CPI-U), represents about 93% of the total U.S. population. U.S. Bureau of Labor Statistics, Consumer Price Index: Frequently Asked Questions, https://www.bls.gov/cpi/questions-and-answers.htm (last visited Aug. 29, 2022). The CPI category “Telephone Services” has two components: Wireless telephone services and Residential telephone services (previously known as “Landline telephone services”). Additional information can be found at U.S. Bureau of Labor Statistics, Consumer Price Index: How the Consumer Price Index Measures Price Change for Telephone Services, https://www.bls.gov/cpi/factsheets/telephone-services.htm (last visited Aug. 29, 2022). 321 See, e.g., 2020 Communications Marketplace Report, 36 FCC Rcd at 2977, para. 36; 2018 Communications Marketplace Report, 33 FCC Rcd at 12574, para. 19. 322 For changes in the CPI over time, see infra Appx. D-2 of this Report. 323 See Implementation of Section 6002(b) of the Omnibus Budget Reconciliation Act of 1993; Annual Report and Analysis of Competitive Market Conditions with Respect to Mobile Wireless, Including Commercial Mobile Services, Seventeenth Report, 29 FCC Rcd 15311, 15328, para. 35 & n.52 (WTB 2014) (Seventeenth Wireless Competition Report); Patrick McCloughan and Sean Lyons, Accounting for ARPU: New evidence from international panel data, Telecommunications Policy 30, 521-32 (2006); Eun-A Park and Krishna Jayakar, (continued….) 83 Federal Communications Commission FCC 22-103 CTIA data, from 2019 to 2021 industry ARPU declined from $36.86 to $35.74, a decline of approximately 3%.324 Recent changes by service providers, such as the removal of overage charges, the move toward unlimited data plans, multiple line pricing, and Equipment Installment Plans (EIPs) have all contributed to the reported decline in ARPU.325 Fig II.B.19 Source: CTIA Year-End 2021 Wireless Industry Indices Report. 110. Revenue Share by Service Provider. As shown in Figure II.B.20, AT&T and Verizon Wireless experienced slightly increasing service revenues from 2018 through 2021. Sprint’s service revenues fell in each reporting period. T-Mobile experienced a large increase in revenues from 2019 to 2020, primarily due to its acquisition of Sprint, and T-Mobile also generally experienced significant growth every year from 2016 to 2019. Verizon Wireless reported significantly higher revenues than AT&T and T-Mobile, with AT&T and T-Mobile reporting near identical wireless service revenues in 2021. (Continued from previous page) Competition between Standards and the Prices of Mobile Telecommunication Services: Analysis of Panel Data, TPRC 2015 (Aug. 15, 2015). 324 CTIA reported an industry average measure of ARPU which is derived “using the average (reported) active revenue-generating device figures for each service period, and total reported service revenues.” CTIA Year-End 2021 Wireless Industry Indices Report at 45. 325 Fig. II.B.19 presents more than 25 years of subscribers/connections and ARPU. For additional details on ARPUs from 1993 to 2021, see infra Appx. D-3 of this Report. 84 Federal Communications Commission FCC 22-103 Fig. II.B.20 Service Revenues and Shares Among Nationwide Wireless Service Providers ($ millions) 2018–2021 2018 2019 2020 2021 Service Providers Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Share Share Share Share AT&T 54,295 27.02% 55,331 27.10% 55,542 28.05% 57,590 27.37% T-Mobile 31,992 15.92% 34,500 16.90% 50,395 25.45% 58,369 27.74% Verizon Wireless 91,518 45.55% 92,368 45.25% 92,058 46.50% 94,449 44.89% Sprint 23,131 11.51% 21,951 10.75% 0 0.00% 0 0.00% Source: Annual and Quarterly SEC Filings from AT&T, T-Mobile, Verizon, and Sprint. Note: Verizon’s Business Group does not completely separate wireless service revenues from other revenues in its filings, and accordingly their revenues are likely overstated. However, over 95% of business connections are wireless, so we expect the majority of business revenue to be associated with wireless connections. 111. Estimated Average Revenue Per GB. Given the variation in data plans, including shared plans, the lack of information on how much data users consume across these different plans, and the fact that revenues specific to data consumption are no longer reported by service providers, we lack the necessary information to measure precisely the price per GB of mobile broadband data. By making certain assumptions,326 however, we can provide various industry-wide estimates of the average revenues per GB. Figure II.B.21 below shows four different estimates of the average revenue per GB, based on data from CTIA and the U.S. Census Bureau. All four estimates indicate that average revenue per GB has been declining. Specifically, as of year-end 2021, these estimates show a decrease of approximately 10% to 17% compared to 2020, and a decrease of approximately 61% to 69% compared to 2017. 326 To derive $/GB (Total Rev), we divide the Total Service Revenues by the Total Wireless Data Traffic, assuming that 100% of service revenues are attributable to data. CTIA Year-End 2021 Wireless Industry Indices at 40, 12. To derive $/GB (All Users) and $/GB (Smartphones) we divide ARPU by the monthly average GB data usage, and we calculate this metric both for all users and for smartphone users only. This assumes that 100% of revenues are attributable to data and that average revenue is the same for both smartphone users and non-smartphone users. CTIA Year-End 2021 Wireless Industry at 45, 15. Finally, for $/GB (Est. Data Rev), we estimate the percentage of total revenues that are attributable to data by dividing Internet Access Service Revenues by Total Revenues for NAICS 5172. U.S. Census Bureau, Service Annual Survey Latest Data (NAICS-basis): 2020 (Nov. 23, 2021), https://www.census.gov/data/tables/2020/econ/services/sas-naics.html (navigate to “Table 4: Estimated Sources of Revenue for Employer Firms: 2013 through 2020”). The 2021 data percentage was estimated based on the average growth rate across 2017 to 2020. We then applied these percentages to the CTIA data (Total Service Revenues/Total Wireless Data Traffic). CTIA Year-End 2021 Wireless Industry Indices at 40, 12. This does not take into account the fraction of revenues that are made up of messaging. 85 Federal Communications Commission FCC 22-103 Fig. II.B.21 Source: CTIA Year-End 2021 Wireless Industry Indices Report; U.S. Census Bureau, 2020 Annual Service Survey. 5. Non-Price Factors a. Investment 112. In the past five years, according to CTIA,327 mobile wireless service providers invested nearly $147 billion in their networks, with service providers reporting $34.7 billion in capital investment in 2021, up 16.2% from $29.9 billion in 2020.328 Based on the most current UBS data, in 2021, wireless service providers’ capital investments totaled $34.8 billion, of which the three nationwide providers accounted for $33 billion.329 In the last few years, as shown in Figure II.B.22, the nationwide providers combined have steadily increased their capital investment. In 2018, the four nationwide providers— AT&T, T-Mobile, Sprint, and Verizon—spent 17.3% of their revenues on capital expenditure.330 According to UBS, in 2021, T-Mobile invested 20.8% of its wireless service revenue on capital expenditure, surpassing Verizon at 17.7% and AT&T at 15.3%.331 Meanwhile, DISH, a new wireless entrant, spent $960 million in wireless capital expenditure in 2021.332 In terms of spectrum investment, in 327 CTIA Year-End 2021 Wireless Industry Indices Report, at 48; CTIA Comments at 8-9. 328 CTIA Comments at 9. 329 UBS and CTIA numbers may differ as they use different methodologies for accounting for Capital Expenditure. CTIA’s data are based on their voluntary survey of all wireless providers (with a very high response rate). UBS uses quarterly and annual filings from publicly traded service providers along with their wireless model to calculate industry investment. 330 UBS Investment Research. UBS Data, 2018-2021 331 Id. 332 Id. 86 Federal Communications Commission FCC 22-103 the last three years the wireless industry invested more than $108 billion in spectrum auctions,333 including $81 billion in the 3.7 GHz band auction.334 Fig. II.B.22 Source: UBS Investment Research. Published with permission of UBS. 113. The heightened level of capital investment has helped speed up wireless deployments. According to CTIA, the wireless industry built more cell sites in 2020 than in the prior three years combined.335 DISH, a new wireless provider, planned to spend $10 billion to build the first nationwide cloud-native 5G network.336 On July 14, 2022, DISH filed its buildout status report to the Commission, asserting that, as of June 14, 2022, DISH offered broadband coverage to over 72 million people in the United States, or approximately 22% of the U.S. population,337 to meet its construction requirements.338 Regional and rural providers have also accelerated their 5G deployments. For example, UScellular is 333 CTIA Comments at 9-10. 334 Auction of Flexible-Use Service Licenses in the 3.7-3.98 GHz Band Closes; Winning Bidders Announced for Auction 107, AU Docket No. 20-25, Public Notice, 36 FCC Rcd 4318 (2021) (Auction 107 Closing Public Notice). 335 CTIA Comments at 11-12. 336 Mike Dano, Fierce Wireless, Ergen’s 5G build-out ambitions for Dish could pass $10B (May 23, 2018), https://www.fiercewireless.com/5g/ergen-s-5g-buildout-ambitions-for-dish-could-pass-10b. 337 DISH Network Corporation 5G Buildout Status Report, at 1. 338 See Applications of American H Block Wireless L.L.C., DBSD Corporation, Gamma Acquisition L.L.C., and Manifest Wireless L.L.C. for Extension of Time, WT Docket No. 18-197, Order of Modification and Extension of Time to Construct, 35 FCC Rcd 9599, Attach. A (WTB 2020). 87 Federal Communications Commission FCC 22-103 expanding 5G connectivity across 21 states, Appalachian Wireless is deploying standalone 5G in Kentucky and the eastern region, Cellcom is deploying 5G in Wisconsin, and GCI has launched 5G in Anchorage.339 b. Innovation and Technological Change 114. In the two years since the last Communications Marketplace Report, 5G coverage has grown from limited deployments in specific areas to an increasingly important part of U.S. wireless service providers’ networks. AT&T, for example, stated that as of March 2022, its 5G network covered 255 million people in 16,000 cities and towns.340 Verizon asserted that it expects to cover 175 million Americans by the end of 2022 with its 5G network.341 In June 2022, T-Mobile reported its 5G network using low-band spectrum (Extended Range 5G) covered 315 million Americans, while its 5G network using high-band spectrum (Ultra Capacity 5G) covered 225 million Americans.342 As of June 2022, DISH asserted it had launched 5G in 120 cities.343 Smaller providers are also launching 5G networks. UScellular, for example, claims it intends to expand its 5G network using mid-band spectrum over 23 states.344 In April 2022, Appalachian Wireless reported that it is planning to deploy 5G in “Kentucky and the Eastern US” in 2022.345 As of April 2022, Cellcom had deployed 5G on 45 Wisconsin cell towers.346 GCI has deployed 5G in Anchorage, Alaska and plans expansion of 5G to other parts of Alaska.347 339 CTIA Comments at 12. 340 AT&T, AT&T Lays Out Long-Term Growth Strategy, Financial Outlook (Mar. 11, 2022), https://about.att.com/story/2022/analyst-and-investor-day.html. 341 175 million is approximately 53% of the 331 million Americans reported in the 2020 U.S. Census. Verizon Wireless, Press Release, Verizon 5G Ultra Wideband expected to cover 175 million people by the end of 2022 (Mar. 3, 2022), https://www.verizon.com/about/news/verizon-5g-ultra-wideband-175-million-people-2022; Brynn Epstein & Daphne Lofquist, U.S. Census Bureau, First 2020 Census Data Release Shows U.S. Resident Population of 331,449,281 (Apr. 26, 2021), https://www.census.gov/library/stories/2021/04/2020-census-data-release.html#. 342 T-Mobile, Press Release, T-Mobile Delivers Industry Leading Growth in Postpaid Accounts and Customers in Q1 2022 Fueled by 5G Network Leadership (Apr. 27, 2022), https://www.t-mobile.com/news/business/t-mobile-q1- 2022-earnings. 343 As part of DISH’s acquisition of Boost Mobile as part of the T-Mobile/Sprint transaction, DISH committed to cover 20% of the U.S. population with 5G by June 14, 2022. See supra section II.B.1.a; T-Mobile-Sprint Order, 34 FCC Rcd at 10740, para. 369; DISH, Press Release, DISH’s Smart 5G™ Wireless Network is Now Available to Over 20 Percent of the U.S. Population (June 15, 2022), https://about.dish.com/2022-06-15-DISHs-Smart-5G-TM- Wireless-Network-is-Now-Available-to-Over-20-Percent-of-the-U-S-Population. 344 UScellular, Press Release, UScellular Advances 5G Mid-Band Spectrum Strategy with C-Band Purchase (Mar. 11, 2021), https://investors.uscellular.com/news/news-details/2021/UScellular-advances-5G-mid-band-spectrum- strategy-with-C-Band-purchase/default.aspx. 345 Mike Dano, Light Reading, Small US Carriers march toward 5G (Apr. 12, 2022), https://www.lightreading.com/5g/small-us-carriers-march-toward-5g/d/d-id/776752. 346 Mike Dano, Light Reading, From the invention of the telephone to 5G, Nsight perseveres (Feb. 16, 2022), https://www.lightreading.com/5g/from-invention-of-telephone-to-5g-nsight-perseveres/d/d-id/775302. 347 Ericsson, Press Release, GCI partners with Ericsson to turn up 5G sites in Alaska (Apr. 20, 2020), https://www.ericsson.com/en/press-releases/6/2020/gci-partners-with-ericsson-to-turn-up-5g-sites-in-alaska; GCI, Press Release, GCI expands 5G wireless coverage along Seward Highway (Mar. 25, 2021), https://www.anchoragepress.com/bulletin/gci-expands-5g-wireless-coverage-along-seward- highway/article_eeafb0da-8dc9-11eb-a9e5-b31e73421560.html; GCI, Press Release, GCI launches first 5G wireless sites in the Matanuska Valley (Dec. 16, 2021), https://news.gci.com/news-releases/gci-launches-first-5g-wireless- sites-in-the-matanuska-valley. 88 Federal Communications Commission FCC 22-103 115. Ericsson estimates that as of 2021, 20% of North American mobile subscriptions were associated with a 5G-capable device with access to a 5G-enabled network.348 While 5G deployments have grown substantially, the industry is still actively developing technologies to improve 5G performance and the technologies that will follow it. In this section, we discuss several important areas of research and development. 116. Standalone (SA) 5G. AT&T and Verizon have deployed 5G networks with a 4G-LTE core, known as Non-Standalone (NSA) 5G.349 NSA 5G uses a 5G RAN, the network component that connects devices to the rest of the network, while using a pre-existing 4G LTE backbone (the “core”) to interconnect different parts of the network together.350 In contrast, standalone (SA) 5G integrates 5G RAN and a 5G core.351 An NSA 5G network avoids a complete rework of the existing 4G-LTE network at the cost of reduced 5G functionality.352 As of October 2021, AT&T was still studying how to implement a SA 5G Core.353 While Verizon has activated some SA core traffic as of December 2021, Verizon has asserted full commercialization of its SA 5G core will not be completed until some point in 2022.354 In contrast, T-Mobile has had an SA 5G core since 2020355 and has deployed voice over 5G since June 2022.356 Likewise, DISH’s 5G network has an SA core using Nokia technology.357 Appalachian Wireless’s 5G network will also be standalone.358 117. Massive Multiple-Input and Multiple-Output (MIMO) Technology. At higher frequency bands, 5G-NR has enabled widespread adoption of Massive MIMO, in which the base station antenna consists of many active antenna elements.359 While conventional antennas with two transmit and two 348 Ericsson, Ericsson Mobility Report, at 10 (2021), https://www.ericsson.com/4ad7e9/assets/local/reports- papers/mobility-report/documents/2021/ericsson-mobility-report-november-2021.pdf. 349 Peter Cohen, RCR Wireless, Standalone 5G vs. Non-Standalone 5G (Sept. 7, 2021), https://rcrwireless.com/20210907/5g/standalone-5g-vs-non-standalone-5g. 350 Deanna Darah, Tech Target, 5G NSA vs. SA: How does each deployment mode differ? https://www.techtarget.com/searchnetworking/feature/5G-NSA-vs-SA-How-does-each-deployment-mode-differ# (last visited Oct. 6, 2022). 351 Id. 352 Peter Cohen, RCR Wireless, Standalone 5G vs. Non-Standalone 5G (Sept. 7, 2021), https://rcrwireless.com/20210907/5g/standalone-5g-vs-non-standalone-5g. 353 Sue Marek, Fierce Wireless, AT&T’s Fuetsch says company is still testing standalone 5G (Oct. 18, 2021), https://www.fiercewireless.com/wireless/at-t-s-fuetsch-says-company-still-testing-standalone-5g. 354 Matt Kapko, SDxCentral, Verizon Bumps 5G Standalone Core to 2022 (Dec. 22, 2021), https://www.sdxcentral.com/articles/news/verizon-bumps-5g-standalone-core-to-2022/2021/12/. 355 T-Mobile, Press Release, T-Mobile Launches World’s First Nationwide Standalone 5G Network (Aug. 4, 2020), https://www.t-mobile.com/news/network/standalone-5g-launch. 356 T-Mobile, Press Release, T‑Mobile Advances Standalone 5G Capabilities with Commercial Launch of Voice Over 5G (June 3, 2022), https://www.t-mobile.com/news/press/t-mobile-advances-standalone-5g-capabilities-with- commercial-launch-of-voice-over-5g. 357 Linda Hardesty, Fierce Wireless, Dish picks Nokia for containerized 5G SA core (Sept. 14, 2020), https://www.fiercewireless.com/5g/dish-picks-nokia-for-containerized-5g-sa-core. 358 Mike Dano, Light Reading, Small US Carriers march toward 5G (Apr. 12, 2022), https://www.lightreading.com/5g/small-us-carriers-march-toward-5g/d/d-id/776752. 359 See CTIA Comments at 22-23; Samsung, Massive MIMO for New Radio (Dec. 2020), https://images.samsung.com/is/content/samsung/assets/global/business/networks/insights/white- papers/1208_massive-mimo-for-new-radio/MassiveMIMOforNRTechnicalWhitePaper-v1.2.0.pdf; David Astely et al., Meeting 5G network requirements with Massive MIMO, 102922 Ericsson Technology Review (2022), (continued….) 89 Federal Communications Commission FCC 22-103 receive elements or four transmit and four receive elements are common today, sixty-four transmit and sixty-four receive elements of massive MIMO antennas are now commercially available.360 Massive MIMO antennas allow more multiple paths for data transmission to enhance spatial diversity, and it also employs “beamforming” to steer a narrow beam to specific users, which lowers interference and improves signal quality.361 Massive MIMO therefore provides significant improvements to network capacity, coverage and user experience.362 In February 2022, Nokia and AT&T announced they were collaborating on developing a version of massive MIMO with an improved 5G uplink.363 118. Carrier Aggregation. Wireless service providers have begun using different spectrum bands simultaneously to provide service in a process called “carrier aggregation.”364 For example, carrier aggregation technology can coordinate between a low-band uplink and a high or a mid-band downlink, improving coverage, capacity, and speed.365 Wireless service providers are using carrier aggregation for 5G.366 T-Mobile states that it has achieved downloads of 3 Gbps using 5G carrier aggregation in a June 2022 test.367 119. Dynamic Spectrum Sharing (DSS). Dynamic spectrum sharing refers to technologies that allow multiple users or multiple technologies to share spectrum dynamically over time. One form of dynamic spectrum sharing uses wireless service providers using algorithmic systems to allocate spectrum between 4G and 5G in real-time. DSS facilitates the simultaneous operation of both 4G and 5G networks, as lower frequency spectrum can be used for both 4G and 5G by switching between the two, depending on network needs.368 DSS is especially useful for providers transitioning into 5G with a large 4G-LTE user base, that continues to rely on their LTE spectrum bands.369 DSS implementation does not require (Continued from previous page) https://www.ericsson.com/4917a1/assets/local/reports-papers/ericsson-technology-review/docs/2022/the-role-of- massive-mimo-in-5g-networks.pdf; Henrik Asplund et al., Massive MIMO handbook 2022 (1st ed. 2022), https://foryou.ericsson.com/Massive-MIMO-handbook-extended-version-download.html. 360 CTIA Comments at 22-23. 361 Mutaz Shukair, Qualcomm, How 5G massive MIMO transforms your mobile experiences (June 19, 2019), https://www.qualcomm.com/news/onq/2019/06/how-5g-massive-mimo-transforms-your-mobile-experiences. 362 Id. 363 Nokia, Press Release, Nokia and AT&T collaborating to improve 5G uplink with distributed massive MIMO #MWC22 (Feb. 28, 2022), https://www.nokia.com/about-us/news/releases/2022/02/28/nokia-and-att-collaborating- to-improve-5g-uplink-with-distributed-massive-mimo-mwc22/. 364 CTIA Comments at 23. 365 Ericsson, Carrier aggregation in 5G, https://www.ericsson.com/en/ran/carrier-aggregation (last visited Oct. 6, 2022). 366 Monica Alleven, Fierce Wireless, Mobile poised to launch 2.5 GHz 5G carrier aggregation (Dec. 2, 2021), https://www.fiercewireless.com/5g/t-mobile-poised-launch-25-ghz-5g-carrier-aggregation; Monica Alleven, Fierce Wireless, Dish dials up 5G carrier aggregation tests at 600 MHz (Apr. 8, 2022), https://www.fiercewireless.com/tech/dish-dials-5g-carrier-aggregation-tests-600-mhz. 367 T-Mobile, Press Release, T‑Mobile Tops 3 Gbps with World’s First Standalone 5G Carrier Aggregation Achievement (June 14, 2022), https://www.t-mobile.com/news/network/t-mobile-tops-3-gbps-with-worlds-first- standalone-5g-carrier-aggregation-achievement. 368 Samsung, Dynamic Spectrum Sharing, at 3-8 (Jan. 2021), https://images.samsung.com/is/content/samsung/assets/global/business/networks/insights/white- papers/0122_dynamic-spectrum-sharing/Dynamic-Spectrum-Sharing-Technical-White-Paper-Public.pdf; Ericsson, Ericsson Spectrum Sharing – A better way to build 5G Spectrum, https://www.ericsson.com/en/ran/spectrum-sharing (last visited Oct. 6, 2022). 369 Id. 90 Federal Communications Commission FCC 22-103 costly hardware replacement or upgrades because DSS is software-based.370 In 2021, Global Wireless Solutions reported that Verizon deployed DSS in 229 of the 498 markets it tested, and in 23% of 5G tasks it tested.371 In contrast, Global Wireless Solutions reported that AT&T used DSS in only 22 of the 298 markets it tested, and for only 5% of 5G tasks it tested.372 120. Spectrum Sharing Between Users. In addition to sharing within a wireless service provider, there is active research on the viability of sharing between service providers. With the growing demand for spectrum, spectrum utilization can be improved by finding ways to accommodate multiple users for the same bands.373 Currently, the major sharing regimes include priority access tiers, like the Citizens Broadband Radio Service (CBRS) band, where spectrum is used by one user at a time but users with higher priority may preempt access by lower priority users.374 Major sharing regimes also include simultaneous access, like Bluetooth and 2.4 GHz Wi-Fi, where multiple devices use the same spectrum at the same time.375 In October 2020, the U.S. Department of Defense (DOD) issued a Request for Information about spectrum sharing between multiple users. In December 2021, the DOD deployed an experimental private 5G cellular network at Hill Air Force Base to investigate spectrum sharing.376 In September 2021, Silicon Flatirons held a conference about spectrum sharing, and its subsequent report stated that participants “largely agreed that increased use of and reliance on dynamic spectrum sharing (at least in some form) is inevitable.”377 121. Internet of Things (IoT). The 5G standards emphasize low latency and high reliability, which make 5G networks practical for use in the IoT, the use of communication networks for communications between equipment and machines.378 5G-enabled IoT has a variety of potential industrial uses, allowing managers to automate many of the tasks that require devices to operate at the same time, including inspections, artificial intelligence/augmented reality technical assistance, buildings and facility management, connected vehicles, smart agriculture, and shipping and logistics.379 IoT also demonstrates strong potential in healthcare with growing interest in medical devices that facilitate remote patient 370 Celona, Dynamic Spectrum Sharing: How It Works and Why It Matters (Oct. 14, 2020), https://www.celona.io/5g-lan/dynamic-spectrum-sharing-how-it-works-why-it-matters. 371 Global Wireless Solutions, 2021 US Nationwide Test of Mobile Networks, https://gwsolutions.com/best-wireless- network-in-usa/ (last visited Oct. 6, 2022). 372 Id. 373 National Institutes of Standards and Technology, Spectrum Sharing (Apr. 5, 2022), https://www.nist.gov/advanced-communications/spectrum-sharing. 374 Id. 375 Id. 376 U.S. Department of Defense, Press Release, DoD Kicks Off 5G Dynamic Spectrum Sharing Experimentation at Hill AFB (Dec. 2, 2021), https://www.defense.gov/News/Releases/Release/Article/2859222/dod-kicks-off-5g- dynamic-spectrum-sharing-experimentation-at-hill-afb/. 377 Gabriel Lennon & Graham Stevenson, Outcomes Report: A Spectrum Policy Initiative Conference “Frontiers in Spectrum Sharing” at 2 (2022), https://siliconflatirons.org/wp-content/uploads/2022/01/FY-22-Spectrum-Policy- Conference-Report_Final-1.pdf. 378 Constant Wette Tchouati, Steven Rochefort & George Sarmonikas, Monitoring IoT application performance with machine QoE, 103 Ericsson Technology Review at 8 (2021), https://www.ericsson.com/493a09/assets/local/reports- papers/ericsson-technology-review/docs/2021/etr-magazine-2021-01.pdf. 379 CTIA Comments at 30-33; Rishi Vaish & Sky Matthews, 5G Will Accelerate a New Wave of IoT Applications, https://newsroom.ibm.com/5G-accelerate-IOT (last visited Oct. 6, 2022); Brian McGlynn, Davra, The Impact of 5G on the Internet of Things, https://davra.com/5g-internet-of-things/ (last visited Oct. 6, 2022). 91 Federal Communications Commission FCC 22-103 monitoring and hospital management.380 The Consumer Technology Association forecasts that 14.7 million connected health monitoring devices, 44 million fitness trackers and smart watches, and 2.4 million connected exercise devices will ship in 2022.381 122. Smart Cities. Smart Cities, IoT on a large scale for urban management, has had several prominent deployments. For example, FloodNet in New York City uses IoT devices to monitor flood conditions.382 U.S. cities are developing smart city systems to improve traffic management.383 Other active Smart City initiatives also include Austin, Chattanooga, Denver, Little Rock, Minneapolis, Raleigh, and San Antonio.384 123. Edge Computing. Edge computing refers to placement of computational resources close to end users in networks.385 The proximity to the users allows computation with “low latency, high bandwidth, device processing and data offload, as well as trust computing and storage.”386 This makes edge computing complementary to 5G, as 5G reduces latency from the device to the radio tower, and edge computing reduces latency from the radio tower to computing resources.387 Many applications of edge computing are IoT-based and can be bundled with 5G private networks.388 Specific examples of edge computing include predictive maintenance in the gas and oil industries, remote workforce support, e- commerce optimization, artificial intelligence, and telehealth/real-time healthcare analysis.389 Corning Incorporated, an optical cable manufacturer, is using Verizon’s On Site 5G (5G private network) and 5G Edge (edge computing) “to experiment with high-speed, high-volume data collection on the factory floor, quality assurance, and on-premises inference using machine learning.”390 380 CTA Comments at 5-6; CTIA Comments at 34-35; Ben Forgan, How IoT is Transforming Healthcare, Forbes (Mar. 31, 2021), https://www.forbes.com/sites/forbestechcouncil/2021/03/31/how-iot-is-transforming- healthcare/?sh=3bafaa4767e5; Andrew Meola, IoT Healthcare in 2022: Companies, medical devices, and use cases, Insider Intelligence (Apr. 15, 2022), https://www.insiderintelligence.com/insights/iot-healthcare/. 381 CTA Comments at 6-7. 382 FloodNet, Real-Time and Historical FloodNet Data, https://www.floodnet.nyc/ (last visited Oct. 6, 2022). 383 CTA Comments at 8; CTIA Comments at 30-31, 34-36. One prominent example of traffic oriented Smart City initiative is Smart Columbus in Columbus Ohio. Smart Columbus, Connected Vehicle Environment, https://smart.columbus.gov/projects/connected-vehicle-environment (last visited Oct. 6, 2022). 384 Phil Goldstein, StateTech, 7 Smart Cities to Watch in 2022 and Beyond (Apr. 14, 2022), https://statetechmagazine.com/article/2022/04/7-smart-cities-watch-2022-and-beyond. 385 Ericsson, Edge Computing – a must for 5G success, https://www.ericsson.com/en/edge-computing (last visited Oct. 6, 2022); BBVA, What is edge computing and how does it complement 5G? (Jan. 7, 2021), https://www.bbva.com/en/what-is-edge-computing-and-how-does-it-complement-5g/. 386 Ericsson, Edge Computing – a must for 5G success, https://www.ericsson.com/en/edge-computing (last visited Oct. 6, 2022). 387 Stephanie Overby, The Enterprisers Project, Edge computing and 5G: A reality check (June 9, 2021), https://enterprisersproject.com/article/2021/6/edge-computing-and-5g-reality-check; Deloitte, Take 5: Edge computing and 5G use cases, https://www2.deloitte.com/us/en/pages/consulting/articles/what-is-5g-edge- computing.html (last visited Oct. 6, 2022). 388 Ericsson, Edge computing and deployment strategies for communication service providers at 2 (Feb. 2020), https://www.ericsson.com/491f17/assets/local/reports-papers/white-papers/edge-computing-wp.pdf 389 Stephanie Overby, The Enterprisers Project, Edge computing: 5 examples of how enterprises are using it now (Mar. 17, 2021), https://enterprisersproject.com/article/2021/3/edge-computing-5-examples-how-enterprises-using. 390 Verizon Wireless, Press Release, Verizon Business launches On Site 5G a private 5G network for enterprise & public sector (June 10, 2021), https://www.verizon.com/about/news/verizon-business-launches-on-site-5g. 92 Federal Communications Commission FCC 22-103 124. Artificial Intelligence (AI) and Machine Learning. While the phrase Artificial Intelligence (AI) has been defined in a number of ways, it generally refers to computational technology that is highly effective at performing a task and taking account of the environment in which that task is taken.391 Most modern implementations of AI leverage machine learning (ML), computational learning from data, and thus the two are often conflated.392 In networks connecting many devices, users can improve the efficiency of those devices by collecting data and using AI/ML to determine how to manage those devices optimally. AI/ML can thus a play key role in managing IoT networks.393 AI/ML’s need for plentiful real-time computing resources make AI/ML and edge computing complementary.394 In fact, International Data Corporation Research Vice President Dave McCarthy claims that “AI is ‘the most common workload’ in edge computing.”395 125. Wireless networks themselves are well suited for AI/ML management as they generate vast amounts of data on their operations and require significant management. AI/ML could address the growing complexity of 5G networks by automating many network management tasks.396 AI could help manage network slicing in 5G.397 AI and ML have the potential to improve spectral and energy efficiency in networks which are becoming more serious issues as bandwidth and computations increase with growing network traffic.398 Qualcomm, for example, has developed AI and ML predictive algorithms to replace traditional measurement processes in wireless networks.399 In addition, Qualcomm proposes that 391 For example, one AI textbook lists eight different historical definitions of AI in its introductory chapter. Stuart Russell & Peter Norvig, Artificial Intelligence: A Modern Approach 2 (3d ed. 2010). 392 “‘In just the last five or ten years, machine learning has become a critical way, arguably the most important way, most parts of AI are done,’ said MIT Sloan professor Thomas W. Malone, the founding director of the MIT Center for Collective Intelligence. ‘So that’s why some people use the terms AI and machine learning almost as synonymous … most of the current advances in AI have involved machine learning.’” Sara Brown, Machine learning, explained, MIT Sloan School of Management (Apr. 21, 2021), https://mitsloan.mit.edu/ideas-made-to- matter/machine-learning-explained. 393 See, e.g., Constant Wette Tchouati, Steven Rochefort, & George Sarmonikas, Monitoring IoT application performance with machine QoE, 103 Ericsson Technology Review at 12 (2021), https://www.ericsson.com/493a09/assets/local/reports-papers/ericsson-technology-review/docs/2021/etr-magazine- 2021-01.pdf; Rishi Vaish & Sky Matthews, IBM, 5G Will Accelerate a New Wave of IoT Applications, https://newsroom.ibm.com/5G-accelerate-IOT (last visited Oct. 6, 2022). 394 BBVA, What is edge computing and how does it complement 5G? (Jan. 7, 2021), https://www.bbva.com/en/what-is-edge-computing-and-how-does-it-complement-5g/. 395 Stephanie Overby, The Enterprisers Project, Edge computing: 5 examples of how enterprises are using it now (Mar. 17, 2021), https://enterprisersproject.com/article/2021/3/edge-computing-5-examples-how-enterprises-using. 396 Diarmund Corcoran, Andreas Ermedahl, & Catrin Granbom, Artificial intelligence in RAN, 103 Ericsson Technology Review 42-43 (2021), https://www.ericsson.com/493a09/assets/local/reports-papers/ericsson- technology-review/docs/2021/etr-magazine-2021-01.pdf; Diarmund Corcoran et al., AI-enabled RAN automation 10-2021 Ericsson Technology Review 2-3 (2021), https://www.ericsson.com/4aafdb/assets/local/reports- papers/ericsson-technology-review/docs/2021/ai-enabled-ran-automation.pdf. 397 Ericsson, Network Slicing, https://www.ericsson.com/en/network-slicing (last visited Oct. 6, 2022). 398 Ratnakar Rao V. R., Samsung Research, Roles of Standards in AI for Wireless (May 4, 2022), https://research.samsung.com/blog/Role_of_Standards_in_AI_for_Wireless; Konstantinos Vandikas et al., Ensuring energy-efficient networks with artificial intelligence, 4-2021 Ericsson Technology Review 2 (2021), https://www.ericsson.com/4972d5/assets/local/reports-papers/ericsson-technology-review/docs/2021/ensuring- energy-efficient-networks-with-ai.pdf. 399 Arash Behboodi & Daniel Dijkman, Qualcomm, Bringing AI research to wireless communications and sensing [video] (May 25, 2022), https://www.qualcomm.com/news/onq/2022/05/bringing-ai-research-to-wireless- communication-and-sensing. 93 Federal Communications Commission FCC 22-103 AI-powered wireless networks should take advantage of low-latency 5G to distribute computation across the network.400 AT&T Labs is researching how to use AI and ML to optimize wireless networks.401 The O-RAN Alliance standard for Open RAN incorporates AI and ML in their specification for the RAN Intelligent Controller.402 The planned fourth 5G standard from 3GPP, Release 18 or “5G Advanced,” features AI/ML as “one of the four flagship Rel-18 projects” and “the top category in terms of defining the ‘Advanced’ aspect.”403 c. Mobile Wireless Devices and Handset Unlocking 126. In addition to competing on price and network quality, mobile service providers also compete using device promotions, differentiated service plans, bundled services, and advertising campaigns. By offering these diversified product packages providers are able to appeal to different subsets of consumers. As noted in section II.B.4, plans may differ in features such as data limits and throttling thresholds, hotspot data availability, cloud storage, streaming quality, and international service availability. Providers may also bundle their plans with subscriptions to certain video streaming services.404 127. From July 2021 to June 2022, thirteen mobile wireless handset manufacturers distributed approximately 238 mobile wireless handset models, including 85 5G-capable handset models, to mobile wireless service providers in the United States.405 Five of these handset manufacturers each offered at least ten handset models.406 Efforts to ensure the accessibility of such handsets are ongoing—an independent Hearing Aid Compatibility (HAC) Task Force is preparing a detailed report for submission to the Commission on the feasibility of requiring 100% of covered handsets to be hearing aid compatible.407 When offering device promotions, mobile wireless service providers frequently offer device discounts for customers porting their numbers from competitors, or customers who add new lines 400 John E. Smee & Jilei Hou, Qualcomm, 5G+AI: The ingredients fueling tomorrow’s tech innovations (Feb. 3, 2020), https://www.qualcomm.com/news/onq/2020/02/5gai-ingredients-fueling-tomorrows-tech-innovations. 401 AT&T, Analytics and AI-based automation, https://about.att.com/sites/labs/our-work/analytics-ai-automation (last visited Oct. 6, 2022). 402 Chih-Lin I & Sachin Katti, O-RAN, O-RAN ALLIANCE Introduces 48 New Specifications Released Since July 2021, https://www.o-ran.org/blog/o-ran-alliance-introduces-48-new-specifications-released-since-july-2021 (last visited Oct. 6, 2022). 403 Bevin Fletcher, Fierce Wireless, Next 3GPP standard tees up 5G Advanced (Dec. 17, 2021), https://www.fiercewireless.com/tech/next-3gpp-standard-tees-5g-advanced. 404 See, e.g., T-Mobile, Get Netflix deals on us with your plan, https://www.t-mobile.com/offers/netflix-on-us (last visited Oct. 6, 2022); Verizon, Your next phone, now free, https://www.verizon.com/promos/switch-and-save/ (last visited Oct. 6, 2022). 405 These figures are based on data from hearing aid compatibility reports filed by handset manufacturers in July 2022 for the reporting period from July 1, 2021 to June 30, 2022, available at the FCC Hearing Aid Compatibility status reporting site: FCC, Hearing Aid Compatibility Reports: Device Manufacturers Summary, https://www.fcc.gov/wireless/systems-utilities/universal-licensing-system/hearing-aid-compatibility-status- reporting-1 (last visited Oct. 6, 2022) (with the file name “List of All Handsets Offered by Manufacturers”). These reports include information (such as handset maker, model name, starting available date and end available date) for each handset model offered by the reporting handset manufacturer during the reporting period. 406 Apple, Motorola, Samsung, TCL, and Zebra Technologies offered 10, 85, 36, 54, and 10 handset models, respectively. 407 Wireless Telecommunications Bureau Reminds Wireless Handset Manufacturers and Service Providers of Upcoming Changes to Hearing Aid Compatibility Deployment Benchmarks, WT Docket Nos. 15-285 and 20-3, Public Notice, DA 21-1215 (WTB Sept. 28, 2021). 94 Federal Communications Commission FCC 22-103 to their accounts.408 For example, in August 2022, AT&T, T-Mobile, and Verizon Wireless all offered promotions involving the Apple iPhone 13.409 AT&T offered up to a $700 discount on any iPhone 13 with an eligible device trade-in, with the discount being applied in the form of credits paid over a 36 month period.410 Similarly, Verizon Wireless offered up to an $800 discount on the purchase of an iPhone 13, with an eligible trade in and the discount applied via 36 monthly billing credits.411 Finally, T-Mobile offered up to an $800 discount paid over 24 monthly billing credits to customers adding a new service line and selecting a Magenta Max plan.412 128. Mobile Device Unlocking. Mobile broadband providers have the ability to lock the devices they sell to consumers on their own networks, in order to prevent the use of the device on other providers’ networks.413 Device locking leads to switching costs for consumers who are tethered to a specific provider.414 Mobile device unlocking facilitates consumer choice among mobile broadband providers by freeing consumers from having to replace their handset to use another network, thereby reducing switching costs.415 According to Public Knowledge, Open Technology Institute, and Consumer Reports, consumers still bear the costs of phone locking, and phone locking is a barrier to competition.416 129. In 2013, WTB negotiated an industry agreement on mobile device unlocking.417 In accord with this agreement, CTIA added a section to its “Consumer Code for Wireless Service” that included device unlocking policies.418 While this Consumer Code is voluntary, providers who choose to 408 See, e.g., Verizon Wireless, Disney + on us, https://www.verizon.com/solutions-and-services/disneyplus/ (last visited Oct. 6, 2022). 409 Charlie Osborne & Jason Cipriani, ZDNET, Want an iPhone? We found the best deals on new and older models (Sept. 10, 2022), https://www.zdnet.com/article/best-iphone-deals-available. 410 AT&T, Apple iPhone 13, https://www.att.com/buy/phones/apple-iphone-13.html (last visited Oct. 6, 2022). 411 Verizon Wireless, Apple iPhone 13, https://www.verizon.com/smartphones/apple-iphone-13/ (last visited Oct. 6, 2022). 412 T-Mobile, Apple iPhone 13, https://www.t-mobile.com/cell-phone/apple-iphone-13 (last visited Oct. 6, 2022). 413 See FCC, Cell Phone Unlocking FAQs (Dec. 31, 2019), https://www.fcc.gov/consumers/guides/cell-phone- unlocking-faqs (Commission’s guide to cell phone unlocking). 414 Implementation of Section 6002(b) of the Omnibus Budget Reconciliation Act of 1993; Annual Report and Analysis of Competitive Market Conditions With Respect to Mobile Wireless, Including Commercial Mobile Services, WT Docket No. 15-125, Eighteenth Report, 30 FCC Rcd 14515, 14610-11, para. 152 (2015) (Eighteenth Mobile Wireless Competition Report) (“The ability to unlock a handset in order to activate it on another service providers network enables consumers to exercise greater choice in choosing or switching providers and lowers switching costs.”). 415 Eighteenth Mobile Wireless Competition Report, 30 FCC Rcd at 14610-11, para. 152; see also FCC, Cell Phone Unlocking FAQs (Dec. 31, 2019), https://www.fcc.gov/consumers/guides/cell-phone-unlocking-faqs (“When cell phone users change between compatible wireless service providers, they have the option of ‘unlocking’ their phones to use on their new service provider’s network, giving consumers greater freedom and flexibility while increasing incentives for service providers to innovate.”). 416 Public Knowledge, OTI, and Consumer Reports Reply at 13 (“Phone locking harms competition, frustrates users, and creates e-waste.”). 417 Letter from Steve Largent, President and CEO, CTIA, to Thomas E. Wheeler, Chairman, and Commissioners, FCC (Dec. 12, 2013), https://www.fcc.gov/document/ctia-letter-carrier-unlocking-voluntary-agreement-fcc- statements (on Carrier Unlocking Agreement). 418 CTIA, Consumer Code for Wireless Service, https://www.ctia.org/the-wireless-industry/industry- commitments/consumer-code-for-wireless-service (last visited Sept. 23, 2022) (CTIA Consumer Code). 95 Federal Communications Commission FCC 22-103 adopt the code agree to unlock phones when the postpaid service contract or financing plan is fulfilled.419 For prepaid phones, providers agree to unlock devices within one year after activation.420 In addition, if the device is not automatically unlocked, providers will notify customers when their device is eligible for unlocking.421 Further, participating service providers will post on their websites a clear, concise, and easily found policy on mobile device unlocking.422 The participating CTIA member service providers are required to implement all of the unlocking disclosure policies within a year of signing the agreement, and all of the major service providers fulfilled this commitment by February 11, 2015.423 130. While adherence to the CTIA Consumer Code is voluntary, compliance with the unlocking polices in the Consumer Code is required for many providers by virtue of their annual eligible telecommunications (ETC) certifications.424 All ETCs requesting federal high-cost or low-income universal service support must annually file reports providing financial and operational information that is used to validate support disbursed to ETCs from the high-cost and Lifeline support mechanisms.425 ETCs that receive low-income support are further required to certify that they comply with applicable service quality and consumer protection standards.426 Many ETCs take advantage of a “safe harbor” that allows the companies to certify that they will comply with the CTIA Code in lieu of otherwise demonstrating how they meet these standards.427 ETCs that rely upon this safe harbor must annually certify their compliance with the unlocking provisions in the CTIA Consumer Code.428 Besides ETCs, an additional method of enforcement comes through licensing of the 700 MHz C Block. The Commission’s rules prohibit device locking by any provider using that spectrum, and the Commission has taken steps to enforce these provisions.429 131. eSIM Technology and Consumers. The next generation of cellphones (iPhones, Samsung Galaxy,430 etc.) all use newer eSIM technologies that do not require a physical SIM in the device. The 419 CTIA Consumer Code (navigate to the “Postpaid Unlocking Policy” subsection of the “Mobile Wireless Device Unlocking” section). 420 Id. 421 CTIA Consumer Code (navigate to the “Notice” subsection of the “Mobile Wireless Device Unlocking” section). 422 CTIA Consumer Code (navigate to the “Disclosure” subsection of the “Mobile Wireless Device Unlocking” section). 423 Roger C. Sherman & Kris Monteith, FCC, Wireless Providers Fulfill Commitment to Let Consumers Unlock Mobile Phones (Feb. 11, 2015), https://www.fcc.gov/blog/wireless-providers-fulfill-commitment-let-consumers- unlock-mobile-phones. 424 Seventeenth Wireless Competition Report, 29 FCC Rcd at 15374, para. 124 (noting implementation of unlocking policies in the CTIA Consumer Code by providers that committed to comply with the code as part of their ETC designation). 425 47 U.S.C. § 254; 47 CFR §§ 54.313, 54.422. 426 47 CFR §§ 54.202(a)(3), 54.422(b)(3). 427 Id. § 54.202(a)(3); Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 20 FCC Rcd 6371, 6383-84, para. 28 (2005). 428 See, e.g., TracFone Wireless, Inc., Order and Consent Decree, DA 15-696 (July 1, 2015) (resolving an investigation into Tracfone’s apparent non-compliance with the CTIA Consumer Code’s unlocking provisions by adoption of a compliance plan and a $400,000 per month offset to the Lifeline program). 429 47 CFR § 27.16(e); Cellco Partnership d/b/a Verizon Wireless, Order and Consent Decree, DA 12-1228 (July 31, 2012) (Verizon Order and Consent Decree) (resolving investigation into Verizon’s device locking policies by adoption a compliance plan and payment of $1,250,000). 430 Mushfiq Rahman, US Mobile, Always up-to-date list of eSim compatible devices (Sept. 7, 2021), https://www.usmobile.com/blog/list-of-esim-compatible-devices/. 96 Federal Communications Commission FCC 22-103 eSIM allows consumers with unlocked devices to switch between providers with minimal effort and time. Currently, all three major national providers support eSIMs; however, consumer awareness of this technology is low.431 132. Verizon-TracFone and Handset Unlocking. As the 700 MHz C Block licensee throughout the United States, Verizon is required to comply with the prohibition against device locking by licensees offering service in this band, subject to a 60-day waiver to combat handset-related fraud.432 Prior to its acquisition by Verizon, TracFone, an MVNO, was not subject to these unlocking requirements.433 However, post-transaction, Verizon planned to migrate all TracFone customers to its network.434 As such, in addition to its other transaction-specific commitments, Verizon committed to unlocking obligations aimed at extending its 60-day unlocking policy to all 700 MHz C Block devices purchased from TracFone.435 As part of this, Verizon committed to notify all TracFone customers of its new unlocking policies.436 d. Advertising 133. Mobile wireless providers also compete for customers through extensive advertising and marketing. Service providers’ marketing campaigns have highlighted aspects such as network quality and 5G capabilities,437 pricing,438 differentiating services,439 and device promotions.440 In 2021, AT&T spent $2.2 billion on advertising, excluding marketing expenditures on Warner Media;441 T-Mobile also spent 431 Linda Hardesty, Fierce Wireless, Big U.S. carriers now support eSIM, but they’re not marketing it (June 9, 2021), https://www.fiercewireless.com/wireless/big-u-s-carriers-now-support-esim-but-they-re-not-marketing-it. 432 47 CFR § 27.16(e); Verizon Order and Consent Decree. In 2019, the Commission granted Verizon a partial waiver of section 27.16(e) of the Commission’s rules to allow Verizon to better combat identity theft and other forms of handset-related fraud. Service Rules for the 698-746, 747-762 and 777-792 MHz Bands, WT Docket No. 06-150, Order, 34 FCC Rcd 5134, 5134, para. 1 (WTB 2019). 433 Verizon-TracFone Order at 46-47, para. 122. 434 Id. at 43-44, para. 112. Pre-transaction, Verizon already served approximately 64%, or 13.3 million, of TracFone’s more than 20 million customers. Id. at 43, para. 111. 435 Id. at 47, para. 124. In particular, within 30 days of the close of the transaction, Verizon would extend its 60-day unlocking policy subject to a two-year waiver of the automatic unlocking requirement to allow manual unlocking for those TracFone devices that do not have automatic unlocking capabilities currently. 436 Id. at 47, para. 124. 437 ispot.tv, T-Mobile TV Spot,‘iPhone 13: Hide & Seek: New Line’ Song by Tina Turner, https://www.ispot.tv/ad/bN46/iphone-13-hide-and-seek-new-line-song-by-tina-turner (last visited Oct. 6, 2022); ispot.tv, AT&T Wireless 5G TV Spot ‘LaMelo Covers for Lily’ Featuring LaMelo Ball, https://www.ispot.tv/ad/bOlz/at-and-t-wireless-5g-lamelo-covers-for-lily-featuring-lamelo-ball (last visited Oct. 6, 2022). 438 ispot.tv, T-Mobile TV Spot ‘Please Listen: Switch and Get $100’ Featuring Ben Barnes, https://www.ispot.tv/ad/bMCU/t-mobile-please-listen-switch-and-get-1000-featuring-ben-barnes (last visited Oct. 6, 2022). 439 ispot.tv, T-Mobile TV Spot ‘iPhone 13: Hide & Seek: New Line and Apple TV+’ Song by Tina Turner,’ https://www.ispot.tv/ad/bN4X/t-mobile-iphone-13-hide-and-seek-new-line-and-apple-tv-song-by-tina-turner (last visited Oct. 6, 2022). 440 ispot.tv, AT&T Wireless TV Spot ‘Lily + Matthew: Interview’ Featuring Matthew Stafford, https://www.ispot.tv/ad/b1k1/at-and-t-wireless-lily-matthew-interview-featuring-matthew-stafford (last visited Oct. 6, 2022); ispot.tv, Verizon TV Spot ‘Show the Love: Customers for Years and Switcher’, https://www.ispot.tv/ad/bylk/verizon-show-the-love-customers-for-years-and-switchers (last visited Oct. 6, 2022). 441 AT&T Inc., SEC Form 10-K, at 37, 123 (filed Feb. 16, 2022). 97 Federal Communications Commission FCC 22-103 $2.2 billion;442 and Verizon Wireless spent $3.4 billion.443 By comparison, in 2019, AT&T spent $3.2 billion on advertising, excluding marketing expenditures on Warner Media;444 T-Mobile spent $1.6 billion;445 and Verizon Wireless spent $3.1 billion.446 e. Mobile Applications 134. The wide adoption of mobile devices in the global market has contributed to the development and growth of applications (apps) that are designed for mobile operating systems.447 In 2021, annual mobile app downloads reached 230 billion worldwide, a 5% increase from the previous year.448 The average American spent 4.1 hours per day on mobile devices in 2021, more than the 3.1 hours they spent each day watching TV.449 In 2020, 88% of the time Americans devoted to Internet activities on mobile devices was spent using apps, excluding web browsers.450 The increasingly important role that mobile devices play in the modern economy not only directly impacts the mobile apps market, but also has wider implications for e-commerce. In this section, we discuss the major mobile app platforms, revenue and business models in the mobile app industry, and provide some download and usage statistics for mobile apps. 135. The predominant mobile operating systems worldwide are Android and iOS.451 Globally, most mobile applications for these operating systems can be purchased in either the Google Play Store (Android) or the Apple App Store (iOS). These two app stores are the largest “native” app distribution platforms in terms of the number of applications available to download.452 However, smaller native app 442 T-Mobile US, Inc., SEC Form 10-K, at 69 (filed Feb. 11, 2022). 443 Verizon Communications Inc., SEC Form 10-K, at 101 (filed Feb. 11, 2022). 444 AT&T Inc., SEC Form 10-K, at 37, 123 (filed Feb. 16, 2022). 445 T-Mobile US, Inc., SEC Form 10-K, at 69 (filed Feb. 11, 2022). 446 Verizon Communications Inc., SEC Form 10-K, at 101 (filed Feb. 11, 2022). 447 BuildFire, Mobile App Download Statistics & Usage Statistics (2022), https://buildfire.com/app-statistics/ (last visited Oct. 6, 2022) (there are 6.3 billion smartphone users and 1.14 billion tablet users worldwide). 448 data.ai, State of Mobile 2022 at 2 (2022), https://www.data.ai/en/go/state-of-mobile-2022/ (230 billion new app downloads from “iOS, Google Play, Third-Party Android in China”). 449 Id. Across the top 10 markets analyzed in the study, the average time consumers spent in apps topped 4 hours 48 minutes in 2021—up 30% from 2019. Id. 450 Yoram Wurmser, Insider Intelligence, The Majority of Americans’ Mobile Time Spent Takes Place in Apps (July 9, 2020), https://www.insiderintelligence.com/content/the-majority-of-americans-mobile-time-spent-takes-place-in- apps. 451 Federica Laricchia, Statista, Mobile operating systems’ market share worldwide from January 2012 to August 2022 (Aug. 30, 2022), https://www.statista.com/statistics/272698/global-market-share-held-by-mobile-operating- systems-since-2009/. 452 In this context, native app distribution platforms are app stores that are developed for use on at least one of the major mobile operating systems; i.e., Android and iOS, or on open-source operating systems. See Alexander S. Gillis, native app, https://www.techtarget.com/searchsoftwarequality/definition/native-application-native-app (last visited Oct. 6, 2022). For the number of apps available to download in various native app stores, see L. Ceci, Statista, Number of apps available in leading app stores as of 2nd quarter 2022 (Aug. 11, 2022), https://www.statista.com/statistics/276623/number-of-apps-available-in-leading-app-stores/ (for the Google Play Store, Apple App Store, and Amazon Appstore); Radu Tyrsina, Windows Report, How many apps are in the Microsoft Store? (Apr. 26, 2021), https://windowsreport.com/state-windows-8-apps-windows-store/ (for the Microsoft Store). Data regarding the number of apps available to download are not readily available for OpenStore, the PureOS Store, the Samsung Galaxy Store, and The Snap Store. 98 Federal Communications Commission FCC 22-103 stores also exist in the market, including the Amazon Appstore, the Microsoft Store, OpenStore, the PureOS Store, the Samsung Galaxy Store, and The Snap Store.453 Non-native app distribution platforms, such as Appland, Applivery, F-Droid, and Rootpk, are also present in the market.454 136. Revenues. App developers employ several types of business models to generate revenue, including in-app advertisements, upfront download fees, in-app purchases, and subscription services.455 In 2021, global revenue from Android and iOS apps exceeded $133 billion, a 19% increase over 2020 totals.456 Sensor Tower reports that in 2021, mobile games generated more revenue than any other app category, at $89.6 billion.457 This figure represents 67.4% of all app spending in 2021, and an increase of 12.6% from 2020.458 137. The Apple App Store and Google Play Store are the two largest app platforms. Outside of China, these two platforms control more than 95% of the market.459 In 2021, the Apple App Store generated $85.1 billion in revenue, accounting for 62.9% of global app revenue.460 This was a 17.7% increase over 2020 revenue.461 Likewise, the Google Play Store generated $47.9 billion in revenue during 2021, an increase of 23.5% since 2020.462 App stores generally charge developers a percentage-based commission on both apps and in-app purchases of digital goods, services, and subscriptions in exchange for hosting apps in their stores.463 In 2020, Apple updated its fee structure so that developers with annual 453 Amazon, Amazon Appstore, https://www.amazon.com/mobile-apps/b?ie=UTF8&node=2350149011 (last visited Oct. 6, 2022); Microsoft, Microsoft Store app, https://apps.microsoft.com/store/apps (last visited Oct. 6, 2022); OpenStore, Ubuntu Touch Apps, https://open-store.io/ (last visited Oct. 6, 2022); Purism, PureOS Store, https://software.pureos.net/ (last visited Oct. 6, 2022); Samsung, Galaxy Store, https://www.samsung.com/us/apps/galaxy-store/ (last visited Oct. 6, 2022); Canonical, The app store for Linux, https://snapcraft.io/ (last visited Oct. 6, 2022) (to access The Snap Store). 454 Appland, App Store Platform + Content + Services, https://www.applandinc.com/ (last visited Oct. 6, 2022); Applivery, Enterprise Mobility Management, https://www.applivery.com/ (last visited Oct. 6, 2022); F-Droid, What is F-Droid?, https://f-droid.org/ (last visited Oct. 6, 2022); Rootpk, Independent app store, https://rootpk.com/ (last visited Oct. 6, 2022). 455 Apple, Choosing a business model, https://developer.apple.com/app-store/business-models/ (last visited Oct. 6, 2022). 456 Sensor Tower is a data analytics company specializing in mobile applications. Stephanie Chan, Sensor Tower, Global Consumer Spending in Mobile Apps Reached $133 Billion in 2021, Up Nearly 20% from 2020 (Dec. 2021), https://sensortower.com/blog/app-revenue-and-downloads-2021. 457 Stephanie Chan, Sensor Tower, Global Consumer Spending in Mobile Apps Reached $133 Billion in 2021, Up Nearly 20% from 2020 (Dec. 2021), https://sensortower.com/blog/app-revenue-and-downloads-2021. 458 Id. 459 David Curry, Business of Apps, App Store Data (2022), https://www.businessofapps.com/data/app-stores/ (last visited Oct. 6, 2022). 460 Grand View Research, Mobile Application Market Size, Share, & Trends Analysis Report By Store Type (Google Store, Apple Store, Others), By Application, By Region, And Segment Forecasts, 2022-2030, https://www.grandviewresearch.com/industry-analysis/mobile-application- market#:~:text=Store%20Type%20Insights,of%20global%20revenue%20in%202021 (last visited Oct. 6, 2022). 461 Stephanie Chan, Sensor Tower, Global Consumer Spending in Mobile Apps Reached $133 Billion in 2021, Up Nearly 20% from 2020 (Dec. 2021), https://sensortower.com/blog/app-revenue-and-downloads-2021. 462 Id. 463 The sales of physical goods are exempt from service fees. Ian Carlos Campbell & Julia Alexander, The Verge, A guide to platform fees (Aug. 24, 2021), https://www.theverge.com/21445923/platform-fees-apps-games-business- marketplace-apple-google. 99 Federal Communications Commission FCC 22-103 revenues less than $1 million faced a 15% fee, while developers with revenues greater than $1 million faced a 30% fee.464 Google has implemented a similar fee structure in which developers face a 15% fee on their first $1 million in revenue, and a 30% fee on any revenue above $1 million.465 138. Downloads. Globally, as of the second quarter of 2022, the Google Play Store and the Apple App Store had approximately 3.5 million and 2.2 million applications available to download, respectively.466 Figure II.B.23 shows that the five categories in the Apple App Store containing the largest number of apps available to download worldwide as of April 2022 were Games, Business, Education, Utilities, and Lifestyle,467 whereas Figure II.B.24 shows that the five largest categories in the Google Play Store were Games, Education, Business, Music & Audio, and Tools.468 Moreover, global users downloaded approximately 27.0 billion and 8.2 billion applications from the Google Play Store and the Apple App Store, respectively, during the third quarter of 2022,469 with social media and messaging apps dominating the top ten list of the most downloaded apps through the second quarter of 2022.470 Specifically, as shown in Figure II.B.25, seven of the top ten most downloaded mobile apps were social media or messaging apps, with shopping, video editing, and music streaming apps claiming the remaining three spots.471 In addition, globally, as of June 2022, 96.8% of the applications in the Google Play Store could be downloaded for free compared with 93.9% of those in the Apple App Store.472 464 Prior to 2020, all developers were subject to a 30% service fee. Press Release, Apple, Apple announces App Store Small Business Program (Nov. 18, 2020), https://www.apple.com/newsroom/2020/11/apple-announces-app- store-small-business-program/. 465 Google, Service fees, https://support.google.com/googleplay/android-developer/answer/112622?hl=en (last visited Oct. 6, 2022). 466 L. Ceci, Statista, Number of apps available in leading app stores as of 2nd quarter 2022 (Aug. 11, 2022), https://www.statista.com/statistics/276623/number-of-apps-available-in-leading-app-stores/. It is unclear from online sources whether the application numbers provided include non-mobile apps (i.e., applications used on tablets, laptops, etc.) in addition to mobile apps (i.e., applications used on phones). 467 David Curry, Business of Apps, Most Popular Apple App Store Categories, Business of Apps (Aug. 31, 2022), https://www.businessofapps.com/data/app-stores/. 468 Id. 469 L. Ceci, Statista, Number of iOS and Google Play app downloads as of Q3 2022 (Oct. 6, 2022), https://www.statista.com/statistics/695094/quarterly-number-of-mobile-app-downloads-store/. It is unclear from online sources whether the download numbers provided include non-mobile apps (i.e., applications used on tablets, laptops, etc.) in addition to mobile apps (i.e., applications used on phones). 470 Data.ai, Top Apps & Games, Q2 2022 Rankings, https://dataai.infogram.com/1pyy9e0y15xevdc37jp100zyz9iymmvkekl (last visited Oct. 6, 2022). 471 Id. 472 L. Ceci, Statista, Distribution of free and paid Android apps 2022 (July 13, 2022), https://www.statista.com/statistics/266211/distribution-of-free-and-paid-android-apps/; L. Ceci, Statista, Distribution of free and paid iOS apps 2019-2022 (July 13, 2022), https://www.statista.com/statistics/1020996/distribution-of-free-and-paid-ios-apps/. 100 Federal Communications Commission FCC 22-103 Fig. II.B.23 Source: Business of Apps. Fig. II.B.24 Source: Business of Apps. 101 Federal Communications Commission FCC 22-103 Fig. II.B.25 Ranking of Most Downloaded Apps Worldwide (Q2 2022) Rank Name of App Category 1 Instagram Social Media 2 Facebook Social Media 3 TikTok Social Media 4 WhatsApp Messenger Messaging 5 Snapchat Social Media 6 Telegram Messaging 7 Facebook Messenger Messaging 8 Meesho Shopping 9 CapCut Video Editing 10 Spotify Music Streaming Source: data.ai. 139. Usage. Although there were approximately 80 apps on average installed on each smartphone in 2022, the average person only used nine mobile apps per day and 30 apps per month.473 About 25% of apps were used only once after being downloaded, and the churn rate was 71% within the first 90 days.474 Meanwhile, mobile app usage varies across age groups as young adults tend to spend more time on mobile apps than do older generations.475 In the United States, as of 2021, the most-used apps for Gen Z included Instagram, TikTok, Snapchat, and Netflix.476 Millennials, meanwhile, preferred Facebook, Messenger, Amazon, and WhatsApp.477 During the same time, Gen X and Baby Boomers used the Weather Channel, Amazon Alexa, NewsBreak, and Ring apps the most.478 f. Speed of Service 140. Network speed is a key characteristic of mobile wireless performance. As such, the Commission has recognized the importance of accurate and timely data on download and upload speeds.479 The mobile broadband speeds and network performance that consumers experience can vary greatly with a number of factors, including the service provider’s received signal quality, cell traffic 473 BuildFire, Mobile App Download Statistics & Usage Statistics (2022), https://buildfire.com/app-statistics/ (last visited Oct. 6, 2022). 474 Id. 475 Maitrik Kataria, Simform, App Usage Statistics 2021 that’ll Surprise You (Jan. 5, 2021), https://www.simform.com/blog/the-state-of-mobile-app-usage/. 476 Sarah, Perez, TechCrunch, App Annie: Global app stores’ consumer spend up 19% to $170B in 2021, downloads grew 5% to 230B (Jan. 12, 2022), https://techcrunch.com/2022/01/12/app-annie-global-app-stores-consumer-spend- up-19-to-170b-in-2021-downloads-grew-5-to-230b/ (“Gen Z is represented by those aged 16-24; Millennials are represented by those aged 25-44; Gen X and the Baby Boomers are represented by those aged 45+”). 477 Id. 478 Id. 479 See, e.g., Fourteenth Broadband Deployment Report, 36 FCC Rcd at 852-53, paras. 29-30. 102 Federal Communications Commission FCC 22-103 loading and network capacity in different locations, terrain, weather conditions, as well as the capabilities of consumers’ devices.480 Therefore, there are various methodologies that measure mobile network speeds. The two most prevalent methodologies for measuring speed rely on crowdsourced data and structured sample data. Crowdsourced data are user-generated data produced by consumers who voluntarily download speed test applications on their mobile devices, while structured sample data, by contrast, are generated from tests that control for the location and time of the tests as well as for the devices used in the test.481 This Report presents speed data using Ookla Speedtest data (crowdsourced), Opensignal data (crowdsourced), and RootMetrics (structured sample).482 141. Figures II.B.26 and II.B.27 present the nationwide mean and median 4G LTE download and upload speeds by service provider based on Ookla data483 for the second half of 2020 through the second half of 2021.484 Figures II.B.28 and II.B.29 present the nationwide mean and median 5G download and upload speeds by service provider, for the second half of 2020 through the first half of 480 For additional discussion of the various factors, see, e.g., Twentieth Wireless Competition Report, 32 FCC Rcd at 9033, para. 87. 481 For a detailed discussion of crowdsourcing and structured sample data, see Twentieth Wireless Competition Report, 32 FCC Rcd at 9033-34, para. 88. Many apps that collect crowdsourced data collect data via background or automated tests, as well as through user-initiated tests. We note that crowdsourced data have certain limitations. For example, bias may be introduced into speed test data because tests are performed only at specific times and places, potentially providing a less accurate snapshot of mobile broadband performance. Further, “the methods by which different speed test apps collect data can vary and may not use techniques that control for certain variables.” See, e.g., BDC Second Order and Third Further Notice, 35 FCC Rcd at 7487-88, para. 65. 482 While speed metrics based on the FCC Speed Test (available for both Android phones and the iPhone) were reported in the Seventeenth Wireless Competition Report through the Nineteenth Wireless Competition Report, we stopped reporting these metrics in the Twentieth Wireless Competition Report and do not report them in this Report due to certain anomalies found in the underlying data. We may include data from the FCC Speed Test in future reports. An in-depth discussion of the MBA program’s FCC Speed Test is available in the Seventeenth Wireless Competition Report. Seventeenth Wireless Competition Report, 29 FCC Rcd at 15467, Appx. VI., paras. 7-9; see also FCC, Measuring Mobile Broadband, https://www.fcc.gov/general/measuring-mobile-broadband-performance (last visited Oct. 6, 2022). 483 Ookla gathers crowdsourced mobile speed data through the use of its Speedtest mobile app. Speedtest, Speedtest Apps for Mobile, http://www.speedtest.net/mobile/ (last visited Oct. 6, 2022). An in-depth discussion of the Ookla Speedtest is available in the Seventeenth Wireless Competition Report. Seventeenth Wireless Competition Report, 29 FCC Rcd at 15465-66, Appx. VI., paras. 1-6. The upload and download speeds were calculated by Ookla and provided to the Commission for use in this Report. The updated Ookla figures in this Report present sample count which is the number of tests in the cleaned sample on which the mean and median upload and download speeds are based. In contrast, the corresponding figures in previous reports, including the 2020 Communications Marketplace Report, present the total number of tests (the number of tests in the uncleaned dataset) 484 On August 2, 2020, T-Mobile combined brand operations with Sprint. T-Mobile, Press Release, T‑Mobile Unveils Latest Un‑carrier Move: Scam Shield — A Massive Set of Free Solutions to Protect Customers From Rampant Scams and Robocalls (July 16, 2020), https://www.t-mobile.com/news/un-carrier/scam-shield-protects- customers-from-scams-robocalls. While T-Mobile stopped accepting new Sprint customers at this time, it continues to maintain the Sprint network for existing Sprint customers. T-Mobile, Sprint is now part of the family, https://www.t-mobile.com/brand/t-mobile-sprint-merger- updates?icid=MGPO_TMO_P_20NEWTMO_LTD35TK1G23BLQ85V21324#day0-faq (last visited Oct. 6, 2022) (navigate to the “Got questions?” subsection). Therefore, crowdsourced speed tests will continue to identify customers on the Sprint network, and will continue to do so until all customers are migrated to the T-Mobile network. However, beginning in 2021, the Ookla data presented in this Report no longer differentiates between the Sprint and T-Mobile networks. 103 Federal Communications Commission FCC 22-103 2022.485 Finally, Figure II.B.30 presents the increase over time for mean and median 4G LTE download speeds for all providers, from the first half of 2014 through the first half of 2022.486 Based on Ookla data, Figure II.B.30 indicates that the median LTE download speed increased from 11.0 Mbps to 30.4 Mbps, an increase of approximately 176%, over this time period. Fig. II.B.26 Ookla Speedtest–Estimated 4G LTE Download Speeds by Service Provider, Nationwide 2H2020 1H2021 2H2021 Mean Median Mean Median Mean Median Service Down Down Sample Down Down Sample Down Down Sample Provider load load Count load load Count load load Count Speed Speed ('000s) Speed Speed ('000s) Speed Speed ('000s) (Mbps) (Mbps) (Mbps) (Mbps) (Mbps) (Mbps) AT&T 49.04 36.06 755 49.07 35.56 488 47.63 33.67 368 Sprint 40.42 24.85 201 - - - - - - T-Mobile 38.43 27.82 549 42.03 30.28 527 43.28 31.29 364 Verizon 38.02 27.07 902 40.10 27.92 620 37.75 25.43 457 Wireless Source: Ookla SPEEDTEST intelligence data, © 2022 Ookla, LLC. All rights reserved. Published with permission of Ookla. Fig. II.B.27 Ookla Speedtest–Estimated 4G LTE Upload Speeds by Service Provider, Nationwide 2H2020 1H2021 2H2021 Mean Median Mean Median Mean Median Service Sample Sample Sample Upload Upload Upload Upload Upload Upload Provider Count Count Count Speed Speed Speed Speed Speed Speed ('000s) ('000s) ('000s) (Mbps) (Mbps) (Mbps) (Mbps) (Mbps) (Mbps) AT&T 8.91 6.40 755 8.67 5.77 488 8.01 5.02 368 Sprint 3.67 2.32 201 - - - - - - T-Mobile 12.31 8.12 549 10.03 5.84 527 9.06 5.27 364 Verizon 9.20 5.71 902 9.24 5.76 620 8.31 4.97 457 Wireless Source: Ookla SPEEDTEST intelligence data, © 2022 Ookla, LLC. All rights reserved. Published with permission of Ookla. 485 Although most figures in this Report present data as of the end of 2021, the 5G speed figures include some 2022 data. This is due to the rapid and recent developments in 5G deployment. 486 Over time, Ookla has updated its data cleaning and aggregation rules. In Fig. II.B.30, the legacy rules are reflected through the first half of 2016, and updated cleaning rules are reflected in the second half of 2016 and on. 104 Federal Communications Commission FCC 22-103 Fig. II.B.28 Ookla Speedtest–Estimated 5G Download Speeds by Service Provider, Nationwide 2H2020 1H2021 2H2021 1H2022 Mean Median Mean Median Mean Median Mean Median Service Down Down Sample Down Down Sample Down Down Sample Down Down Sample Provider load load Count load load Count load load Count load load Count Speed Speed ('000s) Speed Speed ('000s) Speed Speed ('000s) Speed Speed ('000s) (Mbps) (Mbps) (Mbps) (Mbps) (Mbps) (Mbps) (Mbps) (Mbps) AT&T 92.84 78.50 108 96.95 76.18 178 91.19 70.69 275 96.49 70.25 325 T-Mobile 85.32 69.69 255 123.72 91.76 403 204.22 164.01 531 226.22 189.73 515 Verizon 151.77 61.35 194 215.61 72.13 272 279.15 78.93 358 230.51 108.32 442 Wireless Source: Ookla SPEEDTEST intelligence data, © 2022 Ookla, LLC. All rights reserved. Published with permission of Ookla. Fig. II.B.29 Ookla Speedtest–Estimated 5G Upload Speeds by Service Provider, Nationwide 2H2020 1H2021 2H2021 1H2022 Mean Median Mean Median Mean Median Mean Median Service Sample Sample Sample Sample Upload Upload Upload Upload Upload Upload Upload Upload Provider Count Count Count Count Speed Speed Speed Speed Speed Speed Speed Speed ('000s) ('000s) ('000s) ('000s) (Mbps) (Mbps) (Mbps) (Mbps) (Mbps) (Mbps) (Mbps) (Mbps) AT&T 17.35 15.05 108 17.83 13.82 178 14.13 11.15 275 12.74 9.27 325 T-Mobile 23.71 20.33 255 24.26 18.77 403 24.13 19.14 531 23.12 17.41 515 Verizon 21.69 17.65 194 24.03 18.02 272 23.15 17.22 358 20.48 15.32 442 Wireless Source: Ookla SPEEDTEST intelligence data, © 2022 Ookla, LLC. All rights reserved. Published with permission of Ookla. 105 Federal Communications Commission FCC 22-103 Fig. II.B.30 Source: Ookla SPEEDTEST intelligence data, © 2022 Ookla, LLC. All rights reserved. Published with permission of Ookla. 142. Figures II.B.31 and II.B.32 below present nationwide average download and upload speeds for the second half of 2020 through the second half of 2021 from Opensignal.487 We present nationwide average 5G download and upload speeds from Opensignal in Figures II.B.33 and II.B.34, and 5G Availability in Figure II.B.35. Fig. II.B.31 Opensignal–Estimated Download Speeds, Nationwide488 2H2020 1H2021 2H2021 Average Average Average Service Provider Download Download Download Speed Speed Speed (Mbps) (Mbps) (Mbps) AT&T 33.2 35.2 35.3 T-Mobile 28.8 31.8 54.1 Verizon Wireless 28.9 28.7 30.2 Source: Opensignal, © 2022 Opensignal. 487 Opensignal gathers crowdsourced mobile speed data through the use of its mobile app as well as through partner apps. The partners they work with are strategically selected to cover a wide range of users, demographics, and devices. Opensignal, Methodology Overview, https://www.opensignal.com/methodology-overview (last visited Oct. 6, 2022). 488 Fig. II.B.31 presents Opensignal’s Download Speed Experience. Measured in Mbps, Opensignal’s Download Speed Experience represents the typical everyday speeds a user experiences across an operator’s mobile data networks. Opensignal, Methodology Overview, https://www.opensignal.com/methodology-overview (last visited Oct. 6, 2022). 106 Federal Communications Commission FCC 22-103 Fig. II.B.32 Opensignal–Estimated Upload Speeds, Nationwide489 2H2020 1H2021 2H2021 Average Average Average Service Provider Upload Upload Upload Speed Speed Speed (Mbps) (Mbps) (Mbps) AT&T 5.7 6.1 6.7 T-Mobile 9.9 9.3 10.5 Verizon Wireless 7.7 7.9 8.2 Source: Opensignal, © 2022 Opensignal. Fig. II.B.33 Opensignal–Estimated 5G Download Speeds, Nationwide490 2H2020 1H2021 2H2021 1H2022 5G 5G 5G Service Provider 5G Download Download Download Download Speed (Mbps) Speed Speed Speed (Mbps) (Mbps) (Mbps) AT&T 53.8 52.3 49.1 53.6 T-Mobile 58.1 87.5 150.0 171.0 Verizon Wireless 47.4 52.3 56.2 72.8 Source: Opensignal, © 2022 Opensignal. Fig. II.B.34 Opensignal–Estimated 5G Upload Speeds, Nationwide491 2H2020 1H2021 2H2021 1H2022 5G 5G 5G Upload 5G Upload Service Provider Upload Upload Speed Speed Speed Speed (Mbps) (Mbps) (Mbps) (Mbps) AT&T 8.0 8.8 9.9 10.0 T-Mobile 14.0 15.1 17.9 17.8 Verizon Wireless 11.9 14.2 14.1 14.0 Source: Opensignal, © 2022 Opensignal. 489 Fig. II.B.32 presents Opensignal’s Upload Speed Experience. Measured in Mbps, Opensignal’s Upload Speed Experience measures the average upload speeds for each operator observed by our users across their mobile data networks. Opensignal, Methodology Overview, https://www.opensignal.com/methodology-overview (last visited Oct. 6, 2022). 490 Fig. II.B.33 presents Opensignal’s 5G Download Speed, defined as the average download speed observed by Opensignal users with active 5G connections. Opensignal, Methodology Overview, https://www.opensignal.com/methodology-overview (last visited Oct. 6, 2022). 491 Fig. II.B.34 presents Opensignal’s 5G Upload Speed, defined as the average upload speed observed by Opensignal users with active 5G connections. Opensignal, Methodology Overview, https://www.opensignal.com/methodology-overview (last visited Oct. 6, 2022). 107 Federal Communications Commission FCC 22-103 Fig. II.B.35 Opensignal–Estimated 5G Availability, Nationwide492 2H2020 1H2021 2H2021 1H2022 Service Provider 5G 5G 5G 5G Availability Availability Availability Availability (%) (%) (%) (%) AT&T 18.8 22.5 16.5 18.7 T-Mobile 30.1 36.3 35.4 40.6 Verizon Wireless 9.5 10.5 9.5 10.6 Source: Opensignal, © 2022 Opensignal. 143. RootMetrics mobile wireless indices within the United States for the second half of 2020 through the second half of 2021 are presented in Figure II.B.36.493 Fig. II.B.36 RootMetrics–National Speed Index Data 2H2020 1H2021 2H2021 Service Speed Data Text Speed Data Text Speed Data Text Provider Index Index Index Index Index Index Index Index Index AT&T 94.9 96.3 96.8 97.5 97.6 96.7 97.4 97.4 96.8 T-Mobile 84.6 89.8 91.5 91.4 93.6 92.3 94.0 94.6 92.3 Verizon 95.9 97.1 96.5 95.7 97.1 96.8 94.6 96.4 96.5 Wireless Source: RootMetrics Data, © 2022 RootMetrics. All rights reserved. 6. Network Coverage 144. In this section, we rely on the FCC Form 477 data for our analysis. As explained above, we expect the BDC to be a considerable improvement over the FCC Form 477 data, but the BDC is still in its early stages. As a result, we use the FCC Form 477 data for this Report’s analysis of wireless network coverage but expect to rely on the BDC for the next Report’s analysis. 145. We measure mobile network coverage using the actual-area methodology, which analyzes FCC Form 477 mobile broadband data on a sub-census-block level and calculates the percentage of each census block covered by each service provider by technology.494 Unlike the centroid 492 Fig. II.B.35 presents Opensignal’s 5G Availability. 5G Availability shows the proportion of time Opensignal users with a 5G device and a 5G subscription had an active 5G connection. Opensignal, Methodology Overview, https://www.opensignal.com/methodology-overview (last visited Oct. 6, 2022). 493 RootMetrics, A simple premise for a sophisticated methodology, http://rootmetrics.com/en-US/methodology (last visited Oct. 6, 2022). RootMetrics performs drive tests and stationary tests in specific locations, using leading Android-based smartphones for each network. RootScores are scaled from 0 to 100. An in-depth discussion of the RootMetrics dataset is available in the Seventeenth Wireless Competition Report. Seventeenth Wireless Competition Report, 29 FCC Rcd at 15467-68, Appx. VI., paras. 10-11. 494 Facilities-based providers of mobile service submit polygons in a shapefile format representing geographic coverage nationwide (including U.S. territories) for each transmission technology (e.g., 5G-NR, 4G LTE, CDMA- based, GSM-based), indicating the geographic areas in which users should expect to receive the minimum upload and download speeds advertised by the service provider for the deployed technologies. The FCC Form 477 reporting requirements exclude providers of terrestrial wireless “hot spot” services, like local-area Wi-Fi or Wi-Fi within public places. FCC Form 477, Local Telephone Competition and Broadband Reporting Instructions (May (continued….) 108 Federal Communications Commission FCC 22-103 methodology,495 in which entire census blocks are either classified as covered or not, the actual-area methodology estimates the area of the census block that is covered.496 However, because we currently do not know the distribution of the population at the sub-census-block level, we must approximate the population covered by each technology. To do this, we assume, for purposes of this Report, that the population of a census block is uniformly distributed such that the fraction of the population covered in a block is proportional to the fraction of the actual area covered. We then sum the estimated covered population across blocks to estimate the total covered population within the United States. Likewise, we assume that the fraction of the road miles covered in a block is proportional to the fraction of the actual area covered.497 146. Our analysis of deployment for mobile 4G LTE services uses 2020 U.S. Census block population estimates and census block definitions, in contrast to the 2010 U.S. Census population estimates and census block definitions used in the previous Reports.498 Road miles have been calculated for each 2020 census block in line with methodologies used in previous Reports.499 a. Mobile Wireless Coverage 147. 4G LTE Coverage. Figure II.B.37 presents 4G LTE mobile broadband coverage by number of service providers. It shows that, as of December 2021, over 94% of the U.S. population lived in areas with 4G LTE coverage by at least three service providers. These areas account for approximately 63% of road miles and 40% of the total area of the United States. Coverage by at least four service providers was smaller, with coverage of approximately 14% of the population, 15% of road miles, and 10% of the land area. (Continued from previous page) 21, 2020), https://transition.fcc.gov/form477/477inst.pdf. 495 The centroid methodology considers a census block covered if the geometric center point, or centroid, is covered. The methodology estimates coverage of population, land, and road miles by aggregating the totals for “covered” census blocks. Twentieth Wireless Competition Report, 32 FCC Rcd at 9016-17, para. 71. In practice, actual-area and centroid methodologies yield similar results at the national level. Twentieth Wireless Competition Report, 32 FCC Rcd at 9017-18, para. 72. In this Report, we provide mobile wireless coverage maps as well as our results based on the centroid analysis in Appx. D. We include the continental United States, Hawaii, Alaska, and Puerto Rico, and exclude all water-only blocks in our analysis. 496 This sub-census-block analysis can determine the unique combination of service providers serving a particular percentage of the area in a census block with a certain technology. As this analysis was done at each technology level, the set of unique combinations that it produces are valid for each individual technology, but not across multiple technologies. Essentially, we can distinguish the unique percentages covered by various service providers at the sub-census-block level using a particular technology (e.g., 4G LTE), but we currently cannot determine how this interplays with other technologies (e.g., with 2G or 3G technologies). 497 In order to fully take advantage of the increase in precision offered by the actual-area coverage methodology, spatially accurate representations of population and road miles would be necessary. We do not have access to such information for the current Report, however. 498 U.S. Census Bureau, TIGER/Line® Shapefiles, https://www.census.gov/cgi-bin/geo/shapefiles/index.php (last visited July 28, 2022). 499 Roads were included in the count of road miles if the road was in one of the following U.S. Census categories: Primary Road (S1100), Secondary Road (S1200), Local Neighborhood Road, Rural Road, City Street (S1400), Vehicular Trail [4WD] (S1500), Service Drive usually along a limited access highway (S1640), and Private Road for service vehicles (S1740). Roads on top of the boundary of two census blocks had their length split evenly between the blocks. 109 Federal Communications Commission FCC 22-103 Fig. II.B.37 Source: Based on actual area coverage analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 148. Figure II.B.38 presents estimates of 4G LTE mobile broadband coverage by individual mobile broadband service provider. AT&T covered over 97% of the population, over 84% of the road miles, and over 64% of the land area with 4G LTE. Verizon Wireless both covered over 97% of the population, over 80% of the road miles, and over 58% of the land area with 4G LTE. T-Mobile covered approximately 93% of the U.S. population, 58% of the road miles, and 36% of the land area with 4G LTE. 110 Federal Communications Commission FCC 22-103 Fig. II.B.38 Source: Based on actual area coverage analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 149. 5G Coverage. Figure II.B.39 presents 5G coverage by number of service providers. Approximately 98% of the population, 77% of road miles, and 55% of square miles were covered by at least one 5G service provider. In contrast, approximately 88% of the population, 48% of road miles, and 27% of square miles were covered by at least two providers of 5G. Finally, approximately 58% of the population, 18% of road miles, and 7% of square miles were covered by at least three 5G providers. Fig. II.B.39 Source: Based on actual area coverage analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 111 Federal Communications Commission FCC 22-103 150. Figure II.B.40 reports 5G coverage by the three nationwide providers. T-Mobile had the most 5G coverage among the three; in fact, T-Mobile’s 5G coverage exceeds its LTE coverage. T- Mobile’s 5G network covered approximately 94% of the population, 71% of road miles, and 49% of square miles. AT&T’s 5G network covered approximately 78% of the population, 45% of road miles, and 27% of square miles. Finally, Verizon Wireless’s 5G network covered approximately 67% of the population, 25% of road miles, and 10% of square miles. Fig. II.B.40 Source: Based on actual area coverage analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 151. Rural/Non-Rural Comparisons. Since 2004, the Commission has used a “baseline” definition of a rural county as one with a population density of 100 people per square mile or less.500 We use this same definition to analyze coverage in rural versus non-rural areas for our mobile broadband coverage analysis. To determine whether counties are rural or non-rural, we first excluded all water-only census blocks within each county. We then divided the county population by the total geographic area of the county to determine the population density. For those counties with a population density of 100 people per square mile or less, all census blocks within those counties were considered rural. Under this definition and using 2020 U.S. Census population data, approximately 59 million people, or approximately 18% of the U.S. population, live in rural counties. These counties comprise approximately 3 million square miles, or approximately 84%, of the geographic area of the United States. We count a census block as rural if it is in a rural county and as non-rural if it is in a non-rural county. 152. Figure II.B.41 presents 4G LTE population coverage in rural and non-rural census blocks by number of service providers. Our estimates show that approximately 97% of the non-rural population was covered by at least three 4G LTE service providers, while approximately 81% of the rural population was covered by at least three 4G LTE service providers. By comparison, approximately 11% of the non- rural American population had 4G LTE coverage from four or more service providers, while approximately 26% of the rural population was covered by at least four 4G LTE service providers. The 500 See Facilitating the Provision of Spectrum-Based Services to Rural Areas and Promoting Opportunities for Rural Telephone Companies To Provide Spectrum-Based Services, WT Docket No. 02-381, Report and Order and Further Notice of Proposed Rule Making, 19 FCC Rcd 19078, 19086-88, paras. 10-12 (2004). 112 Federal Communications Commission FCC 22-103 fact that rural areas were more likely to have four providers of 4G LTE than non-rural areas reflects the greater presence of regional service providers (i.e., not AT&T, T-Mobile, or Verizon Wireless) in rural areas. Fig. II.B.41 Source: Based on actual area coverage analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 153. Figure II.B.42 presents 4G LTE coverage by individual service provider of both the rural and non-rural U.S. population. Our estimates show that each of the three nationwide service providers covered at least 97% of the non-rural population with 4G LTE. Regarding 4G LTE coverage in rural areas, AT&T covered approximately 95%, Verizon Wireless covered approximately 92%, and T-Mobile covered approximately 75%. 113 Federal Communications Commission FCC 22-103 Fig. II.B.42 Source: Based on actual area coverage analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 154. Figure II.B.43 reports 5G population coverage in rural and non-rural areas. At least one 5G services providers covered almost 100% the non-rural population and approximately 90% of the rural population. At least two 5G service providers covered approximately 94% of the non-rural population and 58% of the rural population. At least three 5G service providers covered approximately 67% of the non-rural population and 14% of the rural population. Fig. II.B.43 Source: Based on actual area coverage analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 114 Federal Communications Commission FCC 22-103 155. Figure II.B.44 presents 5G rural and non-rural coverage by service providers. T-Mobile covered approximately 82% of the rural population and approximately 97% of the non-rural population with 5G. AT&T covered approximately 53% of the rural and approximately 83% of the non-rural population with 5G. Finally, Verizon Wireless covered approximately 18% of the rural and approximately 78% of the non-rural population with 5G. Fig. II.B.44 Source: Based on actual area coverage analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 7. Relationship between Fixed and Mobile Broadband Service 156. In this section, we provide an assessment of the relationship between fixed and mobile broadband services. We first describe the distribution of fixed and mobile broadband subscriptions, including trends in how consumers access the Internet. We then describe differences in service attributes of fixed and mobile broadband, including plan characteristics, that could lead consumers to subscribe to both fixed and mobile broadband or only subscribe to one service. Finally, we discuss technological and strategic developments that likely affect or may affect competition between fixed and mobile broadband services. 157. Many households continue to subscribe to both fixed and mobile broadband service,501 suggesting that these separate services offer benefits that are either complementary or independent of each other.502 Technological innovation in and increased deployment of both the mobile wireless and fixed broadband services markets have broadened consumers’ possible choices of how to access the Internet. 501 U.S. Census Bureau, American Community Survey, 2020 ACS 1-Year Public Use Microdata Sample with Experimental Weights, https://www.census.gov/programs-surveys/acs/data/experimental-data/2020-1-year- pums.html (last visited June 16, 2022) (overlap between households subscribing to both fixed and mobile broadband service can be assessed using the “HISPEED” and “BROADBND” variables, as discussed below). 502 See Fourteenth Broadband Deployment Report, 36 FCC Rcd at 841, para. 11 (stating that “fixed broadband and mobile wireless broadband services are not substitutes in all cases”). In its comments, INCOMPAS supports the idea that fixed and mobile broadband services are complementary, citing research from Pew Research and Leichtman Research Group. INCOMPAS comments at 9; Andrew Perrin, Pew Research, Mobile Technology and (continued….) 115 Federal Communications Commission FCC 22-103 158. Distribution of fixed and mobile broadband subscribers. Based on one-year 2020 estimates from the U.S. Census Bureau’s American Community Survey (ACS),503 88.8% of households in the United States paid for at least one type of Internet service subscription.504 Among households that pay for an Internet subscription, 91.7% paid for a cellular data plan for a smartphone or other mobile device, while 12.6% of all households with paid Internet subscriptions relied on a mobile data plan as their only means of access.505 In comparison, 87.1% of households subscribed to residential fixed broadband Internet service in 2020, while 7.9% of households with paid Internet subscriptions relied on fixed broadband as their only means of access. As Figure II.B.45 shows, in a reversal of the trend, the mobile- only percentage has decreased somewhat from roughly 13.5% in 2017,506 whereas the high speed fixed- only percentage has continued to decrease year over year from a peak of roughly 11.6% in 2017.507 Correspondingly, the number of households subscribing to only one type of Internet access has continued to decline.508 (Continued from previous page) Home Broadband 2021 (June 3, 2021), https://www.pewresearch.org/internet/2021/06/03/mobile-technology-and- home-broadband-2021/; Leichtman Research Group, Press Release, 87% of U.S. Households Get an Internet Service at Home (Dec. 28, 2021), https://www.leichtmanresearch.com/87-of-u-s-households-get-an-internet-service-at- home/; Leichtman Research Group, Press Release, About 2,950,000 Added Broadband From Top Providers In 2021 (Mar. 7, 2022), https://www.leichtmanresearch.com/wp-content/uploads/2022/03/LRG-Press-Release-3-7-2022.pdf. 503 We note that the U.S. Census Bureau used “experimental weights” when constructing the 2020 one-year ACS estimates due to complications arising from the COVID-19 pandemic. Following their recommendation, we proceed with caution and recognize that the 2020 one-year estimates may not be as reliable as previous iterations of ACS data. See U.S. Census Bureau, American Community Survey Experimental Data FAQ, https://www.census.gov/programs-surveys/acs/data/experimental-data/faq.html (last visited June 16, 2022). 504 The ACS asks participants who indicate that they gain access to the Internet at their “house, apartment, or mobile home” by “paying a cell phone company or Internet service provider” whether they, “or a member of [their] household have access to the Internet using” a “broadband (high speed) Internet service such as cable, fiber optic, or DSL service installed in [the] household,” “cellular data plan for a smartphone or other mobile device,” or other means, including satellite or dial-up Internet. See U.S. Census Bureau, American Community Survey, Why We Ask Questions About Computer and Internet Use, https://www.census.gov/acs/www/about/why-we-ask-each- question/computer/ (last visited June 16, 2022). Answers to this survey question do not necessarily correspond with the Commission’s current definition of advanced telecommunications capability. We note that an additional three million households (2.4%) connected to the Internet without a paid subscription. 505 Estimates based on the ACS 1-Year Estimates—Public Use Microdata Sample for year 2020. U.S. Census Bureau, American Community Survey, 2020 ACS 1-Year Public Use Microdata Sample with Experimental Weights, https://www.census.gov/programs-surveys/acs/data/experimental-data/2020-1-year-pums.html (last visited June 16, 2022) (American Community Survey 2020 Microdata). 506 We note that this shift in trend could be related to the COVID-19 pandemic when telecommuting and use of remote services became a more common practice, potentially causing additional households to subscribe to fixed services. 507 American Community Survey 2020 Microdata. 508 Id. 116 Federal Communications Commission FCC 22-103 Fig. II.B.45 Percentage of Internet-Connected Households Subscribing to Only One Type of Service Source: U.S. Census Bureau, American Community Survey, 2020 ACS 1-Year Estimates - Public Use Microdata Sample. Note: “Households Subscribing to One Internet Service” includes “Mobile Data Plan Only,” “Fixed Broadband Only,” as well as “Satellite Only,” and “Other Only” subscriptions. 159. Figure II.B.46 compares the number of households with mobile broadband, fixed broadband, or any type of paid Internet subscription, to, respectively, households that pay for services other than mobile broadband, households that pay for services other than fixed broadband, or households that do not have Internet service. The figure indicates growth in subscribership across all three categories and helps to explain the overall decline in single subscription households. 117 Federal Communications Commission FCC 22-103 Fig. II.B.46 Total Number and Percentage of Households Accessing the Internet by Technology509 2017 2018 2019 2020 Cellular Data Plan for a Yes 87,137,750 92,022,014 95,803,806 101,319,642 Smartphone or Other No 13,594,218 11,747,750 10,589,173 9,121,266 Device 86.5% 88.7% 90.0% 91.7% Broadband Internet Yes 82,742,020 84,693,323 86,927,655 91,651,623 Service Such as Cable, No 17,989,948 19,076,441 19,465,324 18,789,266 Fiber, or DSL 82.1% 81.6% 81.7% 83.0% Yes 100,731,968 103,769,764 106,392,979 110,440,908 Paid Access to the No 15,941,035 14,468,294 13,392,836 10,950,769 Internet 86.3% 87.8% 88.8% 91.0% Source: U.S. Census Bureau, American Community Survey, 2020 ACS 1-Year Estimates—Public Use Microdata Sample. 160. The decrease in mobile-only users is consistent with data from a 2021 Mobile Technology and Home Broadband report published by Pew Research.510 Pew Research reported that 23% of adults surveyed indicated that they did not subscribe to home fixed broadband,511 down from 27% in 2019.512 Of the 23% of survey participants who did not subscribe to home broadband in 2021, 15% were smartphone-only Internet users, while the remaining 8% of all individuals who did not use the Internet.513 In a similar trend to the ACS data, the 15% of Americans designated as smartphone-only Internet users in 2021 represents a decline compared to 2019.514 Despite the decrease in smartphone-only users between reports, the share of smartphone only users is still significantly higher than the 8% of smartphone-only users when Pew was originally tracking such users in 2013.515 As Figure II.B.47 shows, the percentage of 509 The first two categories, “Internet Subscribing Households with Mobile Data” and “Internet Subscribing Households with Fixed Broadband” consists of households that paid for an Internet service. The third category, “Paid Internet Subscription Using Any Technology,” consists of either households who paid for one or more Internet subscriptions (“Yes”) or those who did not have Internet access (“No”). 510 Pew released reports in 2019 and 2021, but did not release a Mobile Technology and Home Broadband report in 2020. The 2019 report uses survey data collected between January 8, 2019 and February 7, 2019, while the 2021 report uses data collected between January 25, 2021 and February 8, 2021. Monica Anderson, Pew Research, Mobile Technology and Home Broadband 2019 at 3 (2019), https://www.pewresearch.org/internet/wp- content/uploads/sites/9/2019/06/PI_2019.06.13_Mobile-Technology-and-Home-Broadband_FINAL2.pdf; Andrew Perrin, Pew Research, Mobile Technology and Home Broadband 2021 (2021), https://www.pewresearch.org/internet/wp-content/uploads/sites/9/2021/06/PI_2021.06.03_Mobile- Broadband_FINAL.pdf. 511 Andrew Perrin, Pew Research, Mobile Technology and Home Broadband 2021 at 8 (2021), https://www.pewresearch.org/internet/wp-content/uploads/sites/9/2021/06/PI_2021.06.03_Mobile- Broadband_FINAL.pdf (Mobile Technology and Home Broadband 2021). 512 Monica Anderson, Pew Research, Mobile Technology and Home Broadband 2019 at 3 (2019), https://www.pewresearch.org/internet/wp-content/uploads/sites/9/2019/06/PI_2019.06.13_Mobile-Technology-and- Home-Broadband_FINAL2.pdf (Mobile Technology and Home Broadband 2019). 513 Mobile Technology and Home Broadband 2021 at 4. 514 Mobile Technology and Home Broadband 2019 at 5. 515 Pew Research Center, Mobile Fact Sheet (Apr. 7, 2021), https://www.pewresearch.org/internet/fact-sheet/mobile/ (showing smartphone dependency over time). 118 Federal Communications Commission FCC 22-103 smartphone-only Internet users is higher among groups with lower levels of broadband adoption, including survey participants who were younger, black or Hispanic, or in lower income brackets.516 Fig. II.B.47 Smartphone-Only Internet Users by Demographic, Income, and Geographic Group Source: Pew Research Center, Mobile Technology and Home Broadband 2021, replicated from figure entitled “15% of Americans are smartphone dependent.” 161. Service Attributes of Fixed and Mobile Broadband. A majority of Internet users subscribe to both fixed and mobile service. For instance, approximately 82.5% of mobile service subscribing households also subscribe to fixed broadband at home.517 The decision of households to subscribe to both services may be driven by differences in quality and other plan characteristics. 162. In its comments, INCOMPAS emphasized that fixed broadband (particularly fiber) delivers faster speeds and the ability to consume content without data caps, whereas mobile broadband offers the convenience of Internet access outside the home.518 For example, in mid-2022, many mobile wireless “unlimited” plans stipulated that, during times where a cell is experiencing network congestion, those subscribers’ traffic would be de-prioritized at that cell if they consumed beyond a limit that was typically set around 50 GB per month.519 By comparison, many major fixed broadband providers either do not have a data cap or cap access at or close to 1 TB, typically charging $10 for additional 50 GB 516 Mobile Technology and Home Broadband 2021 at 5. 517 U.S. Census Bureau, American Community Survey, https://www.census.gov/programs- surveys/acs/data/experimental-data/2020-1-year-pums.html (last visited June 16, 2022). 518 INCOMPAS Comments at 8-9. 519 Eli Blumenthal, CNET, The Best Unlimited Data Plans for 2022 (June 2022) (June 16, 2022), https://www.cnet.com/tech/mobile/best-unlimited-data-plans/. See, e.g., T-Mobile, Why Did I Receive an SMS about using 50GB of Data?, https://www.t-mobile.com/offers/mydatausage (providing deprioritization practice at a congested tower under the “What happens if I do access a congested tower after I’ve used 50GB of data?” tab) (last visited Sept. 29, 2022); Verizon, Unlimited, https://www.verizon.com/plans/unlimited/ (last visited Sept. 29, 2022); AT&T, Unlimited Data Plans, https://www.att.com/plans/unlimited-data-plans/ (last visited Sept. 29, 2022). 119 Federal Communications Commission FCC 22-103 increments.520 To put this comparison into perspective, an ultra-high definition program is estimated to consume between 7 GB and 10 GB per hour, so that as few as five hours of ultra-high definition content could lead to mobile consumers’ data being de-prioritized for the remainder of the month, whereas 100 hours of viewing of ultra-high definition content would be required to reach the typical fixed broadband data cap.521 163. Among mobile wireless service providers, prices for unlimited plans were typically set at $45 or more for the first line among nationwide facilities-based post-paid mobile wireless providers and $30 or more among nationwide facilities-based pre-paid providers, with a lower per-line cost for additional lines.522 By comparison, prices among terrestrial fixed wireless providers were more localized and varied with the advertised speed. Whereas terrestrial fixed wireless prices typically apply to all devices at the connected premise (either through a physical connection or via Wi- Fi), mobile hotspots that allow access to devices other than those added to the mobile wireless subscription typically cost more, require a higher priced (premium) plan, or are limited in speed (e.g., to 3G) or data allowance.523 164. Speed tests also demonstrate that fixed broadband speeds are typically faster than mobile broadband speeds. In section II.B.5.d, we find that speed tests showed nationwide mean and median 4G LTE download speeds of, respectively, 43.4 Mbps and 30.4 Mbps in the first half of 2022. While such speeds are comparable to fixed broadband speeds in parts of the United States, they are well below advertised speeds available in many locations.524 However, speed tests conducted on 5G networks were significantly faster than 4G LTE tests conducted during the same time period. In the first half of 2022, mean and median 5G download speeds for the three nationwide providers ranged from 96.5 to 230.5 Mbps and 70.3 to 189.7 Mbps, respectively.525 The Free State Foundation states that mean mobile broadband speeds in 2022 are comparable to mean fixed speeds in 2020.526 INCOMPAS asserts that higher speeds, larger data allowances, and less frequent or the lack of throttling may lead subscribers to use Wi-Fi connected fixed broadband networks when available.527 165. Technological and Strategic Developments. Technological advancements and entry from non-traditional providers of mobile broadband and fixed broadband could alter the relationship between fixed and mobile broadband services. Two such developments are the transition to 5G technologies and entry by cable companies into the mobile broadband market. 166. The Commission has previously found that mobile wireless providers continue to improve their networks, notably through the deployment of 5G technologies, which may have 520 Kevin Parrish and Peter Holslin, High Speed Internet, Which Internet Service Providers Have Data Caps?, https://www.highspeedinternet.com/resources/which-internet-service-providers-have-data-caps. 521 Netflix, Help Center, How to control how much data Netflix uses, https://help.netflix.com/en/node/87 (last visited Oct. 24, 2022); James K. Willcox, How Easy Is It to Burn Through a 1TB Data Cap? (Oct. 19, 2016), https://www.consumerreports.org/telecom-services/how-easy-to-burn-through-1TB-data-cap/. 522 Eli Blumenthal, CNET, The Best Unlimited Data Plans for 2022 (June 2022) (June 16, 2022), https://www.cnet.com/tech/mobile/best-unlimited-data-plans/. 523 AT&T, Unlimited Data Plans, https://www.att.com/plans/unlimited-data-plans/ (last visited Sept. 29, 2022); T- Mobile, Plan Details, https://www.t-mobile.com/plan-details (last visited Sept. 29, 2022); Verizon, Unlimited, https://www.verizon.com/plans/unlimited/ (last visited Sept. 29, 2022). 524 Tyler Cooper, Broadband Now, The State of Broadband in America, Q3 2021 (Nov. 8, 2021), https://broadbandnow.com/research/q3-broadband-report-2021. 525 See supra Fig. II.B.28. 526 FSF Comments at 13. 527 INCOMPAS Comments at 9. 120 Federal Communications Commission FCC 22-103 performance characteristics similar to fixed services in certain environments.528 As 5G networks become more widely available and consumers further transition to 5G-capable devices, mobile connections are expected to become faster and more reliable.529 Existing mobile broadband service providers are continuing to deploy 5G networks throughout the United States.530 In some instances, traditional mobile wireless providers have leveraged their networks and begun offering expanded fixed wireless services.531 Moreover, the Commission has taken a number of actions to spur the development and deployment of 5G networks.532 167. In addition, as FSF notes, major cable providers, which had not previously provided mobile broadband, have begun offering mobile services using hybrid-MVNO strategies.533 While such providers hold a relatively small market share, some have seen their subscribership increase. For instance, Comcast has increased the number of its wireless broadband subscribers from 2.1 million at the end of 2019 to 4.0 million by the end of 2021, and Charter has increased its mobile subscribership from 1.1 million in 2019 to 3.6 million in 2021.534 By bundling their mobile broadband services with their fixed broadband and other offerings, non-traditional competitors can provide their customers with plan options that traditional facilities-based mobile wireless providers do not offer to many of their customers. At the same time, because certain cable MVNOs have only offered mobile broadband to existing residential broadband subscribers to date, their effect on nationwide mobile broadband is limited. C. Voice Telephone Services 168. Although the public switched telephone network used to be the only means to connect, there now exist many other voice service options for consumers in the United States. 169. Fixed Voice. There are two fixed technologies through which retail voice subscriptions are provided: traditional switched access and interconnected VoIP subscriptions. Interconnected voice services are divided between fixed and mobile voice services. Fixed is further divided into traditional switched access connections and interconnected Voice over Internet Protocol (VoIP). VoIP is voice carried simply as data over an Internet Protocol network and can be a voice service that is bundled with the underlying broadband connection or offered independent of the necessary data service (over-the-top, or OTT). 170. Our most recent FCC Form 477 data show that there are 29 million end-user switched access lines, including 11.9 million residential lines. In addition, there are 68 million interconnected 528 Fourteenth Broadband Deployment Report, 36 FCC Rcd at 841, para. 11 (stating “[W]e are optimistic that increased deployment of 5G may allow mobile services to serve as an alternative to fixed services.”). 529 See, e.g., GSMA—Global System for Mobile Communications Association, Understanding 5G: A Guide for local communities at 3 (Sept. 2021), https://www.gsma.com/publicpolicy/resources/understanding-5g-a-guide-for- local-communities. 530 Tim Fisher, Lifewire, Where Is 5G Available in the US? (Updated for 2022), https://www.lifewire.com/5g- availability-us-4155914 (last visited June 16, 2022). 531 For example, in April 2022, T-Mobile reported that they served one million fixed wireless customers and that more than 40 million households were eligible for the service. T-Mobile, T‑Mobile Smokes the Competition, Reaching 1 Million Fixed Wireless Customers Just a Year After Commercial Launch (Apr. 20, 2022), https://www.t- mobile.com/news/network/t-mobile-reaches-1-million-fixed-wireless-customers. 532 See infra section VI.B. 533 FSF Comments at 8. 534 See Comcast, SEC Form 10K at 4 (filed Jan. 30, 2020), https://www.cmcsa.com/node/34166/html (for 2.1 million figure); Comcast, SEC Form 10K at 3 (filed Feb. 2, 2022), https://www.cmcsa.com/node/38386/html (for 4.0 million figure); Charter, SEC Form 10K at 3 (filed Jan. 31, 2020), https://ir.charter.com/static-files/b3b4f462- 9b3d-4119-81a6-f395e108c5fe (for 1.1 million figure); Charter, SEC Form 10K at 4 (filed Jan. 28, 2020) https://ir.charter.com/static-files/63606f63-1b11-4d60-91a0-5395f1552592 (for 3.6 million figure). 121 Federal Communications Commission FCC 22-103 VoIP subscriptions, including 31 million residential subscriptions.535 Of these combined 97.6 million fixed retail voice telephone service subscriptions, 44% were residential connections, and 56% were business connections.536 The relative growth trends show that fixed switched access continues to decline while interconnected VoIP services continue to increase. The number of fixed retail switched-access lines declined over the past three years at a compound annual rate of 12.3%, while interconnected VoIP subscriptions increased at a compound annual growth rate of 0.7%.537 The number of fixed switched access providers also decreased, with 931 providers reporting fixed end-user switched access lines in December 2021, down from 952 in December 2020.538 There were 1,787 providers of interconnected VoIP subscriptions in December 2021, up from 1,671 a year earlier.539 As of December 2021, residential fixed voice connections were about 28% switched access and 72% interconnected VoIP, with residential switched access connections comprising only 12.2% of all fixed retail voice connections.540 171. Over-the-Top (OTT). Fixed VoIP carriers distinguish OTT VoIP, where the consumer uses an independent data service over a broadband connection, from all other types of interconnected VoIP.541 The FCC Form 477 data show 17.9 million OTT VoIP subscriptions and far more non-OTT VoIP, numbering 50.4 million subscriptions.542 Mobile VoIP presents a more complicated picture, given the plethora of communications apps in smartphone app ecosystems. Information on how customers use these apps for voice communication are not reported on FCC Form 477, as many of them do not permit users to make or receive calls connecting to numbers on the public switched telephone network, and therefore are not classified as interconnected VoIP.543 The dynamic nature of this subsector makes it difficult to quantify the number of users. 172. Mobile Voice. FCC Form 477 data indicate that there were over 362 million mobile subscriptions in the United States, representing an increase in mobile voice subscriptions at a compound annual growth rate of 1.3% over the previous three years.544 The number of households that eschew fixed subscriptions altogether in favor of relying solely on mobile voice services has been increasing. Approximately 68.7% of adults lived in a wireless-only household in late 2021, with adults in lower age- groups more likely to live in wireless-only households.545 In the 25-29 age group, over 87% of adults lived in wireless-only households; 86.4% of those aged 30-34 lived in wireless-only households; 79.6% of those aged 35-44 lived in wireless-only households; 66.2% of those aged 45-64 lived in wireless-only 535 The totals and percentages that are reported in this section are preliminary only, are subject to corrections as appropriate by the service provider, and the final data will be published in due course by the agency. See, e.g., June 30, 2021 Voice Telephone Services Report. 536 Preliminary Dec. 2021 FCC Form 477 Voice Subscriptions. 537 Id. The compound annual growth rate is a smoothed rate of growth calculated in three steps: (1) divide the ending value by the beginning value; (2) raise the result of that division to a power equal to one divided by the number of years in the period (in this case, 3 years, so the power is 1/3); and (3) subtract 1 from Step (2). 538 Preliminary Dec. 2021 FCC Form 477 Voice Subscriptions. 539 Id. 540 Id. 541 Id. 542 Id. 543 47 C.F.R. § 9.3. Examples of these services are apps such as Skype, Facebook Messenger, Facetime, and WhatsApp. 544 Preliminary Dec. 2021 FCC Form 477 Voice Subscriptions. 545 U.S. Department of Health and Human Services, National Center for Health Statistics, Wireless Substitution: Early Release of Estimates From the National Health Interview Survey, July-December 2021 (2022). 122 Federal Communications Commission FCC 22-103 households; and 43.4% of those 65 and older lived in wireless-only households.546 Approximately 0.6% of households had neither wireless nor fixed voice subscriptions, as of late 2021.547 173. Figure II.C.1 shows the percentage of Americans living in a household with only a wireless connection in early 2019 versus late 2021 by age category. More people continue to live in a wireless-only home across all age groups. The 65 and over age category has experienced the largest change over the last two years; previously only 30.9% of this group lived in a wireless-only home compared to 43.4% in the most recent data.548 Fig. II.C.1 Percentage of Individuals Living in Households with Wireless Telephone Service Only by Age, 2019 vs. 2021 Source: National Center for Health Statistics, National Health Interview Survey. D. The Satellite Marketplace 1. Overview of Commercial Satellite Services 174. In the United States and globally, satellites provide telecommunications infrastructure for communications, including voice, video, audio, and data services, as well as other services.549 Satellites require both spectrum and orbital slots, which are licensed and authorized by the Commission for services 546 Id. 547 Id. 548 Id. 549 Further discussions of basic features of satellites, satellite orbits, and satellite communications systems can be found in NASA, Basics of Space Flight: Section 1: Environment, Chapter 5: Planetary Orbits, https://solarsystem.nasa.gov/basics/chapter5-1/ (last visited Oct. 20, 2022); European Space Agency, Types of Orbits, https://www.esa.int/Enabling_Support/Space_Transportation/Types_of_orbits (last visited Oct. 20, 2022); Space Foundation, The Space Briefing Book (2019), https://www.spacefoundation.org/wp- content/uploads/2019/10/SpaceFoundation_Space101.pdf; Louis J. Ippolito Jr., Satellite Communications Systems Engineering: Atmospheric Effects, Satellite Link Design and System Performance (2nd ed. 2017) (Ippolito, 2017); Howard Hausman, Fundamentals of Satellite Communications, Part 1 (2008), https://www.ieee.li/pdf/viewgraphs/fundamentals_satellite_communication_part-1.pdf (Hausman, 2008); GAO, TELECOMMUNICATIONS: Competition, Capacity, and Costs in the Fixed Satellite Services Industry (2011), https://www.gao.gov/products/GAO-11-777. 123 Federal Communications Commission FCC 22-103 over the United States, and the authorization of which must be coordinated internationally with the ITU. Both satellites serving the United States, and the earth stations in the United States that access them, are regulated by the Commission. This ensures that spectrum and orbital slots are safely and efficiently put to use, and eliminates or reduces the potential harm caused by spectrum interference and orbital debris. 175. Satellites differ significantly in their delivery of communications services, when compared to terrestrial alternatives. Satellite services compete to a certain extent in larger terrestrial communications markets, aided by the advantages of their geographically widespread (nearly ubiquitous) service, low cost of adding customers (especially for one-way service in video and audio distribution), and ability to provide disaster and redundant services when terrestrial networks are unavailable. In addition, there are a number of smaller niche markets, such as maritime, aviation, and remote markets, which are served primarily by satellites.550 Satellites also conduct Earth observations, including imaging, and scientific experiments, among other things. Developments in In-space Servicing, Assembly, and Manufacturing (ISAM) could also spur the introduction of new kinds of services and activities in space.551 176. Communication satellites function as relay stations in space that receive signals from an earth station and then re-transmit the signal to a distant point, often located thousands of miles from the point of signal origination.552 Satellites operate in either a geostationary satellite orbit (GSO), also referred to as a geostationary Earth orbit (GEO) or in a non-geostationary satellite orbit (NGSO).553 NGSO satellites operate at varying altitudes,554 while GSO satellites operate on an equatorial plane with zero inclination at approximately 22,300 miles above the Earth, and rotate around the Earth at the same speed that the Earth rotates.555 As a result, a satellite in geostationary orbit appears as a stationary point in the sky relative to a receiving and transmitting earth station. Because they effectively hover above a fixed location from a high altitude, GSO satellites cover a large fixed area of the Earth, with three satellites able to provide communications for most of the Earth.556 NGSO satellites include a number of orbital 550 This includes such services as voice, broadband connectivity, and entertainment programming for planes and ships and remote areas; tracking services and IoT access for equipment globally; connectivity for fishing, including real-time catch data; and IoT applications like artificial lift monitoring for offshore and energy drilling. 551 See Space Innovation, Facilitating Capabilities for In-space Servicing, Assembly, and Manufacturing, IB Docket 22-271 and 22-272, Notice of Inquiry, FCC 22-66, at 4-9 (Aug. 8, 2022) (Space Innovation Notice of Inquiry). 552 An earth station (also known as a ground station or earth terminal) is a station located either on the Earth’s surface or within the major portion of the Earth’s atmosphere and intended for communication: (1) with one or more space stations; or (2) with one or more stations of the same kind by means of one or more reflecting satellites or other objects in space. 47 CFR § 25.103 (Earth station). The Commission’s definition is identical to the definition established by the International Telecommunication Union (ITU). ITU, Radio Regulations—Articles at 13 (Article 1, 1.63) (ed. 2016), http://search.itu.int/history/HistoryDigitalCollectionDocLibrary/1.43.48.en.101.pdf (ITU Radio Regulations). 553 The term “geosynchronous orbits” is sometimes used interchangeably with “geostationary orbits, ” but more technically, it describes the broader category of orbits at altitude 22,300 miles that rotate the earth in 24 hours, but may not be in the equatorial plane (i.e., has an inclined orbit) and thus will not remain at a fixed point in the sky (such that the latitude changes over time but not the longitude). Third Report and Analysis of Competitive Market Conditions with Respect to Domestic and International Satellite Communications Services; Report and Analysis of Competitive Market Conditions with Respect to Domestic and International Satellite Communications Services, IB Docket Nos. 09-16, 10-99, Third Report, 26 FCC Rcd 17284, 17288, para. 8 & n.9 (2011) (Third Satellite Competition Report). 554 There are approximately 565 GSO satellites and 4,900 NGSO satellites in space globally as of May 1, 2022, according to one database. Union of Concerned Scientists, UCS Satellite Database (updated May 1, 2022), https://www.ucsusa.org/resources/satellite-database. 555 Hausman (2008) at 17. 556 However, latitudes above 77° cannot get reception from GSO satellites. Hausman (2008) at 14. 124 Federal Communications Commission FCC 22-103 configurations, such as highly-elliptical orbits (HEO), medium-earth orbits (MEO), and low-earth orbits (LEO).557 177. Satellites in geostationary orbit generally are high capacity and bandwidth and typically also have large coverage area. However, they can be disadvantaged by their high latency (i.e., response time)558 and sometimes the need for larger ground antennas with more power. Compared to NGSO satellites, individual GSO satellites are typically much larger and more expensive to build, and more costly to launch into their high orbit. 178. Satellites in non-geostationary orbits, especially those in lower orbits, typically are lower capacity and bandwidth. Because of the limited coverage area for a single satellite, particularly for those operating in LEO, a large constellation of satellites is often needed to maintain continuous coverage, sometimes in the hundreds or thousands of satellites. However, in providing communications services, they typically offer the benefit of low latency service requiring smaller earth stations and handsets. Moreover, an NGSO constellation may provide more widespread coverage because GSO satellites do not reach higher latitudes. NGSO satellites are often much smaller and less expensive to build, and less costly to launch into lower orbits.559 As mentioned above, however, NGSO systems often contemplate constellations of hundreds or thousands of satellites. In the past, NGSO satellites’ rapid movement across the sky required the use of omnidirectional antennas, leading to low throughput, increased interference concerns relative to other satellites, and reduced spectrum availability. Some of the newest generation of NGSO satellite systems, however, allow for a more efficient use of spectrum with the use of earth station electronic directional antennas which can track them, potentially increasing throughput and more importantly effectively eliminating interference with other users of the same spectrum, thus allowing them to use and share FSS spectrum.560 179. To provide commercial communications satellite services to serve the United States requires, among other things: the manufacturing and launch of one or more satellites; ground stations and network operations center(s) providing backhaul and management service to the satellites; customer 557 LEOs are defined by the National Aeronautics and Space Administration (NASA) as orbits with an altitude below 1,200 miles above the Earth. NASA, Low-Earth Orbit Economy, LEO Economy FAQs, https://www.nasa.gov/leo-economy/faqs (last visited Sept. 1, 2022). MEOs are generally defined as any orbit between LEOs and GSOs, although they typically range from 6,000 to 12,000 miles above the Earth. HEOs are highly elliptical orbits ranging from a very low point at perigee (as low as 100 miles above the Earth) to a very high point at apogee (as high or higher than GEOs, 23,000 miles above the Earth). Unlike GSOs, they can cover high latitudes and polar regions, with two satellites able to provide continuous coverage. Ippolito, 2017 at 25-27. 558 Because it takes time for an electronic signal to travel from an earth station to the satellite and back to another earth station, users of high orbit satellites such as GSO satellites will experience a noticeable delay in receiving responses; i.e., about a quarter of a second for a trip up to a GSO satellite 22,300 miles above the earth and back. Hausman (2008) at 15. For some applications, such as audio and video conversations, or gaming and two-way data interactivity, high latency reduces the quality of service for consumers. The only alternative to shortening this time and reducing latency is to use satellites in lower Earth orbits, which yield latency comparable to a ground-based terrestrial network. Hausman (2008) at 15. 559 Hausman (2008) at 23, 29; Ippolito (2017) at 26. 560 Systems using FSS spectrum are required to use directional earth station transmission antennas to eliminate interference with other FSS users. Unlike Mobile Satellite Service (MSS) spectrum, with its use of omnidirectional antennas, which prevents others from using the same frequencies due to interference, FSS spectrum can be reused (i.e., shared) repeatedly through the use of directional antennas. Update to Parts 2 and 25 Concerning Non- Geostationary, Fixed-Satellite Service Systems and Related Matters, IB Docket No. 16-408, Report and Order and Further Notice of Proposed Rulemaking, 32 FCC Rcd 7809, 7817, 7821-22, 7826, paras. 25-26, 39, 52 & n.118 (2017) (NGSO FSS Order); Space Exploration Holdings, LLC, Application for Approval for Orbital Deployment and Operating Authority for the SpaceX NGSO Satellite System, et. al., IBFS File No. SAT-LOA-20161115-00118, Call Sign S2983, et al., Memorandum Opinion, Order and Authorization, 33 FCC Rcd 3391, 3401-02, paras. 26-27 (2018) (SpaceX Authorization). 125 Federal Communications Commission FCC 22-103 premise equipment or handsets; and customer antennas capable of communicating with the satellite(s).561 Satellites typically require several years to build and launch, and most of their investment is upfront. NGSO satellites are often launched as part of a constellation, especially systems designed to provide near- global coverage, and/or continuous connectivity. A constellation can allow for one satellite to “hand off” the connection to another as it moves out of range.562 GSO satellites typically can have a lifespan of 15- 20 years or longer, while individual NGSO satellites typically have a shorter lifespan.563 Satellite operators are required to have a plan to safely retire their satellites, to prevent the satellites from becoming a source of orbital debris.564 2. Spectrum for Satellite Services 180. The Commission allocates spectrum for two general types of satellite services⸺Fixed Satellite Service (FSS) and Mobile Satellite Service (MSS). The Commission also allocates spectrum for more specialized commercial and scientific services, including Direct Broadcast Satellite (DBS), Satellite Digital Audio Radio Service (SDARS), Earth Exploration Satellite Service (EESS), and other services. For purposes of this Report, we describe five major types of services provided by the commercial satellite services industry. 181. FSS. FSS is the transmitting and receiving of communications signals to earth stations, including customer stations, that traditionally are located at fixed points on earth. The Commission has allocated specific spectrum bands for FSS, including the C-, Ku-, and Ka-bands.565 More recently, there 561 GAO, TELECOMMUNICATIONS: Competition, Capacity, and Costs in the Fixed Satellite Services Industry, passim (2011), https://www.gao.gov/products/GAO-11-777. 562 Satellites in lower Earth orbits do not have fixed coverage areas because they are moving relative to the ground. Connectivity is maintained for a ground customer by connecting to the nearest satellite, and then as that satellite moves out of range, handing that connection off to another satellite coming into range. Because of their lower orbits and high speed, visibility of each satellite from a ground station can be limited to a short time, so larger constellations are needed to provide continuous connectivity. Hausman (2008) at 29. 563 Debra Werner, SpaceNews, How long should a satellite last: five years, ten years, 15, 30? (Mar, 24, 2018), https://spacenews.com/how-long-should-a-satellite-last/. 564 Orbital debris, also known as space debris, consists of artificial objects orbiting the Earth that are not functional spacecraft, and can be created under a variety of scenarios involving satellite systems. Mitigation of Orbital Debris in the New Space Age, IB Docket No. 18-313, Notice of Proposed Rulemaking, 33 FCC Rcd 11352,11353, para. 2 (2018) (Orbital Debris NPRM); see also Mitigation of Orbital Debris in the New Space Age, IB Docket No. 18-313, Report and Order and Further Notice of Proposed Rulemaking, 35 FCC Rcd 4156 (2020) (Orbital Debris Report and Order and Further Notice); Mitigation of Orbital Debris in the New Space Age, IB Docket No. 22-271 and IB Docket No. 18-313, Second Report and Order, FCC 22-74, at 2 (Sep. 30, 2022) (Orbital Debris Second Report and Order); NASA Astromaterials Research & Exploration Science, NASA Orbital Debris Program Office, Frequently Asked Questions, https://orbitaldebris.jsc.nasa.gov/faq/ (last visited Aug. 26, 2022); NASA, What is Orbital Debris?, https://www.nasa.gov/audience/forstudents/5-8/features/nasa-knows/what-is-orbital-debris-58.html (last visited Aug. 26, 2022). 565 47 CFR § 25.103. The conventional C-band refers to the 3700-4200 MHz (space-to-Earth) and 5925-6425 MHz (Earth-to-space) FSS frequency bands, while the extended C-band refers to the 3600-3700 MHz (space-to-Earth), 5850-5925 MHz (Earth-to-space), and 6425–6725 MHz (Earth-to-space) FSS frequency bands. The conventional Ku-band refers to the 11.7-12.2 GHz (space-to-Earth) and 14.0-14.5 (Earth-to-space) FSS frequency bands, while the extended Ku-band refers to the 10.95-11.2 GHz (space-to-Earth), 11.45-11.7 GHz (space-to-Earth), and 13.75- 14.0 GHz (Earth-to-space) FSS frequency bands. The conventional Ka-band refers to the 18.3-18.8 GHz (space-to- Earth), 19.7-20.2 GHz (space-to-Earth), 28.35-28.6 GHz (Earth-to-space), and 29.25-30.0 GHz (Earth-to-space) frequency bands, which the Commission has designated as primary for GSO FSS operation. 47 CFR § 25.103. Therefore, there is approximately 1475 MHz range of spectrum in the extended C-band, 1750 MHz in the extended Ku-band, and 2000 MHz in the Ka-band, for a total of 5225 MHz range of spectrum. We note that the Commission recently defined an extended Ka-band in the 17.3-18.3 GHz (space-to-Earth), 18.8-19.4 GHz (space-to-Earth), 19.6- 19.7 GHz (space-to-Earth), 27.5-28.35 GHz (Earth-to-space) and 28.6-29.1 GHz (Earth-to-space) frequencies. See (continued….) 126 Federal Communications Commission FCC 22-103 also has been interest in use of the E-band and V-band frequencies.566 Examples of FSS offerings include wholesale transponder services,567 managed services (also known as enterprise services), and consumer broadband services. 182. Over the last twenty years, the Commission also has allowed the operation of Earth Stations in Motion (ESIMs) as an application of the FSS.568 Earth Stations on Vessels, Vehicle-Mounted Earth Stations, and Earth Stations Aboard Aircraft—collectively designated as ESIMs—are mobile in nature, but nevertheless are permitted to operate in FSS spectrum because at any point in time, their emissions have the same characteristics as those of a fixed earth station transmitting from the same location, using a directional antenna focused on one satellite to avoid generating radio-frequency (RF) interference with other satellites and ground-based devices. Licensees increasingly use ESIMs to deliver broadband to ships, vehicles, trains, and aircraft using the same frequency bands, hardware, satellites, transponder beams, and gateways used to serve earth stations at fixed locations.569 183. In 2017, the Commission revised spectrum sharing requirements among NGSO FSS systems to permit NGSO systems with shared access to FSS spectrum, provided they used directional earth station antennas and avoided interference with existing GSO and NGSO systems using the FSS spectrum.570 This has facilitated the deployment of competing NGSO FSS systems. On December 15, (Continued from previous page) Amendment of Parts 2 and 25 of the Commission’s Rules to Enable GSO Fixed-Satellite Service (Space-to-Earth) Operations in the 17.3-17.8 GHz Band, to Modernize Certain Rules Applicable to 17/24 GHz BSS Space Stations, and to Establish Off-Axis Uplink Power Limits for Extended Ka-Band FSS Operations; Amendment of Parts 2 and 25 of the Commission’s Rules to Enable NGSO Fixed-Satellite Service (Space-to-Earth) Operations in the 17.3-17.8 GHz Band, IB Docket Nos. 20-330 and 22-273, Report and Order and Notice of Proposed Rulemaking, FCC 22-63 (Aug. 3, 2022) (17 GHz Report and Order). 566 The term “E-band” refers to frequencies in the 71.0-76.0 GHz and 81.0-86.0 GHz bands. The Commission has not yet adopted service rules for these frequencies. See, e.g., Space Exploration Holdings, LLC, Application for Orbital Deployment and Operating Authority for the SpaceX Gen2 NGSO Satellite System, IBFS File No. SAT- LOA-20200526-00055 (filed May 26, 2020). We use the term “V-band” to refer to frequencies ranging from 37.5 GHz to 52.4 GHz. We note that on August 4, 2021, the Satellite Division initiated a new processing round for additional applications and petitions for declaratory ruling concerning operations in the 37.5-40.0 GHz, 40.0-42.0 GHz, 47.2-50.2 GHz, and 50.4-51.4 GHz frequency bands by non-geostationary orbit fixed-satellite service (NGSO FSS) systems, pursuant to section 25.157 of the Commission’s rules. See Cut-Off Established for Additional NGSO- Like Satellite Systems in the 37.5-40.0 GHz, 40.0-42.0 GHz, 47.2-50.2 GHz, and 50.4-51.4 GHz Bands, Report No. SPB-288, DA 21-941 (Aug. 4, 2021). 567 A transponder is the part of a satellite that receives signals transmitted from earth stations to the antennas onboard a satellite and then retransmits these signals to the Earth. See Dennis Roddy, Satellite Communications 199 (4th ed. 2006). The number of transponders onboard any given satellite may vary, ranging approximately from 24 to 72. U.S. Government Accountability Office, Telecommunications: Competition, Capacity, and Costs in the Fixed Satellite Services Industry at 5 (Sept. 2011), https://www.gao.gov/assets/330/322861.pdf. 568 See Procedures to Govern the Use of Satellite Earth Stations on Board Vessels in the 5925-6425 MHz/3700-4200 MHz Bands and 14.0-14.5 GHz/11.7-12.2 GHz Bands, IB Docket No. 02-10, Report and Order, 20 FCC Rcd 674 (2005); see also Amendment of Parts 2 and 25 of the Commission’s Rules to Allocate Spectrum and Adopt Service Rules and Procedures to Govern the Use of Vehicle-Mounted Earth Stations in Certain Frequency Bands Allocated to the Fixed-Satellite Service, IB Docket No. 07-101, Report and Order, 24 FCC Rcd 10414 (2009). 569 Amendment of Parts 2 and 25 of the Commission’s Rules to Facilitate the Use of Earth Stations in Motion Communicating with Geostationary Orbit Space Stations in Frequency Bands Allocated to the Fixed Satellite Service, IB Docket No. 17-95, Report and Order and Further Notice of Proposed Rulemaking, 33 FCC Rcd 9327, 9328, para. 2 (2018) (ESIMs Report and Order and Further Notice). 570 Shared access permits two or more satellite systems to use the same spectrum band as long as they avoid interference with each other. NGSO FSS Order, 32 FCC Rcd at 7821-22, 7826, at paras. 39, 52 & n.118; see also SpaceX Authorization, 33 FCC Rcd at 3401-02 at paras. 26-27 (. . . [W]e recently adopted changes to the (continued….) 127 Federal Communications Commission FCC 22-103 2021, the Commission proposed revisions to the spectrum sharing requirements among NGSO FSS systems to facilitate the deployment of NGSO FSS systems capable of providing broadband services with higher speeds and lower latency than previous satellite offerings.571 184. MSS.572 MSS generally involves transmitting and receiving communications signals from mobile earth stations573 located on land, on sea, or on airplanes.574 MSS operates in a 70 megahertz range of spectrum allocated in the L-band, in a 40 megahertz range in the 2 GHz MSS band, in a 33 megahertz range in the Big LEO band, and in a four megahertz range in the Little LEO band.575 Voice and data services are conducted in the L-band, Big LEO band, and 2 GHz bands, while the Little LEO band is limited to non-voice services.576 Examples of MSS applications include voice, low-speed data, and tracking services for aircraft and ships, as well as handsets operating in remote locations on land. 185. Earth Exploration Satellite Service (EESS). The EESS is a radiocommunication service in specified spectrum bands between earth stations and one or more space stations that collects information relating to the characteristics of the Earth from active or passive sensors on earth satellites and distributes that information to earth stations.577 Many different frequency bands are allocated for the provision of EESS, including, for example, 1215-1300 MHz, 1400-1427 MHz, 2025-2110 MHz, 2200- 2290 MHz, and 8025-8400 MHz. The frequency band allocations for EESS include frequency bands used for sensing purposes and for communicating with earth stations, including downlinking data. EESS satellites can be used for observations of the Earth, e.g., for observing disaster sites, crop growth, and local weather almost anywhere on Earth. 186. Satellite Digital Audio Radio Service (SDARS). SDARS is a radiocommunication service in the 2.3 GHz band in which audio programming is digitally transmitted by one or more space stations (Continued from previous page) Commission’s rules that will apply a spectrum sharing mechanism to all NGSO FSS systems that have sharing capabilities (e.g., directional earth station antennas), regardless of the frequency bands used.”). 571 Revising Spectrum Sharing Rules for Non-Geostationary Orbit, Fixed-Satellite Service Systems; Revision of Section 25.261 of the Commission’s Rules to Increase Certainty in Spectrum Sharing Obligations Among Non- Geostationary Orbit Fixed-Satellite Service Systems, IB Docket No. 21-456, Order and Notice of Proposed Rulemaking, FCC 21-123, at 1-2, 6 (Dec. 15, 2021) (Non-GSO Spectrum Sharing Order and NPRM). 572 MSS generally refers to services provided to mobile earth stations using MSS frequency bands. The newer ESIMs, discussed above, refer to services provided to earth stations in motion using FSS frequency bands. 573 MSS ground station antennas are typically omnidirectional, and for the low earth orbits require less power. O3b Limited; Request for Modification of U.S. Market Access for O3b Limited’s Non-Geostationary Satellite Orbit System in the Fixed-Satellite Service and in the Mobile-Satellite Service, IBFS File Nos. SAT-MOD-20160624- 00060, SAT-AMD-20161115-00116, SAT-AMD-20170301-00026, and SAT-AMD-20171109-00154, Order and Declaratory Ruling, 33 FCC Rcd 5508, 5516, para. 21 & n.59 (2018) (O3b Modification Order) 574 47 CFR § 25.103. 575 There are MSS allocations in the 1525-1559 MHz (space-to-Earth) band and the 1626.5-1660.5 MHz (Earth-to- space) band of the L-band, and in the 2000-2020 MHz and 2180-2200 MHz bands of the 2 GHz band. Other frequency bands with MSS allocations have been given specific labels in the Commission rules: the Big LEO bands (1610-1626.5 MHz and 2483.5-2500 MHz) and the Little LEO bands (137-138 MHz, 400.15-401 MHz, and 148- 150.5 MHz). 47 CFR § 25.103. Due to encumbrances, not all of the allocated spectrum is available for use by MSS providers. 576 See, e.g., Terrestrial Use of the 2473-2495 MHz Band for Low-Power Mobile Broadband Networks; Amendments to Rules for the Ancillary Terrestrial Component of Mobile Satellite Service Systems, IB Docket No. 13-213, RM- 11685, Report and Order, 31 FCC Rcd 13801, 13802 & n.2 (2016) (noting distinction between Big LEO systems that operate with voice and higher data-rate capabilities, and Little LEO systems, which do not provide voice service and generally operate with lower data-rate capabilities). 577 See ITU Radio Regulations at 12 (Article 1, 1.51); 47 CFR § 2.1. 128 Federal Communications Commission FCC 22-103 directly to fixed, mobile, and/or portable stations.578 Satellite-delivered radio programming is supplied nationwide by SiriusXM, presently the only SDARS operator in the nation.579 187. Direct Broadcast Satellite (DBS) Service. DBS service is a radiocommunication service in which signals transmitted or retransmitted by Broadcasting Satellite Service space stations in the 12.2– 12.7 GHz band are intended for direct reception by subscribers or the general public.580 DBS satellite operators (e.g., DISH Network and DIRECTV) provide nationwide video programming to video customers in direct competition with terrestrial television companies. 3. Satellite Industry Current Status and Participants a. Satellite Industry Revenues 188. Figure II.D.1 below provides aggregated U.S. satellite services revenues from the Satellite Industry Association (SIA) for 2013 to 2021 with respect to consumer, fixed, mobile and remote sensing satellite services.581 578 47 CFR § 25.103 (Satellite Digital Audio Radio Service (SDARS)). 579 In 2021, SiriusXM’s total revenue was $8.7 billion, which represents an increase of 8% over total revenue in 2020 and of 73% over total revenue in 2016. SiriusXM, SiriusXM Reports Fourth Quarter and Full-Year 2017 Results (Jan. 31, 2018), https://investor.siriusxm.com/financial-information/financial-results; SiriusXM, SiriusXM Reports Fourth Quarter and Full Year 2021 Results (Feb. 1, 2022), https://investor.siriusxm.com/financial- information/financial-results. 580 47 CFR § 25.103 (Direct Broadcast Satellite (DBS) Service). 581 SIA Comments, Appx. B: SIA State of the Satellite Industry Report, Global and U.S. Satellite Services Revenue. SIA estimates that the U.S. share of global satellite services revenue of $118.3b in 2021 was 38%. The data include U.S. satellite services providers’ revenues only, and not foreign providers to the U.S. market. SIA’s estimate of global satellite services revenue includes revenue derived from direct-to-consumer retail services (e.g., satellite TV, radio, and broadband), fixed and mobile satellite services, and Earth observation services. Id.; see also OECD, OECD Handbook on Measuring the Space Economy, at 20 (2nd ed. 2022), https://doi.org/10.1787/8bfef437-en. 129 Federal Communications Commission FCC 22-103 Fig. II.D.1 U.S. Satellite Services Revenue (2013-2021) Service Total Revenue (Billions, U.S.$) 2013 2014 2015 2016 2017 2018 2019 2020 2021 Consumer 44.0 46.0 48.0 46.4 45.5 43.5 42.8 40.2 39.5 Satellite TV 38.6 40.1 41.7 39.7 38.3 35.5 34.0 31.4 30.1 (DBS/DTH)582 Satellite 3.8 4.2 4.6 5.0 5.4 5.8 6.2 6.3 6.6 Radio (SDARS) Satellite 1.6 1.7 1.7 1.7 1.8 2.2 2.4 2.5 2.8 Broadband Fixed 3.7 3.8 4.1 4.4 5.0 5.2 5.3 4.1 3.6 Managed 3.4 3.5 3.8 4.1 4.7 4.9 5.1 4.1 3.6 Services583 Transponder 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.0 0.0 Agreements584 Mobile 0.4 0.4 0.5 0.5 0.6 0.7 0.7 0.7 0.8 Remote Sensing 0.6 0.7 0.7 0.8 1.0 1.0 1.2 1.3 1.3 Total 48.7 50.9 53.3 52.1 52.1 50.3 49.7 46.3 45.2 Source: 2017-2021 data based on SIA Comments at Appx. B; SIA Ex Parte at Appx. B 2013-2016 data based on 2018 Communications Marketplace Report, 33 FCC Rcd at 12673, Figure F-1; SIA Comments, IB Docket No. 18- 251 at Appx. B (for 2013-2016 Remote Sensing figures). 189. While certain sectors of the satellite industry, such as satellite TV, managed services, and transponder arrangements, have declined recently in size, other sectors are growing in size and importance, specifically satellite radio, satellite broadband, mobile, and remote sensing. The biggest change is the drop in satellite TV revenues, by a total of $8.5 billion or 22% from 2013 to 2021. Meanwhile, there has been a significant increase in the annual revenues of satellite radio (74%), satellite broadband (75%), mobile services (100%), and remote sensing services (117%) over this time period.585 These changes are due in part to investments in new satellites and new technologies for accessing them to take advantage of satellites’ natural advantages in providing wide geographic coverage and serving as a unique observational platform. They also reflect changes in competing terrestrial facilities markets, especially the buildout of domestic wireline and wireless networks and increases in capacity of submarine 582 DTH refers to television service provided in the FSS, rather than BSS, allocation. See Policies and Rules for the Direct Broadcast Satellite Service, IB Docket No. 98-21, Report and Order, 17 FCC Rcd 11331, 11333, para. 3 (2002). 583 The revenue represented for “Managed Services” includes fixed and mobility VSAT, mobility, maritime, and in- flight broadband connectivity over FSS bands. See SIA Comments at 20. 584 The revenue represented for “Transponder Agreements” includes industry verticals including media & broadcasting, telecom, and governments. See SIA Comments at 20. 585 The percentage increases in annual revenue from 2013 to 2021, presented in Fig. II.D.1, are approximate, due to rounding of the source numbers. 130 Federal Communications Commission FCC 22-103 cables, as well as changes in consumer demand, such as cord-cutting reducing demand for MVPD services, including DBS. 190. Facilities-based Operators and Resellers. The satellite services market is served by satellite operators and resellers. Satellite operators build, launch, and manage their own fleet of satellites. They provide a combination of wholesale services, involving the sale of raw transponder capacity on their satellites, retail services directly to consumers and businesses, and basic communications and observation services to other wholesalers and resellers and businesses.586 Some operators provide transponders for lease through arrangements that are tailored for specific applications required by the customer, such as video distribution.587 Operators may also supply a complete, end-to-end communications solution to customers, referred to as managed services.588 Consumer retail services provided by operators include satellite broadband service, Digital Audio Radio Service (SDARS), and satellite television (e.g., DBS). Customers of enterprise services include terrestrial telecommunications companies, television networks, and resellers of satellite transponder capacity. Satellite resellers purchase satellite services and resell them to businesses and consumers. They often combine resold satellite services with their own arrangements for network management and integration, equipment, customer support, and terrestrial communications.589 b. Satellite Markets 191. In this section, we discuss: mobile markets for customers lacking a fixed location or requiring low latency services from NGSO satellites; fixed location markets, for customers with fixed locations; and Earth observation services. We note that satellite markets are going through major changes due to technological innovation, increased demand for broadband services and mobile use, and unveiling of new products and services. Formerly, markets were divided into fixed location applications, typically characterized by high bandwidth service but limited in value by high latency and the need for large fixed ground antennas; and mobile applications, with the benefits of mobility, low latency, and small ground antennas, but typically having very low bandwidth available for each customer. The new ESIMs and NGSO FSS initiatives, which the Commission has supported and enabled with revised regulations, are blurring the traditional distinctions between mobile and fixed satellite services by combining the best features of both types of services. ESIMs allow mobile users to access the full bandwidth of FSS satellites, while NGSO FSS applications offer the potential of lowering latency to non-noticeable levels for fixed location and ESIM broadband users, and allow the use of inexpensive low power ground stations. Bandwidth, latency, mobility and convenience are improving for certain classes of customers, thus strengthening satellites’ positions in markets less well served by terrestrial communications networks, and improving their ability to provide robust competition with terrestrial networks in the future. 586 Intelsat, SEC Form 10-K at 12 (filed Mar. 30, 2021). Intelsat, SES, Hughes, ViaSat, Iridium, Eutelsat, and Telesat are examples of facilities-based satellite operators. Facilities-based operators may also lease some excess capacity from each other to expand their geographic coverage or meet the unique transmission requirements of specific customers. 587 Intelsat, SEC Form 10-K at 12-15 (filed Mar. 30, 2021). 588 Id.; SES, Annual Report 2021 at 21, https://www.ses.com/sites/default/files/2022- 03/20220301_SES_AR2021_final.pdf. 589 Some satellite resellers, often called integrators, combine leased satellite capacity with other value-added services for their customers. GAO, TELECOMMUNICATIONS: Competition, Capacity, and Costs in the Fixed Satellite Services Industry, at 9 (2011), https://www.gao.gov/products/GAO-11-777. Examples of resellers include Digisat International Inc., Speedcast International Ltd/Globecomm/ Ultisat, Inc., and Artel, LLC. Digisat, Satellite Communications Network Management Solutions, https://www.digisat.org/managed-network-services (last visited Aug. 22, 2022); Speedcast, What we do, https://www.speedcast.com/about-us/what-we-do/ (last visited Aug. 22, 2022); Artel, LLC, Company, https://www.artelllc.com/company/ (last visited Aug. 22, 2022). We note that we have limited reliable information about resellers or other suppliers and the types of satellite services provided by these entities in the communications marketplace. 131 Federal Communications Commission FCC 22-103 192. Mobile Satellite Customer Markets. Satellites traditionally have served mobile markets, with customers lacking a fixed location or needing low latency service, using MSS spectrum. This includes maritime, aviation, global tracking, satellite telephony, and low-speed data services. MSS spectrum is often used by NGSO satellites in LEO or MEO orbits. Omnidirectional low power antennas are typically used for MSS service.590 The spectrum allocated for each MSS customer is generally very limited because much less spectrum has been allocated for MSS purposes, and it is shared globally with other MSS customers. In 2021, MSS generated approximately $800 million in U.S. revenues.591 Currently, six satellite operators provide MSS in the United States:592 Inmarsat, Ligado,593 Iridium, Globalstar, ORBCOMM, and Swarm.594 193. Due to technological differences, MSS services vary significantly in characteristics, such as cost, geographic availability, required customer equipment, data bandwidth and allowances, two-way capabilities, latency, network reliability, and ease of use. Inmarsat, the largest MSS operator, provides extensive voice, video, and data communications services to mobile earth stations using GSO satellites in the L-, Ka-, and S-bands, five of which have been granted access to the U.S. market.595 Ligado provides a variety of mobile satellite services that includes communications, and asset monitoring and tracking, using the SkyTerra 1 GSO satellite in the L-band.596 194. NGSO LEO systems offer much lower latency due to their low Earth orbit compared to GSO systems, which is useful for satellite voice telephony and interactive data applications, and requires smaller antennas.597 The Big LEO systems of Iridium and Globalstar provide low-latency voice and data services to portable handsets and other devices. Iridium, with its constellation of 66 operational satellites, provides low-latency mobile voice, data, and IoT communications services with fully global coverage.598 Iridium provides services to industries such as emergency services, maritime, aviation, government, 590 O3b Modification Order, 33 FCC Rcd at 5516, para. 21 & n.59. 591 Mobile satellite 2021 revenues were approximately 1.7% of the total U.S. satellite services revenue. See SIA Comments at 20. 592 FCC, Space Station Approval List, https://www.fcc.gov/approved-space-station-list (last visited Oct 21, 2022). 593 Ligado Amendment to License Modification Applications, IBFS File Nos. SES-MOD-20151231-00981, SAT-MOD- 20151231-00090, and SAT-MOD-20151231-00091 et al., IB Docket No. 11-109, Order and Authorization, 35 FCC Rcd 3772 (2020). 594 See Globalstar, 2021 SEC Form 10-K at 10 (filed Feb. 25, 2022); Inmarsat, Satellites, https://www.inmarsat.com/en/about/technology/satellites.html (last visited July 12, 2022); Ligado, Covering a Continent with the Ligado SkyTerra 1 Satellite, https://ligado.com/wp- content/uploads/SkyTerra1_InfoSheet_0819.pdf (last visited July 12, 2022); Iridium, Iridium Global Network, https://www.iridium.com/network/ (last visited July 12, 2022); Globalstar, Satellite Technology powered by The Globalstar Satellite Network, https://www.globalstar.com/en-us/about/our-technology (last visited July 12, 2022); ORBCOMM, Satellite IoT and M2M, https://www.orbcomm.com/en/partners/connectivity/satellite (last visited July 12, 2022); Swarm, Global Affordable Connectivity, https://swarm.space/ (last visited Nov. 11, 2022). 595 Inmarsat Plc, 2018 Annual Report and Financial Statements at 1, https://www.inmarsat.com/en/about/plc- archive/results-centre.html (last visited July 12, 2022); FCC, Space Station Approval List, https://www.fcc.gov/approved-space-station-list (last visited Oct. 21, 2022); Inmarsat, Satellites, https://www.inmarsat.com/en/about/technology/satellites.html (last visited Aug. 29, 2022). 596 Ligado Networks, Covering North America: What Ligado’s Satellite Network Can Do for You, https://ligado.com/wp-content/uploads/LS_Satellite_2018_CNA-Brch.pdf (last visited Aug. 29, 2022); Ligado Networks, Covering a continent with Ligado’s SkyTerra 1, https://ligado.com/wp-content/uploads/SkyTerra-1- Product-Sheet.pdf (last visited Aug. 29, 2022). 597 Ippolito (2017) at 25. 598 Iridium Communications, Inc., SEC Form 10-K at 2 (filed Feb. 17, 2022); Iridium, Iridium NEXT, https://www.iridium.com/idr-file/306527 (last visited Aug. 29, 2022). 132 Federal Communications Commission FCC 22-103 utilities, oil and gas, mining, recreation, forestry, heavy equipment, construction, transportation, and military.599 Globalstar uses its fleet of 24 operational first and second generation satellites to provide two- way voice and data and one-way IoT low-latency services for much of North America, Europe, South America, Australia, and limited parts of Asia and Africa.600 ORBCOMM’s Little LEO system provides data services, including M2M and IoT, that remotely track, monitor, and control fixed and mobile assets.601 Little LEO systems are restricted to non-voice low data rate services because of the relatively small uplink bandwidth and the fact that they must operate in spectrum shared with terrestrial mobile operations.602 Swarm, a division of SpaceX, offers inexpensive global IoT service with its constellation of up to 150 very small satellites.603 195. Ships and planes were traditionally served by MSS operators providing low-capacity service. The development of ESIM services with the use of specialized directional antennas has allowed maritime and aviation vessels to access the services of FSS satellites. ESIMs use directional antennas that enhance throughput and enable them to transmit and receive very high data-rate broadband communications with satellites while in motion.604 FSS operators provide broadband services to aircraft and maritime vessels, which include government organizations, commercial entities, and individual clients.605 For example, Intelsat and Telesat offer broadband services for maritime vessels (including maritime enterprise VSAT services606 and broadband connectivity for cruise ships), as well as broadband 599 Iridium Communications, Inc., SEC Form 10-K at 2-13 (filed Feb. 17, 2022). 600 Globalstar, 2021 SEC Form 10-K at 3-10 (filed Feb. 25, 2022); Globalstar, Satellite Technology powered by The Globalstar Satellite Network, https://www.globalstar.com/en-us/about/our-technology (last visited July 12, 2022); Globalstar, Coverage, https://www.globalstar.com/en-us/products/coverage-maps (last visited Aug. 29, 2022). 601 ORBCOMM, Satellite IoT and M2M, https://www.orbcomm.com/en/partners/connectivity/satellite (last visited Aug. 29, 2022); ORBCOMM, ORBCOMM OG2, https://www.orbcomm.com/en/partners/connectivity/satellite/og2 (last visited Nov. 16, 2022). 602 Third Satellite Competition Report, 26 FCC Rcd at 17315, para. 71. 603 Swarm, Swarm website, https://swarm.space/ (last visited Aug. 29, 2022); Swarm, Swarm’s 2021 Year in Review (Dec. 28, 2021), https://swarm.space/swarms-2021-year-in-review/; Darrell Etherington, TechCrunch, Here’s what Swarm has been up to in the 10 months since being acquired by SpaceX (July 29, 2022), https://techcrunch.com/2022/07/29/heres-what-swarm-has-been-up-to-in-the-10-months-since-being-acquired-by- spacex/. 604 ESIMs enable the provision of very high data rate broadband communications, navigational, situational awareness, and other services to mobile platforms that often cannot be served using other communications technologies. See ESIMs Report and Order and Further Notice, 33 FCC Rcd at 9328-29, para. 3. The Commission continues to distinguish ESIMs, which operate in FSS spectrum, from mobile earth stations, which operate in MSS spectrum. ESIMs Report and Order and Further Notice, 33 FCC Rcd at 9328-30, paras. 3-4, 10 (defining ESIMs to collectively designate the three types of FSS earth stations that the Commission authorizes to transmit while in motion: Earth Stations on Vessels (ESVs), Vehicle-Mounted Earth Stations (VMESs), and Earth Stations Aboard Aircraft (ESAAs)); 47 CFR § 25.103 (Mobile Earth Station) (defining mobile earth station as “[a]n earth station in the Mobile-Satellite Service intended to be used while in motion or during halts at unspecified points.”). 605 “[S]atellites are playing an increasingly profitable role in the aviation industry. The London School of Economics projects that airline broadband will encompass a $30B market by 2035. Connected aircraft could also save airlines $15B annually in operating costs, according to the same study.” See SIA Comments at 8; see also generally Alexander Grous, Sky High Economics (2017), http://eprints.lse.ac.uk/87438/1/Grous_Sky%20High_Author.pdf. 606 Vessels can connect to the global communications network with VSAT technology, which provides crew and passengers with high-speed Internet access and phone service. iDirect, ViaSatellite, The Coming Wave of Maritime VSAT Growth, https://www.satellitetoday.com//long-form-stories/maritime-vsat/ (last visited July 12, 2022). 133 Federal Communications Commission FCC 22-103 connectivity for in-flight entertainment and Wi-Fi services for the aeronautical industry.607 SES and ViaSat provide broadband service on commercial airlines and cruise ships.608 Hughes/EchoStar also provides broadband service on commercial airlines.609 196. Fixed Satellite Customer Markets. Satellites traditionally served fixed locations using GSO satellites and spectrum allocated to the FSS. Before the development of ESIMs, only earth stations with fixed locations were permitted to access GSO satellites with FSS spectrum, because directional antennas focused on a single satellite were required for the earth station to avoid RF interference with other satellites’ operations.610 Intelsat,611 SES, Eutelsat, Telesat, Hughes/EchoStar,612 and ViaSat are the major providers of satellite FSS-based spectrum services in the United States.613 Telesat provides satellite services to the U.S. government, and provides Ka-band satellite capacity to ViaSat, which uses the capacity to provide broadband services in the United States.614 ViaSat and Hughes/EchoStar both provide wholesale and retail commercial broadband services to customers in the United States.615 Intelsat, Telesat, SES, ViaSat, and EchoStar have high-throughput satellites serving North America.616 SES provides services using both GSO and MEO satellites.617 607 See e.g., Intelsat, 2020 SEC Form 10-K at 8-20 (filed Mar. 20, 2021) (Intelsat 2020 SEC Form 10-K); Telesat Canada, 2021 SEC Form 20-F at 68 (filed Mar. 18, 2022) (Telesat Canada 2021 SEC Form 20-F). 608 SES launched SES-17 in 2021 to provide aviation service over the Americas and Atlantic. SES, 2021 Annual Report at 18, https://www.ses.com/sites/default/files/2022-03/20220301_SES_AR2021_final.pdf (SES 2021 Annual Report) (last visited July 13, 2022); ViaSat, 2021 SEC Form 10-K at 4-5 (filed May 31, 2022) (ViaSat 2021 SEC Form 10-K). 609 Hughes, Aeronautical Broadband Solutions, https://www.hughes.com/what-we-offer/mobility-solutions/aero (last visited July 13, 2022). 610 O3b Modification Order, 33 FCC Rcd at 5516, para. 21 & n.59. 611 Intelsat S.A. filed for Ch.11 bankruptcy protection and voluntary reorganization May 13 2020. Intelsat 2020 SEC Form 10-K at 7-8 (filed March 20, 2021) (Intelsat 2020 SEC Form 10-K); Caleb Henry, SpaceNews, Intelsat declares bankruptcy as means to fund C-band spectrum clearing (May 14, 2020), https://spacenews.com/intelsat- declares-bankruptcy-as-means-to-fund-c-band-spectrum-clearing/. , https://help.netflix.com/en/node/87 612 EchoStar provides its consumer broadband and managed services through its wholly-owned subsidiary, Hughes Network Services. EchoStar, EchoStar Corporation Completes Hughes Communications, Inc. Acquisition (June 8, 2011), https://ir.echostar.com/news-releases/news-release-details/echostar-corporation-completes-hughes- communications-inc. 613 Intelsat 2020 SEC Form 10-K at 7-26 (filed Mar. 20, 2021) (Intelsat 2020 SEC Form 10-K); SES 2021 Annual Report at 16-19, https://www.ses.com/sites/default/files/2022-03/20220301_SES_AR2021_final.pdf (SES 2021 Annual Report) (last visited July 13, 2022); Eutelsat, Satellites, https://www.eutelsat.com/en/satellites.html (last visited July 18, 2022); Telesat Canada 2021 SEC Form 20-F at 53-76 (filed Mar. 18, 2022) (Telesat Canada 2021 SEC Form 20-F); EchoStar Comments at 2; ViaSat 2021 SEC Form 10-K at 4-12 (filed May 31, 2022) (ViaSat 2021 SEC Form 10-K). 614 Telesat Canada 2021 SEC Form 20-F at 60-63 (filed Mar. 18, 2022) (Telesat Canada 2021 SEC Form 20-F); ViaSat 2021 SEC Form 10-K at 19 (filed May 31, 2022) (ViaSat 2021 SEC Form 10-K). 615 ViaSat 2021 SEC Form 10-K at 4-5; EchoStar Comments at 2. 616 Through the use of small beams, high-throughput satellites are capable of reusing the same frequency band multiple times over their coverage area. This allows the use of more spectrum for each of their small beams, making higher throughput available anywhere in their coverage area. Hughes, JUPITER, High-Throughput Satellite Fleet, https://www.hughes.com/what-we-offer/satellite-assets/jupiter-fleet (last visited Aug. 30, 2022); SES 2021 Annual Report at 14. 617 SES combines GEO and MEO satellite constellations to provide service. In 2019, SES launched and completed its O3b Ka-band constellation of 20 satellites in medium earth orbit, to provide lower latency broadband connectivity for mobile use. SES 2021 Annual Report at 16-18. 134 Federal Communications Commission FCC 22-103 197. Some FSS operators,618 as well as third-party integrators purchasing the use of satellite facilities,619 supply managed network services, which are a complete, end-to-end communications system that includes leased satellite bandwidth, ground facilities, terrestrial transmission links, and management of the end-to-end communications service. Customers of managed satellite services include United States and foreign government agencies, government contractors, media companies, and commercial entities.620 198. FSS operators in the United States provide transponder capacity for lease through complex contracts for variable quantities of bandwidth, frequency, orbital location, geographic coverage, power, and length of service of the transponders required by the customer.621 Many wholesale customers of FSS operators only lease transponder capacity and self-supply their own earth stations and terrestrial links. Applications of leased transponder capacity include point-to-point transponder capacity for use by providers of media services, point-to-multipoint transmission of video programming to multichannel cable programming distributors, and the transport of point-to-point telecommunications transmissions to terrestrial telecommunications operators and corporate users.622 Also, satellite provision of backhaul services is expected to grow in the coming years.623 199. Satellite broadband providers such as Hughes/EchoStar and ViaSat play a role in closing the connectivity gap across the United States, especially in the most rural and remote areas of the country, where it may be uneconomical to build terrestrial networks.624 As of year-end 2021, satellite operators served a combined 1.7 million subscribers in the United States, and approximately three million subscribers globally and, as their infrastructure expands, operators are increasing the speeds made available to consumers.625 618 See, e.g., SES, Managed Network Services, https://www.ses.com/find-service; (last visited July 19, 2022); Hughes, Hughes Managed Services, https://www.hughes.com/what-we-offer/managed-network-services (last visited July 19, 2022); Intelsat, The Intelsat Customer Experience, https://www.intelsat.com/about-us/customer-experience/ (last visited July 19, 2022). 619 Examples of third-party providers of managed services include Digisat International Inc., Speedcast International Limited, and Artel, LLC. See Digisat, Satellite Communications Network Management Solutions, https://www.digisat.org/managed-network-services (last visited July 19, 2022); Speedcast, Managed Network Solutions, https://www.speedcast.com/our-solution/all-solutions/ (last visited July 19, 2022); Artel, HISPASAT’s Amazonas Nexus Satellite will embed the Pathfinder 2 mission for the United States Space Force (June 24, 2020) https://www.artelllc.com/hispasats-amazonas-nexus-satellite-will-embed-the-pathfinder-2-mission-for-the-united- states-space-force/. 620 See, e.g., Third Satellite Competition Report, 26 FCC Rcd at 17304, paras. 41-42 (noting that value-added resellers provide managed services to government and corporate clients—e.g., U.S. Army, Federal Bureau of Investigation, commercial shipping—that need communications in “thin markets” or need to extend the reach of their corporate networks); see also SES 2021 Annual Report at 21; Intelsat, 2020 SEC Form 10-K at 12; GAO, TELECOMMUNICATIONS: Competition, Capacity, and Costs in the Fixed Satellite Services Industry at 9 (2011), https://www.gao.gov/products/GAO-11-777. 621 See Third Satellite Competition Report, 26 FCC Rcd at 17292-99, paras. 15-35 (discussing complexities of output produced by commercial satellite operators). The pricing of transponder services and the specific attributes of the service to be supplied to the customer are bilaterally negotiated between the customer and the satellite operator. Id. at 17291-92, para. 14; see also GAO, TELECOMMUNICATIONS: Competition, Capacity, and Costs in the Fixed Satellite Services Industry at 9-10 (2011), https://www.gao.gov/products/GAO-11-777. 622 See Third Satellite Competition Report, 26 FCC Rcd at 17296-97, paras. 26-28. 623 See Mark Holmes, ViaSatellite, Telcos Talk Bluntly About Satellite’s Backhaul Future (July 2020), http://interactive.satellitetoday.com/via/july-2020/telcos-talk-bluntly-about-satellites-backhaul-future/. 624 SIA Comments at 9-11. 625 See supra Fig. II.A.10; SIA Comments at 7, 11-14. 135 Federal Communications Commission FCC 22-103 200. Recent and planned launches of next-generation GSO satellites by Inmarsat, Telesat, and Hughes, will offer higher-speed and larger capacity broadband offerings.626 Low latency NGSO satellite constellations by SES/O3b, SpaceX/Starlink,627 OneWeb,628 Kepler, and Kuiper are resulting in more widespread lower-latency satellite broadband service as deployment of such systems progresses.629 Some of these constellations have significant numbers of operational satellites in space, or are in advanced stages of development.630 (i) Earth Observation Stations 201. EESS satellites are increasingly used to gather Earth observation information for commercial purposes, including information to observe the weather, measure key factors important to climate change, assess needs in disaster recovery, monitor strategic assets, and observe crop growth. Twelve companies operate or plan to operate Earth observation satellites that the Commission authorized as EESS: Astro Digital U.S. Inc; BlackSky Global LLC; Capella Space Corp; dMY Technology Group, Inc. (aka Planet Labs); HawkEye 360, Inc.; ICEYE US; Loft Orbital Solutions; Maxar License (formerly DigitalGlobe); R2 Space, Inc; Spire Global, Inc; Theia Holdings A, Inc; and Umbra Lab Inc.631 Some of these companies operate or plan to operate large numbers of satellites. For example, Planet Labs (aka dMY Technologies) has approximately 200 satellites currently in orbit,632 and Spire Global has over 100 satellites in orbit.633 202. EESS providers generally operate satellites in low earth orbit to provide earth observations, either by capturing optical images of the Earth, or using synthetic-aperture radar for two- dimensional and three-dimensional imaging,634 or radio location and RF signal detection and measurements, for various purposes. Many combine their image data with other datasets, and provide analytics for modeling and analysis. For example, Planet Labs captures frequent high-resolution optical 626 SIA Comments at 11-12. 627 SpaceX has over 2500 satellites in low earth orbit for its Starlink service, which uses the Ku-, Ka- and E-band. See SIA Comments at 13; Stephen Clark, Spaceflight Now, Falcon 9 rocket deploys SpaceX’s 3,000th Starlink internet satellite (Aug. 10, 2022), https://spaceflightnow.com/2022/08/10/falcon-9-rocket-deploys-spacexs-3000th- starlink-internet-satellite/. 628 On July 25, 2022, OneWeb and Eutelsat announced their intention to merge. OneWeb, Press Release, Eutelsat and OneWeb to combine: a leap forward in satellite connectivity (July 25, 2022), https://oneweb.net/resources/eutelsat-and-oneweb-combine-leap-forward-satellite-connectivity. 629 SIA Comments at 11-14. 630 For example, as of June 1, 2022, SpaceX had launched more than 2,500 satellites. SpaceX Services, Inc. Application for Blanket Authorization of Next-Generation KU-Band Earth Stations in Motion, SpaceX Services, Inc. Application for Blanket Authorization of High-Performance Ku-Band Earth Stations in Motion, Kepler Communications, Inc. Application for Blanket Authorization of KU-Band Earth Stations on Vessels, Order and Authorization, DA 22-695, at 1 (IB June 30, 2022) (SpaceX ESIM and Kepler ESV Order). As of October 23, 2022, OneWeb had a constellation of 462 satellites. See One Web, Press Release, 36 OneWeb satellites successfully launched by ISRO/ NSIL from Sriharikota (Oct. 23, 2022), https://oneweb.net/resources/36-oneweb-satellites- successfully-launched-isro-nsil-sriharikota. 631 FCC, Space Station Approval List, https://www.fcc.gov/approved-space-station-list (last visited Oct. 21, 2022). 632 Planet Labs PBC, 2021 SEC Form 10-K (filed Apr. 14, 2022). 633 Spire Global, 2021 SEC Form 10-K at 7 (filed Mar. 30, 2022). 634 NASA Earthdata, What is Synthetic Aperture Radar?, https://www.earthdata.nasa.gov/learn/backgrounders/what-is-sar (last visited Sept. 1, 2022); Capella, SAR Made Easy, https://www.capellaspace.com/ (last visited Sept. 1, 2022). 136 Federal Communications Commission FCC 22-103 images of the Earth for purposes that include agriculture and disaster relief.635 Spire Global satellites collect radio and vessel location data for ship tracking and weather measurement.636 Maxar (formerly DigitalGlobe), using four satellites in LEO, provides optical high-resolution high-accuracy imaging, geospatial information and data analytics to the U.S. government and other customers.637 BlackSky has small satellites in LEO that capture earth observation data that BlackSky combines with its AI software platform for analysis.638 ICEYE, which specializes in flood monitoring and other disaster assistance, uses its Synthetic Aperture Radar (SAR) satellites to monitor daily ground conditions.639 Capella uses its SAR satellites to provide all weather Earth observation.640 HawkEye 360 provides precise mapping of RF emissions and space-based RF analytics.641 According to SIA estimates, in 2021, Earth observation revenues in the United States were $1.3 billion, an increase of 85% from 2015.642 4. Satellite Industry Dynamics and Key Characteristics 203. In many communications markets, satellite services compete directly with terrestrial services. However, because of satellite’s technological and organizational differences, satellite services are often able to provide a differentiated, and in certain aspects, a complementary, service to terrestrial communications services. Here, we discuss both the strengths and limitations of satellite services. We briefly describe the key features of satellite service that differentiate them from terrestrial alternatives in the areas of coverage and reach as a space platform, cost, capacity, quality, customer convenience, and the time and risk involved in building and launching satellites. 204. Coverage and reach as a space platform. As a space platform, satellites have some special and some unique capabilities and problems. Satellites can have very long range, and provide near ubiquitous coverage, especially satellites in high earth orbit. Satellites can reach remote regions, so long as there is line of sight to the satellite for FSS service, and provide relatively inexpensive long-distance service.643 Satellites are thus able to provide service to remote and rural locations that are too difficult and expensive for terrestrial networks to reach.644 Satellites also have the potential to fill coverage gaps in 635 Michael Baylor, NASA Spaceflight, Planet Labs Targets a Search Engine of the World (Jan. 29, 2018), https://www.nasaspaceflight.com/2018/01/planet-labs-targets-search-engine-world/; GIS Geography, Planet Labs Imagery: The Entire Earth, Everyday (last updated Apr. 21, 2018), https://gisgeography.com/planet-labs-imagery/. Planet Labs claims to “image the entire Earth’s landmass every day at medium- and high-resolution” Planet Labs claims to “have over 2,000 images on average for every point on Earth’s landmass, creating a non-replicable historical archive for analytics, machine learning, and insights.” Planet Labs, Corporate Overview, https://investors.planet.com/overview/default.aspx (last visited Aug. 30, 2022). 636 Lora Kolodny, CNBC, A Start-Up Fighting Pirates with Satellites Just Raised $70 Million (Nov. 16, 2017), https://www.cnbc.com/2017/11/16/spire-global-raises-70-million-to-stop-pirates-with-satellites.html; Spire Global, 2021 SEC Form 10-K (filed 3/30/22) at 7-10; Spire, GNSS-RO & GPS-RO, https://spire.com/data/weather/?spirepedia=gnss-ro-gps-ro (last visited Aug. 30, 2022). 637 Maxar, 2021 SEC Form 10-K at 3-7 (filed Feb. 22, 2022). 638 BlackSky, 2021 SEC Form 10-K at 4 (filed Mar. 31, 2022). 639 ICEYE, ICEYE website, https://www.iceye.com/ (last visited Aug. 22, 2022). 640 Capella Space, Capella Space Open Data Gallery, https://www.capellaspace.com/gallery/ (last visited Nov. 16, 2022). 641 HawkEye 360, About – Revolutionizing RF Analytics, https://www.he360.com/about-us-rf-analytics/ (last visited Sept. 2, 2022). 642 See supra Fig. II.D.1; SIA Comments at 20. 643 For satellite service from GSOs, the cost is mostly independent of the distance involved, unlike many terrestrial ground-based networks requiring middle and last mile build-out or submarine cable. 644 SIA Comments at 9-11, 13-14. 137 Federal Communications Commission FCC 22-103 terrestrial based services. For example, T-Mobile has announced plans to use satellite service for text communications, while Apple has plans to initiate emergency communications using satellites.645 205. Another advantage of being a space platform is that a satellite can easily observe the Earth, enabling weather and ground monitoring and photography. A satellite is also unaffected by terrestrial developments and disasters, making it useful for providing redundant (backup) service to terrestrial systems, especially following a disaster. However, satellites are susceptible to problems specific to space, including orbital debris and solar flares, and communications may be affected by cloudy and wet weather on Earth for some services. In addition, being in space means that maintenance and repairs are very difficult or impossible to provide. 206. Cost. There is generally a high fixed cost to designing, manufacturing, and launching a satellite, which is a significant barrier to entry.646 Conversely, the cost of adding additional customers can be very low once the satellite is operational in space.647 For one-way communications of one-to-many distribution services such as audio (SDARS) and video (DBS), this cost of adding customers can be close to zero, just requiring ground equipment to reach the customer, as these customers all access the same signal. This allows them to expand service easily and profitably.648 207. Capacity. There are capacity limitations in the number of satellites that can be launched and operated, the availability of orbital slots for GSO satellites, the amount of traffic each satellite is capable of handling, and in the bandwidth (download and upload speed) each satellite can provide to each customer. The satellite industry is constantly looking for ways to loosen these constraints through technological improvements in antennas, satellite size, and spectrum usage.649 GSO satellite service, in particular, is limited by the number of orbital slots available. Limited spectrum availability is a particular problem for satellite communications because of the long distances involved, increasing the likelihood of RF interference with other communications, including other satellites and ground stations. The use of directional antennas and spacing of GSO satellites is used to reduce this RF interference and allow the reuse of FSS spectrum between satellites. 208. In the current marketplace, satellite capacity limits the number of customers that satellite operators can serve. In addition, due to the limited spectrum available to them, they have limited bandwidth and speeds for two-way and individual communications services. This bandwidth and capacity can be increased through larger satellites and careful reuse of spectrum, among other measures. Recent and upcoming increases in satellite size, antenna technology, and improvements in spectrum use have allowed the next generation of FSS satellites to offer broadband quality download speeds, and to handle larger numbers of customers in more regions of the United States. 209. Quality. The quality of satellite services can be negatively impacted by high latency and jitter, especially for higher Earth orbits. High latency, which slows down response time, can negatively impact customer experiences with certain communications applications, especially two-way 645 See, e.g., T-Mobile, Press Release, T‑Mobile Takes Coverage Above and Beyond With SpaceX (Aug. 25, 2022), https://www.t-mobile.com/news/un-carrier/t-mobile-takes-coverage-above-and-beyond-with-spacex; Chris Velazco, How T-Mobile and SpaceX are teaming up to give you coverage from space (Aug. 30, 2022), https://www.washingtonpost.com/technology/2022/08/30/spacex-t-mobile-starlink-satellite/; Jesse Hollington, iPhone 14 satellite connectivity: how it works, what it costs, and more (Nov. 11, 2022), https://www.digitaltrends.com/mobile/apple-iphone-14-emergency-sos-satellite-how-work-cost-availability/. 646 GAO, TELECOMMUNICATIONS: Competition, Capacity, and Costs in the Fixed Satellite Services Industry at 30 (2011), https://www.gao.gov/products/GAO-11-777. 647 SIA Comments at 10. This would be described in economics as a high fixed cost, low marginal cost industry with significant economies of scale. 648 Id. at 13-14. 649 Id. at 11-14. 138 Federal Communications Commission FCC 22-103 communications. Lower Earth orbit satellites, such as NGSO systems, however, have much lower latency. In addition, local ground weather can affect the reception of certain satellite services, depending on the frequency bands used.650 210. Customer Convenience. Customer convenience can be a significant factor in determining the usefulness and uptake of satellite services. Customers of satellite services may find the flexibility of location of satellite services convenient, allowing them to take service anywhere in the United States. with limited hand-off problems and loss of reception,651 even in remote areas.652 However, the need for a large antenna or handset, with a large power source for some satellite services, can be inconvenient, especially when compared with the smaller handsets needed for terrestrial mobile wireless service. 211. Time and Risk Involved in Satellite Launches. The time needed to build and launch satellites, and the risk involved, can be a significant issue for satellite operators considering market entry or expansion. It can take years to build and launch a satellite, and there is a significant risk that the satellite launch will not be successful, or that the satellite will be damaged or will malfunction at some point. This substantially raises the costs and market risks of entering the satellite services market and of expanding service. Satellite operators argue that they need regulatory certainty in terms of spectrum, orbital slots, and access to Federal support programs for rural and underserved areas, in order to safely plan their expansion plans.653 E. The Video Marketplace 1. Overview of the Video Programming Marketplace 212. In the United States, consumers can access video programming content from multiple sources, only some of which are licensed or regulated by the Commission. Some video providers, like broadcast television stations, have been in the marketplace for over 70 years,654 whereas other providers, like online video providers, have entered the market more recently. There are three primary categories of participants in the video marketplace: multichannel video programming distributors (MVPDs), online video distributors (OVDs), and broadcast television stations. While these three primary categories of market participants remain, in the past two years, competition among both these participants and video programming options have evolved. 213. MVPDs use wireline or satellite technologies to deliver video programming to consumers. MVPDs sell channel packages, which typically include linear channels from cable networks and retransmitted broadcast television stations, as well as video-on-demand (VOD) content.655 Traditional MVPDs include cable providers like Comcast and Charter, telephone company providers like Verizon Fios, two direct broadcast satellite (DBS) providers—DISH and DIRECTV—as well as numerous smaller cable and telephone company MVPDs. Continuing a downward trend that began in 650 Rain on the transmission path can degrade and attenuate signals for spectrum above 3 GHz, including C-band, Ku-band, Ka-band, and V-band. Ippolito (2017) at 101-05. 651 Reception may be lost in areas without clear line of sight to satellites, such as in mountainous areas. 652 SDARs, for example, allows cars to receive the same audio service anywhere in the United States. 653 EchoStar Comments at 5-7; SES and O3b Reply at 1-2, 7-8. 654 Commercial television began in the late 1940s. See Mitchell Stephens, History of Television, https://stephens.hosting.nyu.edu/History%20of%20Television%20page.html (last visited Oct. 6, 2022). 655 Linear channels offer specific video programs at a specific time of day in a manner akin to broadcast television. VOD programs are stored electronically by the provider and can be viewed by the consumer at any time; i.e., on demand. See, e.g., Annual Assessment of the Status of Competition in the Market for the Delivery of Video Programming, MB Docket No. 14-16, Notice of Inquiry, 29 FCC Rcd 1597, 1603, para. 15 & n.23 (2014) (“A linear channel is one that distributes programming at a scheduled time. Non-linear programming, such as video-on- demand (‘VOD’) . . . is available at a time of the viewer’s choosing.”). 139 Federal Communications Commission FCC 22-103 2013, MVPDs lost 6.7 million video subscribers between 2020 and 2021, ending 2021 with 69.1 million video subscribers. As many MVPDs also provide broadband Internet, voice, and mobile wireless services, MVPDs continue to compete by offering discounted services to consumers who purchase video services as part of a bundle that includes some combination of other service offerings.656 214. OVDs deliver video content to consumers via the Internet.657 They use a variety of business models, including advertising-supported video offerings; a subscription model for access to an entire video library; and a transactional approach in which consumers pay to view a movie or television episode on a per-program basis. While OVDs often provide access to programming from third-party producers, major OVDs are increasing the amount of original and owned content they provide as a means of differentiating themselves from competitors. In addition, many large video content owners have elected to use their own OVD services, instead of third-party platforms, to make their content available online. OVDs include Netflix, Hulu, Amazon Prime Video, HBO Max, YouTube TV, Disney+, and TikTok, as well as numerous other providers tending to focus on niche audiences. Over the past two years, OVDs have continued to proliferate, and many OVDs have grown rapidly relative to traditional MVPDs. In addition, virtual multichannel video programming distributors (vMVPDs), such as DIRECTV Stream and Disney’s Hulu + Live TV, deliver packages of streaming linear channels via the Internet to subscribers similar to those offered by traditional MVPDs. vMVPDs continue to grow and attract consumers away from traditional MVPDs. 215. Broadcast television stations offer linear video programming channels over-the-air to households that receive this programming using a television set connected to an antenna. Although many broadcast television stations are affiliated with commercial broadcast networks (e.g., ABC, CBS, FOX, and NBC), participants in this category also include independent commercial stations and noncommercial educational stations. 658 Programming aired on broadcast television stations includes local programming produced by stations, network programming, and syndicated programming. Stations derive their revenue from the sale of advertisements during the programming and from fees paid by MVPDs for the carriage of the station’s signal, called retransmission consent fees. Advertising revenue accounts for approximately 60% of revenue earned by all stations, while retransmission consent revenue accounts for the remaining 40% of revenue. While advertising revenue has remained relatively flat in recent years, retransmission consent revenue has grown substantially as the fees negotiated between broadcast stations and MVPDs have increased.659 2. Multichannel Video Programming Distributors a. Providers and Subscribers 216. At the end of 2021, seven MVPDs each had over one million video subscribers. These MVPDs include four cable companies (Comcast, Charter, Altice, and Cox), DISH (a DBS MVPD), DIRECTV (a combined DBS and wireline MVPD),660 and Verizon Fios (a telephone company MVPD).661 656 See infra section II.E.2.b. 657 For purposes of this section, we define OVD as “an entity that distributes video programming (1) by means of the Internet or other Internet Protocol (IP)-based transmission path; (2) not as a component of an MVPD subscription or other managed video service; and (3) not solely to customers of a broadband Internet access service owned or operated by the entity or its affiliates.” 2020 Communications Marketplace Report, 36 FCC Rcd at 3048, para. 152 & n.440. 658 Major independent stations include, for example, WGN-TV in Chicago, KCAL-TV in Los Angeles, and WHDH- TV in Boston. 659 See infra section II.E.4.d. 660 In August 2021, AT&T spun off DIRECTV, AT&T TV, and U-verse to DIRECTV. See Catie Keck, The Verge, AT&T has officially spun off DirecTV, which is now its own business (Aug. 3, 2021), https://www.theverge.com/2021/8/3/22608577/att-directv-tpg-deal-u-verse-att-tv-new-company. 140 Federal Communications Commission FCC 22-103 Nine cable MVPDs and two telephone company MVPDs each had between 100,000 and 1 million video subscribers.662 In addition, many small cable and telephone company MVPDs served smaller numbers of customers.663 217. Cable MVPDs generally serve non-overlapping franchise areas, and as a result, most consumers have access to only one cable MVPD, and cable MVPDs do not generally compete directly with one another for the same subscribers.664 DIRECTV and DISH have national footprints and almost all consumers have access to both DBS MVPDs.665 Telephone company MVPDs rarely compete with one another for the same subscribers; however, they almost always overbuild areas already served by at least one cable company.666 As such, most consumers have access to one cable MVPD and two DBS MVPDs, and some consumers additionally have access to a telephone company MVPD. 218. MVPD subscribership has been declining since 2013.667 Figure II.E.1 shows that collectively, the number of traditional MVPD subscribers fell from 75.9 million at the end of 2020 to 69.2 million at the end of 2021, which represents a loss of 6.7 million video subscribers.668 Further, between 2020 and 2021, cable MVPDs lost 3 million subscribers, DBS MVPDs lost 2.6 million subscribers, and telephone company MVPDs lost 1.1 million subscribers.669 At the end of 2021, 51.3% of U.S. households subscribed to a traditional MVPD.670 According to Leichtman Research Group, households subscribing to MVPD and vMVPD services tend to be older and/or have higher incomes than households that do not subscribe to these services.671 Leichtman Research Group also found that subscribers to MVPD and vMVPD services have stronger preferences for sports and news, relative to non-subscribers.672 (Continued from previous page) 661 See S&P Global, Top Cable MSOs (last accessed May 26, 2022) (Top Cable MSOs); Ian Olgeirson and Mau Rodriguez, S&P Global, Multichannel Trends: 2021 US multichannel video declines hit 8.9%, virtual growth slows (Mar. 14, 2022) (2021 US Multichannel Video Declines). We do not provide URLs for S&P Global articles and data throughout this section because it is a paid subscription service that cannot be publicly accessed. 662 The nine cable MVPDs were Mediacom, Astound Broadband, Breezeline, Cable One, Armstrong Utilities, Midcontinent Communications, WideOpenWest, Service Electric Cable TV, Blue Ridge Cable Technologies. Top Cable MSOs. The telephone company MVPDs were Frontier Communications and Cincinnati Bell. 2021 US Multichannel Video Declines. 663 Top Cable MSOs. 664 Where cable overbuilders exist (e.g., Astound Broadband), consumers have access to more than one cable MVPD. The available data, however, do not permit us to calculate how many homes have access to two cable MVPDs. 665 We recognize that physical features (e.g., tall buildings, terrain, and trees) prevent some housing units from receiving DBS signals. See 2020 Communications Marketplace Report, 36 FCC Rcd at 3049, para. 155 & n.447. 666 S&P Global, Cable/Telco Broadband Overlap (last accessed June 1, 2022). Although we distinguish telco MVPDs from cable MVPDs for descriptive purposes for this marketplace report, we note that telco MVPDs are cable operators for regulatory purposes. See Promoting Innovation and Competition in the Provision of Multichannel Video Programming Distribution Services, MB Docket No. 14-261, Notice of Proposed Rulemaking, 29 FCC Rcd 15995, 16026-29, paras. 71-77 (2014). 667 S&P Global, U.S. Multichannel Industry Benchmarks (last accessed May 26, 2022) (Multichannel Benchmarks). 668 2021 US Multichannel Video Declines. This follows a loss of 7.3 million video subscribers between 2019 and 2020. Id. 669 Multichannel Benchmarks. 670 2021 US Multichannel Video Declines. 671 Leichtman Research Group, Research Notes 1Q 2022 (Apr. 2022), https://www.leichtmanresearch.com/wp- content/uploads/2022/04/LRG-Research-Notes-1Q-2022.pdf (Leichtman Research Notes Q1 2022). 672 Id. 141 Federal Communications Commission FCC 22-103 Fig. II.E.1 MVPD Video Subscribers (in millions) Net Percentage 2020 2021 Change Change Cable 46.0 43.0 -3.0 -6.7% DBS 21.9 19.3 -2.6 -12.0% Telephone Company 7.9 6.8 -1.1 -13.8% Total 75.9 69.2 -6.7 -8.8% Source: S&P Global, Multichannel Industry Benchmarks (last accessed Sept. 9, 2022). 219. Figure II.E.2 shows the relative shares of MVPD subscribers for cable, DBS, and telephone companies. In 2021, over 60% of MVPD subscribers subscribed to cable while nearly 30% subscribed to DBS and approximately 10% subscribed to telephone companies. While the total number of MVPD subscribers declined from 75.9 million in 2020, to 69.2 million in 2021, cable’s market share increased while the shares for DBS and telephone company MVPDs fell. Fig. II.E.2 Percentage of MVPD Subscribers Year Cable DBS Telephone 2020 60.6% 28.9% 10.4% 2021 62.2% 27.9% 9.9% Source: S&P Global, U.S. Multichannel Industry Benchmarks (last accessed Sept. 9, 2022). 220. Figure II.E.3 shows the number of subscribers and market shares for the largest traditional MVPDs at the end of 2021. These MVPDs served approximately 94% of all traditional MVPD subscribers. 142 Federal Communications Commission FCC 22-103 Fig. II.E.3 Largest Traditional MVPDs 2021 Subscribers 2021 Market Share (in millions) Comcast (Cable) 18.2 26.1% Charter (Cable) 15.8 22.7% DIRECTV (DBS) 11.1 16.3% DISH (DBS) 8.2 12.1%673 Verizon (Telephone) 3.6 5.3% Altice (Cable) 2.9 4.1% Cox (Cable) 2.6 3.8% AT&T U-verse674 (Telephone) 1.9 2.9% Mediacom (Cable) 0.6 0.8% Source: John Fletcher, Multichannel operator demographics, S&P Global (May 12, 2022). S&P Global, Market Intelligence: Multichannel distributor video subscriber market share, 2017-2021 (June 1, 2022). 221. Some cable companies consider their MVPD service to be a loss leader, with broadband being the business focus.675 NTCA argues that “the ability to offer quality video services is an essential component of the business case for broadband deployment . . . and can serve as a driver of broadband adoption in rural areas.”676 Other cable operators assert that the MVPD service remains an important business, even as it gets harder to remain profitable with increasing programming costs.677 Fourth-quarter 2021 programming costs for Comcast, Charter, and Altice averaged $62.75 per MVPD subscriber per month, a 38% increase since the first-quarter of 2016.678 ACA Connects contends that programming costs for small and rural MVPDs are significantly higher than those paid by large MVPDs.679 b. Channel Packages and Bundling 222. MVPDs typically offer a variety of channel packages at different prices. For example, in mid-2022, DIRECTV offered four packages with channel counts ranging from 160 to more than 330, which were priced from $64.99 to $139.99 per month.680 Similarly, Verizon offered three packages with channel counts ranging from 125 to more than 425, which were priced from $70.00 to $110.00 per 673 The market share estimate for DISH excludes Sling TV. S&P Global, Multichannel distributor video subscriber market share, 2017-2021 (June 1, 2022). 674 AT&T’s U-verse video service is no longer available for new customers. AT&T, AT&T U-verse TV Official Site | Important U-verse Update, https://www.att.com/u-verse-tv/ (last visited Oct. 6, 2022). 675 Matt Daneman, Communications Daily, Cable Not Seen Axing Linear Video Anytime Soon, Despite Ongoing Subscriber Slides (May 31, 2022). 676 NTCA Comments at 15. 677 Id. 678 S&P Global, US Cable Results, Q4’21: Top public MSOs’ financial and subscriber data (Apr. 18, 2022) (Q4’21 Top Public MSOs). 679 ACA Connects Comments at 18-19. 680 DIRECTV, Satellite TV Packages: Plans, Channels, & Prices, https://www.directv.com/satellite/packages/ (last visited Oct. 6, 2022). 143 Federal Communications Commission FCC 22-103 month.681 Although no two channel packages are exactly alike, there is substantial overlap in the packages offered by competing MVPDs. Traditional MVPDs tend to offer all major cable and broadcast networks, similar premium channels, and little in the way of exclusive content.682 Because of their programming similarities, households typically subscribe to only one MVPD. 223. MVPDs also generally offer access to some channels and VOD programs over the Internet both inside and outside the home.683 Some MVPDs also offer an online channel package as a vMVPD separate from their MVPD service. For example, DIRECTV offers DIRECTV Stream and DISH offers Sling TV.684 Some MVPDs offer online channel packages from third-party video programming providers along with their Internet service offerings. For example, Verizon offers YouTube TV.685 These online channel packages are examined more fully in our discussion of OVDs below. 224. MVPDs offer discounted rates to consumers who purchase video services as part of a bundle that may include some combination of video, Internet, voice, and mobile wireless services.686 At the end of 2020, 7.5% of video subscribers from the largest cable MVPDs purchased only video service, 43.6% of video subscribers purchased two services, and 49% purchased at least three services.687 According to S&P Global, the high concentration of video customers subscribing to one or more additional services suggests that cord cutting for cable MVPDs would have been greater without broadband and other bundled services.688 c. Pricing 225. The prices displayed to consumers on MVPD websites, in mailings, or in television advertisements typically target new subscribers, and are often only available for a limited time, with 681 Verizon, Fios Mix and Match: Custom Internet, TV and Phone Packages, Plans and Bundles, https://www.verizon.com/home/bundles/fios/ (last visited Oct. 6, 2022). 682 The NFL Sunday Ticket, offered exclusively by DIRECTV since 1994, is perhaps the most well-known exception to this observation. See Stephen Silver, The National Interest, How DirecTV Can Survive Losing NFL Sunday Ticket (May 13, 2022), https://nationalinterest.org/blog/buzz/how-directv-can-survive-losing-nfl-sunday- ticket-202382. 683 For viewing over the Internet, MVPDs use an authentication process to ensure that users subscribe to an MVPD. 684 DIRECTV, Satellite TV & Streaming Services, https://www.directv.com/ (last visited Oct. 6, 2022); Sling TV, Live TV Streaming, https://www.sling.com/ (last visited Oct. 6, 2022). 685 Verizon, Verizon Fios TV Packages & Plans – More Than Digital Cable TV, https://www.verizon.com/home/fiostv/ (last visited Oct. 6, 2022). 686 Rob Webber, Money Saving Pro, The best deals for TV, internet & phone bundles, https://www.moneysavingpro.com/internet/tv-internet-phone-bundles/ (last visited Oct. 6, 2022). 687 Tony Lenoir, S&P Global, Multichannel Trends: Bundle subs under pressure as triple-plays dip below 2- product combos in 2020 (Mar. 15, 2021). 688 Id. 144 Federal Communications Commission FCC 22-103 prices increasing once the promotional period ends.689 For example, in August 2022, DIRECTV and Comcast offered new subscribers price discounts for 12 months with a 24-month agreement.690 226. In addition to the advertised prices, MVPDs explain that the monthly bill may include additional fees for programming from local broadcast television stations or regional sports networks or for equipment rental. For example, in August 2022, equipment, installation, taxes and fees, a Broadcast TV Fee (up to $24.95 per month), a Regional Sports Fee (up to $19.15 per month), and other applicable charges were not included in the advertised price for Comcast’s TV packages.691 Any fees over-and- above prominently displayed advertised prices are typically included in the advertisements and listed on a subscriber’s monthly billing statement.692 227. Subscriptions to traditional MVPD channel packages generally include the use of a set- top box. Some MVPDs include one set-top box with the subscription and charge monthly rental fees for additional set-top boxes, which vary in price depending on their high definition (HD) and digital video recorder (DVR) features. Some MVPDs have integrated access to streaming services like Netflix, Hulu, YouTube, and Amazon Prime Video into their set-top boxes, which gives MVPD subscribers the ability to access these streaming services without having to purchase additional streaming equipment.693 The largest MVPDs offer application software that can be downloaded to PCs, smartphones, and some smart TVs.694 A few MVPDs also provide apps for streaming devices (e.g., Roku, Amazon Fire, Google Chromecast, and Apple TV+), which allow subscribers to stream MVPD programming to additional TVs, without the need for additional set-top boxes.695 689 This practice is common in subscription and other repeat purchase markets, in which firms exercise market power over consumers who face switching costs, while also seeking to attract existing customers of rival firms. Consumer switching costs could include transaction costs, learning costs, or contractual costs. See, e.g., Paul Klemperer, Markets with consumer switching costs, 102 The Quarterly Journal of Economics, 375-94 (1987); Curtis R. Taylor, Supplier surfing: Competition and consumer behavior in subscription markets, 34 RAND Journal of Economics, 223-46 (2003). 690 DIRECTV, Satellite TV Packages: Plans, Channels, & Prices, https://www.directv.com/satellite/packages/ (as of Aug. 5, 2022); Comcast, Xfinity X1: Our Best Live TV & More, https://www.xfinity.com/learn/digital-cable-tv/x1 (as of Aug. 5, 2022). 691 Comcast, Xfinity X1: Our Best Live TV & More, https://www.xfinity.com/learn/digital-cable-tv/x1 (as of Aug. 5, 2022). 692 For example, Comcast’s website offers the Select+ Internet and TV bundle for $89.99 per month. Right below the price, however, it says “Pricing & Other Info.” When clicked a box opens that provides additional details including information about equipment fees, broadcast fees, and regional sports fees. Comcast, Xfinity X1: Our Best Live TV & More, https://www.xfinity.com/learn/digital-cable-tv/x1 (last visited Oct. 6, 2022). Section 1004(a) of the Television Viewer Protection Act of 2019 (TVPA) amended the Act to require MVPDs to “give consumers a breakdown of all charges related to the MVPD’s video service” before contracting with a consumer for service and also provides consumers 24 hours in which to cancel such service without penalty. H.R. Rep. No. 116-329, 116th Cong., 1st Sess. 2019 at 4. Section 642(a)(1) of the Act, as added by the TVPA, specifically requires that MVPDs provide “the total monthly charge for the [service] . . . including any related administrative fees, equipment fees, or other charges . . . .” 47 U.S.C. § 562(a)(1) (as added by section 1004(a) of the TVPA, Pub. L. No. 116-94, 133 Stat. 2534 (2019)). 693 For example, in August 2022, the Comcast Xfinity set-top box included 22 streaming video services and four streaming music services. Comcast, Streaming Services Available on Xfinity X1 and Flex, https://www.xfinity.com/learn/digital-cable-tv/streaming- services?INTCMP=X1Learn_StreamingApps_Explore_LearnApps (last visited Oct. 6, 2022). 694 NCTA Comments at 31. 695 For example, the Charter Spectrum TV App allows customers to control their TV, view their channel lineup, stream live and VOD programming, and program their DVR. Charter, Spectrum TV App: Stream TV Live or On- (continued….) 145 Federal Communications Commission FCC 22-103 d. Video Revenue 228. Video revenues for the largest MVPDs are shown in Figure II.E.4. Although the bulk of MVPD video revenue comes from subscriptions, MVPDs also earn revenue by selling advertising. S&P Global reports that cable MVPDs earned net local advertising revenue of $4.3 billion in both 2020 and 2021.696 Average monthly video revenue per traditional MVPD subscriber continued to increase from $95.14 at the end of 2020 to $99.60 at the end of 2021.697 Fig. II.E.4 MVPD Video Revenue (billions) 2020 2021 Percentage Change Comcast $21.9 $22.1 0.6% Charter $17.4 $17.6 1.1% AT&T/DIRECTV698 $28.6 $15.5 -45.8% DISH699 $12.9 $12.9 0.2% Source: Comcast 2021 SEC Form 10-K at 76 (filed Feb. 2, 2022); Charter 2021 SEC Form 10-K at 34 (filed Jan. 28, 2022); AT&T 2021 SEC Form 10-K at 29 (filed Feb. 16, 2022); and DISH 2021 SEC Form 10-K at 53 (filed Feb. 24, 2022). e. Content Ownership 229. Some traditional MVPDs have ownership interests in cable, broadcast, and regional sports networks that allow them to vertically integrate their ownership of a distribution network with ownership of video programming. For example, Comcast owns cable networks USA, E!, Syfy, Bravo, MSNBC, CNBC, Oxygen, Golf Channel, Universal Kids, The Olympic Channel, Universo, and CNBC World; regional sports networks in Baltimore/Washington, Boston, Chicago, Philadelphia, Portland (Oregon), Sacramento, and San Francisco; the NBC and Telemundo broadcast networks; 11 NBC- affiliated broadcast stations, 30 Telemundo-affiliated broadcast stations; film studios including the brands Universal Pictures, Illumination, DreamWorks Animation, Focus Features, Working Title; and the Peacock streaming service.700 In contrast to this approach, AT&T recently separated its distribution networks (DIRECTV, U-verse, and AT&T TV) from its video programming assets (WarnerMedia), which it merged with Discovery in April 2022.701 (Continued from previous page) Demand, https://www.spectrum.com/cable-tv/spectrum-tv-app?opredirect=apps-spectrum-tv-app (last visited Oct. 6, 2022). 696 Multichannel Benchmarks. 697 See Q4’21 Top Public MSOs. 698 AT&T’s DBS, wireline, and online video services were spun off to DIRECTV in August 2021. The decline in AT&T’s reported revenue reflects both a decline in video subscribers and, more importantly, a change in accounting for AT&T’s remaining investment in DIRECTV under the equity method. AT&T retained 70% of DIRECTV. AT&T 2021 SEC Form 10-K at 83, 92 (filed Feb. 16, 2022). 699 DISH video revenue includes Sling TV. See DISH 2021 SEC Form 10-K at 53 (filed Feb. 24, 2022). 700 Comcast 2021 SEC Form 10-K at 6-8 (filed Feb. 2, 2022). 701 AT&T, Press Release, DIRECTV to Own and Operate Former AT&T Video Operations (Aug. 2, 2021), https://about.att.com/story/2021/att_directv.html; AT&T, Press Release, AT&T and Discovery Close WarnerMedia Transaction (Apr. 8, 2022), https://about.att.com/story/2022/close-warnermedia-transaction.html. 146 Federal Communications Commission FCC 22-103 230. Common ownership of entities that deliver video programming to consumers and entities that produce and supply video programming for delivery may have implications for competition and programming diversity in the MVPD market. Thus, Congress enacted various provisions related to vertical integration between cable operators and programming networks (e.g., program access, program carriage, channel occupancy limit provisions).702 The Commission reviews some vertical mergers between MVPDs and owners of video content (or vertical aspects of mergers that are otherwise primarily horizontal).703 In its reviews of such mergers, the Commission seeks to identify and evaluate the potential harms and benefits that might arise. f. Commercial Availability of Equipment Used to Access MVPD Programming and Services 231. Consistent with section 629 of the Telecommunications Act of 1996,704 and in response to a 2017 report from the Government Accountability Office, the Commission committed to gather data, solicit comments, and analyze issues relevant to whether there is a need for further regulations to ensure the commercial availability of devices to access MVPD programming.705 Accordingly, the 2022 CMR 702 47 U.S.C. §§ 533, 536, 548. In 1992, many of the most popular cable programming networks were owned by cable operators. Congress was concerned that cable operators had the ability and incentive to thwart the competitive development of additional programming networks by refusing to carry unaffiliated networks or by insisting on an ownership stake in return for carriage. See id. § 536. Congress was also concerned that cable operators had the ability and incentive to thwart competition in the video distribution market by withholding their most popular programming networks from rival MVPDs. See id. § 548. 703 See, e.g., Applications of Charter Communications, Inc., Time Warner Cable Inc., and Advance/Newhouse Partnership For Consent to Assign or Transfer Control of Licenses and Authorizations, MB Docket No. 15-149, Memorandum Opinion and Order, 31 FCC Rcd 6327 (2016); Applications of AT&T Inc. and DIRECTV for Consent to Assign or Transfer Control of Licenses and Authorizations, MB Docket No. 14-90, Memorandum Opinion and Order, 30 FCC Rcd 9131 (2015); Applications of Comcast Corporation, General Electric Company and NBC Universal, Inc. For Consent to Assign Licenses and Transfer Control of Licensees, MB Docket No. 10-56, Memorandum Opinion and Order, 26 FCC Rcd 4238 (2011); Applications of General Motors Corporation, Hughes Electronics Corporation and The News Corporation LTD, MB Docket No. 03-124, Memorandum Opinion and Order, 19 FCC Rcd 473 (2004); Applications for Consent to the Transfer of Control of Licenses and Section 214 Authorizations by Time Warner Inc., and America Online, Inc., et al., CS Docket No. 00-30, Memorandum Opinion and Order, 16 FCC Rcd 6547 (2001). 704 This provision requires the Commission to “adopt regulations to assure the commercial availability—to consumers of multichannel video programming and other services offered over multichannel video programming systems—of converter boxes, interactive communications equipment, and other equipment used by consumers to access multichannel video programming and other services offered over multichannel video programming systems, from manufacturers, retailers, and other vendors not affiliated with any multichannel video programming distributor.” 47 U.S.C. § 549(a). 705 In 2016, the Commission proposed regulations for navigation devices (i.e., set-top boxes) that consumers use to access MVPD video services. Expanding Consumers’ Video Navigation Choices; Commercial Availability of Navigation Devices, MB Docket No. 16-42, CS Docket No. 97-80, Notice of Proposed Rulemaking and Memorandum Opinion and Order, 31 FCC Rcd 1544 (2016). In 2017, the Government Accountability Office (GAO) concluded that the Commission’s proposed regulations did not sufficiently analyze “the extent to which Internet-based providers affect consumer choice for video programming and what that change means for the importance of consumer choice for devices in the context of the Act.” U.S. Government Accountability Office, GAO-17-785, FCC Should Conduct Additional Analysis to Evaluate Need for Set-Top Box Regulation, at 22 (2017) (2017 GAO Report). Following the 2017 GAO Report, the Commission indicated that it would use future Communications Marketplace Reports to gather data, solicit comments, and perform analysis on issues relevant to whether there is a need for further regulations to ensure the commercial availability of devices to access MVPD programming. Letter from Michelle Carey, Chief, Media Bureau, FCC, to Mark Goldstein, Director, Physical Infrastructure Issues, Government Accountability Office (filed Sept. 21, 2017). The 2016 Notice of Proposed Rulemaking was terminated in 2020. See Expanding Consumers’ Video Navigation Choices; Commercial (continued….) 147 Federal Communications Commission FCC 22-103 Public Notice sought data and comment to “help the Commission analyze how the ongoing evolution in the video programming market affects competition in the related market for set-top boxes and devices, including how it affects the extent to which consumer choice for devices to access MVPD content remains a relevant aspect of the competitive environment.”706 As detailed below, our review of relevant comments and other available information revealed three developments: (1) a decline in MVPD subscriptions, and, therefore, the number of leased set-top-boxes; (2) increased use of apps to stream MVPD programming on Internet-connected televisions, computers, and smartphones; and (3) increased availability of vMVPDs that provide programming similar to traditional MVPDs but do not require leased set-top boxes. 232. The Commission received two filings relevant to set-top boxes and devices.707 In its filing, NCTA argues that in today’s video marketplace, “there is no longer any legitimate basis for concern that consumers are effectively forced to rent set-top boxes from MVPDs to be able to access video content.”708 NCTA contends that there are alternatives to MVPD-leased set-top boxes for viewing MVPD programming.709 According to NCTA, all of the nation’s largest MVPDs support apps that MVPD subscribers can use to access MVPD programming on Internet-connected devices.710 NCTA explains that the ability to view MVPD programming on these devices “contrast starkly with the marketplace conditions in 1996 that led Congress to direct the Commission to assure the retail availability of navigation devices.”711 In 1996, NCTA notes, “cable operators were considered to be the dominant providers of Pay-TV service, there was generally only one type of display device (a TV) to watch cable video content, and there was only one way to render scrambled or encrypted cable video on those TVs (a set-top box device obtained from the cable operator).”712 NCTA further notes that today, only 37% of televisions are connected to an MVPD set-top box.713 To the extent concerns about an MVPD subscriber’s ability to obtain retail devices to access MVPD programming were legitimate over two decades ago, NCTA argues that “those concerns are no longer relevant given the overall competitive video and video device marketplace.”714 233. FSF’s filing notes that consumers purchase a range of devices to access video content, including MVPD programming, “in ways well beyond the wildest dreams of the lawmakers who passed Section 629 over a quarter-century ago.”715 Accordingly, FSF contends that “the sunset provision set forth in Section 629(e) of the 1996 Act has been satisfied.”716 (Continued from previous page) Availability of Navigation Devices, MB Docket No. 16-42, CS Docket No. 97-80, Report and Order, 35 FCC Rcd 10209 (2020). 706 See 2022 CMR Public Notice at 8. 707 See NCTA Comments; FSF Comments. 708 NCTA Comments at 30. 709 Id. 710 Id. at 30-31. 711 Id. at 31. 712 Id. at 31-32. 713 Id. at 32. 714 Id. 715 FSF Comments at 25. 716 Id. at 24-25. 148 Federal Communications Commission FCC 22-103 234. The primary function of a set-top box is to deliver MVPD programming to a television.717 Set-top boxes are not designed to deliver MVPD programming to smartphones. Most large MVPDs provide apps for smartphones and some provide apps for streaming devices (e.g., Roku, Amazon Fire TV, and Apple TV+) that serve as functional alternatives to set-top boxes for viewing MVPD programming on a television. Charter and Comcast provide apps that allow MVPD subscribers to stream MVPD programming to both smartphones and streaming devices that connect to a television.718 DISH and DIRECTV provide apps that allow MVPD subscribers to stream MVPD programming to smartphones, but they do not appear to provide apps for streaming devices that connect to a television.719 DISH makes clear its requirement that an additional leased box is necessary for each additional television.720 235. S&P Global notes that the “relevance of traditional multichannel set-top boxes is waning with the confluence of falling subscribers and rising alternative devices.”721 The number of set-top boxes used by MVPD subscribers has declined from a peak of 258 million in 2016 to an estimated 162 million at the end of 2021.722 Although many MVPD subscribers still lease set-top boxes, they now have additional options for viewing MVPD programming on a television. Specifically, some MVPDs provide apps for streaming devices that allow subscribers to watch MVPD programming on additional televisions without the need for leasing additional equipment. Also, vMVPDs enable subscribers to view programming substantially like traditional MVPD programming on a television without the need to lease any equipment. 3. Online Video Distributors 236. OVDs are entities that distribute video programming to consumers over the Internet, not as a component of an MVPD subscription, and not solely to customers of an ISP owned or operated by the entity or its affiliates.723 Because OVDs use existing broadband infrastructure, they have a large universe of potential customers for whom they can compete. OVD content typically is available to U.S. consumers on a nationwide basis, although in some cases, geographic availability of OVD content can be limited (e.g., OVDs that offer cable and broadcast channels).724 717 According to PC Mag, “Many cable TV companies also offer Internet service, but their set-top boxes are only for TV.” PC Mag, Definition of set-top box, https://www.pcmag.com/encyclopedia/term/set-top-box (last visited Oct. 6, 2022). 718 Charter, Spectrum TV App: Stream TV Live or On-Demand, https://www.spectrum.com/cable-tv/spectrum-tv-app (last visited Oct. 6, 2022); Comcast, Xfinity Stream App on Xfinity TV Partner Devices FAQs, https://www.xfinity.com/support/articles/xfinity-stream-app-faqs (last visited Oct. 6, 2022). 719 See, e.g., DISH, DISH Anywhere App – Watch TV & Movies with DISH TV Mobile App, https://www.dish.com/availability/ways-to-watch/tv-mobile-app (last visited Oct. 6, 2022); DIRECTV, DIRECTV App – Watch Live TV on Your Mobile Phone or Tablet, https://www.directv.com/satellite/technology/app/ (last visited Oct. 6, 2022); Comcast, For You – Xfinity Stream, https://www.xfinity.com/stream/ (last visited Oct. 6, 2022). 720 DISH says that equipment fees apply for additional televisions. DISH, DISH Satellite TV - Official Site, https://www.dish.com/ (last visited Oct. 6, 2022). 721 Ian Olgeirson, S&P Global, US cable, telco, DBS set-tops lose traction in 2021 forecast (July 14, 2021). 722 Id. 723 Although online video includes both professional and amateur content, our focus is on content similar to the programming offered by cable and broadcast networks. 724 For example, geographic availability may depend on contractual arrangements with cable networks, broadcast stations, and other content owners. See 2020 Communications Marketplace Report, 36 FCC Rcd at 3057, para. 176. Availability may also require building, or contracting with, content distribution networks (CDNs) to enhance the speed and quality of video content delivered to consumers. Id. 149 Federal Communications Commission FCC 22-103 a. OVD Service Offerings 237. OVDs include many participants that employ a variety of business models and strategies. We discuss four types of service provided by OVDs: Advertising-based Video On Demand (AVOD); Subscription Video On Demand (SVOD); Transactional Video On Demand (TVOD); and virtual Multichannel Video Programming Distributor (vMVPD).725 238. Advertising-based Video On Demand. AVOD providers allow consumers to access video programming online free of charge and generate revenue from advertisements included with their content.726 Some AVOD services are owned by large media or technology companies. For example, Google’s YouTube offers a wide variety of content, including user-created videos, professionally produced video content, music videos, and clips from TV shows and movies.727 TikTok, which has been growing rapidly, allows users to share and watch short videos.728 Several AVOD providers offer movies and TV shows, including NBCUniversal’s Vudu,729 Amazon’s Freevee,730 Fox’s Tubi,731 and Crackle.732 Paramount Global’s ad-supported Pluto TV service provides multi-device access to about 200 linear channels of content, including movies, TV shows, news, and sports, as well as on-demand movies.733 In addition, broadcast networks have branded AVOD services, including NBC News Now, CBS News Streaming Network, and CBS Sports HQ, which feature live news programming and sports video clips.734 NBCUniversal’s Peacock service provides access to live and on-demand programming, including some original content.735 Roku, which provides digital media hardware, has been expanding its ad-supported service, The Roku Channel.736 Beginning in early 2023, Netflix says it will offer a portion of its 725 The information in this section is current as of June 2022. We note that OVD offerings and prices continue to change. 726 See Seth Shafer, S&P Global, Economics of Internet: State of US online video: AVOD 2021 (Nov. 30, 2021) (Shafer AVOD); Imagen, What are SVOD, TVOD, AVOD?, https://imagen.io/resources/what-are-svod-tvod-avod/ (last visited Oct. 6, 2022) (What are SVOD, TVOD, AVOD?); Uscreen, SVOD, AVOD, TVOD—How to Pick a Monetization Model for Your VOD, https://www.uscreen.tv/video-business-school/svod-tvod-avod-monetization- models/ (last visited Oct. 6, 2022) (Uscreen SVOD, AVOD, TVOD). 727 YouTube, YouTube website, https://www.youtube.com/ (last visited Oct. 6, 2022); see also Shafer AVOD. 728 Zheping Huang, Bloomberg, TikTok Turns On the Money Machine (June 23, 2022), https://www.bloomberg.com/news/features/2022-06-23/tiktok-becomes-cash-machine-with-revenue-tripling-to-12- billion. 729 Vudu, Movies On Us, https://www.vudu.com (last visited Oct. 6, 2022). Vudu is part of NBCUniversal’s Fandango Media subsidiary. Warner Brothers Entertainment holds a minority stake in Fandango Media. Fandango, Corporate Ownership, https://www.fandango.com/info/corporate-ownership (last visited Oct. 6, 2022). NBCUniversal is itself owned by Comcast. Comcast 2021 SEC Form 10-K at 1 (filed Feb. 2, 2022). 730 Amazon, freevee, https://www.amazon.com/adlp/freevee-about (last visited Oct. 6, 2022). 731 Tubi TV, tubi website, https://tubitv.com/home (last visited Oct. 6, 2022). 732 Crackle, Crackle website, https://www.crackle.com/ (last visited Oct. 6, 2022). 733 Pluto TV, Drop In. Watch Free., https://pluto.tv/welcome (last visited Oct. 6, 2022); Pluto TV, Channel Lineup, https://plutotvreview.com/pluto-tv-channels-list-complete/ (last visited Oct. 6, 2022). 734 NBC, NBC News Now, https://www.nbcnews.com/now (last visited Oct. 6, 2022); CBS, CBS News Streaming Network, https://www.cbsnews.com/live/ (last visited Oct. 6, 2022); CBS, CBS Sports HQ, https://www.cbssports.com/cbs-sports-hq/ (last visited Oct. 6, 2022). 735 Peacock, Choose a Plan, https://www.peacocktv.com/plans/all-monthly (last visited Oct. 6, 2022). See Blair Marnell, Digital Trends, What is Peacock? (Feb. 3, 2021), https://www.digitaltrends.com/movies/what-is-peacock/ (What is Peacock?). 736 The Roku Channel, The Roku Channel website, https://therokuchannel.roku.com/ (last visited Oct. 6, 2022). 150 Federal Communications Commission FCC 22-103 programming on an advertisement-supported basis, by partnering with Microsoft to launch an advertisement-supported VOD service.737 239. Subscription Video On Demand. SVOD providers charge consumers a recurring subscription fee for access to the provider’s video content.738 While it is not possible to list all providers in this report, large SVOD services include Netflix and Amazon Prime Video, both of which provide access to large libraries of video content such as TV shows, movies, documentaries, and original content.739 These services are similarly priced. Netflix costs from $9.99 to $19.99 per month,740 while consumers can subscribe to Amazon Prime Video as a standalone service for $8.99 per month or as part of an Amazon Prime membership, which costs $14.99 per month or $139 per year.741 Amazon Prime Video also provides access to some live events, including Thursday night NFL games, as part of its membership.742 240. Disney controls three SVOD services: Hulu, ESPN+, and Disney+. Like Netflix and Amazon Prime Video, Hulu provides access to a library of movies, TV shows, and other video content, including original programming.743 A Hulu subscription costs $6.99 per month with ads or $12.99 per month without ads.744 ESPN+ provides access to live sporting events and sports-related programing for $6.99 per month or $69.99 per year.745 Disney+, which launched in November 2019, offers TV shows and movies from Disney, programming Disney acquired from 20th Century Fox in March 2019, and original programming for $7.99 per month or $79.99 per year.746 737 Todd Spangler, Variety, Netflix Aims to Launch Cheaper, Ad-Supported Plan in Early 2023 (July 19, 2022), https://variety.com/2022/digital/news/netflix-ad-supported-plan-launch-1235320040/. 738 See What are SVOD, TVOD, AVOD?; Uscreen SVOD, AVOD, TVOD. 739 In August 2021, Netflix’s streaming catalog size was 5,000 movies and 2,400 television series. Amazon Prime Video had 6,000 movies and 1,800 TV series. See Seth Shafer, S&P Global, Economics of Internet: State of US online video: SVOD 2021 (Nov. 23, 2021) (Shafer SVOD). 740 Prices vary according to how many simultaneous users are permitted and the picture quality of streamed content. Netflix, Plans and Pricing, https://help.netflix.com/en/node/24926 (last visited Oct. 6, 2022). 741 Amazon, The Amazon Prime Membership Fee, https://us.amazon.com/gp/help/customer/display.html?nodeId=G34EUPKVMYFW8N2U (last visited Oct. 6, 2022). Amazon Prime members also receive other benefits such as free shipping on eligible items. Amazon, Amazon Prime Benefits, https://www.amazon.com/gp/help/customer/display.html?ref_=hp_left_v4_sib&nodeId=GD4TCHHFTXXX328Y (last visited Oct. 6, 2022). 742 Amazon, Prime Video, https://www.amazon.com/gp/video/offers/ (last visited Oct. 6, 2022); Amazon, Live Events Help: Frequently Asked Questions, https://www.amazon.com/b?ie=UTF8&node=19343854011 (last visited Oct. 6, 2022). 743 Disney owns a two-thirds stake in Hulu, while Comcast, through NBCUniversal, owns a one-third stake. In May 2019, Comcast ceded full operational control of Hulu to Disney, with Disney committing to purchase Comcast’s minority stake in Hulu in 2024. Alex Sherman, CNBC, Hulu is facing an existential crisis as Disney approaches a 2024 deadline to buy Comcast’s 33% stake (July 6, 2022), https://www.cnbc.com/2022/07/06/hulu-faces-existential- crisis-as-disney-decides-how-to-move-forward.html. 744 Hulu, Choose your plan, http://signup.hulu.com/plans (last visited Oct. 6, 2022). 745 ESPN+, ESPN+ Programming, http://dtcimedia.disney.com/espn-plus/programming (last visited Oct. 6, 2022); ESPN+, Stream Live Sports plus ESPN+ Originals, https://plus.espn.com/ (last visited Oct. 6, 2022). 746 Disney+, hulu Disney+ ESPN+ website, https://www.disneyplus.com/ (last visited Oct. 6, 2022); Mike Sorrentino and Joan E. Solsman, CNET, Disney Plus: Everything to Know (from Lightyear to the Cheaper Tier (June 22, 2022), https://www.cnet.com/tech/services-and-software/disney-plus-streaming-service-everything-to- know-all-prices/. 151 Federal Communications Commission FCC 22-103 241. Other major media companies operate SVOD services as well. In addition to its free ad- supported option, NBCUniversal’s Peacock also offers two additional options: a larger library of entertainment for $4.99 per month with ads or the same library for $9.99 per month without ads.747 Paramount Global’s Paramount+ provides access to a library of CBS shows and original content, as well as live channels such as local CBS stations, CBS News Streaming Network, and NFL on CBS. Subscribers pay $4.99 per month for the ad-supported Paramount+ service and $9.99 monthly for an ad- free plan.748 SHOWTIME can be bundled with Paramount+ for $9.99 per month (with ads) or $12.99 per month (no ads).749 Warner Bros. Discovery’s HBO Max offers original content from HBO, including series, documentaries, specials, and movies, with shows like Friends and The Big Bang Theory, and movies from Studio Ghibli.750 HBO Max costs $9.99 (with ads) or $14.99 per month (without ads).751 242. In addition, certain technology companies operate SVOD services. Apple offers Apple TV+, which costs $4.99 per month.752 Apple bundles three months of free subscription to Apple TV+ with the purchase of a variety of Apple devices.753 Google’s YouTube Premium provides ad-free access to YouTube, YouTube Music (YouTube’s music streaming service), and some original content for $11.99 per month.754 243. Certain SVOD services focus on niche content. For example, BritBox provides access to British television shows from ITV and the BBC for $6.99 per month or $69.99 per year.755 In addition, SVOD services from many sports leagues and organizations, such as the NBA, NHL, and MLB provide online access to live and archived events and programs.756 244. Transactional Video On Demand. Unlike the subscription models that offer access to a catalog of programs for a set monthly price, TVOD providers allow consumers to purchase specific video content (movies, TV shows, or live events) on a transactional or per-program basis.757 Electronic-sell- through transactions provide consumers with permanent access to video content, while download-to-rent 747 See Peacock, Choose a Plan, https://www.peacocktv.com/plans/all-monthly (last visited Oct. 6, 2022). 748 Paramount+, Pick Your Plan, https://www.paramountplus.com/account/signup/pickplan/ (last visited Oct. 6, 2022). CBS All Access became Paramount+ on March 4, 2021. 749 Paramount+, What is the Paramount+ and SHOWTIME bundle?, https://help.paramountplus.com/s/article/PD- What-is-the-SHOWTIME-add-on-for-Paramount-subscribers (last visited Oct. 6, 2022). 750 HBO Max, HBO Max website, https://www.hbomax.com/ (last visited Oct. 6, 2022). 751 Id. 752 Apple, Apple TV+, https://www.apple.com/apple-tv-plus/ (last visited Oct. 6, 2022). 753 Id. 754 YouTube, YouTube Premium, https://www.youtube.com/premium (last visited Oct. 6, 2022); YouTube, Watch YouTube Originals, https://www.youtube.com/@youtubeoriginals (last visited Oct. 6, 2022); YouTube Using YouTube Premium benefits, https://support.google.com/youtube/answer/6308116 (last visited Oct. 6, 2022). YouTube Premium subscribers can also download videos to watch offline and play videos on a mobile device while using other apps or when the screen is off. Id. 755 BritBox, Welcome to BritBox, https://www.britbox.com/us/ (last visited Oct. 6, 2022). 756 See, e.g., NBA, Watch the NBA On Demand, https://www.nba.com/watch/pricing (last visited Oct. 6, 2022); NHL, Watch live games online with NHL GameCenter LIVE, https://www.nhl.com/news/watch-live-games-online- with-nhl-gamecenter-live/c-500925 (last visited Oct. 6, 2022); MLB.TV, The Home of Streaming Baseball, https://www.mlb.com/live-stream-games/ (last visited Oct. 6, 2022). WWE streaming video is now available from Peacock. Peacock, WWE, https://www.peacocktv.com/sports/wwe (last visited Oct. 6, 2022). 757 See What are SVOD, TVOD, AVOD?; Uscreen, SVOD, AVOD, TVOD. 152 Federal Communications Commission FCC 22-103 transactions give consumers access to video content for a limited period of time.758 Examples include Amazon’s Video Store,759 Apple’s iTunes Store,760 and Google Play.761 245. Virtual Multichannel Video Programming Distributor. Like traditional MVPDs, vMVPDs offer consumers access to a package of streaming linear channels.762 While MVPDs make use of cable, fiber, or satellite infrastructure to deliver their pay television products, vMVPDs, like other OVDs, deliver programming to consumers via the Internet.763 In 2015, these services launched in select metropolitan markets with comparatively limited access to local broadcast stations, sports, and news.764 Today, however, vMVPDs often include local broadcast channels and a wide variety of cable networks. vMVPDs tend to market themselves to consumers who wish to “cut the cord” and no longer subscribe to a traditional MVPD.765 In general, vMVPDs are available to consumers on a wide variety of devices.766 246. vMVPD prices vary according to many factors, including the number and types of channels offered, and the availability of local broadcast stations. Some vMVPDs provide fewer channels for a lower cost. For example, Philo subscribers pay $25 per month for VOD content and many live TV channels, but the service does not include sports or broadcast channels.767 DISH’s Sling TV offers three channel packages. Two offer differentiated channel sets at $35 per month, while the third includes all channels in both packages and costs $50 per month. In addition, a variety of add-on channel packages are 758 See What are SVOD, TVOD, AVOD? 759Amazon, Prime Video: Store, https://www.amazon.com/b/?_encoding=UTF8&filterId=OFFER_FILTER%3DTVOD&node=2858778011&ref=ins ider_ar_video_pvqa (last visited Oct. 6, 2022). 760 Apple, Buy movies and TV shows from the Apple TV app, https://support.apple.com/en-us/HT203375 (last visited Oct. 6, 2022). 761 Google Play Help, Watch Google Play movies & TV shows, https://support.google.com/googleplay/answer/2851683?co=GENIE.Platform%3DiOS&hl=en (last visited Oct. 6, 2022). 762 See, e.g., Susan Engleson, Comscore, When Linear TV and Digital Collide: The Rise of the Virtual MVPD (Aug. 14, 2018), https://www.comscore.com/Insights/Blog/When-Linear-TV-and-Digital-Collide-The-Rise-of-the-Virtual- MVPD. 763 Id. 764 See Seth Shafer, S&P Global, Economics of Internet: State of US online video: virtual multichannel (Oct. 22, 2019). Sony’s PlayStation Vue launched in March 2015 and was one of the first vMVPDs, but the service ceased operations in January 2020. Sarah Perez, TechCrunch, Why Sony’s PlayStation Vue Failed (Jan. 30, 2020), https://techcrunch.com/2020/01/30/why-sonys-playstation-vue-failed/. 765 See, e.g., Brad Adgate, Forbes, Virtual MVPD Subscriber Growth Is Slowing (Dec. 9, 2019), https://www.forbes.com/sites/bradadgate/2019/12/09/virtual-mvpd-subscriber-growth-is-slowing/#6f65a8bb7016 (“virtual MVPDs . . . have been marketed as replacement cable/satellite systems”); Sling TV, The best of cable, for less, https://www.sling.com/value/cable-tv-alternatives (last visited Oct. 6, 2022) (“Between the low monthly cost, versatile lineup options and wide variety of supported streaming devices, it’s no wonder that Sling is often called the best alternative to cable”). 766 See Kym Nator, S&P Global, Economics of Internet: State of US online video: virtual multichannel 2021 (Nov. 24, 2021) (Nator Virtual Multichannel). 767 See Philo, Live and On Demand TV, https://try.philo.com/ (last visited Oct. 6, 2022). Users can add premium channels from Epix and Starz at additional cost. Id. 153 Federal Communications Commission FCC 22-103 available with prices ranging from $6 to $11 per month.768 These packages include some non-local news and sports content, and local broadcast channels.769 247. More expansive vMVPD offerings include Hulu + Live TV. This service combines access to Hulu’s SVOD library with more than 65 live and on-demand TV channels for $69.99 per month.770 It includes news and sports programming and local broadcast stations, and regional sports networks are available in select markets. For $64.99 per month, YouTube TV offers access to more than 85 channels, including sports and news programming. YouTube TV also offers a Spanish-language package for $34.99 per month.771 DIRECTV, which AT&T spun off into a separate entity on August 2, 2021,772 offers DIRECTV Stream channel packages ranging in price from $69.99 per month to $149.99 per month.773 The service includes local channels and regional sports networks.774 FuboTV offers three plans: Pro (117 channels for $69.99 per month), Elite (172 channels for $79.99 per month), and Latino (41 channels for $32.99 per month).775 FuboTV also offers local ABC, CBS, Fox, and NBC stations in many markets.776 Many vMVPD offerings available today look similar to traditional MVPD offerings, but vMVPDs typically pay more per subscriber to acquire programming than do traditional MVPDs.777 248. Bundles and Combinations. Some OVDs are offered in bundles or in combination with other services. For example, consumers can bundle all three Disney OVD products—Hulu, ESPN+, and Disney+—for $13.99 per month (with ads) or $19.99 (no ads).778 DIRECTV Stream subscribers get three months of Showtime, Epic, Starz, and Cinemax free to encourage them to subscribe to these channels as add-ons.779 Amazon Prime members also can add on-demand or live programming from providers like SHOWTIME, STARZ, Paramount+, PBS, Major League Baseball, and many other channels for an additional $3 to $25 per month.780 Amazon’s Twitch, a platform for live video streaming, includes a 768 Sling TV, Personalize your channel lineup, https://www.sling.com/service (last visited Oct. 6, 2022). 769 Sling TV, New to Sling? Let’s talk about local channels, https://www.sling.com/programming/local-channels (last visited Oct. 6, 2022). 770 Hulu, Watch Thousands of TV Shows and Movies on Hulu, http://hulu.com/content (last visited Oct. 6, 2022). Subscribers also receive unlimited cloud DVR storage for a storage period of up to nine months. Id. 771 YouTube, YouTube TV, https://tv.youtube.com/welcome/ (last visited Oct. 6, 2022). YouTube TV subscribers can record programming with unlimited storage space. Id. 772 Catie Keck, The Verge, AT&T has officially spun off DirecTV, which is now its own business (Aug. 3, 2021), https://www.theverge.com/2021/8/3/22608577/att-directv-tpg-deal-u-verse-att-tv-new-company. 773 DIRECTV, The Supreme TV Experience, https://www.directv.com/stream/ (last visited Oct. 6, 2022). 774 DIRECTV, DIRECTV Stream Channel Lineup, https://www.directv.com/stream/channel-lineup/ (last visited Oct. 6, 2022). 775 FuboTV, Live Sports and TV Without Cable, https://www.fubo.tv/welcome (last visited Oct. 6, 2022). Plans also provide 500 hours of Cloud DVR and the ability to watch on multiple screens simultaneously. Id. 776 FuboTV, What local ABC, CBS, FOX, NBC, and CW stations does fuboTV carry?, https://support.fubo.tv/hc/en- us/articles/115005151127-What-local-ABC-CBS-FOX-NBC-and-CW-stations-does-fuboTV-carry- (last visited Oct. 6, 2022). 777 See Nator Virtual Multichannel. 778 Disney+, hulu Disney+ ESPN+, https://www.disneyplus.com/ (last visited Oct. 6, 2022). This bundle does not include Hulu + Live TV. Id. 779 DIRECTV, The Supreme TV Experience, https://www.directv.com/stream/ (last visited Oct. 6, 2022). 780 Amazon, What is Prime Video? - Amazon Prime Insider, https://www.amazon.com/primeinsider/video/prime- video-qa.html (last visited Oct. 6, 2022); see also David Katzmaier, CNET, Amazon Prime Video Channels: All the TV channels you can add to your Prime account (Sept. 17, 2021), https://www.cnet.com/tech/services-and- software/amazon-prime-video-channels-all-the-tv-channels-you-can-add-to-your-prime-account/. 154 Federal Communications Commission FCC 22-103 “Watch Parties” feature that allows streamers with subscriptions to Prime Video to watch movies together as part of a social online experience.781 b. Original Content and Content Ownership 249. As the OVD marketplace has evolved, providers have included more original content. While estimates vary, figures show that OVD spending on original content has generally increased over the past five years. Figure II.E.5 shows original content spending for select OVDs. Among OVDs, Netflix is by far the leader in original content spending. As of January 2021, Netflix had 790 original shows, while HBO Max and Amazon Prime Video had the next largest inventories with 190 and 120 original shows, respectively.782 Some recent reports indicate that OVDs may cut back on original content spending in the future.783 Fig. II.E.5 Original Content Spending, Select OVD Providers (in $ millions) Percentage Percentage Provider 2020 2021 2022 Change Change Netflix $4,309 $5,422 25.8% $6,512 20.1% Amazon $1,102 $1,489 35.2% $1,904 27.8% Disney+ $283 $822 190.0% $1,893 130.3% Apple TV+ $277 $671 142.1% $1,157 72.4% HBO Max $134 $523 289.9% $948 81.4% Paramount+ $217 $398 83.6% $818 105.7% Hulu $461 $534 15.9% $659 23.5% Peacock $56 $194 243.5% $525 171.2% Source: Deana Myers, Streamer success may come with huge content expense, S&P Global (Apr. 28, 2022). Note: Figures for 2022 and certain months in 2021 are budgeted amounts. 250. Spending by Amazon and Netflix on original content as a percentage of overall content spending has also been generally increasing. Figure II.E.6 shows that Amazon’s spending on original content has increased from approximately 14% of its overall content spending in 2016 to a projected 20% in 2022. Similarly, Netflix spent approximately 18% on original content in 2016, but was budgeted to spend 41% on original content in 2022. 781 See Joseph Yaden, DigitalTrends, What Is Twitch (Oct. 25, 2020), https://www.digitaltrends.com/gaming/what- is-twitch/; Twitch, Watch Parties, https://help.twitch.tv/s/article/watch-parties?language=en_US (last visited Oct. 6, 2022). 782 Travis Clark, Business Insider, How Netflix, Disney Plus, HBO Max, and more compare in the amount of ‘exclusives’ and ‘originals’ they offer (Feb. 10, 2021), https://www.businessinsider.com/top-streaming-services-for- exclusives-originals-netflix-disney-plus-2021-2. 783 Lucas Shaw, Bloomberg, The Age of Peak TV Is Ending. An Age of Austerity Is Beginning (July 4, 2022), https://www.bloomberg.com/news/newsletters/2022-07-04/the-age-of-peak-tv-is-ending-an-age-of-austerity-is- beginning; Joe Bel Bruno, The Wrap, Streaming Wars on a Budget? How Hollywood Plans to Scale Back Content Spending | Chart (May 16, 2022), https://www.thewrap.com/why-streamers-are-cutting-content-spending/. 155 Federal Communications Commission FCC 22-103 Fig. II.E.6 Share of Content Spending on Original Content: Amazon and Netflix Source: Deana Myers, Amazon's content budget projected to near $10B by 2024, S&P Global (Jul. 1, 2020); Deana Myers, Netflix content spend increases as new players enter market, S&P Global (Aug. 26, 2019); Deana Myers, Streamer success may come with huge content expense, S&P Global (Apr. 28, 2022). Note: Figures for 2022 and certain months in 2021 are budgeted amounts. 251. Today, many large content owners elect to use their own OVD services, instead of third- party platforms, to make their content available online. For example, in advance of the Disney+ launch, Disney announced that it would pull all Disney and Pixar movie titles from Netflix, and that Disney+ would be the home for all Disney movies going forward.784 After the company’s acquisition of 21st Century Fox (later rebranded 21st Century), Disney-owned Hulu became the exclusive streaming home of FX network content.785 The Office, which is owned by NBCUniversal’s TV studio, started streaming exclusively on Peacock in 2021.786 The agreement by which NBCUniversal and Comcast gave Disney full control of Hulu allows both Hulu and Peacock to offer NBC programming, but gives NBCUniversal the right to pull programming off of Hulu.787 Some popular shows owned by Warner Brother’s Television—including Friends (which was pulled from Netflix at the beginning of 2020) and The Big Bang Theory—now stream exclusively on Warner Bros. Discovery’s HBO Max.788 784 Michelle Castillo, CNBC, Disney will pull its movies from Netflix and start its own streaming services (Aug. 9, 2017), https://www.cnbc.com/2017/08/08/disney-will-pull-its-movies-from-netflix-and-start-its-own-streaming- services.html. 785 See Julia Alexander, The Verge, Disney is using FX to ensure people don’t forget about Hulu (Nov. 17, 2019), https://www.theverge.com/2019/11/7/20954171/disney-hulu-fox-fx-series-movies-searchlight-streaming-wars- netflix-hbo; Adam B. Vary, Variety, Disney Drops Fox Name, Will Rebrand as 20th Century Studios, Searchlight Pictures (Jan. 17, 2020), https://variety.com/2020/film/news/disney-dropping-fox-20th-century-studios- 1203470349/. 786 See Joan E. Solsman, CNET, Peacock: What’s Paywalled, What’s Free and What Else to Know (July 29, 2022), https://www.cnet.com/tech/services-and-software/peacock-whats-paywalled-whats-free-and-what-else-to-know/. 787 Id. 788 Andrea Francese, Showbiz Cheat Sheet, This is the Real Reason ‘The Big Bang Theory’ Isn’t Streaming on Netflix in the United States and Probably Never Will (Jan. 6, 2020), https://www.cheatsheet.com/entertainment/this- is-the-real-reason-the-big-bang-theory-isnt-streaming-on-netflix-in-the-united-states-and-probably-never-will.html/. 156 Federal Communications Commission FCC 22-103 252. This trend is not universal, however. For example, shows co-produced by Universal Television (an NBCUniversal subsidiary) and Wolf Entertainment, including Law and Order: SVU, several seasons of Law and Order and Law and Order: Criminal Intent, as well as Chicago Fire, Chicago P.D., and Chicago Med, will stream on NBCUniversal’s OVD offering Peacock, but that deal is not exclusive, allowing those series to stream on other platforms as well.789 At least two shows produced by Warner Bros. Television—The George Lopez Show (which was broadcast on ABC) and Two and a Half Men (which was broadcast on CBS)—are available on Peacock, but not HBO Max.790 c. OVD Usage, Subscribers, and Revenue 253. OVDs can be accessed on a wide variety of Internet-connected devices. Nonetheless, big screen devices account for 77% of streaming video viewing.791 From the first quarter of 2021 to the first quarter of 2022, viewing of OVD services on smart TVs grew 34%, while desktop computer and gaming console video viewing declined 15%.792 While changes constantly occur across services and channels, video watching behavior as a whole shows considerable inertia. Total hours spent on digital entertainment and total hours spent watching TV has changed little over the past two years despite the COVID-19 pandemic.793 254. Advertising-based Video On Demand. Figure II.E.7 shows widespread usage of AVOD services among U.S. consumers. In 2021, about 80% of U.S. households were consuming AVOD, excluding video served on social-media sites.794 Among individual websites and services, YouTube dominates AVOD. A variety of other companies, however, are moving into this service with niche offerings. Video-sharing is now ubiquitous on social media. Video contributes to time spent on the social-media sites, generates data on user interests, and thus indirectly supports advertising around video (out of stream advertising). TikTok, a video-focused social media site, has seen enormous growth. As of May 2021, TikTok had about 138 million monthly active users in the United States.795 In the third quarter of 2021, about 20% of U.S. Internet-using households used TikTok.796 789 Jennifer Maas, The Wrap, ‘Two and a Half Men’ to Stream Exclusively on NBCUniversal’s Peacock, Instead of HBO Max (Jan. 16, 2020), https://www.thewrap.com/two-and-a-half-men-peacock-streaming-nbcuniversal-not-hbo- max/. 790 Id. 791 See Jon Lafayette, Broadcasting+Cable, Streaming Rises, With Viewing Shifting to Big Screens From Connected Devices (May 19, 2022), https://www.nexttv.com/news/streaming-rises-with-viewing-shifting-to-big-screens-from- connected-devices. 792 Id. 793 See Keith Nissen, S&P Global, Q1’22 US Consumer Insights survey report: TV viewing habits are slow to change (May 5, 2022). 794 Shafer AVOD (estimating 104.3 AVOD U.S. households in 2021); U.S. Census Bureau, Table HH-1 (Nov. 2021) https://www2.census.gov/programs-surveys/demo/tables/families/time-series/households/hh1.xls (estimating 129.9 million households in the United States in 2021). 795 See Tweet from Matthew Ball, Here’s TikTok MAUs per @FatTailCapital (May 26, 2021), http://web.archive.org/web/20210526220350/https://twitter.com/ballmatthew/status/1397674482609889281. 796 See Seth Shafer, S&P Global, Consumer Insights: More Americans are tuning into TikTok (Feb. 14, 2022). 157 Federal Communications Commission FCC 22-103 Fig. II.E.7 U.S. Usage of Leading Advertising-Based Video on Demand (AVOD) Services, September 2021 Percentage That Reported AVOD Service Using Service YouTube 65% Peacock (free versions) 25% TikTok 20% The Roku Channel 20% Tubi 19% Pluto TV 18% Freevee (Amazon) 14% Crackle 11% Vudu Movies On Us 8% Samsung TV Plus 8% LG Channels 5% VIZIO WatchFree 4% Source: Seth Shafer, Economics of Internet: 2022 outlook for US OTT market, S&P Global (Mar. 2, 2022); Seth Shafer, Consumer Insights: More Americans are tuning into TikTok, S&P Global (Feb. 14, 2022). 255. Revenue for AVOD providers continues to increase. Figure II.E.8 shows AVOD revenue figures for instream advertisements (advertisements shown within video content) as well as AVOD- viewing households. Instream AVOD advertisement revenue grew from an estimated $19.4 billion in 2020 to an estimated $25.8 billion in 2022.797 Fig. II.E.8 U.S. AVOD Advertising Revenue (in $ billions) and Households (in millions) Percentage Percentage 2020 2021 2022 Change Change Instream Advertising Revenue $19.4 $23.2 19.2% $25.8 11.3% AVOD Households 99.4 104.3 5.0% 108.1 3.7% Source: Shafer AVOD. 256. Subscription Video On Demand. Figure II.E.9 shows that SVOD subscribership is increasing. SVOD subscriptions jumped 31% from the fourth quarter of 2019 to the fourth quarter of 2020, probably spurred by pandemic restrictions. Netflix reported an unexpected decline in subscribers in 797 Shafer AVOD. Revenue for out of stream advertisements (advertisements not connected to a content video stream; e.g., video ads in social media feeds/streams, and pause, menu, and lock screens) are no longer tracked as part of AVOD revenue. Therefore, ad revenue earned by YouTube, TikTok, and other social media platforms are not included in these totals. YouTube’s ad revenue was $28.8 billion in 2021. Alphabet Inc. 2021 SEC Form 10-K at 33 (filed Feb. 2, 2022). TikTok’s U.S. net advertising revenue, mainly from advertising oriented toward young demographics, was $2.1 billion in 2021 and is projected to be $6.0 billion in 2022. Sara Lebow, eMarketer, TikTok’s ad revenues climb as it gains on major digital ad players (Apr. 8, 2022), https://www.emarketer.com/content/tiktok-ad-revenues-gains-major-digital-ad-players. 158 Federal Communications Commission FCC 22-103 the first quarter of 2022.798 This decline may be a result of Netflix ending service in Russia following Russia’s military actions in Ukraine and inflation, but experts associate more general weakness in Netflix’s business with increased competition and Netflix’s content and business strategies.799 Fig. II.E.9 U.S. SVOD Subscriptions (in millions) Q4 2019 Q4 2020 Q4 2021 Subscriptions 221.9 290.8 333.1 Source: S&P Global, Q4'21 leading US video provider rankings (Apr. 8, 2022). 257. Households commonly subscribe to more than one SVOD service. Almost 20% of respondents to the Kagan Consumer Insights March 2022 Survey indicated that they subscribed to two SVOD services and 54% indicated that they subscribed to three or more.800 Among persons who subscribe to a paid video service, 58% subscribed to three or more such services in 2022, up from 32% in 2019.801 In 2022, the young, active demographic as defined by the survey used 5.9 SVOD services, while mainstream consumers use 3.2 SVOD services.802 SVOD revenue is also increasing. SVOD revenue was $30.2 billion in 2021, an increase of 28% from $23.5 billion in 2020.803 Projected revenue for 2022 is $34.0 billion, an increase of 13% from the previous year.804 258. Transactional Video On Demand. Online rental of video content by U.S. consumers rose 45.8% from 2019 to 2020, probably as a result of the COVID-19 pandemic. However, as Figure II.E.10 indicates, online video rental subsequently declined in 2021. That decline is projected to continue, to a lesser extent, in 2022. 798 Netflix, Letter to Shareholders, First Quarter 2022 (Apr. 19, 2022), https://s22.q4cdn.com/959853165/files/doc_financials/2022/q1/FINAL-Q1-22-Shareholder-Letter.pdf. 799 See, e.g., Michael Tedder, TheStreet, Why is Netflix Losing Subscribers? Media experts weigh in on the struggling streaming giant (Apr. 25, 2022), https://www.thestreet.com/investing/why-is-netflix-losing-subscribers; Ben Thompson, Stratechery, Why Netflix Should Sell Ads (Apr. 4, 2022), https://stratechery.com/2022/why-netflix- should-sell-ads/. 800 Brian Bacon, S&P Global, Consumer Insights: US SVOD user trends and demographics, Q1’22 (Apr. 7, 2022). 801 Nielsen, State of Play (Apr. 2022), https://www.nielsen.com/insights/2022/state-of-play/. 802 Keith Nissen, S&P Global, Consumer Insights: US consumers who watch the least TV have the most SVOD subscriptions (May 9, 2022). In the survey, active persons are defined as persons who perform the following lifestyle activities frequently (at least once per week): Exercise—at home or at a gym, read book, read a newspaper, dine out at a restaurant, play a sport, purchase groceries online, or order restaurant food online. 803 Shafer SVOD. 804 Id. 159 Federal Communications Commission FCC 22-103 Fig. II.E.10 U.S. Online Rental of Video Content Percentage Percentage Percentage 2019 2020 2021 2022 Change Change Change Rentals (in millions) 390.0 568.5 45.8% 481.0 -15.4% 468.9 -2.5% Revenue (in $ billions) $1.8 $2.8 56.9% $2.3 -17.8% $2.3 -3.5% Source: Deana Myers, Economics of Internet: State of transactional online video: Rental, electronic sell- through, S&P Global (Nov. 22, 2021). 259. Figure II.E.11 indicates that from 2020 to 2021, online sales of movie and TV titles to U.S. consumers dropped sharply, reversing sharp growth from 2019 to 2020. Slow growth is projected to resume from 2021 to 2022. Fig. II.E.11 U.S. Online Sale of Video Content Percentage Percentage Percentage 2019 2020 2021 2022 Change Change Change Movie Title Purchases 120.5 138.5 14.9% 122.6 -11.5% 123.8 1.0% (in millions) Movie Title Revenue $1.6 $1.9 15.1% $1.7 -11.4% $1.7 1.1% (in $ billions) TV Title Purchases (in 390.6 402.3 3.0% 394.3 -2.0% 396.3 0.5% millions) TV Title Revenue (in $0.7 $0.7 3.0% $0.7 -1.9% $0.7 0.6% $ billions) Total Revenue (in $ $2.3 $2.6 11.5% $2.3 -8.8% $2.4 0.9% billions) Source: Deana Myers, Economics of Internet: State of transactional online video: Rental, electronic sell-through, S&P Global (Nov. 22, 2021). 260. Virtual Multichannel Video Programming Distributor. Figure II.E.12 shows that both subscribers and revenues for vMVPD providers have been increasing rapidly. The pattern is similar to the recent growth of AVOD and SVOD, with growth in 2022 projected to be less than the growth between 2020 and 2021. Fig. II.E.12 U.S. vMVPD Subscribers and Revenue Percentage Percentage 2020 2021 2022 Change Change Subscribers (in millions) 9.6 13.1 36.3% 14.1 13.5% Revenue (in $ billions) $7.29 $10.56 44.9% $12.68 20.1% Source: Ian Olgeirson, John Fletcher and Mau Rodriguez, Video bundles plumb new depths as Q1'22 losses mount, S&P Global (May 6, 2022); Kym Nator, Economics of Internet: State of US online video: virtual multichannel 2021, S&P Global (Nov. 24, 2021). Subscribers are for the first quarter of each year. 261. Finally, we provide subscriber figures for select SVOD and vMVPD providers. Provider size and growth percentages vary widely. In mid-2022, Disney company streaming subscribers (Hulu, 160 Federal Communications Commission FCC 22-103 Disney+, and ESPN+ subscribers) worldwide surpassed Netflix subscribers worldwide.805 Change in streaming video providers happens more quickly than changes in MVPD and broadcast video providers. Fig. II.E.13 Total Subscribers, Select SVOD and vMVPD Providers (in millions) Percentage OVD Q4 2020 Q4 2021 Change Amazon 91.6 108.0 17.9% Netflix 66.5 67.5 1.5% Hulu 39.4 45.2 14.7% Disney+ 32.7 38.6 18.0% HBO / HBO Max 18.3 25.1 37.2% ESPN+ 12.1 21.3 76.0% Starz 9.5 11.0 15.8% Showtime 9.3 14.5 55.9% Paramount+ 8.6 N/A --- Hulu + Live TV 4.0 4.3 7.5% Sling TV 2.5 2.5 0.0% FuboTV 0.5 1.0 100.0% YouTube TV 3.0 3.9 30% Source: S&P Global, Q4'21 leading US video provider rankings (Apr. 8, 2022). Data as of March 2022. YouTube TV figures are for Q3 2020 and 2021. 4. Broadcast Television Stations 262. Broadcast television stations offer linear video programming channels over-the-air to households. In addition, households may also receive broadcast television station programming channels from MVPDs and, in some cases, OVDs. Many commercial stations air programming they produce themselves, such as local news; syndicated programming; and licensed broadcasts of other programming, such as movies. Television stations affiliated with broadcast networks also run programs from their affiliated network.806 Commercial broadcast television stations generate revenue from two main sources: advertising sales and payments negotiated with MVPDs and OVDs for the right to retransmit station signals. a. Station Licensing and Ownership 263. The Commission licenses broadcast television stations consistent with the Communications Act.807 Licenses were formerly granted pursuant to comparative hearings among 805 Sara Fisher, Axios, Disney surpasses Netflix in global paid streaming subscribers (Aug. 10, 2022), https://www.axios.com/2022/08/10/disney-surpasses-netflix-global-paid-subscribers. 806 Ken Basin, The Business of Television 12 (2018) (Basin (2018)). 807 47 U.S.C. § 151 et seq.; see also 47 CFR §§ 73.601-73.699, 73.1001-73.4280. In this section, we focus on full- power broadcast television stations. In addition to these stations, the Commission licenses Class A and low-power television stations, as well as television translator and satellite stations which are used to increase the geographic reach of the associated main station. 161 Federal Communications Commission FCC 22-103 interested applicants.808 Today, the Commission awards commercial broadcast television licenses by auction. The most recent auction concluded in June 2022. It raised $33 million in net bids, with seven bidders winning a total of 18 construction permits for full power television stations.809 Non-commercial stations are awarded by a comparative system.810 Figure II.E.14 shows that the number of licensed broadcast television stations has remained stable in recent years. Fig. II.E.14 Number of Licensed Broadcast Television Stations 2018 2019 2020 2021 2022 Commercial UHF 1,011 1,013 1,001 996 999 Commercial VHF 364 370 371 378 374 Non-Commercial 390 378 387 384 384 Total Stations 1,765 1,761 1,759 1,758 1,757 Source: FCC Broadcast Totals as of Mar. 31, 2018; Mar. 31, 2019; Mar. 31, 2020; Mar. 31, 2021; Mar. 31, 2022.811 264. Whereas Figure II.E.14 shows the number of television stations in the United States, each viewer can only access the stations in his or her market. Figure II.E.15 is a scatterplot of the number of stations per market by market size (measured in TV households), where each point represents a market.812 The data show that the number of television stations available increases with market size. While the median market has seven stations, because the population is concentrated in the largest markets, the majority of TV households have access to at least twelve stations. In addition, many television broadcast stations use digital transmission technologies to offer multiple programming streams (digital multicast channels) to viewers.813 This suggests that the number of stations shown in Figure II.E.15 is a lower bound for the number of broadcast channels available in each market. 808 KPMG, History of Broadcast License Application Process at 4 (Nov. 2000), https://transition.fcc.gov/opportunity/meb_study/broadcast_lic_study_pt1.pdf. 809 Auction of Construction Permits for Full Power Television Stations Closes; Winning Bidders Announced for Auction 112, AU Docket No. 21-449, Public Notice, DA 22-659, at 1 (MB/OEA June 23, 2022). 810 See Reexamination of the Comparative Standards for Noncommercial Educational Applicants, MM Docket No. 95-31, Report and Order, 15 FCC Rcd 7386, 7393-7420, paras. 16-79 (2000) (NCE Comparative Standards Report and Order). 811 FCC, Press Release, Broadcast Station Totals as of March 31, 2018 (Apr. 9, 2018), https://docs.fcc.gov/public/attachments/DOC-350110A1.pdf; FCC, Press Release, Broadcast Station Totals as of March 31, 2019 (Apr. 2, 2019), https://docs.fcc.gov/public/attachments/DOC-356801A1.pdf; FCC, Press Release, Broadcast Station Totals as of March 31, 2020 (Apr. 6, 2020), https://docs.fcc.gov/public/attachments/DOC- 363515A1.pdf; FCC, Press Release, Broadcast Station Totals as of March 31, 2021 (Apr. 5, 2021), https://docs.fcc.gov/public/attachments/DOC-371337A1.pdf; Broadcast Station Totals as of March 31, 2022, Public Notice, DA 22-365 (MB Apr. 5, 2022), https://docs.fcc.gov/public/attachments/DA-22-365A1.pdf. 812 Fig. II.E.15 defines broadcast television markets using Nielsen’s designated market area (DMA) definitions. Each DMA is a group of counties that form an exclusive geographic area in which the home market television stations capture a dominance of total hours viewed. There are 210 DMAs, covering the entire continental United States, Hawaii, and parts of Alaska. The DMA boundaries and DMA data are owned solely and exclusively by Nielsen. Nielsen, DMA Regions, https://markets.nielsen.com/us/en/contact-us/intl-campaigns/dma-maps/ (last visited Oct. 6, 2022). 813 Brad Adgate, Forbes, TV Stations are Launching Multicast Networks as an Opportunity to Reach Cord Cutters, (June 10, 2021), https://www.forbes.com/sites/bradadgate/2021/06/10/tv-stations-are-launching-multicast-networks- as-an-opportunity-to-reach-cord-cutters/?sh=475adc6e7136. 162 Federal Communications Commission FCC 22-103 Fig.II.E.15 Television Stations by Market Size Source: BIA/Kelsey MEDIA Access Pro Online Television Analyzer Database as of June 24, 2022; Nielsen, Nielsen Universe Estimates, by DMA, TV Households by Market Section, January 1, 2022 (Sept. 2021). 265. Most television stations are owned by companies that own multiple stations, called station groups. Figure II.E.16 shows information about the 12 largest station groups in the United States by share of TV households reached. Each station group listed reaches more than 20% of TV households. The table lists the number of stations owned by each group and the number of markets in which the station group owns at least one station. The share of TV households reached by the station group is the total number of TV households living in markets where the station group owns at least one station divided by the total number of TV households in the United States. 163 Federal Communications Commission FCC 22-103 Fig.II.E.16 Largest Broadcast Television Station Groups by TV Households Reached Share of TV Station Group Stations Markets Households Reached The E.W. Scripps Company 97 74 71.3% Nexstar Media Group, Inc. 163 116 62.2% Univision Communications Inc. 40 25 44.7% TEGNA Inc. 64 51 39.3% Fox Corporation 30 18 38.7% Paramount Global 28 17 37.7% Comcast Corporation 31 21 37.1% Sinclair Broadcast Group, Inc. 111 82 36.3% Gray Television, Inc. 157 112 36.1% Weigel Broadcasting Co. 15 13 29.0% WRNN-TV Associates Limited Partnership 11 9 24.8% The Walt Disney Company 8 8 22.1% Source: S&P Global, Top TV Station Owners (last accessed May 31, 2022); Nielsen, Nielsen Universe Estimates, by DMA, TV Households by Market Section, January 1, 2022 (Sept. 2021). b. Distribution and Delivery 266. Broadcast television stations reach viewers by broadcasting signals directly over-the-air to homes, as well as through carriage agreements with MVPDs and OVDs, which retransmit the signals of stations to households subscribing to their services. The over-the-air reach of a broadcast television station is determined largely by the height of its transmission tower and the power of its transmitter. Buildings, hills, and other objects, however, may interfere with over-the-air signals.814 When a broadcast station negotiates with MVPDs and OVDs for carriage of its programming, it is in the business of content distribution—similar to a cable network. When a broadcast station delivers programming over-the-air, it is in the business of content delivery—similar to facilities-based MVPDs.815 267. MVPDs offering service within a Designated Market Area (DMA) typically carry the local broadcast television stations assigned to the DMA, and each MVPD rebroadcasts the stations’ signals to its subscribers in the DMA. This is because broadcast stations typically hold exclusive rights to broadcast network programming in a DMA. Thus, unlike cable networks that are available nationwide, most broadcast television stations’ signals are retransmitted by MVPDs only within the station’s assigned DMA. Rebroadcast of television stations’ signals by vMVPDs follows a similar pattern—subscribers located in a DMA receive signals of local broadcast television stations from the same DMA.816 814 2020 Communications Marketplace Report, 36 FCC Rcd at 3072, para. 205. 815 Id. at 3073, para. 207. Although we discuss the wider business of television broadcasting, we focus on competition in the market for the delivery of video programming. We therefore consider most closely the role played by the over-the-air broadcast service. 816 Id. at 3072-73, para. 206. 164 Federal Communications Commission FCC 22-103 c. Programming and Content Ownership 268. Programming. Broadcast television stations air network programming, programming produced by the station, and syndicated programming.817 The major broadcast television networks (ABC, CBS, FOX, and NBC) brand and market a slate of programming, usually acquired from in-house studios, network-affiliated studios, and third-party studios. 818 The major Spanish-language broadcast television networks are Telemundo and Univision.819 To obtain network programming, broadcast stations enter into affiliation agreements with broadcast networks. In many affiliation agreements, the network sells most of the advertising time during the programming it provides to the station.820 Further, a station may pay a fee to the broadcast network. The fee the station pays the network is commonly known as reverse compensation or a reverse retransmission fee as it is usually tied to the retransmission consent payments the station receives from MVPDs. 821 In 2021, broadcast TV stations paid an estimated $4.2 billion to major broadcast networks in such fees.822 269. Despite COVID-related budget cuts, in 2020, 1,116 television stations aired local news, an increase of 18 from 2019. About 700 of these stations produced local news while the other stations aired local news produced by another station.823 Large television station groups like Gray and E.W. Scripps have news bureaus in Washington, D.C. that link national news to local concerns; Nexstar’s national news bureau is located in Chicago.824 A Knight Foundation and Gallup Poll survey showed that people tend to judge the credibility of news based on its source, not its content.825 Several surveys underscore the influence of local news during the COVID-19 pandemic. For example, local news coverage was shown to influence whether people were likely to social distance and wear masks.826 In terms of political information, research shows that people who live in markets with relevant in-state local television news coverage are 9% more likely to recall correctly the party of their senators and 11% more likely to recall correctly the party of their governor than people whose local news is broadcast from a market that is out-of-state.827 817 Basin (2018) at 12. 818 Id. 819 Both Univision- and Telemundo-affiliated broadcast stations reach about 60% of U.S. TV households. S&P Global, TV Stations by Market and Affiliation (last accessed June 24, 2022). 820 Basin (2018) at 9. 821 Bond and Pecaro, Reverse Compensation: Broadcaster → Network, http://www.bondpecaro.com/images/Retransmission_Fees-Reverse_Compensation.pdf (last visited Oct. 6, 2022); Basin (2018) at 13. 822 S&P Global, Reverse retrans projections by network, 2011-2027 (July 21, 2022). This total includes payments for the networks: FOX, MyNetworkTV, CBS, the CW, ABC, NBC, and Telemundo. 823 Bob Papper, 2021 RTDNA/Newhouse School at Syracuse University Newsroom Survey: Local New Business Trends and Threats (2021), https://www.rtdna.org/uploads/files/2021%20RTDNA-Syracuse%20Research%20- %20News%20Business%20Trends%20and%20Threats(1).pdf. 824 Nexstar Media Group, Inc., Nexstar Networks, https://www.nexstar.tv/networks/ (last visited Oct. 6, 2022); Gray Television, Gray News Washington Bureau, https://www.graydc.com/ (last visited Oct. 6, 2022); Scripps, Scripps Washington Bureau, https://scripps.com/scripps-washington-bureau/ (last visited Oct. 6, 2022). 825 Gallup/Knight Foundation, NewsLens 2020: How Americans process the news: an experimental platform that measures attitudes toward different news sources (2021), https://knightfoundation.org/wp- content/uploads/2021/05/Newslens-2020.pdf. 826 Eunji Kim, Michael E. Shepherd, Joshua D. Clinton, The Effect of Big-City News on Rural America During the COVID-19 Pandemic, 117 PNAS (Proceedings of the National Academy of Sciences) 22009 (Sept. 8, 2020). 827 Daniel J. Moskowitz, Local news, information and the nationalization of US elections, 115 (1) American Political Science Review 126 (2021). 165 Federal Communications Commission FCC 22-103 270. Syndicated programming is the third type of content carried by broadcast stations. Syndicated programming includes reruns of programming previously broadcast by a network, sometimes known as “second-run syndication,” and first-run original content produced by third-party studios or production companies.828 First-run syndication agreements are similar to network affiliation agreements. Stations pay studios a mix of cash licensee fees and advertising time. The studio that produces the show sells the advertising time.829 271. Ownership of Content. In addition to owning broadcast stations and other properties, Disney, Paramount Global, Fox, Comcast, and Univision each has an interest in at least one broadcast network (ABC, CBS and the CW, FOX, NBC and Telemundo, and Univision, respectively).830 All of these companies except FOX also own large movie or television production studios.831 In addition, several other broadcast groups also produce and own programming.832 Owning video content allows its owner to generate revenue from fees to license the content internationally or domestically. d. Broadcast Television Revenue 272. Advertising Revenue. Broadcast television stations air advertising spots during breaks in programming. Network affiliation agreements specify the number of advertising minutes allocated to the network and to the local station. The station controls most of the advertising presented alongside its own programming or licensed syndicated programming. The network controls most of the advertising presented alongside network programming.833 Another source of revenue is product integration or product placement, which generally refers to the paid use, depiction, or mention of a product within a television show. Unlike traditional advertising, product placement is not separately demarcated from the show, but integrated into the program itself.834 273. The price of an advertising spot is generally determined by the size and demographic composition of the program’s audience.835 Local broadcast stations particularly rely on revenue from election years when political advertisers buy quantities of advertising time targeted at specific geographic markets. Local news programming, and the advertising presented alongside it, are vital to broadcast stations.836 In 2021, Nexstar reported that it earned 44% of its advertising revenue from spots aired during local news programming.837 828 Basin (2018) at 12. 829 Id. at 15. 830 Disney 2021 SEC Form 10-K at 3 (filed Oct. 2, 2021), ViacomCBS 2021 SEC Form 10-K at I-1 (filed Feb. 15, 2022), Fox Corporation 2021 SEC Form 10-K at 1 (filed Aug. 10, 2021), Comcast 2021 SEC Form 10-K at 1 (filed Feb. 2, 2022), Grupo Televisa 2021 SEC Form 20-F at 29 (filed Apr. 29, 2022). 831 Disney 2021 SEC Form 10-K at 3 (filed Oct. 2, 2021), ViacomCBS 2021 SEC Form 10-K at I-1 (filed Feb. 15, 2022), Comcast 2021 SEC Form 10-K at 1 (filed Feb. 2, 2022), Grupo Televisa 2021 SEC Form 20-F at 29 (filed Apr. 29, 2022). 832 See, e.g., Gray 2021 SEC Form 10-K at 4 (filed Feb. 25, 2022); Fox 2021 SEC Form 10-K at 3 (filed Aug. 10, 2021); E.W. Scripps SEC Form 10-K at 4 (filed Feb. 25, 2022); TEGNA SEC Form 10-K at 3 (filed May 2, 2022). 833 Basin (2018) at 15. 834 See, e.g., Id. at 16; Adrian Horton, The Guardian, John Oliver places fake sponsored content on to local news: ‘Far too easy’ (May 24, 2021), https://www.theguardian.com/tv-and-radio/2021/may/24/john-oliver-fake- sponsored-content-local- news#:~:text=So%2Dcalled%20%E2%80%9Cbrandigation%20placement%E2%80%9D,widespread%20practice%2 0on%20local%20stations. 835 Basin (2018) at xxii, 9. 836 Id. at 15. 837 Nexstar 2021 SEC Form 10-K at 5 (filed Feb. 28, 2022). 166 Federal Communications Commission FCC 22-103 274. Both local and national businesses buy advertising spots from broadcast television stations. Advertising spots are sold to local advertisers directly through a station’s local sales staff while national advertisers generally work with national advertising sales representative firms to buy advertising time.838 Figure II.E.17 shows annual gross revenues for broadcast stations for the period 2017-2021. Total advertising revenue was about $20.6 billion in 2021. Local advertising revenue makes up the largest share of advertising revenue. Advertising revenue has remained relatively flat over the past five years, but its share of total gross revenue has fallen from 69% in 2017 to about 60% in 2021. 275. Retransmission Consent Revenue. Many broadcast television stations generate revenue by granting MVPDs and OVDs the right to carry their signals. Pursuant to section 325 of the Communications Act, MVPDs may not retransmit a broadcast television station’s signal without the station’s express permission.839 If a station elects transmission consent, the station and MVPD negotiate a carriage agreement, which often includes monetary or other types of compensation for the television station.840 If a carriage agreement cannot be negotiated, the MVPD must stop retransmitting the station’s broadcast signal and viewers lose access to the station through the MVPD, in what is known as a blackout. Figure II.E.17 also shows retransmission consent revenue over the period 2017-2021. Retransmission consent revenue increased by 42%, from $9.5 billion to $13.5 billion, from 2017 to 2021. As noted above, a station may pay a portion of its retransmission consent fees to its affiliated broadcast network in what is called reverse compensation or reverse retransmission fees.841 In 2021, stations paid about $4.2 billion to broadcast networks in such fees.842 Fig. II.E.17 Broadcast Television Station Industry Gross Revenue Trends (billions) 2017 2018 2019 2020 2021 Total advertising $21.3 $23.5 $21.9 $21.0 $20.6 Local $12.2 $12.1 $12.3 $9.9 $11.4 National $5.9 $5.8 $5.9 $4.9 $5.3 Political $0.9 $3.0 $1.0 $3.6 $0.9 Online $2.3 $2.5 $2.7 $2.7 $3.0 Retransmission Consent $9.5 $11.1 $12.0 $13.0 $13.5 Total $30.8 $34.6 $33.8 $34.1 $34.1 Source: S&P Global, US TV station industry total revenue projections, 2009-2026 (June 2021). 5. Competition in Video 276. We now discuss various aspects of competition among MVPDs, OVDs, and broadcast television stations. In doing so, we present data on household subscription to, and use of, multiple video services, as well as total subscription figures for the top video services. Finally, we examine competition in advertising by presenting advertising revenue estimates by sector. 838 Id. 839 47 U.S.C. § 325(b). Every three years, commercial television stations must elect either the right to grant consent for the MVPDs in the DMA to retransmit the station’s signal or the right to receive mandatory carriage by those MVPDs. Id. § 325(b)(3)(B); 47 CFR §§ 76.56(b), 76.64. 840 2020 Communications Marketplace Report, 36 FCC Rcd at 3076, para. 216. 841 Bond and Pecaro, Reverse Compensation: Broadcaster → Network, http://www.bondpecaro.com/images/Retransmission_Fees-Reverse_Compensation.pdf (last visited Oct. 6, 2022); Basin (2018) at 13. 842 S&P Global, Reverse retrans projections by network, 2011-2027 (July 21, 2022). This total includes payments for the networks: FOX, MyNetworkTV, CBS, the CW, ABC, NBC, and Telemundo. 167 Federal Communications Commission FCC 22-103 277. Time, Location, and Device Flexibility. Many consumers value the ability to watch video programming at any time and in any place. In response to consumer preferences, MVPDs, which traditionally offered linear video programming channels to view on a television set in the home, today also offer VOD content and DVR services as discussed above. In addition, many MVPDs allow subscribers to watch programming on devices other than a television set anywhere that has an Internet connection. Among OVDs, vMVPDs also offer linear programming channels with some VOD programming and DVR capabilities, while AVOD, SVOD, and TVOD services are built around VOD programming. OVDs also offer location and device flexibility, as noted above, as OVDs are available via an Internet connection and many are available on multiple devices. Broadcast stations offer linear video programming channels over-the-air and therefore cannot provide time, location, or device flexibility. However, consumers who view these stations through an MVPD or OVD may have additional flexibility. 278. Programming. Because MVPDs, which often hold significant content assets, usually make their networks available to other MVPDs and vMVPDs, exclusive content is typically not a point of competition between MVPDs or between MVPDs and vMVPDs. MVPDs and vMVPDs, however, differentiate their services from other OVDs and broadcast television stations by offering a full complement of live sports programming.843 As noted above, surveys show that subscribers to MVPD and vMVPD services have stronger preferences for sports and news, relative to non-subscribers.844 While some live sports programming is offered by SVODs,845 these services offer a limited variety of sports and a limited number of games. Broadcast television stations offer a variety of sports programming through network programming, but many games are aired only on national cable networks and regional sports networks. 279. As discussed above, to draw customers to their services, OVDs such as Netflix, Amazon Prime Video, HBO Max, and Disney+ offer exclusive programming—both new TV shows and movies and already released video programming—on their services. When video programming owners, like Disney, Comcast, and AT&T, developed their own online video services, they pulled back popular video programming licensed to competitive OVDs to offer it exclusively on their own services.846 In addition, many OVDs develop exclusive original programming. In 2021, as shown in Figure II.E.5 above, Netflix spent an estimated $5.4 billion on original content, while Amazon Prime Video and Disney+ spent $1.5 billion and $822 million, respectively. 280. The ascendance of OVDs is affecting content distribution decisions.847 For example, more expensive original series, especially scripted shows, are now more likely to go to OVDs rather than cable or broadcast networks, while unscripted shows, like game shows, which are cheaper to produce, are filling more time on cable and broadcast TV.848 In its 2021 disclosure to investors, Disney stated that, departing from past practice, it may release movies simultaneously on its OVD services and in theaters. It also stated that it may refrain from selling its content and instead keep programming for its OVD services. Further, Disney stated that some content may be distributed exclusively on its OVD.849 843 MVPDs and vMVPDs offer national broadcast and cable networks as well as regional sports networks which air live sports programming. 844 Leichtman Research Notes Q1 2022. 845 Amazon, Live Events Help: Frequently Asked Questions, https://www.amazon.com/b?ie=UTF8&node=19343854011 (last visited Oct. 6, 2022). 846 Tali Arbel, AP News, AT&T pulls ‘Friends’ from Netflix for its streaming service, AP News (July 9, 2019), https://apnews.com/557110226d10440c905f9563e70c4bc2. 847 See DIRECTV Comments at 10-11. 848 Rob Woen, TV Talk: Media Companies Prioritize Streaming Services Over Cable (Jan. 28, 2021), https://triblive.com/aande/movies-tv/tv-talk-media-companies-prioritize-streaming-services-over-cable/. 849 Disney 2021 SEC Form 10-K at 4 (filed Nov. 24, 2021). 168 Federal Communications Commission FCC 22-103 281. Pricing and Contracts. As discussed above, MVPD subscriptions are declining. Many subscribers who cancel their MVPD subscriptions cite rising prices as a cause.850 As noted above, in addition to the service price advertised by MVPDs, subscribers may be charged fees for installation, equipment, regional sports networks, broadcast stations, and other services. In contrast, OVDs generally do not charge additional fees.851 Further, OVDs generally offer flexible cancellation852 and some OVDs offer free service trials.853 Many MVPDs, on the other hand, offer service under long-term contracts, and consumers often pay a fee to terminate the contract before its end date.854 282. Consumer Access. Consumer access to video providers depends on the geographic market and type of service. For over-the-air television, the number of available stations depends both on the number of stations allocated to the consumer’s DMA and the consumer’s ability to receive a useable over-the-air signal from the station.855 In addition, most households have access to at least one cable provider and two DBS providers, and some also have access to a telephone company MVPD. To obtain service from an OVD, a consumer must have Internet access. 283. Video Subscription and Use Data. At the end of 2021, 15% of U.S. TV households watched over-the-air television, and 80% of these over-the-air households also subscribed to an OVD. Another 27% of TV households relied only on OVDs for video service, an increase from 9% in 2018, and 57% of TV households subscribed to cable television in addition to other video services, a drop from 76% in 2018.856 In 2021, 78% of all U.S. households subscribed to at least one of the three top SVODs, Netflix, Amazon Prime Video, and/or Hulu. The survey also found that 58% of U.S. households subscribed to more than one of the top three SVODs, compared to 55% in 2020, 51% in 2019, and 28% in 2016.857 284. Information on overall viewership shows that viewership of OVD services grew, while viewership of broadcast and cable television fell from July 2021 to July 2022. In July 2022, both OVD and cable services captured about one-third of total viewing time while about 22% of viewing time was spent watching broadcast television. Viewership of OVD services increased by about 6.5 percentage points from July 2021 while viewership of cable and broadcast television fell by three and two percentage points, respectively.858 285. Figure II.E.18 shows year-end subscribers for the period 2017-2021 for selected video providers including major MVPDs and OVDs. In 2021, Amazon Prime Video and Netflix had approximately 108 million and 68 million subscribers, respectively. The next most popular video 850 Keith Nissen, S&P Global, US, Europe video cord cutting: Same trend, different reasons (Oct. 18, 2021). 851 Michael Timmerman, Clark, Cable vs. Streaming: Does Cutting the Cord Really Save You Money? (June 30, 2020), https://clark.com/technology/tvsatellite-cable/cable-streaming-price-comparison/. 852 Id. 853 See, e.g., HBO Max, Watch Free Episodes from HBO Max, https://www.hbomax.com/collections/watch-free/ (last visited Oct. 6, 2022); Hulu, Free Trials on Hulu, https://help.hulu.com/s/article/free-trials (last visited Oct. 6, 2022). 854 Chantel Buchi, Reviews.org, How to Avoid TV Cancellation Fees (Apr. 28, 2022), https://www.reviews.org/tv- service/television-cancellation-fees/. 855 FCC, DTV Reception Maps, https://www.fcc.gov/media/engineering/dtvmaps (last visited Oct. 6, 2022). 856 Nielsen, OTA+OTT: The New TV Bundle (May 31, 2022), https://www.nielsen.com/us/en/insights/article/2022/ota-ott-the-new-tv-bundle/. 857 Leichtman Research Group, Research Notes 3Q 2021 (Sept. 2021), https://www.leichtmanresearch.com/wp- content/uploads/2021/09/LRG-Research-Notes-3Q-2021.pdf. 858 Nielsen, Streaming claims largest piece of TV viewing pie in July (Aug. 2022), https://www.nielsen.com/insights/2022/streaming-claims-largest-piece-of-tv-viewing-pie-in-july/. 169 Federal Communications Commission FCC 22-103 provider, Hulu, had about 45 million subscribers. Disney+, which entered the market in 2019, had about 39 million subscribers. MVPDs (Comcast, Charter, DIRECTV, and DISH) saw subscriber declines from 2017 to 2021, while OVDs (Amazon, Netflix, Hulu, and Disney+) saw subscriber increases over the same period. Fig. II.E.18 Video subscribers, 2017-2021 Source: S&P Global, Q4'21 leading US video provider rankings (Apr. 8, 2022). Note: Amazon subscribers include all Prime members, including those who do not use video. 286. Similarly, Figure II.E.19 shows vMVPD subscribers over the period 2017-2021. Subscribers to Hulu + Live TV and YouTube TV more than doubled over the full period, while subscribers to AT&T Now/DIRECTV Stream and Sling TV had more modest increases. Hulu + Live TV was the only vMVPD with more than 4 million subscribers in 2021. 170 Federal Communications Commission FCC 22-103 Fig. II.E.19 vMVPD Subscribers, 2017-2021 Source: S&P Global, Q4'21 leading US video provider rankings (Apr. 8, 2022). Note: YouTube TV data for 2020 and 2021 is for Q3, not Q4. 287. Figure II.E.20 aggregates the information in Figures II.E.18 and II.E.19 to show total video subscriptions by service type. As discussed in previous sections, MVPDs subscriptions have declined over the past five years while OVD (SVOD and vMVPD) subscriptions have risen. In the fourth quarter of 2021, there were 69.1 million MVPD subscriptions, 13.2 million vMVPD subscriptions, and 333.1 million SVOD subscriptions. In spite of gains since 2015, by 2021, the number of vMVPD subscriptions remained relatively small compared to the number of MVPD and SVOD subscribers. 171 Federal Communications Commission FCC 22-103 Fig. II.E.20 Video Subscriptions by Service Type Source: S&P Global, Q4'21 leading US video provider rankings (Apr. 8, 2022); S&P Global, Multichannel Industry Benchmarks (last accessed Aug. 4, 2022). 288. Consistent with the trends reported above, the Bureau of Labor Statistics (BLS) reported that average household spending on cable and satellite services decreased from $672.14 in 2018 to $574.75 in 2021 while spending on rental, streaming, and downloading video increased from $50.22 to $113.94 over the same period. In 2021, just under half of all households reported purchasing cable and satellite services while about one-third of households reported expenditure on rental, streaming, and downloading video.859 289. Advertising Revenue. Figure II.E.21 provides a breakdown of local advertising revenue by sector over the period 2019-2021.860 Over this time period, online local advertising revenue increased 21% and its share of local advertising revenue rose to 67%. While local advertising revenue for all other sectors declined, newspapers suffered the largest percentage decline in local advertising revenue, falling from $8.8 billion to $5.2 billion. In 2021, local advertising revenue earned by broadcast television stations and cable TV and telecommunications companies fell to $9.7 billion and $5.0 billion, respectively. In contrast, online local advertising revenue grew to $65 billion. 859 U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, https://www.bls.gov/cex/tables/top-line- means.htm (last visited Oct. 6, 2022). 860 Local advertising refers to advertising sold to businesses with a physical presence in the local market, while national advertising refers to advertising sold to national brands. 172 Federal Communications Commission FCC 22-103 Fig. II.E.21 Local Advertising Gross Revenues by Sector (billions) (2019-2021) Source: S&P Global, US Advertising Revenue by Sector, 2020-2030 (Feb. 2021); S&P Global, US Advertising Revenue by Sector, 2019-2029 (Jan. 2020). 290. Figure II.E.22 provides a breakdown of national advertising revenue by sector over the period 2019-2021. National advertising revenue earned by online platforms increased from $60.2 billion to $67.4 billion from 2019 to 2021. National advertising earned by cable networks fell from $28.1 billion to $24.6 billion, while national advertising revenue earned by broadcast networks fell from $18.1 billion to $17.9 billion, and national advertising revenue earned by broadcast television stations fell from $6.9 billion to $5.8 billion. 173 Federal Communications Commission FCC 22-103 Fig. II.E.22 National Advertising Gross Revenue by Sector (billions) (2019-2021) Source: S&P Global, US Advertising Revenue by Sector, 2020-2030 (Feb. 2021); S&P Global, US Advertising Revenue by Sector, 2019-2029 (Jan. 2020). Note: Other includes business publications, farm publications, outdoor/out of home, satellite radio, and yellow pages. 6. Report on Cable Industry Prices 291. In the context of the discussion of MVPDs in the video marketplace, we report on the average rates charged by cable operators for basic cable service and other cable programming, as well as cable equipment to access such programming,861 as required by section 623(k) of the Communications Act of 1934, as amended by the Cable Television Consumer Protection Act of 1992 (Cable Act)862 and the RAY BAUM’s Act of 2018.863 Consistent with the statute, the Commission is required to compare the rates of operators subject to effective competition to the rates of operators not subject to effective competition under a statutorily defined standard (hereinafter referred to as “effective competition”).864 In 861 A “cable operator” (or operator) refers to an entity that operates a wireline system and is an MVPD that makes available for purchase, by subscribers or customers, multiple channels of video programming. 47 U.S.C. § 522(5). “Service tier” (or service) refers to a cable service for which a separate rate applies. Id. § 522(l7). Regarding the statutory provision for regulation of rates, operators must provide a separately available “basic cable service” (or basic service) to which customers must subscribe before accessing any other tier of service. Id. § 543(b)(7)(A). “Other cable programming” service means any video programming other than programming offered with the basic service or programming offered on a per channel or per program basis. Id. § 543(l)(2). 862 Section 623(k), adopted as section 3(k) of the Cable Act, Pub. L. No. 102-385, 106 Stat. 1460, codified at 47 U.S.C. § 543(k). 863 See RAY BAUM’S Act of 2018. 864 Commission findings of effective competition generally are made in reference to a cable community identified by a cable community unit identifier (CUID). The Commission assigns a unique CUID to each operator for each community the operator serves. As discussed in Appx. E, the Commission recently changed its process and presumption for determining effective competition. In 2015, the Commission adopted a rebuttable presumption that cable operators in all cable communities are subject to effective competition. See Amendment to the Commission’s Rules Concerning Effective Competition, Implementation of Section 111 of the STELA Reauthorization Act, MB Docket No. 15-53, Report and Order, 30 FCC Rcd 6574 (2015). As a result of this change, operators in nearly all (continued….) 174 Federal Communications Commission FCC 22-103 addition, section 110 of the STELA Reauthorization Act of 2014 requires the Commission to report on retransmission consent fees paid by cable systems to broadcast stations or groups.865 The following presents an overview of the Commission’s findings as of January 1, 2022 and fulfills these statutory directives. The Commission’s complete Report on Cable Industry Prices, containing additional data, information, and findings, can be found in Appendix E. 292. Average price over all communities. Cable prices increased over the twelve months ending January 1, 2022, at a lower rate compared to the average annual increases over the past five years. The monthly price for cable subscribers who take only basic service grew by 7.0%, to $42.63, over the year ending January 1, 2022. Over the five years ending January 1, 2022, basic prices rose by an average of 11.2% per year. Prices for expanded basic service increased by 5.2%, to $101.54 over the year ending January 1, 2022. This compares to the average annual increase of 6.2% over the last five years. To account for growth in the number of channels offered with cable services, we also report price per channel (service and equipment lease price divided by number of channels).866 Over the year ending January 1, 2022, price per channel for basic and expanded basic service grew by 5.3% and 9.2% to $1.09 and 90 cents per channel, respectively. In comparison to cable prices, the rate of general inflation measured by the CPI rose by 7.5% over the twelve months ending January 1, 2022, and at an average annual rate of 2.6% over the last five years.867 293. Average price in communities with a finding of effective competition compared to average price in communities without a finding. This year there is only one community, serving less than 0.1% of U.S. cable subscribers, without a finding of effective competition.868 Therefore, we no longer compare prices in effective competition communities to prices in noncompetitive communities. As noted in section II.E.2.a, most households are served by at least three MVPDs.869 Since operators in nearly all (Continued from previous page) communities became subject to effective competition. In addition, in October 2019, the Commission found, for the first time, that a cable operator was subject to effective competition from a local exchange carrier (LEC)-affiliated OVD under the LEC effective competition test. See Petition for Determination of Effective Competition in 32 Massachusetts Communities and Kauai, HI (HI0011), MB Docket No. 18-283, Memorandum Opinion and Order, 34 FCC Rcd 10229 (2019). Rates of an operator subject to effective competition are not subject to regulation by a local franchising authority (LFA). 47 U.S.C. § 543(a)(2); 47 CFR § 76.905(a). An LFA may elect to regulate the rate of basic service of an operator not subject to effective competition. Id. 865 See section 110 of the STELA Reauthorization Act of 2014 (STELAR). Section 110 of STELAR, Pub. L. No. 113-200, 128 Stat. 2059 (codified at 47 U.S.C. § 543(k)(2)). Specifically, STELAR instructs the Commission to include in its now biennial Report on Cable Industry Prices “the aggregate average total amount paid by cable systems in compensation under section 325 [of the Communications Act of 1934, as amended,]” and to report such information “in a manner substantially similar to the way other comparable information is published” in the report. 47 U.S.C. § 543(k)(2). 866 The 2022 survey was revised to count the number of HD channels, whereas previous surveys also counted standard definition channels. This year’s channel counts, therefore, are about half as large as the channel counts reported in the previous survey. Correspondingly, estimates of average price per channel this year are about twice those reported in the previous survey. 867 U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers: All Items in U.S. City Average (CPIAUCNS), https://fred.stlouisfed.org/series/CPIAUCNS (last visited Oct. 6, 2022). 868 See infra Appx. E, Fig. 1. 869 Most households are served by at least one cable operator and two direct broadcast satellite (DBS) operators. See supra section II.E.2.a. 175 Federal Communications Commission FCC 22-103 communities are subject to effective competition, this price comparison no longer provides any useful information.870 294. Broadcast retransmission consent compensation fees. From 2020 to 2021,871 annual fees paid per subscriber increased, on average, by 20.3%, rising from $168.83 to $203.03. Average monthly retransmission consent fees per subscriber per broadcast station increased by 17.7%, increasing from $1.70 to $2.00 over the same period. Over the period 2013-2021, the compound average annual increase in fees per subscriber was 30.6%. F. The Audio Market 1. Overview of the Audio Programming Market 295. Consumers can access audio programming from multiple sources—from terrestrial broadcast radio stations, which have existed in the marketplace for over a century, to more recent marketplace entrants, such as entities that use the Internet to deliver audio content to consumers. Distinguishing features of audio providers include the method of delivery (including access using various consumer devices), the ability to download programming rather than solely stream programming or listen live, and the type and quantity of content offered. The major participants in today's marketplace for the delivery of audio programming can be divided into three categories: terrestrial radio broadcasters, satellite radio providers, and online audio providers.872 296. Terrestrial radio broadcasters use terrestrial radio stations licensed by the Commission to broadcast audio programming over-the-air to consumers, who primarily use radios to receive the stations’ programming. Participants in this category include AM, FM, and low-power FM (LPFM) radio stations. There are thousands of terrestrial radio stations in the United States, providing linear channels of music, news, sports, entertainment, educational programming, and other content.873 As discussed below, some terrestrial radio programming is also available online via computers, smartphones, smart speakers, and other devices with access to the Internet. Terrestrial radio revenue depends primarily on advertising and has generally remained steady, except for a sharp dip in 2020 associated with the COVID-19 pandemic. 297. SiriusXM is the only provider of satellite radio in the United States today and depends on both advertising and subscription revenue. The company uses satellite technology to offer subscription- based audio programming to consumers. Most subscribers access satellite radio programming in cars using specially designed receivers that either come standard or can be installed by the factory/dealer. Consumers can also use computers, smartphones, and other devices to access this content over the Internet. SiriusXM provides multiple linear channels of programming, including exclusive content and features.874 870 Further, we cannot make a statistically valid comparison between prices in the effective competition group and prices in the noncompetitive group. When comparing average values between two groups, it is necessary to account for sampling error and this cannot be done if one of the groups has only one sampling unit. 871 The data for retransmission consent fees are collected somewhat differently than the rest of the data in the Report on Cable Industry Prices. Retransmission consent fee data are collected for complete years, whereas all other data are collected as of a certain date (January 1) of the survey year and the previous year. As a result, the retransmission consent fee data are for the complete years 2020 and 2021 (the latest two years for which annual retransmission consent data were available at the time of the 2022 survey), whereas the other data in the survey are snapshots as of January 1, 2021 or January 1, 2022. 872 These three categories do not include music channels on cable and satellite TV or recorded music, such as CDs. 873 Linear channels provide specific audio content or programs at a specific time of day. By contrast, podcasts and downloaded audio programming can be listened to it at any time. 874 SiriusXM, SiriusXM website, https://www.siriusxm.com (last visited Oct. 6, 2022). 176 Federal Communications Commission FCC 22-103 298. Online audio providers use the Internet to deliver audio programming to consumers. Consumers, in turn, access this programming using computers, smartphones, smart speakers, and other devices. Certain online audio providers offer linear audio channels similar to those offered by terrestrial radio stations. Others, such as Pandora, allow listeners to search by artist or music genre and to avoid advertisements by paying subscription fees. Certain providers also allow users to access and download audio content and listen to it at any time (e.g., podcasts). Online audio providers include larger, well- known entities such as Apple Music and Spotify, as well as numerous other providers, some of which focus on specialty content for niche audiences. Online audio providers rely on both paid subscriptions and advertising for revenue; however, in recent years there has been a shift toward greater reliance on paid subscriptions. 2. Terrestrial Radio Broadcasters 299. Terrestrial radio broadcasters, which include full power AM and FM radio stations and LPFM stations,875 have long been the mainstay of the audio programming market. Most radio stations broadcast analog signals over-the-air to consumers, with some stations also transmitting high-quality digital audio to consumers.876 FM stations that broadcast digital signals are able to provide multiple streams of programming to consumers, as well as other data, such as song information, weather updates, traffic reports, and other news. Consumers, however, must have a receiver with both an analog tuner and a digital tuner to receive all broadcast signals.877 300. Terrestrial radio stations must receive authorization from the Commission before they construct and operate in the United States and are subject to both the Communications Act of 1934, as amended, and regulations promulgated by the Commission thereunder.878 In allocating and authorizing terrestrial radio stations, the Commission is charged with ensuring that such stations are distributed across the country and licensed to communities in a manner that serves the public interest.879 In addition, licensees of terrestrial broadcast stations must comply with certain obligations and rules to ensure that the 875 The Commission created the LPFM radio service in January 2000. LPFM stations operate at a much lower power, and serve a much smaller area, than full power FM stations. FCC, Low Power FM (LPFM) Broadcast Radio Stations, https://www.fcc.gov/media/radio/lpfm (last visited Oct. 6, 2022). LPFM stations are authorized for noncommercial educational broadcasting only and must be licensed to government or non-profit educational institutions; non-profit organizations, associations, or entities with an educational purpose; or government or nonprofit entities providing local public safety or transportation service. LPFM license applicants must be based in the community in which they intend to broadcast. See 47 CFR § 73.853; FCC, Low Power FM Radio (LPFM), https://www.fcc.gov/consumers/guides/low-power-fm-lpfm-radio (last visited Oct. 6, 2022). LPFM stations typically provide opportunities for local and niche programming. See Mariella Rudi, A Homegrown Radio Station Is Keeping Venice Weird, Los Angeleno (Aug. 15, 2019), https://losangeleno.com/strange-days/venice-fm. 876 Digital audio transmission and reception are more resistant to interference and eliminate many imperfections of analog radio transmission and reception, offering better sound quality than analog. FM digital radio can provide clear sound comparable in quality to CDs, and AM digital radio can provide sound quality equivalent to that of standard analog FM. FCC, Digital Radio, https://www.fcc.gov/consumers/guides/digital-radio (last visited Oct. 6, 2022). 877 Id. 878 47 U.S.C. § 301. The Commission licenses broadcast spectrum to applicants and approves any assignment or transfer of control of broadcast licenses. Id. §§ 303(c), 308(a), 309(a), 310(d). In addition, certain obligations and rules are imposed on licensees to ensure that the licensed spectrum is used to serve the public interest during each license term. See, e.g., id. § 307(c); 47 CFR §§ 73.1020, 73.3555. 879 47 U.S.C. §§ 303, 307. 177 Federal Communications Commission FCC 22-103 licensed spectrum is used to serve the public interest.880 Licenses for broadcast radio stations have an eight-year term, but licenses can be renewed by the Commission upon application by the licensee.881 301. As Figure II.F.1 shows, the number of AM, FM, and LPFM radio stations in the United States has remained relatively steady in recent years. New stations are possible only through new allocations and award of licenses, either via auction, in the case of commercial stations,882 or a comparative system for non-commercial stations.883 Fig. II.F.1 Number of Licensed Broadcast Radio Stations884 2018 2019 2020 2021 2022 AM 4,633 4,613 4,580 4,546 4,508 FM Commercial 6,741 6,762 6,726 6,682 6,763 FM Non-Commercial 4,125 4,139 4,172 4,213 4,119 Low Power FM 2,150 2,171 2,159 2,114 2,049 Total Stations 17,649 17,685 17,637 17,555 17,439 302. Revenue. The primary source of revenue for commercial terrestrial radio stations is advertising. To secure the highest rates and to compete for advertising market share, stations strive to gain the largest audience of listeners possible. Broadcast stations receive advertising revenue from entities seeking to reach consumers listening to programming over-the-air, as well as those listening on 880 See, e.g., 47 CFR §§ 73.1020, 73.3555. 881 47 U.S.C. § 309(k); 47 CFR § 73.1020. 882 See NCE Comparative Standards Report and Order, 15 FCC Rcd at 7427-33, paras. 101-11. The Balanced Budget Act of 1997 amended section 309(j) of the Communications Act “to require the Commission to use competitive bidding to resolve application conflicts, but exempted NCE stations from this process.” Reexamination of the Comparative Standards for Noncommercial Educational Applicants, MM Docket No. 95-31, Memorandum Opinion and Third Order on Reconsideration, 23 FCC Rcd 17423, 17424, para. 3 (2008) (citing Balanced Budget Act of 1997, Pub. L. No. 105-33, Title III, 111 Stat. 251 (1997), amending 47 U.S.C. § 307(j)). 883 See NCE Comparative Standards Report and Order, 15 FCC Rcd at 7393-7420, paras. 16-79. The Commission recently adopted changes to its rules and procedures for considering competing applications for new and major modifications to noncommercial educational (NCE) FM radio stations. Reexamination of the Comparative Standards and Procedures for Licensing Noncommercial Educational Broadcast Stations and Low Power FM Stations, MB Docket No. 19-3, Report and Order, 34 FCC Rcd 12519 (2019); Reexamination of the Comparative Standards and Procedures for Licensing Noncommercial Educational Broadcast Stations and Low Power FM Stations, MB Docket No. 19-3, Order on Reconsideration, 35 FCC Rcd 10180 (2020); see also Media Bureau Announces NCE FM New Station Filing Procedures and Requirements for November 2-9, 2021, Window, MB Docket No. 20-343, Public Notice, DA 21-885 (MB July 23, 2021). 884 FCC, Press Release, Broadcast Station Totals as of March 31, 2018 (Apr. 9, 2018), https://docs.fcc.gov/public/attachments/DOC-350110A1.pdf; FCC, Press Release, Broadcast Station Totals as of March 31, 2019 (Apr. 2, 2019), https://docs.fcc.gov/public/attachments/DOC-356801A1.pdf; FCC, Press Release, Broadcast Station Totals as of March 31, 2020 (Apr. 6, 2020), https://docs.fcc.gov/public/attachments/DOC- 363515A1.pdf; FCC, Press Release, Broadcast Station Totals as of March 31, 2021 (Apr. 5, 2021), https://www.fcc.gov/document/broadcast-station-totals-march-31-2021; Broadcast Station Totals as of March 31, 2022, Public Notice, DA 22-365 (MB Apr. 5, 2022). 178 Federal Communications Commission FCC 22-103 online platforms.885 Figure II.F.2 shows the top 10 largest radio station owners, ranked by revenue. These owners control stations that are not confined to particular geographic regions; rather, their stations are spread across various geographical markets in the United States. Fig. II.F.2 Top 10 Radio Station Owners Total Ad Ultimate Parent Stations Markets Revenue (in $ millions) iHeartMedia, Inc. 745 149 $2,229 Audacy, Inc. 217 47 $1,158 Cumulus Media Inc. 355 85 $537 Beasley Broadcast, Inc. 56 14 $226 Terrier Media Buyer, Inc. 45 10 $203 Townsquare Media, Inc. 224 52 $189 Hubbard Broadcasting, Inc. 33 8 $188 Urban One, Inc. 46 13 $183 Univision Communications, Inc. 48 15 $169 Salem Media Group, Inc. 65 33 $136 Source: S&P Global, Top Radio Station Owners (last accessed June 17, 2022). 303. Figure II.F.3 shows total U.S. broadcast radio revenue from 2005 to 2021. Total broadcast radio revenue was virtually flat between 2010 and 2019, going from $17.3 billion in 2010 to $17.8 billion in 2019, for an average annual growth rate of approximately 0.32%.886 However, total broadcast radio revenue dropped to $13.7 billion in 2020, and then rose to $14.8 billion in 2021, resulting in a net decline of approximately 17% from 2019 to 2021, due largely to the drop in demand for advertising due to the COVID-19 pandemic.887 Figure II.F.3 also shows that the radio revenue never fully recovered from the decline experienced during the recession following the 2008 financial crisis. 304. Further, Figure II.F.3 breaks down radio revenues between over-the-air radio (which includes network, national spot, and local spot advertising) and online radio (which includes online versions of radio broadcasts). Online broadcast radio has had more substantial revenue growth than over- the-air radio, i.e., a 13.1% increase between 2010 and 2019. The share of revenue from online advertising grew from 3.6% in 2010 to 8.2% in 2021. Online radio is an area of potential growth for radio advertising revenue, especially given various new devices for accessing online radio including smartphones, tablets, and smart speakers. In addition, several large owners of radio stations have recently heavily invested in podcasting.888 885 musicFIRST Coalition and Future of Music Coalition note that terrestrial broadcast radio stations in small markets struggle to compete with “larger companies who command a dominant role in multiple platform categories including but not limited to terrestrial radio.” musicFIRST/FMC Comments at 4. 886 Total U.S. radio revenues include network, national spot, local spot, digital/online, and off-air radio advertising. Revenue for off-air advertising includes event sponsorship (e.g., concerts and contests). 887 Justin Nielson, S&P Global, US TV and radio station ad projections 2022-32: Political offsets dwindling core (July 15, 2021). 888 See Justin Nielson, S&P Global, Radio/TV Station Annual Outlook 2021 (Aug. 3, 2021). 179 Federal Communications Commission FCC 22-103 Fig. II.F.3 U.S. Terrestrial Radio Revenue 2005-2021 (billions) Source: S&P Global, US TV and Radio And Projections, 1970-2031 (last accessed June 17, 2022). 305. Programming. Types of radio programming include categories of music and talk. In addition, programming may be live or recorded. Further, because terrestrial stations are located in specific geographic markets, programming may target local listeners in those markets.889 Alternatively, some stations may choose to broadcast non-local programming that is not specifically targeted to listeners living in a particular market. Since producing a show for one market is likely more costly (per listener) than distributing the same show across stations in many markets, cost considerations may favor non-local programming. On the other hand, promoting a local on-air personality as the “face” of a station may be an important way for a station to distinguish itself from other stations in its market. Some stakeholders have argued that stations that are part of a group of stations whose owner is not local to that market broadcast less programming produced in that market and may be less sensitive to the needs and interests of that market.890 306. Multiple radio stations are generally available to listeners within each geographic market.891 Figure II.F.4 shows a scatterplot of the number of stations within a market against the market size, measured by population. The number of radio stations available generally increases as the market size increases, suggesting more choices in markets with higher populations. Not shown in the table, however, are additional choices that listeners have, including satellite and online radio, as discussed below. 889 Because stations have a duty to serve the needs of their local communities, localism has been a cornerstone of broadcast regulations for decades. Broadcast Localism, MB Docket No. 04-233, Report on Broadcast Localism and Notice of Proposed Rulemaking, 23 FCC Rcd 1324, 1328, para. 5 (2008). 890 Advocates of musicians and radio personnel have argued that the consolidation of ownership among AM/FM radio stations has led to reduced local staffing, including DJs and other personnel knowledgeable about local programming, in favor of syndicated programming that is selected and distributed from a central office. See musicFIRST/FMC Comments at 13-18. 891 Terrestrial radio markets are generally named for the largest city within the geographic region, which includes areas outside the city. Such geographical markets for terrestrial radio are identified by The Nielsen Company. Nielsen, Radio Market Survey Population, Rankings & Information (Fall 2022), https://www.nielsen.com/wp- content/uploads/sites/2/2022/10/Radio-Market-Populations-Fall-2022.pdf. 180 Federal Communications Commission FCC 22-103 Fig. II.F.4 Number of Terrestrial Radio Stations by Market Size Source: BIA/Kelsey MEDIA Access Pro Online Radio Analyzer Database as of August 3, 2022. Note: The market with the largest number of stations is Puerto Rico. 307. We have noted in various proceedings that AM broadcasting services face persistent interference issues.892 Such interference may have an effect on station format choice. AM stations favor talk formats relative to music formats, which are more common on FM stations, due to the superior sound quality of the FM service. This is illustrated in Figure II.F.5, which presents the distribution of programming formats across AM, FM, and LPFM stations. More than 60% of FM stations have a music format, while only approximately 35% of AM stations have a music format. However, as Figure II.F.5 shows, AM stations favor Spanish and Ethnic, News, Sports, and Talk formats relative to FM stations. The share of stations with a Religion format, which involves both music and talk, is similar for AM and FM stations. Stations with a Public and Education format predominantly use FM frequencies, reflecting the fact that most non-commercial educational stations are FM stations.893 Approximately 1.5% of FM stations are designated Public and Education format, while there are only four AM stations within that format. 308. Figure II.F.5 also presents the distribution of programming formats for LPFM stations, which have much smaller geographic reach than conventional FM stations.894 Because LPFM stations are authorized for non-commercial educational broadcasting only, they may provide programming of interest to listeners and community stakeholders that other FM or AM stations do not. As Figure II.F.5 shows, nearly half of LPFM stations are classified as Music stations. However, the music LPFM stations are predominantly classified in the Miscellaneous format, as opposed to music formats such as Rock and 892 See Revitalization of the AM Service, MB Docket No. 13-249, First Report and Order, Further Notice of Proposed Rulemaking, and Notice of Inquiry, 30 FCC Rcd 12145 (2015). 893 See FCC, The Licensing of TV and Radio Stations, The Public and Broadcasting, https://www.fcc.gov/media/radio/public-and-broadcasting#NCECOMM (last visited Oct. 6, 2022). 894 LPFM stations are authorized to operate with an effective radiated power no more than 100 watts. The approximate service range of a 100 watt LPFM station is 3.5 miles radius. FCC, Low Power FM (LPFM) Broadcast Radio Stations, https://www.fcc.gov/media/radio/lpfm (last visited Oct. 6, 2022). 181 Federal Communications Commission FCC 22-103 Country.895 Further, about one-third of LPFM stations provide religious community programming (considerably more, in percentage terms, than AM or FM stations), reflecting local churches’ or local religious organizations’ use of the medium. Additionally, about 5% of LPFM stations are classified as Public and Education format. Fig. II.F.5 Programming Formats for Terrestrial Radio Format AM FM LPFM Music 34.7% 63.3% 46.9% Spanish and Ethnic 13.6.% 5.8% 11.3% Religion 16.4% 22.3% 35.9% Public and Education 0.1% 1.4% 4.8% News 17.9% 4.9% 0.5% Sports 11.7% 1.4% 0.1% Talk 5.6% 0.8% 0.4% Source: BIA/Kelsey MEDIA Access Pro Online Radio Analyzer Database as of April 12, 2022. Notes: These data include 4,404 AM stations, 10,624 FM stations, and 2,088 LPFM stations. The Music category is constructed by combining the following BIA music format categories: Adult Contemporary, Album Oriented Rock/Classic Rock, Alternative, Classical, Contemporary Hit Radio/Top 40, Country, Easy Listening/Beautiful Music, Jazz/New Age, Middle of the Road, Miscellaneous, Nostalgia/Big Band, Oldies, Rock, and Urban. 3. Satellite Radio 309. In 1995, the Commission allocated spectrum in the 2310–2360 MHz band for satellite digital audio radio service (SDARS).896 In 1997, the Commission established rules for the service.897 SDARS provides nationally distributed subscription radio service and requires a significant investment of capital for operation.898 Two SDARS licensees—Sirius and XM—purchased their licenses at auction, successfully launched their satellite systems, and commenced commercial service to the public.899 In 2008, Sirius and XM merged and formed SiriusXM,900 which is currently the only provider of SDARS in 895 Approximately 75% of music LFPM stations are classified in the Miscellaneous music format. These stations play a wider range of music than what might fall into a particular category, such as Country, Rock, or Adult Contemporary. Thus, programming decisions on these stations likely are not restricted by a particular format or marketing strategy. 896 Amendment of the Commission’s Rules with Regard to the Establishment and Regulation of New Digital Audio Radio Services, GN Docket No. 90-357, Report and Order, 10 FCC Rcd 2310, 2310, para. 1 (1995). 897 See Establishment of Rules and Policies for the Digital Audio Radio Satellite Service in the 2310-2360 MHz Frequency Band, GN Docket No. 90-357, Memorandum Opinion and Order and Further Notice of Proposed Rulemaking, 12 FCC Rcd 5754 (1997). 898 See Establishment of Rules and Policies for the Digital Audio Radio Satellite Service in the 2310-2360 MHz Frequency Band, IB Docket No. 95-91, Second Further Notice of Proposed Rulemaking, 22 FCC Rcd 22123, 22150, Appx. B (2007) (SDARS Second Further Notice). 899 XM began nationwide commercial service on Nov. 12, 2001; Sirius began commercial service on Feb. 14, 2002. See SDARS Second Further Notice, 22 FCC Rcd at 22123, para. 1 & n.4. 900 See Applications for Consent to the Transfer of Control of Licenses from XM Satellite Radio Holdings Inc. to Sirius Satellite Radio Inc., MB Docket No. 07-57, Memorandum Opinion and Order and Report and Order, 23 FCC Rcd 12348, 12349, para. 1 (2008). 182 Federal Communications Commission FCC 22-103 the audio marketplace. SiriusXM acquired Pandora Media, a streaming service, on February 1, 2019.901 SiriusXM reports that it had 34.0 million U.S. subscribers and 6.3 million Pandora self-pay subscribers at the end of 2021.902 310. Revenue. SiriusXM historically has relied on subscription fees as its primary revenue source.903 However, since its acquisition of Pandora, a streaming service which has substantial advertising revenue, advertising has accounted for a larger share of SiriusXM’s revenues. In 2021, the SiriusXM unit (which excludes Pandora) reported $6.6 billion in revenue, a 4% increase from the prior year.904 Subscription revenue was the largest source of revenue, constituting $6.1 billion, while advertising revenue represented $188 million.905 Pandora’s subscriber and advertising revenues for 2021 were $530 million and $1.5 billion, respectively.906 SiriusXM’s total revenue, including Pandora, was $8.7 billion for 2021.907 311. Programming and Subscription Plans. SiriusXM offers over 150 channels via satellite and online streaming, as well as over 250 additional channels that are available only through online streaming.908 These channels provide content and features not available from other sources. SiriusXM offers consumers three principal subscription packages: Music & Entertainment ($17.99/month), Platinum ($22.99 per month), and Music Showcase ($12.99 per month).909 All three packages offer access to all of SiriusXM’s music channels while the Platinum and Music and Entertainment packages also offer exclusive artist-dedicated channels, comedy channels, news channels, college sports, and traffic and weather.910 These channels are available online and in vehicles and follow a linear format, so that, like terrestrial stations, programs are scheduled to play at specific times. And while such linear programming does not include interactive features, the acquisition of Pandora has allowed SiriusXM to also offer customized music stations online. 4. Online Audio Providers 312. In addition to terrestrial broadcast radio stations and satellite-delivered radio service, audio programming delivered via the Internet has emerged as a third category in the audio marketplace. Generally, online audio providers may be classified as non-interactive or interactive, with the latter involving user choice, such as choosing specific songs and downloading content. In addition, as discussed above, both terrestrial radio broadcasters and SiriusXM have supplemented their traditional offerings with online audio services. 901 SiriusXM, Press Release, SiriusXM Completes Acquisition of Pandora (Feb. 1, 2019), https://investor.siriusxm.com/news-events/press-releases/detail/1084/siriusxm-completes-acquisition-of-pandora. As a streaming service, Pandora will be discussed in the following section on online audio providers. 902 SiriusXM, Press Release, SiriusXM Reports Fourth Quarter and Full-Year 2021 Results (Feb. 1, 2022), https://investor.siriusxm.com/news-events/press-releases/detail/734/siriusxm-reports-fourth-quarter-and-full-year- 2021-results. Self-pay subscribers are distinct from users who do not pay but instead listen to advertising. 903 SiriusXM Holdings Inc. 2021 SEC Form 10-K at 3 (filed Feb. 1, 2022). 904 Id. at 36. 905 SiriusXM also earned $352 million in revenue from other sources. Id. 906 Id. 907 Id. 908 See SiriusXM, SiriusXM Select, View the Channel Lineup, https://www.siriusxm.com/packages/siriusselect (last visited Oct. 6, 2022). 909 SiriusXM, Popular Plans, https://www.siriusxm.com/plans (last visited Oct. 6, 2022). 910 Id. 183 Federal Communications Commission FCC 22-103 313. Service Offerings. Online audio providers generally offer various service options including paid services without ads and free services with ads. In general, these providers make their content available on various mobile applications and smart speakers.911 Spotify offers free service with advertising and several Premium packages that offer ad-free listening and the ability to download music and programming for play offline. Spotify’s Premium packages are Individual ($9.99 per month), Duo ($12.99 per month), Family ($15.99 per month), and Student ($4.99 per month).912 Apple Music offers similar plans for the Individual ($9.99 per month) and Family ($14.99 per month).913 SiriusXM also offers three standalone non-satellite (i.e., online audio) streaming plans: Streaming Platinum ($10.99 per month), Streaming Music & Entertainment ($7.99 per month), and Streaming Music Showcase ($4.99 per month).914 Pandora continues to offer plans for listening to music and podcasts online. Pandora offers a free, ad-supported service offering music and podcasts, ad-free programming with Pandora Plus ($4.99 per month), and Pandora Premium ($9.99 per month), which allows the creation and sharing of playlists.915 314. Revenue, Subscribers, and Usage. Online audio providers’ sources of revenue include both paid subscriptions and ad-supported options that are free to consumers. However, in recent years, a shift toward paid subscriptions led to less reliance on advertising. This trend demonstrates a willingness by consumers to pay for monthly subscriptions to such popular streaming services as Apple Music, Spotify, Amazon Music, and Pandora. In 2020, streaming music contributed to 85% of total U.S. music industry revenue, according to the Recording Industry Association of America (RIAA).916 RIAA also reports that paid subscriptions grew by 14% year over year to $3.8 billion and accounted for 67% of total U.S. music revenues and 79% of total U.S. streaming music revenue in the first half of 2020.917 A recent report estimated 2020 global subscription revenue for Spotify, Apple Music, and Pandora Plus to be $7.85 billion, $6.4 billion, and $0.46 billion, respectively.918 A recent report found that the online audio brands used most often in the United States by persons aged 12 years and older include Spotify (35%), YouTube Music (18%), Pandora (15%), Apple Music (12%), Amazon Music (9%), and iHeart Radio (6%).919 Further, the number of U.S. subscribers to Spotify, Apple Music, and Amazon Music are estimated to be 148 million, 81.5 million, and 65.5 million, respectively.920 315. Programming. Online audio providers allow listeners to access a wide range of music. Two of the most popular streaming services, Spotify and Apple Music, provide listeners with access to 911 Edison’s Infinite Dial 2022 report finds that 88% of the U.S. population aged 12 years and older owns a smartphone, 53% owns a tablet, 35% owns smart speakers, and 18% owns a smartwatch. Edison Research, The Infinite Dial 2022 at 6-9 (2022), http://www.edisonresearch.com/wp-content/uploads/2022/03/Infinite-Dial-2022- Webinar-revised.pdf (Infinite Dial 2022). 912 Spotify, Listen without limits. View Plans, https://www.spotify.com/us/premium/#plans (last visited Oct. 6, 2022). 913 Apple Music, Hear sound all around, https://www.apple.com/apple-music/ (last visited Oct. 6, 2022). 914 SiriusXM, Popular Plans, https://www.siriusxm.com/plans (last visited Oct. 6, 2022). 915 Pandora, Choose How You Want to Listen, https://www.pandora.com/plans (last visited Oct. 6, 2022). 916 Peter Leitzinger, S&P Global, Economics of Digital Music and Radio 2020 (Jan. 14, 2021) (Economics of Digital Music and Radio). 917 Id. 918 John Fletcher, Rob Parungo, & Theodore Vincent Calaor, S&P Global, Economics of Mobile Music (July 2, 2020) (Economics of Mobile Music). 919 Infinite Dial 2022 at 41. 920 Economics of Mobile Music. 184 Federal Communications Commission FCC 22-103 music libraries of 70 million or more songs.921 Users of premium plans may create their own playlists or genre stations, where they may discover new music within a small preference niche. Because major competing online audio providers generally all offer a wide range of music and related programming, subscribers tend to use only a single streaming service.922 The widespread availability of most songs through a variety of services and sources has created a challenge for music services seeking to differentiate themselves. 316. Podcasting. Podcasting, which offers a large variety of spoken word programming, has provided an important avenue for differentiation among online audio providers. Podcasts can be streamed at any time, in contrast to audio programs on linear channels. Podcasts feature a wide range of content and personalities, with subjects that include scientific research, slice of life journalism, self-help, fringe topics, comedy, stories, and many others. Broadcast radio station owners, SiriusXM, and pure online audio providers have been expanding in this growing audio platform.923 This expansion into podcasting allows these audio providers to attract subscribers and create key points of differentiation.924 Digital music and radio services such as Spotify, Pandora, and Apple Music have pursued acquisitions to expand their podcasting programming and attract subscribers.925 For example, Spotify has signed exclusive podcast talent, such as Joe Rogan and the Kardashians, and has acquired The Ringer, an online sports- focused platform with over 30 podcasts.926 In addition to increased listenership, advances in advertising such as ad insertion technology and audience targeted data have assisted growth in podcasting.927 317. According to Edison’s recent Infinite Dial report, the number of people who have listened to a podcast reached 177 million in 2022 (62% of the U.S. population aged 12 years and older).928 The same report also shows that the share of the population who have listened to a podcast in the last month grew from 17% in 2015 to 41% in 2021.929 However, Edison’s report also indicates that the time spent listening to podcasts as an overall share of audio listening has not grown recently, but rather has declined modestly from 6% in 2021 to 5% in 2022.930 The Interactive Advertising Bureau reported that ad revenue from podcasts reached $1.4 billion in the United States in 2021.931 921 Lexy Savvides & Vanessa Hand Orellana, CNET, Apple Music vs. Spotify: Comparing the top music streaming services (Sept. 25, 2021), https://www.cnet.com/tech/services-and-software/apple-music-vs-spotify-comparing-the- music-streaming-giants-best- 2021/#:~:text=Spotify%20says%20it%20has%20a,Music%20is%20over%2075%20million. 922 A survey from S&P Global suggests that, unlike listeners consuming radio from a variety of terrestrial broadcast stations, most users of online music services tend to use just one service, especially those who use a pay music service. The survey found that of those that subscribed to a pay music service, 74% subscribed to one service only. See Brian Bacon, S&P Global, Online Music User Profiles (July 12, 2018). 923 Peter Leitzinger, S&P Global, Streaming Music Services Invest in Podcasting to Bolster Future Revenue (Jan. 6, 2021) (Streaming Music Services Invest in Podcasting). 924 Id. 925 Economics of Digital Music and Radio. 926 Id. 927 Streaming Music Services Invest in Podcasting. 928 Infinite Dial 2022 at 51. 929 Id. 930 Id. at 55. 931 International Advertising Bureau, U.S. Podcasting Advertising Revenue Study (May 2022), https://www.iab.com/wp-content/uploads/2022/05/IAB-FY-2021-Podcast-Ad-Revenue-and-2022-2024-Growth- Projections_FINAL.pdf. 185 Federal Communications Commission FCC 22-103 5. Competition in Audio Programming 318. Although providers in these three main categories of audio services all deliver audio programming to consumers, there are significant differences in the availability, reach, consumer engagement, and cost of the services. In recent years, the popularity of terrestrial broadcast radio has decreased somewhat while certain online audio programming sources have become more popular. In 2018, Edison Research’s Share of Ear report presented the distribution of time spent listening to audio sources for Americans 13 years and older as follows: 46% AM/FM radio, 14% streaming audio, 12% owned music, 11% YouTube, 7% SiriusXM satellite radio, 5% TV music channels, 3% podcasts, and 2% other sources.932 However, a more recent Share of Ear report indicated that, in 2021, the total share of time spent listening to AM/FM radio was 38%, and the share of time spent listening to podcasts had risen to 5%.933 The report also noted that in 2021, listeners were spending as much time listening to audio programming on mobile devices (32%) as on AM/FM receivers (33%).934 319. Music as Input. As noted above, the ubiquity of music creates a challenge for music providers seeking to differentiate themselves. Streaming services allow their subscribers access to a much larger range and quantity of music than listeners can expect to hear on a terrestrial broadcast station, which is constrained to a linear format. The large range and quantity of music provided by online audio providers likely also exceeds what listeners can experience with satellite radio when the latter is confined to a linear format, despite the relatively large number of channels offered. In addition to their large libraries, online audio providers offer their subscribers the flexibility to choose particular songs anytime, create playlists, or listen to stations with song lists chosen by algorithms. 320. Regulations. Different audio marketplace participants are subject to different regulatory regimes. For example, because they use the public airwaves, both terrestrial broadcast radio and SDARS must comply with certain Commission regulations. These obligations are not identical and so do not impose identical regulatory costs on these licensees. Online audio providers, in contrast, do not hold Commission licenses for their services and thus do not incur the same Commission regulatory compliance costs. 321. Music Licensing. Different marketplace participants are subject to different music licensing conditions under law, which means they face different costs of gaining access to the music they distribute. For example, terrestrial broadcast radio stations—as non-subscription, non-interactive audio transmission—do not pay royalties to performers or sound recording copyright owners for the use of sound recordings over-the-air.935 In contrast, SiriusXM pays a copyright royalty for the use of sound recordings, but the Digital Millennium Copyright Act granted pre-existing services such as SiriusXM a compulsory copyright license for sound recordings, the rate for which is set by the Copyright Royalty Board through a rate determination proceeding.936 Interactive subscription services like Spotify must reach commercial agreements with music labels. Despite its higher licensing costs, Spotify’s licensing cost as a percentage of its total revenue has declined from 83% in 2013 to 75% in 2019.937 932 Edison Research, Share of Ear (2018), https://www.shareofear.com/#audiomesurement. 933 Peter Leitzinger, S&P Global, Broadcast Conference Focused on NextGen TV, Radio’s Future (May 5, 2022). Edison Research’s Share of Ear report was not made available free of cost in 2021 or 2022. 934 Id. 935 See Citi-GPS, Putting the Band Back Together—Remastering the World of Music at 18 (2018), https://www.citivelocity.com/citigps/music-industry/; musicFIRST/FMC Comments at 18. 936 Dana A. Scherer, Congressional Research Service, Money for Something: Music Licensing in the 21st Century at 22-23 (last updated Feb. 23, 2021), https://crsreports.congress.gov/product/pdf/R/R43984. 937 Economics of Mobile Music. 186 Federal Communications Commission FCC 22-103 322. In Car Listening. Before the advent of satellite radio and various streaming platforms, in- vehicle listeners of audio programming only had access to AM or FM radio. Easy access to AM/FM radio inside vehicles presented terrestrial radio with an advantage over other forms of media such as television and newspapers. However, new technology has allowed other sources of audio programming, specifically satellite radio and online audio providers, to gain a foothold, not just on new devices such as tablets and smartphones, but also within vehicles. SiriusXM’s satellite radio hardware was installed into approximately 82% of new vehicles sold in the United States in 2021, an increase from approximately 78% in 2020.938 In recent years, streaming services such as Spotify and Apple Music have also become available in vehicles, either integrated with cellular technology or through connection with customer smartphones.939 323. Further, in 2022, Edison Research found that 73% of adults aged 18 years and older listened to AM/FM radio while driving or riding in a car, 53% listened to owned digital music, 35% listened to a CD player, 32% listened to podcasts, and 22% listened to SiriusXM.940 Despite the dominance of AM/FM radio, the survey results show that the share of respondents who listened to AM/FM radio fell from 81% in 2020 to 73% in 2022.941 On the other hand, the share of the population that had ever listened to online audio programming in a car through a cell phone increased from 45% in 2020 to 49% in 2022.942 Edison also reports that the share of the population that had listened to podcasts in cars increased from 28% to 32% over the same time period.943 324. Mobile Devices. Audio streaming services such as Spotify, Pandora, and Apple Music provide their diverse music libraries and podcasts through online applications. As noted above, some terrestrial broadcast stations also provide online access to their stations, and SiriusXM makes its satellite radio service available online. Further, iHeartMedia repurposes its broadcasts as podcasts, resulting in low-cost programming that contributes additional advertising revenue.944 iHeartMedia has also released an application for discovering new podcasts using machine learning inputs such as music preferences, favorite stations, and liked songs.945 325. Some online audio providers have even stronger relationships (in some cases through direct ownership) with the most popular device manufacturers. A recent report noted that Apple’s more than 1.5 billion mobile devices globally facilitated such offerings as Apple Music.946 Spotify, in turn, has partnered with electronics manufacturer Samsung to integrate Spotify into Galaxy phones, tablets, 938 SiriusXM, SiriusXM Reports Fourth Quarter and Full Year 2021 Results (Feb. 1, 2022), https://investor.siriusxm.com/news-events/press-releases/detail/734/siriusxm-reports-fourth-quarter-and-full-year- 2021-results. 939 Peter Letzinger, S&P Global, Connected Car Projections through 2024: Connectivity Growing as Cars Get Smarter (July 11, 2019). 940 Infinite Dial 2022 at 43. The results of this survey are based on the population of adults 18 years and older who have ridden in a car the previous month, which is 84% of the population. 941 Id. 942 Infinite Dial 2022 at 48. 943 Id. at 45. 944 Economics of Mobile Music. 945 Id. 946 Id. 187 Federal Communications Commission FCC 22-103 watches, as well as Samsung’s smart refrigerators, smart TVs, Galaxy Home smart speakers, and the Bixby digital assistant.947 326. Smart Speakers. Smart speakers have emerged as important devices for accessing audio programming in the home or office, and enhance many aspects of the daily lives of consumers, including those with disabilities.948 These devices are voice activated and are able to connect with smartphones, tablets, smart switches, smart thermostats, smart doorbells, smart TVs and other smart entertainment devices, or computers via Wi-Fi and Bluetooth. Smart speakers are used for a variety of purposes, which include playing music, getting the news, listening to a podcast, setting a timer/alarm, operating other smart devices within the home, making announcements, being used as a house intercom system, and requesting miscellaneous information such as recipes. For music, consumers can choose to listen to a particular AM or FM station or a streaming service such as Spotify or Amazon music. A recent survey conducted jointly by NPR and Edison Research reported that, in 2022, 35% of Americans aged 18 years and older (approximately 100 million people) own at least one smart speaker, an increase from 32% in 2021.949 The top three smart speakers are: Amazon Alexa (owned by 23% of the population), Google Nest (owned by 11% of the population), and Apple HomePod (owned by 2% of the population).950 The joint NPR-Edison survey also reports that the number of smart speaker owners who listen to a podcast on their smart speaker in a typical week has increased by 22% over the past 5 years.951 Further, the study reports that the share of time listening to audio programming through a smart speaker increased 400% from 2017 to 2022, and the share of time listening to podcasts through a smart speaker increased 200% over the same time period.952 The study also reports that the share of smart speaker owners who have listened to news on their smart speaker increased from 55% in spring 2019 to 66% in spring 2022.953 327. We note that smart speakers are produced by companies that also own major audio streaming service platforms. For example, Amazon produces and sells its Echo smart speaker; Google and Apple manufacture and distribute the Google Nest and Apple HomePod smart speakers, respectively. This link is relevant, given that, as noted above, paid subscribers of streaming music or podcasting are likely to subscribe to just one service. Figure II.F.6 shows the share of all listeners who listen to a particular audio streaming service and the share of smart speaker owners who listen to the audio streaming service. The chart indicates that companies that both offer streaming services and produce smart speakers have some competitive advantage in the market for streaming audio services, but only to a modest degree. For example, 35% of total listeners subscribe to Spotify, which does not produce a smart speaker, while only 28% of smart speaker owners listen to Spotify. The pattern also holds for Pandora and iHeart, which also do not produce and market smart speakers. On the other hand, both Apple and Amazon, which offer streaming music services and manufacture smart speakers, enjoy higher shares among customers who own smart speakers than the shares of the total listeners to streaming services. However; the pattern does not hold for YouTube Music, whose share of all listeners (18%) is the same as its share among smart speaker owners. 947 Eli Blumenthal, USA Today, Spotify stock pops after company links up with Samsung to take on Apple, Amazon and Google (Aug. 9, 2018), https://www.usatoday.com/story/money/2018/08/09/spotify-and-samsung-partner-up- take-apple-amazon-and-google/949470002/. 948 CTIA Comments at 46-47 (observing that the functionality in smart speakers/digital assistants started out as niche accessibility products and have now found adoption on a much wider mass market). 949 Edison Research and National Public Radio, The Smart Audio Report (June 16, 2022), https://www.edisonresearch.com/smart-audio-report-2022-from-npr-and-edison-research/ (Smart Audio Report). 950 Infinite Dial 2022 at 10. 951 Smart Audio Report at 30. 952 Id. at 23. 953 Id. at 31. 188 Federal Communications Commission FCC 22-103 Fig. II.F.6 Online Audio Services Used Most Often Source: Infinite Dial 2022 at 41. 328. Overall Listenership. While terrestrial broadcast radio remains dominant in some respects, as Figure II.F.7 illustrates, the gap in usage between broadcast and online audio programming has declined over time.954 Figure II.F.7 shows the number of weekly listeners to broadcast radio in the United States remained relatively stable, while the audience for online audio programming grew steadily. According to this figure, over the past decade, the number of listeners to terrestrial broadcast radio grew annually around 0.55% on average, while the annual growth in online audio listeners was 29%. However, it is important to note that online audio programming includes AM or FM broadcasts accessed online. 954 Economics of Digital Music and Radio. 189 Federal Communications Commission FCC 22-103 Fig. II.F.7 U.S. Terrestrial Radio and Online Audio Programming Weekly Audience (millions), 2008-2020 Source: Economics of Digital Music and Radio. III. ASSESSMENT OF BROADBAND DEPLOYMENT 329. We assess in this section the state of deployment of communications capabilities as required by RAY BAUM’S Act of 2018.955 We also provide comparative international data on broadband services, and, where possible, a year-to-year measure of the extent of broadband service capability, including speeds and prices, in the United States and select communities and countries abroad.956 Finally, this section provides a summary of regulatory developments in select communities and countries abroad. A. Access to Advanced Telecommunications Capability 330. As noted above, we rely primarily on the FCC Form 477 deployment data to evaluate consumers’ broadband options for fixed terrestrial and mobile services.957 In future Reports, we expect to rely on the BDC data as they will then have been subject to appreciable verification through the challenge and other data-quality measures.958 955 This assessment is not intended to fulfill the Commission’s statutory responsibility under section 706 of the Telecommunications Act of 1996 to “determine whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion.” 47 U.S.C. § 1302(b). 956 47 U.S.C. § 1303(b). The Broadband Data Improvement Act, Pub. L. No. 110-385, 122 Stat. 4096 (2008), is codified in Title 47, Chapter 12 of the United States Code. 47 U.S.C. § 1301, et seq. 957 A provider that reports offering service in a particular census block may not offer service, or service at that speed, to all locations in the census block. Accordingly, the number of providers presented in this Report does not necessarily reflect the number of choices available to a particular household and does not purport to measure competition. 958 See Broadband Data Collection proceeding, WC Docket Nos. 11-10, 19-195. FCC, Broadband Data Collection, https://www.fcc.gov/BroadbandData (last visited Aug. 17, 2022). 190 Federal Communications Commission FCC 22-103 331. We provide deployment estimates for fixed terrestrial services at speeds of 25/3 Mbps, 100/20 Mbps,959 and 940/500 Mbps based upon year-end data from 2018 to 2021.960 Our analysis considers deployment in the states, the District of Columbia, and Puerto Rico. We exclude America Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands from our analysis because, at the time of drafting this Report, the U.S. Census Bureau has not yet released block- level estimates for the 2020 Census, so we are unable to perform the analysis.961 332. Satellite Services. We find that FCC Form 477 deployment data for satellite broadband service may overstate the extent to which satellite broadband is available. The FCC Form 477 deployment data for satellite broadband indicate that satellite service offering 25/3 Mbps speeds is available to nearly all of the population.962 However, other FCC Form 477 data indicate that satellite services have a relatively low subscription rate despite their apparent widespread availability, and satellite capacity limits the number of subscribers that can be served without service degradation.963 Given this, and unless stated otherwise, our analysis in this section is based on all fixed terrestrial services and does not include satellite services. 333. Terrestrial Fixed Wireless Services. We find that the FCC Form 477 deployment data for terrestrial fixed wireless services indicate that these services are widely available and that subscription to these services has increased over time. However, the overall subscription rate remains relatively low.964 Therefore, for purposes of this Report, we present two sets of deployment estimates: one including fixed wireless services and one excluding fixed wireless services. As demonstrated in the tables below, excluding fixed wireless services has the greatest impact in rural areas and Tribal lands. 334. Mobile Services. To evaluate mobile broadband deployment and availability, we rely on FCC Form 477 data,965 supplemented with Ookla’s Speedtest data. For purposes of this Report, we rely 959 Cable consumers in urban and suburban areas are taking at least 100/20 Mbps service and that is the level of service (or higher) most advertised by providers. INCOMPAS Comments at 19. 960 INCOMPAS asserts that the Commission should report faster speeds, including 1 Gbps. INCOMPAS Comments at 18-21. 961 U.S. Census Bureau, Press Release, Next 2020 Island Areas Censuses Data Product To Be Released in October (July 13, 2022), https://www.census.gov/newsroom/press-releases/2022/2020-island-areas-censuses-data- product.html. Block-level data will not be released until July 2023. 962 The December 2021 FCC Form 477 data indicate that satellite service offering 25/3 Mbps speeds is available to close to 100% of the U.S. population. 963 The FCC Form 477 data indicate that between December 2018 and December 2021, consumer subscriptions for satellite services at any speed declined slightly from approximately 1.8 million to approximately 1.7 million. The take rate for satellite services is just over 1.3%. While subscription to fixed wireless services nearly doubled during this time, from approximately 1.3 million to 2.7 million, the take rate for fixed wireless service was approximately 2.4%. See supra Fig. II.A.1 and Fig. II.A.10. While satellite coverage may enable operators to offer services to wide swaths of the country, overall satellite capacity may limit the number of consumers that can actually subscribe to satellite service at any one time. 2020 Communications Marketplace Report, 36 FCC Rcd at 3101, para. 277. 964 As of December 31, 2021, the adoption rate of services meeting a 10/1 Mbps speed threshold was 2% for fixed wireless services, 65% for cable services, and 38% for fiber-based services. See INCOMPAS Comments at 5 (citing research that fixed wireless may have 1.4 million subscribers compared to 75.6 million cable subscribers); Id. at 15 (stating that fixed wireless deployment may be overstated given low subscriber numbers for this technology). 965 For fixed services, the Commission has been able to rely upon FCC Form 477 reported maximum advertised speeds to track actual speeds. However, we note that the relationship between actual speeds and the advertised or expected speed reported in the FCC Form 477 for mobile services is complex, because minimum advertised (or expected) speed is reported by the mobile providers, and different mobile providers estimate their minimum advertised (or expected) speed based on various points of their actual speed distribution. 2020 Communications Marketplace Report, 36 FCC Rcd at 3101-02, para. 279 & n.792. By contrast, the Ookla data provide us with the actual speeds that consumers experience. 191 Federal Communications Commission FCC 22-103 on three reported mobile speeds⸺4G LTE with a minimum advertised/expected speed of 5/1 Mbps, 5G with a minimum advertised/expected speed of 7/1 Mbps and 5G with a minimum advertised/expected speed of 35/3 Mbps. These data sets serve as a proxy for the likely consumer experience in a given area while providing objective data to assess deployment progress. 335. As the Commission has done in previous analyses of advanced telecommunications capability, we employ the centroid methodology966 in evaluating the FCC Form 477 deployment data.967 We evaluate 4G LTE deployment for the years 2018 to 2021. Beginning in 2020, the FCC Form 477 deployment data also collected data for 5G service with a minimum advertised speed of 7/1 Mbps and 35/3 Mbps. We incorporate these new data into our analysis of mobile services and our analysis of fixed terrestrial and mobile services. As in our previous Reports, we consider a census block to be covered by 4G LTE or 5G service if there is at least one service provider serving that census block, based on their FCC Form 477 submission. 336. We also present estimates based on Ookla Speedtest data to evaluate the availability of mobile broadband with a median actual speed of 10/3 Mbps or higher.968 We rely on the Ookla data to supplement our FCC Form 477 analysis primarily because they provide us with a large set of observations of actual speeds that customers receive.969 As the Commission has done previously, our analysis of the availability of mobile broadband services with a median speed of 10/3 Mbps includes actual speed test data in counties with at least 300 test observations.970 The more densely populated counties have a higher 966 If the geometric center point, or centroid, of a census block is within the coverage boundary of a coverage map, then we consider the block to be “covered.” 967 See, e.g., 2020 Communications Marketplace Report, 36 FCC Rcd at 3101-02, para. 279. 968 The data collected by the Ookla Speedtest mobile app include test results for download speed, upload speed, and latency, as well as other information, such as the location of the test and operating system of the handset. 2020 Communications Marketplace Report, 36 FCC Rcd at 3102, para. 280 & n.795; see also Ookla, Speedtest, https://www.speedtest.net/about (last visited Aug. 17, 2022). The Ookla data presented in this Report are based on tests that were executed in the second half of the year for 2018, 2019, 2020, and 2021 on the smartphone’s cellular connection, and using 4G LTE technology for the years prior to 2020, and both 4G LTE and 5G technology for 2020 and 2021. Test data were excluded if they had missing GPS location data or if the reported download or upload speed was less than zero. Multiple tests by a single phone in the same locality and in the same hour were averaged (using the median). All Ookla speed tests are user-initiated. The Commission considers both 4G LTE and 5G Ookla tests together in this analysis as both 4G LTE and 5G service can potentially qualify as advanced telecommunications capability. 4G LTE and 5G tests are weighed equally when calculating medians. We use the benchmark of 10 Mbps/3 Mbps also used in previous reports. The 2018 Broadband Deployment Report settled on median speeds of 10 Mbps/3 Mbps to show 4G LTE coverage after taking into account the record. Inquiry Concerning Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 17-199, 2018 Broadband Deployment Report, 33 FCC Rcd 1660, 1670-74, paras. 27-34. The Fourteenth Broadband Deployment Report, released in 2021, retained the 4G LTE Benchmark of median speeds of 10 Mbps/3 Mbps. Fourteenth Broadband Deployment Report, 33 FCC Rcd at 843-44, para. 15. 969 We note that, in general, crowd-sourced data can offer the advantage of generating a large volume of data at a very low cost, and of measuring actual consumer experience on a network in a wide variety of locations, indoor and outdoor. Crowd-sourced data, however, often are not collected pursuant to statistical sampling techniques, and may require adjustments to construct a representative sample from the raw data. For instance, crowd-sourced mobile data come from a self-selected group of users, and there is often little control for most tests regarding such parameters as when people implement the test, whether the test is performed indoors or outdoors, the geographic location of the tester, and the vintage of the consumer’s device. 2020 Communications Marketplace Report, 36 FCC Rcd at 3102-03, para. 28. 970 See 2020 Communications Marketplace Report, 36 FCC Rcd at 3102-03, para. 280. This sample size threshold applies to each county for each time frame (2H2018, 2H2019, 2H2020, and 2H2021). If a county does not have at least 300 observations during one of these time frames, the county is not included in the actual speed analysis for the (continued….) 192 Federal Communications Commission FCC 22-103 likelihood of being included in this analysis because there generally are more observations in those geographical areas with a higher population density.971 Although we do not have reliable on-the-ground speed data for every county in the United States, the Ookla data cover approximately 98% of the population of the United States, excluding the U.S. Territories, for which we do not have data.972 Using the existing FCC Form 477 data combined with on-the-ground speed testing data provides the most reliable and comprehensive available data that are currently available on the extent of mobile coverage,973 and our continued use of these same data allows for a consistent measure of progress over time. 1. Broadband Deployment Estimates 337. In Figures III.A.1 through III.A.3 below, we compare deployment974 in the United States (the states, District of Columbia, and Puerto Rico) using year-end FCC Form 477 data from 2018 to 2021, the most recent year for which data are available.975 For purposes of this Report, we also report results for federally recognized Tribal lands as identified by the 2010 Census and the 2020 Census. As we have done in prior Reports, we aggregate federally recognized Tribal lands into four Tribal lands categories (the Lower 48 States,976 Tribal Statistical Areas,977 Hawaiian Home Lands,978 and Alaskan Villages979), and we report deployment for these four geographic categories separately and jointly. (Continued from previous page) period during which the number of observations falls below 300. The 300 observations threshold is a conservative threshold and is based on a general mean and median sample size analysis. We consider a county to have a sufficient sample size if there are at least 300 total observations in a given year, after the cleaning and trimming rules have been applied. County geography is assigned using the latitude and longitude coordinates that are collected during each Ookla speed test, via the device’s GPS. This allows us to evaluate actual median upload and download speeds at the county level, in each year of the four-year time period, for counties in which approximately 98% of the U.S. population live (excluding the U.S. Territories). If a census block has mobile broadband coverage of at least 5/1 Mbps based on the FCC Form 477 minimum advertised speeds, it is assigned the median upload and download speeds that are calculated for the county in which it is located, which allows us to evaluate the mobile broadband speeds for each census block within the United States. 971 Mobile wireless speeds vary both over time and over small local areas. Therefore, ascribing the median county Ookla speed to an entire county will sometimes overestimate or underestimate realized local speeds. Use of Ookla data alone would overestimate coverage as counties with only partial coverage would be represented as having 100% coverage. Use of FCC Form 477 data alone would necessitate reliance on the 5/1 Mbps speed. 972 As previously noted, the percentage of the population in our analysis is based on the total U.S. population (states, District of Columbia, and Puerto Rico). The analysis based on Ookla data, however, does not include Puerto Rico. The Ookla speed data population in Fig. III.A.2c is a subset of the total U.S. population evaluated in Fig. III. A.2a and refers to the population in the counties for which we believe there are a statistically significant number of on- the-ground speed test observations. In 2021, for example, the U.S. population, excluding Puerto Rico, was 333.894 million, whereas in Fig. III.A.2c, we use 326.002 million as the population base. The population evaluated figure, 326.002 million, is the population for the United States, excluding Puerto Rico and the population in the counties without a sufficient number of reliable on-the-ground speed test data observations. 973 See 2020 Communications Marketplace Report, 36 FCC Rcd at 3101-03, paras. 279-81 (discussing use of FCC Form 477 combined with Ookla data to account for limitations in both data sets). 974 Unless otherwise noted, the deployment percentage estimate for fixed terrestrial services and mobile service is the population living in the census blocks with coverage for the service divided by the total population in the area being considered (e.g., United States, all rural areas, all urban areas, and Tribal lands). 975 We do not include results for American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands because the U.S. Census Bureau has not yet released 2020 Census block-level population and household data. See U.S. Census Bureau, Press Release, Next 2020 Island Areas Censuses Data Product To Be Released in October (July 13, 2022), https://www.census.gov/newsroom/press-releases/2022/2020-island-areas-censuses-data-product.html (block-level data will not be released until July 2023). 976 2020 Communications Marketplace Report, 36 FCC Rcd at 3103-04, para. 281 & n.802; 2018 Communications Marketplace Report, 33 FCC Rcd at 12688, para. 247 & n.789. These areas include: (1) Joint Use Areas; (2) legal, (continued….) 193 Federal Communications Commission FCC 22-103 338. In this Report, we use both 2010 census-based geographies (year-end data for 2018, 2019 and 2020) and 2020 census-based geographies (year-end data for 2021). Due to this discrepancy, it is not possible to hold constant the underlying configuration of census blocks or the characteristics of the census blocks. We therefore caveat our results for changes between 2021 and earlier periods, as described further below. 339. Deployment is determined at the census block level, thus deployment based on the aggregation of block-level data as of December 31, 2021 does not represent identical geographies compared to deployment in earlier periods. The block relationship between a 2010 census block and a 2020 census block can be one-to-one,980 one-to-many,981 or many-to-one.982 Therefore, some portion of a change in deployment between 2020 (or 2018 or 2019) and 2021 could be the result of a change in the block configuration.983 Moreover, because of differences between the 2020 census blocks and the 2010 census blocks,984 there can be anomalous results at the block level that are not apparent at a more aggregated level. 340. In order to assess deployment for the people living in census blocks in urban and rural areas as of 2021, we use a proxy variable to identify urban and rural areas. The FCC Form 477 year-end (Continued from previous page) federally recognized American Indian Area consisting of reservation and associated off-reservation trust land; (3) legal, federally recognized American Indian Area consisting of reservation only; and (4) legal, federally recognized American Indian Area consisting of off-reservation trust land only. 977 Tribal Statistical Areas are statistical American Indian Areas defined for a federally recognized Tribe that does not have reservation or off-reservation trust land; specifically a Tribal Designated Statistical Area (TDSA) or Oklahoma Tribal Statistical Area (OTSA). Tribal Statistical Areas are largely located in Oklahoma, but they also include areas in California, New York, and Washington. 978 Hawaiian Home Lands were established by the Hawaiian Homes Commission Act of 1921. 979 Alaskan Native Village Statistical Area. 980 See 2020 Census Block Relationship Files Record Layouts for a description of the crosswalk between the 2010 and the 2020 census blocks. U.S. Census Bureau, 2020 Census Block Relationship Files Record Layouts, https://www.census.gov/programs-surveys/geography/technical-documentation/records-layout/2020-census-block- record-layout.html (last visited Sept. 13, 2022). The 2020 Census crosswalk data contain block assignment information for 11,155,486 2010 census blocks for the states, the District of Columbia and Puerto Rico. In a one-to- one relationship a 2010 census block is entirely coextensive with a 2020 census block. An analysis of the 2010 census block part flag variable and the 2020 census block part flag variable reveals that 5,026,787 of the 2010 census blocks have a one-to-one relationship to a 2020 census block. Measured in 2010 population, these 2010 blocks included 156.1 million residents of urban areas and 24.7 million residents of rural areas. FCC Staff analysis. 981 In a many-to-one relationship, multiple 2010 census blocks may intersect a single 2020 census block. An analysis of the 2010 block part flag variable and the 2020 block part flag variable reveals that 5,101,864 of the 2010 census blocks have this type of mapping. Measured in 2010 population, these 2010 blocks included 54.9 million residents of urban areas and 20.6 million residents of rural areas. FCC Staff analysis. 982 In a one-to-many relationship, a single 2010 census block may intersect multiple 2020 census blocks. Staff analysis of the 2020 crosswalk indicates that 1,026,835 of the 2010 census blocks have a one-to-many relationship with a 2020 census block. Measured in 2010 population, these 2010 blocks included 41.7 million residents of urban areas and 15.3 million residents of rural areas. 983 We have insufficient information to assess what portion of the change in deployment is due to a change in network deployment. 984 For the United States, the 2010 Census identifies 11.155 million census blocks which have an average land area of 0.317 square miles. In contrast, for this same geographic area, the 2020 Census identified 8.175 million census blocks with an average land area of 0.433 square miles. Similarly, the 2010 Census identified 74,002 census tracts with an average land area of 47.773 square miles in the United States. In contrast, for this same geographic area, the 2020 Census identified 85,395 census tracts with an average land area of 41.412 square miles. 194 Federal Communications Commission FCC 22-103 data from 2018 to 2020 are based on the 2010 census geographies; accordingly, we use the 2010 Census urban/rural designation for these data. The FCC Form 477 year-end 2021 data are based on 2020 census blocks; however, the U.S. Census Bureau has not yet released urban/rural designations for the 2020 census data. Thus, for purposes of this Report, we designate a 2020 census block as urban if any “urban” 2010 census block intersects the 2020 block.985 However, because the U.S. Census criteria for urban areas for the 2020 Census are not the same as the criteria for the 2010 Census,986 the results we report for urban and rural areas for year-end 2021 will likely differ from results using the upcoming U.S. Census Bureau release of the list of urban areas for the 2020 Census.987 We cannot predict the impact of the new urban/non-urban definition on the 2021 estimates until the Census Bureau releases the block level urban identifier for the 2020 Census blocks. a. Deployment of Fixed Advanced Telecommunications Capability 341. Figure III.A.1a shows the deployment of fixed terrestrial broadband meeting at three speed thresholds: 25/3 Mbps, 100/20 Mbps and 940/500 Mbps.988 As explained above, because of the change in census geographies during our data collection period, caution should be exercised when interpreting the change in deployment between 2020 and 2021 for urban and rural areas. 985 We employed the 2020 Crosswalk data and the 2010 Summary file that include the Census UAtype variable for each 2010 census block. A 2010 census block with a UAtype variable value of U (urbanized area) or a value of C (Urban Cluster) is an urban census block. A 2010 census block with a UAtype variable value of 9 is a rural census block. 986 U.S. Census Bureau, Urban Area Criteria for the 2010 Census Public Notice, 76 Fed. Reg. 53029 (Aug. 8, 2011); U.S. Census Bureau, Urban Area Criteria for the 2020 Census—Final Criteria, 87 Fed. Reg. 16706 (Mar. 24, 2022). Because the analysis presented in this Report will be completed prior to the release of the necessary data by the U.S. Census Bureau, the Commission will need to estimate 2020 urban/rural designations for the current Report. However, the official Census designations will be available for use in the 2024 Communications Marketplace Report. See U.S. Census Bureau, 2020 Urban Area FAQs, https://www2.census.gov/geo/pdfs/reference/ua/2020_Urban_Areas_FAQs.pdf (last visited Aug. 2, 2022). 987 For the 2020 Census, the U.S. Census Bureau defines urban areas primarily based on housing unit density measured at the census block. The initial delineation is at the census-block level and requires 425 housing units per square mile (measured in terms on land area). In addition, an area will qualify as urban if it contains at least 2,000 housing units or has a population of at least 5,000. U.S. Census Bureau, Urban Area Criteria for the 2020 Census– Final Criteria, 87 Fed. Reg. at 16707. If we were to designate blocks as urban or non-urban (rural) based on the U.S. Census Bureau’s basic requirements for an urban area (i.e., housing unit density of 425 housing units per square mile, 2,000 housing units or at least 5,000 people), our estimates for urban areas may be slightly different, and the percentage of the population with access may change. This is because the 2020 criteria may cause some areas that had been categorized as urban in the 2010 Census to be categorized as rural in the 2020 Census. 988 See infra Appx. F-1a (reporting deployment of fixed terrestrial services (25/3 Mbps, 100/20 Mbps, and 940/500 Mbps) and 4G services with minimum advertised speed of 5/1 Mbps by state, District of Columbia, and Puerto Rico); Appx. F-1b (reporting deployment of fixed terrestrial services (25/3 Mbps, 100/20 Mbps, and 940/500 Mbps) and mobile 5G at 7/1 Mbps by state, District of Columbia, and Puerto Rico); Appx. F-1c (reporting deployment for fixed terrestrial services (excluding fixed wireless services) and 4G services by state, District of Columbia, and Puerto Rico); Appx. F-1d (reporting deployment of fixed terrestrial services (excluding fixed wireless) and Mobile 5G at 7/1 Mbps by state, District of Columbia, and Puerto Rico); Appx. F-7 (reporting deployment of 25/3 Mbps, 100/20 Mbps, and 940/500 by state, county and county equivalent); and Appx. F-8 (reporting deployment of 25/3 Mbps, 100/20 Mbps, and 940/500 by urban and rural areas within each state, county, or county equivalent). 195 Federal Communications Commission FCC 22-103 Fig. III.A.1a Population Living in Census Blocks with Deployment (millions) of Fixed Terrestrial Services at Different Speed Tiers (2018-2021) 2018 2019 2020 2021 Pop. % Pop. % Pop. % Pop. % 25/3 Mbps United States 312.116 94.5% 316.940 95.6% 324.765 97.6% 329.079 98.2% Rural Areas 50.324 77.8% 54.039 82.8% 60.025 90.9% 57.755 92.3% Urban Areas 261.792 98.5% 262.901 98.8% 264.739 99.3% 271.324 99.5% Tribal Lands 2.922 72.3% 3.203 79.1% 3.545 86.8% 3.682 90.9% 25/3 Mbps – Excluding Fixed Wireless United States 304.793 92.3% 307.287 92.7% 312.040 93.8% 317.898 94.9% Rural Areas 44.640 69.0% 46.511 71.2% 49.771 75.4% 49.267 78.8% Urban Areas 260.153 97.9% 260.776 98.0% 262.269 98.4% 268.631 98.5% Tribal Lands 2.685 66.5% 2.847 70.3% 3.047 74.6% 3.250 80.2% 100/20 Mbps United States 291.838 88.3% 297.077 89.6% 304.757 91.6% 315.736 94.2% Rural Areas 37.620 58.1% 40.491 62.0% 44.862 68.0% 47.675 76.2% Urban Areas 254.218 95.7% 256.586 96.4% 259.895 97.5% 268.061 98.3% Tribal Lands 1.999 49.5% 2.221 54.8% 2.487 60.9% 2.998 74.0% 100/20 Mbps – Excluding Fixed Wireless United States 287.902 87.1% 294.108 88.7% 300.418 90.3% 310.616 92.7% Rural Areas 36.323 56.1% 38.830 59.5% 42.157 63.9% 44.134 70.6% Urban Areas 251.579 94.7% 255.278 95.9% 258.261 96.9% 266.482 97.8% Tribal Lands 1.949 48.3% 2.133 52.6% 2.355 57.7% 2.906 71.7% 940/500 Mbps United States 91.473 27.7% 106.230 32.1% 119.456 35.9% 149.649 44.7% Rural Areas 6.831 10.6% 9.038 13.8% 11.965 18.1% 16.666 26.6% Urban Areas 84.643 31.9% 97.193 36.5% 107.492 40.3% 132.983 48.8% Tribal Lands 0.453 11.2% 0.587 14.5% 0.820 20.1% 1.096 27.1% 940/500 – Excluding Fixed Wireless United States 88.975 26.9% 103.472 31.2% 115.510 34.7% 146.938 43.8% Rural Areas 6.681 10.3% 8.907 13.6% 11.485 17.4% 16.428 26.3% Urban Areas 82.293 31.0% 94.565 35.5% 104.025 39.0% 130.510 47.9% Tribal Lands 0.453 11.2% 0.586 14.5% 0.817 20.0% 1.096 27.0% Pop. Evaluated 330.362 100.0% 331.403 100.0% 332.650 100.0% 335.157 100.0% Source: FCC Form 477 data; Staff Block Estimates. 342. Tribal Lands. Figure III.A.1b shows deployment for 25/3 Mbps, 100/20 Mbps, and 940/500 Mbps on Tribal lands, by rural and urban areas and by major Tribal lands category. These data suggest that while the gap in deployment between urban areas and rural areas on Tribal lands has narrowed for 25/3 Mbps and 100/20 Mbps, deployment on rural Tribal lands continues to lag behind deployment on urban Tribal lands. 196 Federal Communications Commission FCC 22-103 Fig. III.A.1b Population Living in Census Blocks with Deployment (millions) of Fixed Terrestrial Services at different Speed Tiers on Tribal Lands (2018-2021) 2018 2019 2020 2021 Area Pop. % Pop. % Pop. % Pop. % 25/3 Mbps Tribal Land 2.922 72.3% 3.203 79.1% 3.545 86.8% 3.682 90.9% Rural Areas 1.121 53.2% 1.372 64.9% 1.669 77.7% 1.657 82.7% Urban Areas 1.801 93.1% 1.831 94.5% 1.876 96.9% 2.025 98.8% Alaskan Villages 0.177 66.5% 0.187 69.9% 0.192 71.3% 0.206 76.0% Rural Areas 0.095 55.0% 0.104 60.2% 0.109 62.5% 0.106 63.5% Urban Areas 0.083 87.3% 0.083 87.6% 0.083 87.5% 0.101 95.6% Hawaiian Home Lands 0.030 89.1% 0.032 93.2% 0.032 93.7% 0.034 98.9% Rural Areas 0.003 47.8% 0.004 65.0% 0.004 68.1% 0.006 94.7% Urban Areas 0.027 98.2% 0.028 99.5% 0.028 99.5% 0.028 99.9% Lower 48 States 0.643 56.9% 0.763 67.3% 0.874 76.6% 0.953 84.3% Rural Areas 0.348 45.6% 0.439 57.2% 0.537 69.3% 0.557 77.4% Urban Areas 0.295 80.6% 0.324 88.4% 0.338 92.3% 0.396 96.5% Tribal Statistical Areas 2.072 79.4% 2.222 84.9% 2.447 92.7% 2.489 95.2% Rural Areas 0.675 58.0% 0.825 70.6% 1.019 85.5% 0.988 89.0% Urban Areas 1.396 96.6% 1.397 96.4% 1.428 98.7% 1.501 99.7% 25/3 Mbps – Excluding Fixed Wireless Tribal Land 2.685 66.5% 2.847 70.3% 3.047 74.6% 3.250 80.2% Rural Areas 0.912 43.3% 1.048 49.5% 1.213 56.5% 1.268 63.3% Urban Areas 1.772 91.7% 1.799 92.9% 1.834 94.8% 1.981 96.7% Alaskan Villages 0.158 59.4% 0.164 61.5% 0.169 62.8% 0.185 68.2% Rural Areas 0.076 44.3% 0.082 47.4% 0.086 49.6% 0.085 51.1% Urban Areas 0.082 86.8% 0.082 87.1% 0.083 87.0% 0.100 95.0% Hawaiian Home Lands 0.030 88.9% 0.032 92.9% 0.032 93.3% 0.034 98.9% Rural Areas 0.003 46.4% 0.004 63.6% 0.004 66.3% 0.006 94.7% Urban Areas 0.027 98.2% 0.028 99.5% 0.028 99.5% 0.028 99.9% Lower 48 States 0.571 50.5% 0.645 56.9% 0.721 63.2% 0.796 70.4% Rural Areas 0.287 37.6% 0.339 44.1% 0.398 51.4% 0.428 59.5% Urban Areas 0.284 77.7% 0.306 83.7% 0.323 88.4% 0.368 89.7% Tribal Statistical Areas 1.925 73.8% 2.006 76.6% 2.125 80.5% 2.235 85.4% Rural Areas 0.546 47.0% 0.623 53.3% 0.725 60.8% 0.749 67.5% Urban Areas 1.379 95.4% 1.383 95.5% 1.401 96.8% 1.485 98.7% 100/20 Mbps Tribal Land 1.999 49.5% 2.221 54.8% 2.487 60.9% 2.998 74.0% 197 Federal Communications Commission FCC 22-103 2018 2019 2020 2021 Area Pop. % Pop. % Pop. % Pop. % Rural Areas 0.568 27.0% 0.728 34.4% 0.926 43.1% 1.089 54.4% Urban Areas 1.431 74.0% 1.494 77.1% 1.561 80.6% 1.910 93.2% Alaskan Villages 0.149 56.1% 0.160 60.0% 0.165 61.3% 0.182 67.0% Rural Areas 0.071 41.1% 0.081 47.0% 0.086 49.2% 0.086 52.0% Urban Areas 0.079 83.2% 0.079 83.6% 0.080 83.6% 0.096 90.7% Hawaiian Home Lands 0.030 88.7% 0.032 92.8% 0.032 93.2% 0.034 98.9% Rural Areas 0.003 46.1% 0.004 63.2% 0.004 65.8% 0.006 94.7% Urban Areas 0.027 98.1% 0.028 99.5% 0.028 99.5% 0.028 99.9% Lower 48 States 0.424 37.6% 0.512 45.1% 0.577 50.6% 0.643 56.9% Rural Areas 0.193 25.3% 0.254 33.0% 0.300 38.8% 0.321 44.7% Urban Areas 0.231 63.1% 0.258 70.5% 0.277 75.7% 0.321 78.3% Tribal Statistical Areas 1.395 53.5% 1.518 58.0% 1.713 64.9% 2.140 81.8% Rural Areas 0.301 25.9% 0.389 33.3% 0.536 45.0% 0.675 60.8% Urban Areas 1.094 75.7% 1.129 77.9% 1.177 81.3% 1.465 97.3% 100/20 Mbps- Excluding Fixed Wireless Tribal Land 1.949 48.3% 2.133 52.6% 2.355 57.7% 2.906 71.7% Rural Areas 0.521 24.8% 0.647 30.6% 0.807 37.6% 1.009 50.4% Urban Areas 1.427 73.8% 1.486 76.7% 1.549 80.0% 1.897 92.6% Alaskan Villages 0.128 47.9% 0.133 49.6% 0.137 50.9% 0.153 56.4% Rural Areas 0.049 28.7% 0.054 31.3% 0.058 33.3% 0.058 35.0% Urban Areas 0.078 82.7% 0.079 83.1% 0.079 83.1% 0.095 90.1% Hawaiian Home Lands 0.030 88.7% 0.032 92.8% 0.032 93.2% 0.034 98.9% Rural Areas 0.003 46.1% 0.004 63.2% 0.004 65.8% 0.006 94.7% Urban Areas 0.027 98.1% 0.028 99.5% 0.028 99.5% 0.028 99.9% Lower 48 States 0.411 36.4% 0.463 40.8% 0.505 44.3% 0.595 52.7% Rural Areas 0.181 23.8% 0.211 27.5% 0.238 30.7% 0.286 39.8% Urban Areas 0.229 62.6% 0.251 68.6% 0.267 73.1% 0.309 75.3% Tribal Statistical Areas 1.381 52.9% 1.506 57.6% 1.681 63.7% 2.123 81.2% Rural Areas 0.288 24.7% 0.377 32.3% 0.506 42.5% 0.658 59.3% Urban Areas 1.093 75.6% 1.129 77.9% 1.175 81.2% 1.465 97.3% 940/500 Mbps Tribal Land 0.453 11.2% 0.587 14.5% 0.820 20.1% 1.096 27.1% Rural Areas 0.179 8.5% 0.249 11.8% 0.399 18.6% 0.490 24.5% Urban Areas 0.274 14.2% 0.337 17.4% 0.421 21.7% 0.606 29.6% Alaskan Villages 0.000 0.0% 0.000 0.0% 0.000 0.2% 0.014 5.2% Rural Areas 0.000 0.0% 0.000 0.0% 0.000 0.3% 0.002 1.3% 198 Federal Communications Commission FCC 22-103 2018 2019 2020 2021 Area Pop. % Pop. % Pop. % Pop. % Urban Areas 0.000 0.0% 0.000 0.0% 0.000 0.0% 0.012 11.4% Hawaiian Home Lands 0.000 0.0% 0.000 0.0% 0.000 0.0% 0.007 20.2% Rural Areas 0.000 0.0% 0.000 0.0% 0.000 0.0% 0.001 9.6% Urban Areas 0.000 0.0% 0.000 0.0% 0.000 0.0% 0.006 22.6% Lower 48 States 0.084 7.5% 0.099 8.7% 0.131 11.5% 0.163 14.4% Rural Areas 0.067 8.7% 0.073 9.5% 0.089 11.4% 0.114 15.8% Urban Areas 0.018 4.8% 0.026 7.1% 0.042 11.6% 0.049 11.9% Tribal Statistical Areas 0.369 14.1% 0.487 18.6% 0.689 26.1% 0.912 34.9% Rural Areas 0.112 9.6% 0.176 15.1% 0.310 26.0% 0.373 33.6% Urban Areas 0.256 17.7% 0.311 21.5% 0.378 26.1% 0.539 35.8% 940/500 Mbps - Excluding Fixed Wireless. Tribal Land 0.453 11.2% 0.586 14.5% 0.817 20.0% 1.096 27.0% Rural Areas 0.179 8.5% 0.249 11.8% 0.398 18.5% 0.490 24.5% Urban Areas 0.274 14.2% 0.337 17.4% 0.419 21.7% 0.606 29.6% Alaskan Villages 0.000 0.0% 0.000 0.0% 0.000 0.2% 0.014 5.2% Rural Areas 0.000 0.0% 0.000 0.0% 0.000 0.3% 0.002 1.3% Urban Areas 0.000 0.0% 0.000 0.0% 0.000 0.0% 0.012 11.4% Hawaiian Home Lands 0.000 0.0% 0.000 0.0% 0.000 0.0% 0.007 20.2% Rural Areas 0.000 0.0% 0.000 0.0% 0.000 0.0% 0.001 9.6% Urban Areas 0.000 0.0% 0.000 0.0% 0.000 0.0% 0.006 22.6% Lower 48 States 0.084 7.5% 0.099 8.7% 0.128 11.2% 0.162 14.3% Rural Areas 0.067 8.7% 0.073 9.5% 0.087 11.2% 0.113 15.8% Urban Areas 0.018 4.8% 0.026 7.0% 0.041 11.2% 0.048 11.8% Tribal Statistical Areas 0.369 14.1% 0.487 18.6% 0.689 26.1% 0.912 34.9% Rural Areas 0.112 9.6% 0.176 15.1% 0.310 26.0% 0.373 33.6% Urban Areas 0.256 17.7% 0.311 21.5% 0.378 26.1% 0.539 35.8% Pop. Evaluated 4.039 100.0% 4.052 100.0% 4.083 100.0% 4.051 100.0% Source: FCC Form 477 data; Staff Block Estimates. b. Deployment of Mobile Broadband 343. Figure III.A.2a reports coverage for 4G LTE with a minimum advertised speed of at least 5/1 Mbps.989 Figure III.A.2.b reports coverage for 5G services at 7/1 Mbps and 35/3 Mbps. As explained 989 The analysis presented in Figs. III.A.2a and III.A.3a includes the states, District of Columbia, and Puerto Rico. The analysis presented in these figures in the 2020 Communications Marketplace Report did not include Puerto Rico; hence, the figures for 2018 and 2019 in this Report will differ from those reported in the earlier Report. See 2020 Communications Marketplace Report, 36 FCC Rcd at 3105-06, Figs. III.A.2a and III.A.3a. We do not present figures for the U.S. territories in total or separately because we do not have population estimates for American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands. See infra Appx. F-1a (reporting deployment of fixed terrestrial services (25/3 Mbps, 100/20 Mbps, and 940/500 Mbps) and 4G LTE 5/1 Mbps by (continued….) 199 Federal Communications Commission FCC 22-103 above, because of the change in census geographies during our data collection period, we must be cautious of how we interpret the change in deployment between 2020 and 2021 for urban and rural areas.990 Fig. III.A.2a Percentage of Population Living in Census Blocks with Deployment (millions) of 4G LTE with a Minimum Advertised Speed of 5/1 Mbps (2018-2021) Area 2018 2019 2020 2021 Pop. % Pop. % Pop. % Pop. % United States 329.920 99.9% 331.009 99.9% 332.316 99.9% 333.911 99.6% Rural Areas 64.303 99.4% 64.929 99.4% 65.706 99.5% 61.357 98.1% Urban Areas 265.617 100.0% 266.080 100.0% 266.609 100.0% 272.555 100.0% Tribal Lands 3.937 97.5% 3.959 97.7% 4.009 98.2% 3.952 97.5% Pop. Evaluated 330.362 100.0% 331.403 100.0% 332.650 100.0% 335.157 100.0% Source: FCC Form 477 data; Staff Block Estimates. (Continued from previous page) state, District of Columbia, and Puerto Rico); Appx. F-1c (reporting deployment of fixed terrestrial services excluding fixed wireless (25/3 Mbps, 100/20 Mbps, and 940/500 Mbps) and 4G LTE 5/1 Mbps by state, District of Columbia, and Puerto Rico); Appx. F-2 (reporting deployment of 4G LTE 5/1 Mbps on Tribal Lands); Appx. F-9a (reporting deployment of fixed terrestrial services and 4G LTE 5/1 Mbps and 5G 7/1 Mbps services by state, county, and county equivalent); and Appx. F-9b (reporting deployment of fixed terrestrial services and 4G LTE 5/1 Mbps by state, county, and county equivalent, segmented by urban and rural areas). 990 See infra Appx. F-1b (reporting deployment of fixed terrestrial services (25/3 Mbps, 100/20 Mbps, and 940/500 Mbps) and 5G 7/1 Mbps by state, District of Columbia, and Puerto Rico); Appx. F-1d (reporting deployment of fixed terrestrial services excluding fixed wireless (25/3 Mbps, 100/20 Mbps, and 940/500 Mbps) and 5G 7/1 Mbps by state, District of Columbia, and Puerto Rico); Appx. F-3 (reporting deployment of 5G services on Tribal Lands); Appx. F-9a (reporting deployment of fixed terrestrial services and 4G LTE 5/1 Mbps and 5G 7/1 Mbps services by state, county, and county equivalent); Appx. F-6 (reporting deployment fixed terrestrial services and of 5G services on Tribal Lands); Appx. F-9a (reporting deployment of fixed terrestrial services and 5G 7/1 Mbps by state, county, and county equivalent); and Appx. F-9c (reporting deployment of fixed terrestrial services and 5G 7/1 Mbps by state, county, and county equivalent, segmented by urban and rural areas). 200 Federal Communications Commission FCC 22-103 Fig. III.A.2b Percentage of Population Living in Census Blocks with Deployment (millions) of 5G with a Minimum Advertised Speed of 7/1 Mbps; 5G with a Minimum Advertised Speed of 35/3 Mbps (2020-2021) 2020 2021 Area Pop % Pop % 5G with a Minimum Advertised Speed of 7/1 Mbps. United States 310.642 93.4% 327.422 97.7% Rural Areas 52.188 79.1% 55.868 89.3% Urban Areas 258.455 96.9% 271.555 99.6% Tribal Lands 3.358 82.3% 3.648 90.0% Pop. Evaluated 332.650 100.0% 335.157 100.0% 5G with a Minimum Advertised Speed of 35/3 Mbps United States 237.475 71.4% 325.038 97.0% Rural Areas 28.467 43.1% 54.622 87.3% Urban Areas 209.008 78.4% 270.416 99.2% Tribal Lands 2.308 56.5% 3.603 88.9% Pop. Evaluated 332.650 100.0% 335.157 100.0% Source: Form 477 data; Staff Block Estimates. 344. As explained above, we evaluate mobile broadband deployment and availability using FCC Form 477 data with a minimum advertised speed of 5/1 Mbps, supplemented with Ookla’s Speedtest data.991 Figure III.A.2c reports coverage for mobile broadband services (4G LTE and 5G).992 991 The analyses in Figs. III.A.2a, III.A.2b, III.A.3a, and III.A.3b are based on FCC Form 477 data. In contrast, the analyses in Figs. III.A.2c, and III.A.3c are based on Ookla data and exclude any county (and its associated census blocks) for which there are insufficient Ookla data. In addition, we do not report results for Tribal lands in Figs. III.A.2c and III.A.3c because we have concerns with the reliability of the Ookla data for these areas. Tribal areas not only typically have fewer speed tests, but there are also fewer of these areas relative to urban and rural areas. Thus, deployment estimates for tribal areas are more sensitive to sample variance. The population figure reported in the bottom row of Figs. III.A.2c and III.A.3c is the population evaluated for the reported time period and the percentage is the percentage of the U.S. population evaluated. Figures that include the availability of broadband with a median speed of 10/3 Mbps show less than 100% of the population was evaluated due to the unavailability of Ookla data. Thus, for example, the 326.002 million population evaluated figure for 2021 in Fig. III.A.2c represents approximately 98% of the overall population in the 50 states and the District of Columbia (326.002/331.893=0.982). Regardless of our deployment estimates for mobile broadband with a median speed of 10/3 Mbps, the FCC Form 477 data can be used to determine whether Americans residing in the counties without sufficient Ookla data to create a statistically significant county sample to be included in Figs. III.A.2c and III.A.3c receive minimum advertised speeds of 5/1 Mbps, and likely receive mobile services with speeds higher than 5/1 Mbps. 992 See infra Appx. F-4 (reporting deployment of fixed terrestrial services and mobile broadband with a median speed of 10/3 Mbps by State and District of Columbia). 201 Federal Communications Commission FCC 22-103 Fig. III.A.2c Percentage of Population Living in Census Blocks with Deployment (millions) of Mobile Broadband with a Median Speed of 10/3 Mbps (2018-2021) 2018 2019 2020 2021 Pop. % Pop. % Pop. % Pop. % United States 298.401 93.8% 310.923 97.4% 310.203 95.9% 311.625 95.6% Rural Areas 45.904 79.7% 53.156 90.8% 51.541 84.3% 47.826 82.4% Urban Areas 252.497 96.9% 257.767 98.8% 258.662 98.6% 263.800 98.4% Pop. Evaluated 318.269 97.3% 319.341 97.3% 323.466 98.2% 326.002 98.2% Source: FCC Form 477 data; Staff Block Estimates c. Deployment of Fixed Services and Mobile Broadband 345. Figures III.A.3a shows deployment across all geographic areas for fixed terrestrial services with speeds of at least 25/3 Mbps, 100/20 Mbps and 940/500 Mbps and 4G LTE broadband with a minimum advertised speed of 5/1 Mbps.993 Figure III.A.3b shows deployment for both fixed terrestrial services and 5G services at 7/1 Mbps and 35/3 Mbps.994 993 We present additional deployment data for 25/3 Mbps, 100/20 Mbps, and 940/500 Mbps fixed terrestrial and/or mobile broadband services in the appendices. See infra Appx. F-1a (reporting deployment of fixed terrestrial services (25/3 Mbps, 100/20 Mbps, and 940/500 Mbps) and 4G LTE with minimum advertised speed of 5/1 Mbps by state, District of Columbia, and Puerto Rico); Appx. F-1c (reporting deployment for fixed terrestrial services (excluding fixed wireless services) and 4G LTE by state, District of Columbia and Puerto Rico); Appx. F-4 (reporting percentage of population with fixed terrestrial services and mobile broadband with a median speed of 10/3 Mbps by state and District of Columbia); Appx F-5 (reporting deployment of fixed terrestrial services and 4G LTE 5/1 Mbps on Tribal lands); Appx. F-9a (reporting deployment of fixed terrestrial services and 4G LTE 5/1 Mbps and 5G 7/1 Mbps services by state, county, and county equivalent); and Appx. F-9b (reporting deployment of fixed terrestrial services and 4G LTE 5/1 Mbps by state, county, and county equivalent, by urban and rural areas). 994 See infra Appx. F-1b (reporting percentage of population with fixed terrestrial services and 5G with a minimum advertised speed of 7/1 Mbps by state, District of Columbia, and Puerto Rico); Appx. F-1d (reporting deployment of fixed terrestrial services (excluding fixed wireless) and 5G at 7/1 Mbps by state, District of Columbia, and Puerto Rico); Appx. F-6 (reporting deployment on Tribal lands for fixed terrestrial services and 5G); Appx. F-9a (reporting deployment of fixed terrestrial services and 4G LTE 5/1 Mbps and 5G 7/1 Mbps services by state, county, and county equivalent); and Appx. F-9c (reporting deployment of fixed terrestrial services and 5G 7/1 Mbps by state, county, and county equivalent, segmented by urban and rural areas) 202 Federal Communications Commission FCC 22-103 Fig. III.A.3a Percentage of Population Living in Census Blocks with Deployment (millions) of Fixed Terrestrial Services and 4G LTE with a Minimum Advertised Speed of 5/1 Mbps (2018-2021) 2018 2019 2020 2021 Pop. % Pop. % Pop % Pop % 25/3 Mbps and LTE 5/1 Mbps United States 311.926 94.4% 316.769 95.6% 324.601 97.6% 328.168 97.9% Rural Areas 50.158 77.5% 53.891 82.5% 59.885 90.7% 56.896 91.0% Urban Areas 261.768 98.5% 262.878 98.8% 264.716 99.3% 271.273 99.5% Tribal Lands 2.914 72.1% 3.196 78.9% 3.539 86.7% 3.654 90.2% 25/3 Mbps (Excluding Fixed Wireless) and LTE 5/1 Mbps United States 304.621 92.2% 307.135 92.7% 311.909 93.8% 317.147 94.6% Rural Areas 44.492 68.8% 46.382 71.0% 49.659 75.2% 48.564 77.6% Urban Areas 260.129 97.9% 260.753 98.0% 262.250 98.4% 268.584 98.5% Tribal Lands 2.678 66.3% 2.840 70.1% 3.043 74.5% 3.227 79.7% 100/20 Mbps and LTE 5/1 Mbps United States 291.706 88.3% 296.964 89.6% 304.650 91.6% 315.086 94.0% Rural Areas 37.509 58.0% 40.401 61.9% 44.777 67.8% 47.069 75.2% Urban Areas 254.196 95.7% 256.564 96.4% 259.874 97.5% 268.018 98.3% Tribal Lands 1.995 49.4% 2.218 54.7% 2.484 60.8% 2.988 73.8% 100/20 Mbps (Excluding Fixed Wireless) and LTE 5/1 Mbps United States 287.780 87.1% 294.002 88.7% 300.331 90.3% 310.028 92.5% Rural Areas 36.222 56.0% 38.746 59.3% 42.084 63.7% 43.586 69.7% Urban Areas 251.558 94.7% 255.256 95.9% 258.247 96.9% 266.442 97.7% Tribal Lands 1.946 48.2% 2.130 52.6% 2.353 57.6% 2.896 71.5% 940/500 Mbps and LTE 5/1 Mbps United States 91.433 27.7% 106.203 32.0% 119.436 35.9% 149.427 44.6% Rural Areas 6.797 10.5% 9.017 13.8% 11.948 18.1% 16.459 26.3% Urban Areas 84.636 31.9% 97.186 36.5% 107.488 40.3% 132.968 48.8% Tribal Lands 0.452 11.2% 0.586 14.5% 0.820 20.1% 1.091 26.9% 940/500 Mbps (Excluding Fixed Wireless) and LTE 5/1 Mbps United States 88.936 26.9% 103.445 31.2% 115.490 34.7% 146.719 43.8% Rural Areas 6.649 10.3% 8.887 13.6% 11.469 17.4% 16.223 25.9% Urban Areas 82.287 31.0% 94.558 35.5% 104.021 39.0% 130.496 47.9% Tribal Lands 0.452 11.2% 0.585 14.4% 0.817 20.0% 1.090 26.9% Source: FCC Form 477 data; Staff Block Estimates. 203 Federal Communications Commission FCC 22-103 Fig. III. A.3b Percentage of Population Living in Census Blocks with Deployment (millions) of Fixed Terrestrial Services and 5G Services (2020-2021) Fixed Terrestrial Services and 5G with a Fixed Terrestrial Services and 5G with a Minimum Advertised Speed of 7/1 Mbps Minimum Advertised Speed of 35/3 Mbps 2020 2021 2020 2021 Pop. % Pop % Pop. % Pop % 25/3 Mbps and 5G Services United States 305.158 91.7% 322.525 96.2% 234.319 70.4% 320.238 95.5% Rural Areas 48.490 73.5% 52.225 83.5% 26.780 40.6% 51.068 81.6% Urban Areas 256.668 96.3% 270.299 99.2% 207.538 77.8% 269.171 98.7% Tribal Lands 3.105 76.0% 3.436 84.8% 2.177 53.3% 3.402 84.0% 25/3 Mbps and 5G Services (Excluding Fixed Wireless). United States 294.329 88.5% 312.261 93.2% 227.802 68.5% 310.136 92.5% Rural Areas 40.017 60.6% 44.626 71.3% 21.773 33.0% 43.615 69.7% Urban Areas 254.312 95.4% 267.635 98.2% 206.029 77.3% 266.521 97.8% Tribal Lands 2.685 65.8% 3.050 75.3% 1.951 47.8% 3.019 74.5% 100/20 Mbps and 5G Services United States 288.663 86.8% 310.632 92.7% 224.640 67.5% 308.569 92.1% Rural Areas 36.501 55.3% 43.520 69.6% 20.181 30.6% 42.569 68.1% Urban Areas 252.162 94.6% 267.111 98.0% 204.460 76.7% 266.000 97.6% Tribal Lands 2.227 54.5% 2.864 70.7% 1.685 41.3% 2.842 70.1% 100/20 Mbps and 5G Services (Excluding Fixed Wireless). United States 284.923 85.7% 305.890 91.3% 222.645 66.9% 303.914 90.7% Rural Areas 34.303 52.0% 40.337 64.5% 18.883 28.6% 39.452 63.1% Urban Areas 250.620 94.0% 265.553 97.4% 203.762 76.4% 264.462 97.0% Tribal Lands 2.128 52.1% 2.789 68.8% 1.618 39.6% 2.767 68.3% 940/500 Mbps and 5G Services United States 114.770 34.5% 147.753 44.1% 93.754 28.2% 146.994 43.9% Rural Areas 9.776 14.8% 15.114 24.2% 5.319 8.1% 14.812 23.7% Urban Areas 104.994 39.4% 132.639 48.7% 88.435 33.2% 132.182 48.5% Tribal Lands 0.769 18.8% 1.050 25.9% 0.562 13.8% 1.043 25.8% 940/500 Mbps and 5G Services (Excluding Fixed Wireless). United States 110.917 33.3% 145.066 43.3% 90.829 27.3% 144.310 43.1% Rural Areas 9.350 14.2% 14.894 23.8% 5.007 7.6% 14.593 23.3% Urban Areas 101.566 38.1% 130.172 47.8% 85.822 32.2% 129.717 47.6% Tribal Lands 0.766 18.8% 1.050 25.9% 0.561 13.7% 1.043 25.7% Source: FCC Form 477 data; Staff Block Estimates. 204 Federal Communications Commission FCC 22-103 346. Figure III.A.3c shows deployment across all geographic areas for fixed terrestrial services of at least 25/3 Mbps, 100/20 Mbps and 940/500 Mbps and mobile broadband with a median speed of 10/3 Mbps.995 Fig. III.A.3c Percentage of Population Living in Census Blocks with Deployment (millions) of Fixed Terrestrial Services and Mobile Broadband with a Median Speed of 10/3 Mbps (2018-2021) 2018 2019 2020 2021 Pop. % Pop. % Pop. % Pop. % 25/3 Mbps and Mobile Broadband with a Median Speed of 10/3 Mbps United States 287.046 90.2% 300.156 94.0% 304.744 94.2% 307.824 94.4% Rural Areas 37.780 65.6% 45.346 77.4% 47.859 78.3% 45.173 77.9% Urban Areas 249.266 95.6% 254.810 97.7% 256.885 97.9% 262.651 98.0% 25/3 Mbps (Excluding Fixed Wireless) and Mobile Broadband with a Median Speed of 10/3 Mbps United States 281.890 88.6% 292.178 91.5% 294.761 91.1% 299.304 91.8% Rural Areas 33.823 58.7% 39.172 66.9% 39.920 65.3% 38.887 67.0% Urban Areas 248.067 95.2% 253.006 97.0% 254.840 97.1% 260.417 97.2% 100/20 Mbps and Mobile Broadband with a Median Speed of 10/3 Mbps United States 274.484 86.2% 284.332 89.0% 289.341 89.4% 298.023 91.4% Rural Areas 29.873 51.9% 34.837 59.5% 36.667 60.0% 38.212 65.9% Urban Areas 244.611 93.8% 249.495 95.7% 252.673 96.3% 259.811 97.0% 100/20 Mbps (Excluding Fixed Wireless) and Mobile Broadband with a Median Speed of 10/3 Mbps United States 272.912 85.7% 282.008 88.3% 286.149 88.5% 294.186 90.2% Rural Areas 28.970 50.3% 33.533 57.3% 34.622 56.6% 35.501 61.2% Urban Areas 243.942 93.6% 248.475 95.3% 251.527 95.9% 258.685 96.5% 940/500 Mbps and Mobile Broadband with a Median Speed of 10/3 Mbps United States 88.433 27.8% 103.598 32.4% 115.921 35.8% 143.146 43.9% Rural Areas 5.053 8.8% 7.381 12.6% 9.711 15.9% 13.213 22.8% Urban Areas 83.380 32.0% 96.217 36.9% 106.210 40.5% 129.933 48.5% 940/500 Mbps (Excluding Fixed Wireless) and Mobile Broadband with a Median Speed of 10/3 Mbps United States 85.968 27.0% 100.869 31.6% 112.038 34.6% 140.477 43.1% Rural Areas 4.924 8.5% 7.259 12.4% 9.282 15.2% 12.988 22.4% Urban Areas 81.044 31.1% 93.610 35.9% 102.756 39.2% 127.488 47.6% Pop. Evaluated 318.269 97.3% 319.341 97.3% 323.466 98.2% 326.002 98.2% Source: FCC Form 477 data; Ookla Speedtest Data; Staff Block Estimates. 995 See infra Appx. F-4 (reporting deployment of mobile broadband with a median speed of 10/3 Mbps with fixed speeds of 25/3 Mbps, 100/20 Mbps, and 940/500 Mbps by state). 205 Federal Communications Commission FCC 22-103 d. Additional Deployment Estimates 347. Some of the criticisms raised about the FCC Form 447 data can be mitigated by employing a range of analytical approaches (scenarios) to the FCC Form 477 data and reporting multiple estimates of broadband availability.996 Below we provide alternative estimates based on criteria that attempt to lessen the effect of factors that could result in either understating deployment in areas where satellite services are purchased by households or overstating deployment in the FCC Form 477 data. In Figure III.A.4, we present alternative estimates of coverage for 25/3 Mbps, 100/20 Mbps, and 940/500 Mbps based on three scenarios that include all fixed technologies.997 These alternative estimates include satellite service to the extent that the service meets the speed threshold and the scenario criteria. For comparison purposes, Scenario I presents fixed broadband coverage for all reported technologies, and takes the filer’s data as released by the Commission. The two remaining scenarios include the filer’s block-level data only if the filer’s residential connections data meets the minimum penetration rate for the scenario.998 We note that our assessment of deployment requires at least one filer to satisfy the scenario criteria. Scenario II compares each filer’s FCC Form 477 deployment data to its residential connections data and excludes the filer’s deployment data from the block if the filer does not to attain a 1% penetration rate (the filer’s total number of residential connections in the tract/the filer’s number of deployed households meeting the speed threshold in the census tract). Scenario III increases the penetration rate in Scenario II from 1% to 5%. Scenarios II and III analyze penetration without regard to subscription speed to account for consumers opting to subscribe to slower speed services than the maximum advertised speed offered by a provider.999 348. Figure III.A.4 presents alternative deployment estimates for three scenarios for the entire United States and also by urban, rural, and Tribal lands.1000 The first column of Figure III.A.4 reports the results from the last column of Figure III.A.1a (deployment of fixed terrestrial services for 2021). Comparing the results of the first column of Figure III.A.4 to Scenario I shows the impact of including satellite services in the deployment data, i.e., including all fixed services in the deployment estimates. Including satellite services increases deployment for 25/3 Mbps service in all areas, but the inclusion of satellite services does not significantly affect deployment for the reported higher speed services because satellite providers tend not to offer service at such speeds. 996 A census block is classified as served if the FCC Form 477 data indicate that service is available in a census block, even if not to every location. It is not necessarily the case that every household will have coverage from a given provider in census block that the analysis indicates is served. The Commission has found that this type of analysis could overstate the coverage experienced by some consumers, especially in large or irregularly shaped census blocks. See, e.g., 2020 Broadband Deployment Report, 35 FCC Rcd at 8998, para. 26; 2019 Broadband Deployment Report, 34 FCC Rcd at 3869, para. 25 & n.92. 997 These estimates include fixed satellite services. The estimates for Scenarios II and III rely on confidential residential connections (subscriber) data. 998 Because there are fewer technology codes reported for the subscriber data than for the deployment data for copper and cable technologies, we recode the deployment data for copper-based technology codes 10, 11, 12, 20 and 30 to technology code 10, and we recode the Cable modem technology codes 40, 41, 42, and 43 to technology code 40. 999 As noted above, in Scenarios II and III, our decision to exclude a filer’s FCC Form 477 deployment data does not mean that such service is not available in particular census block, only that the filer failed to attain the relevant penetration rate for purposes of these alternate estimates. In addition, these alternate scenarios have not been included in previous versions of this report; therefore, we are unable to provide any historical context regarding the extent to which individual results may have varied across time. See supra paras. 60, 61. 1000 We also present figures showing the impact of these scenarios on the number of provider options. See supra Fig. II.A.33 (reporting figures for All Areas, Rural Areas, and Urban Areas). The results in Fig. II.A.33 are measured in percentage of households, while the results in Fig. III.A.4 are measured in percentage of the population. 206 Federal Communications Commission FCC 22-103 349. In contrast, comparing the results of for Scenario I to Scenario II and Scenario III show the impact on the deployment estimates when the analysis excludes a filer’s deployment data if the filer’s connections data does not meet the penetration rate criteria for the scenario. The criteria for inclusion of a filer’s deployment data becomes more stringent in Scenario III compared to Scenario II. The impact of the inclusion of the filer’s data on the deployed population is somewhat modest for the nation and urban areas for 25/3 Mbps, but the impact of the criteria increases on the deployment estimates as the speed threshold increases. For example, comparing the results for Scenario II to Scenario I suggests that our deployment estimates for 100/20 Mbps would fall from 98.3% to 97% in urban areas, from 76.9% to 73.7% in rural areas, and from 75.6% to 72.4% on Tribal lands. Imposing a 5% penetration rate test results in more significant effects on our deployment estimates. Comparing the results for Scenario III to Scenario I suggests that our deployment estimates for 100/20 Mbps would fall from 98.3% to 96.7% in urban areas, from 76.9% to 71.7% in rural areas, and from 75.6% to 69.8% on Tribal lands. Hence, the impact of these criteria on our deployment estimates is greater in rural areas and on Tribal lands than in urban areas. Urban areas are more likely to have more providers and to have higher adoption of services; and thus, are more likely to have providers that satisfy these penetration rate criteria. Fig. III.A.4 Percentage of Population Living in Census Blocks with Deployment (millions) by Scenario for Fixed Services Meeting 25/3 Mbps, 100/20 Mbps, and 940/500 Mbps (Dec. 31, 2021) Fig. III.A.1a Scenario I: All Scenario II: 1% Scenario III: 5% (last column) Technologies Penetration Rate Penetration Rate Pop. % Pop. % Pop. % Pop. % 25/3 Mbps United States 329.079 98.2% 335.157 100.0% 330.827 98.7% 325.116 97.0% Rural Areas 57.755 92.3% 62.550 100.0% 61.907 99.0% 58.064 92.8% Urban Areas 271.324 99.5% 272.607 100.0% 268.919 98.6% 267.052 98.0% Tribal Lands 3.682 90.9% 4.051 100.0% 3.993 98.6% 3.777 93.2% 100/20 Mbps United States 315.736 94.2% 316.198 94.3% 310.556 92.7% 308.347 92.0% Rural Areas 47.675 76.2% 48.093 76.9% 46.125 73.7% 44.828 71.7% Urban Areas 268.061 98.3% 268.105 98.3% 264.431 97.0% 263.519 96.7% Tribal Lands 2.998 74.0% 3.063 75.6% 2.932 72.4% 2.827 69.8% 940/500 Mbps United States 149.649 44.7% 149.649 44.7% 136.255 40.7% 130.868 39.0% Rural Areas 16.666 26.6% 16.666 26.6% 15.276 24.4% 14.551 23.3% Urban Areas 132.983 48.8% 132.983 48.8% 120.979 44.4% 116.317 42.7% Tribal Lands 1.096 27.1% 1.096 27.1% 0.939 23.2% 0.884 21.8% Source: FCC Form 477 deployment and confidential subscriber data; Staff Block Estimates. 207 Federal Communications Commission FCC 22-103 e. Demographics and Deployment 350. In Figures III.A.5a, III.A.5b, and III.A.6, we present demographic data with our deployment analysis.1001 Figure III.A.5a compares the available demographic data for Americans with and without coverage by both fixed terrestrial services at speeds of 25/3 Mbps, 100/20 Mbps and 940/500 Mbps and 5G service with a minimum advertised speed of 7/1 Mbps. Figure III.A.5b presents the same demographic analysis for these service combinations on Tribal lands. These data show that, generally, Americans living in areas where these services are deployed typically live in census block groups with lower poverty rates and with higher average populations, population densities, per capita income, and median household incomes than Americans living in areas without coverage by these services. Figure III.A.6 depicts how the average proportion of the population with coverage by fixed terrestrial services by speed tier varies with median household income, population density, and household poverty rate at the census block group level. On average, deployment is highest in census blocks with the highest median household incomes, the highest population densities, and the lowest household poverty rates. 1001 To present demographic data and compare the demographic data between areas where services are and are not deployed, we aggregate the census block data up to the census-block group level, the lowest aggregation level for which demographic information is available. This unavoidable aggregation leads to census blocks with differing characteristics being grouped together. In the case of differing levels of deployment, we designate a census-block group as without deployment if more than 5% of the population in the census-block group is without services, regardless of the level of deployment in any particular census block in the group. Further, some census-block groups are a mix of census blocks that are designated as rural and urban. In such instances, we designate a census- block group as rural if more than 50% of the population in the census-block group resides in census blocks designated as rural. Finally, we designate a census-block group as Tribal lands if more than 50% of the land area in the census-block group is designated as Tribal lands. We use the most recently available U.S. Census Bureau’s ACS Five-Year Estimates 2016-2020 for income and poverty measures for the states, District of Columbia, and Puerto Rico; income measures are not available for the other U.S. territories. Per capita income and median household income for 2020 are measured in 2020 Inflation-Adjusted Dollars. The household poverty rate is the proportion of households living below the poverty level. Population Density is the total population residing in the census-block group as of 2020 divided by the square miles of land area in the census-block group, based on the 2020 Census. See Appx. F-7 (reporting percentage of the population covered, population density, and per capita income by state, county, and county equivalent, for deployment of 25/3 Mbps, 100/20 Mbps, 940/500 Mbps). 208 Federal Communications Commission FCC 22-103 Fig. III.A.5a Demographic Analysis of Areas With and Without Deployment of Both Fixed Terrestrial Services and 5G With a Minimum Advertised Speed of 7/1 Mbps (Dec. 31, 2021) Average Average Per Average Median Average Population Capita Income Household Average Poverty Area Population Density ($2020) Income ($2020) Rate Fixed 25/3 Mbps and 5G With a Minimum Advertised Speed of 7/1 Mbps United States (All Areas) With Access 1,408.1*** 7,239.2*** $36,074.80*** $74,779.07*** 13.5%*** Without Access 1,192.5 527.4 $30,249.81 $59,823.02 13.9% Rural Areas With Access 1,318.5*** 242.8*** $34,094.36*** $71,823.99*** 10.5%*** Without Access 1,132.4 69.9 $29,757.51 $58,525.06 13.5% Urban Areas With Access 1,419.5 8,113.2*** $36,322.17*** $75,153.66*** 13.9%*** Without Access 1,424.4 2,293.0 $32,188.26 $65,180.71 15.6% Fixed 100/20 Mbps and 5G With a Minimum Advertised Speed of 7/1 Mbps United States (All Areas) With Access 1,408.1*** 7,738.1*** $36,365.76*** $75,366.02*** 13.6%*** Without Access 1,268.8 808.8 $31,092.07 $62,669.17 13.4% Rural Areas With Access 1,327.5*** 303.0*** $35,071.16*** $74,054.40*** 10.2%*** Without Access 1,174.9 84.6 $30,383.94 $60,819.70 12.9% Urban Areas With Access 1,415.2*** 8,376.0*** $36,476.64*** $75,479.99*** 13.9%*** Without Access 1,474.9 2,398.5 $32,662.65 $66,897.99 14.5% Fixed 940/500 Mbps and 5G With a Minimum Advertised Speed of 7/1 Mbps United States (All Areas) With Access 1,358.6*** 12,016.5*** $40,493.47*** $85,233.52*** 12.1%*** Without Access 1,389.0 4,521.9 $33,642.86 $68,838.86 14.0% Rural Areas With Access 1,173.0*** 422.6*** $35,605.38*** $76,963.76*** 10.2%*** Without Access 1,229.4 138.3 $31,669.80 $64,368.78 12.1% Urban Areas With Access 1,369.3*** 12,595.6*** $40,733.55*** $85,645.89*** 12.2%*** Without Access 1,441.0 5,952.0 $34,287.04 $70,319.06 14.7% We test for a statistical difference in the reported means between areas with and without deployment. The level of statistical significance is indicated by the number of stars. The absence of a star indicates no statistical difference between the reported figures. * signifies statistical significance at a 90% level of confidence, ** signifies statistical significance at a 95% level of confidence, and *** signifies statistical significance at a 99% level of confidence. Source: FCC Form 477 Data; Staff Block Estimates; 2020 Census land area estimate; American Community Survey Five-Year Data Estimates (2016-2020). 209 Federal Communications Commission FCC 22-103 Fig. III.A.5b Demographic Analysis of Areas With and Without Deployment of Both Fixed Terrestrial Services and 5G With a Minimum Advertised Speed of 7/1 Mbps on Tribal Lands (Dec. 31, 2021) Average Average Per Average Median Average Population Capita Income Household Average Poverty Area Population Density ($2020) Income($2020) Rate Fixed 25/3 Mbps and 5G With a Minimum Advertised Speed of 7/1 Mbps Tribal Lands With Access 1,245.7*** 1,673.1*** $29,223.18*** $57,711.97*** 15.6%*** Without Access 1,161.0 138.5 $24,194.34 $48,828.40 20.7% Rural Areas With Access 1,209.5** 162.2*** $28,676.02*** $59,823.86*** 14.0%*** Without Access 1,142.3 61.0 $24,200.46 $48,265.93 20.5% Urban Areas With Access 1,261.8 2,342.4*** $29,461.61** $56,792.09 16.3%*** Without Access 1,300.7 716.6 $24,148.52 $53,156.33 22.5% Fixed 100/20 Mbps and 5G With a Minimum Advertised Speed of 7/1 Mbps Tribal Lands With Access 1,240.1** 2,060.9*** $29,836.30*** $58,091.36*** 15.6%*** Without Access 1,197.1 244.0 $25,282.02 $51,528.60 18.9% Rural Areas With Access 1,187.7 219.6*** $29,274.62*** $61,860.48*** 13.6%*** Without Access 1,167.8 74.5 $25,332.76 $51,065.92 18.7% Urban Areas With Access 1,253.1 2,512.3*** $29,970.25*** $57,201.98** 16.1%*** Without Access 1,316.7 934.3 $25,075.92 $53,460.31 19.7% Fixed 940/500 Mbps and 5G With a Minimum Advertised Speed of 7/1 Mbps Tribal Lands With Access 1,049.7*** 1,805.5*** $30,442.15*** $60,058.12*** 15.3%*** Without Access 1,240.0 1,135.2 $27,376.89 $54,433.57 17.4% Rural Areas With Access 1,075.9** 201.1*** $29,896.43*** $64,148.83*** 13.0%*** Without Access 1,182.3 95.8 $25,798.64 $52,284.04 18.1% Urban Areas With Access 1,029.2*** 3,049.5*** $30,841.95 $57,080.98 17.0% Without Access 1,294.8 2,123.8 $28,870.36 $56,478.51 16.7% We test for a statistical difference in the reported means between areas with and without deployment. The level of statistical significance is indicated by the number of stars. The absence of a star indicates no statistical difference between the reported figures. * signifies statistical significance at a 90% level of confidence, ** signifies statistical significance at a 95% level of confidence, and *** signifies statistical significance at a 99% level of confidence. Source: FCC Form 477 Data; Staff Block Estimates; 2020 Census land area estimate; American Community Survey Five-Year Data Estimates (2016-2020). 210 Federal Communications Commission FCC 22-103 Fig. III.A.6 Average Percentage of Population With Fixed Terrestrial Services by Census Block Group Level Demographic Variables (Dec. 31, 2021) 25/3 Mbps 100/20 Mbps 940/500 Mbps Median Household Income ($2020) First Quartile (Lowest Median Household Income)) 96.9% 91.8% 35.9% Second Quartile 97.1% 90.8% 38.5% Third Quartile 98.3% 93.5% 43.1% Fourth Quartile (Highest Median Household Income) 99.5% 97.6% 54.8% Population Density First Quartile (Lowest Pop. Density) 92.5% 77.4% 24.1% Second Quartile 99.3% 97.3% 41.2% Third Quartile 99.7% 98.9% 49.1% Fourth Quartile (Highest Pop. Density) 99.8% 99.5% 57.2% Household Poverty Rate First Quartile (Lowest Household Poverty Rate) 98.9% 95.8% 48.8% Second Quartile 98.2% 93.3% 43.7% Third Quartile 97.3% 91.5% 40.7% Fourth Quartile (Highest Household Poverty Rate) 97.3% 92.9% 38.8% Source: FCC Form 477 Data; Staff Block Estimates; 2020 Census land area estimate; American Community Survey Five-Year Data Estimates (2016-2020). B. International Broadband Data Report 351. As part of its statutory requirement for the Communications Marketplace Report, the Commission must include “information comparing the extent of broadband service capability (including data transmission speeds and price for broadband service capability) in a total of 75 communities in at least 25 countries abroad for each of the data rate benchmarks for broadband service used by the Commission to reflect different speed tiers.”1002 The Commission must choose international communities comparable to various communities in the United States with respect to population size, population density, topography, and demographic profile.1003 The Commission is required to include “a geographically diverse selection of countries” and “communities including the capital cities of such countries.”1004 The Commission must “identify relevant similarities and differences in each community, including their market structures, the number of competitors, the number of facilities-based providers, the types of technologies deployed by such providers, the applications and services those technologies enable, the regulatory model under which broadband service capability is provided, the types of applications and services used, business and residential use of such services, and other media available to consumers.”1005 352. Selection of Comparison Countries. We reviewed 37 Organisation for Economic Co- operation and Development (OECD) countries that meet the statutory directive of developing a geographically diverse set of countries for comparison with the United States concerning international broadband services capability. These 37 OECD countries in alphabetical order are: Australia, Austria, Belgium, Canada, Chile, Colombia, Costa Rica, Czech Republic, Denmark, Estonia, Finland, France, 1002 47 U.S.C. § 1303(b)(1). 1003 Id. § 1303(b)(2). Fig. III.A.6 depicts how the average proportion of the U.S. population with coverage by fixed terrestrial services at different speed tiers varies with median household income, population density, and the household poverty rate at the census-block group level. On average, deployment is highest in census blocks with the highest median household incomes, the highest population densities, and the lowest household poverty rates. See supra Fig. III.A.6. 1004 Id. § 1303(b)(2)(A), (B). 1005 Id. § 1303(b)(3). 211 Federal Communications Commission FCC 22-103 Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Latvia, Lithuania, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.1006 For the fixed and mobile deployment comparison, we report on the 26 European comparison countries.1007 For the fixed and mobile broadband speed and performance comparison, we present data for 35 comparison countries. For the fixed and mobile broadband pricing comparisons, we report on a smaller subset of 25 comparison countries.1008 A complete list of comparison countries is presented in section I of Appendix G. 1. Broadband Deployment Comparison 353. In section II of Appendix G, we compare fixed high-speed broadband deployment and mobile broadband deployment in the United States and 26 European comparison countries. We relied on the European Commission (EC) deployment data published in the Broadband Coverage in Europe 2021 Report and FCC Form 477 data for the United States.1009 354. Fixed Broadband Results—Speed-Tier Results. The United States ranked 9th, 7th, and 5th out of 27 countries in the percentage of total households with access to fixed broadband with a download speed greater than 30 Mbps, 100 Mbps, and 1 Gbps, respectively.1010 355. Fixed Broadband Results—Technology-Specific Results. Between 2017 and 2021, the percentage of total households in the United States with access to FTTP increased from 29.3% to 44.7%, and the percentage of rural households with access to FTTP increased from 16.0% to 28.0%. The United States ranked 18th and 16th out of 27 countries in the percentage of total households and rural households, respectively, with access to FTTP. The United States ranked 5th and 4th out of 27 countries in the percentage of total households and rural households, respectively, with access to fixed broadband through either DOCSIS 3.0 or 3.1 technology. 356. Mobile Broadband Results. The United States ranked 5th and 2nd out of 27 countries in the percentage of total households and rural households, respectively, with access to 5G networks in 2021, with 99.3% of total households and 86.0% of rural households having access to 5G networks. 1006 OECD, Our global reach, https://www.oecd.org/about/document/list-oecd-member-countries.htm (last visited Oct. 6, 2022) (navigate to the “Member countries” subsection in order to obtain the list of member countries). 1007 In addition to the primary broadband deployment analysis comparing European OECD countries and the United States, we report, for the first time, high-level broadband deployment statistics for eight non-European OECD countries. 1008 The countries excluded from the pricing analysis are Chile, Colombia, Costa Rica, Hungary, Israel, Japan, Lithuania, Poland, Slovakia, Slovenia, South Korea, and Turkey. Due to the time-intensive nature of collecting both fixed broadband and mobile broadband pricing data from multiple providers in each country, we limited the pricing analysis to the same countries analyzed in the pricing analysis of the 2020 International Broadband Data Report. See 2020 Communications Marketplace Report, 36 FCC Rcd at 3750, Appx. G-1: International Broadband Data Report, para. 2. 1009 See European Commission, Broadband Coverage in Europe 2021 (2022), https://digital- strategy.ec.europa.eu/en/library/broadband-coverage-europe-2021 (Broadband Coverage in Europe 2021 Report) (the report can be accessed by clicking on the appropriate item listed under the “Downloads” sub header). A provider that reports offering service in a particular census block may not offer service, or service at that speed, to all locations in the census block. Accordingly, the number of providers presented in this Report does not necessarily reflect the number of choices available to a particular household and does not purport to measure competition. 1010 To keep the speed tiers consistent across countries, we use 1 Gbps as the threshold for the highest download speed tier for fixed broadband services. If a provider’s plan has a download speed of 940 Mbps, it is not included in the 1 Gbps tier for the international comparisons. 212 Federal Communications Commission FCC 22-103 2. Broadband Speed and Performance Comparison 357. In section III of Appendix G, based on Ookla Speedtest datasets, we present a comparison of fixed broadband and mobile broadband performance metrics in terms of data transmission speeds (download and upload speeds) and latency for the United States and the 35 comparison countries. For fixed broadband, we examine all technologies accounted for by Ookla,1011 and for mobile broadband, we examine 4G LTE and 5G.1012 Our analysis covers a five-year time horizon for fixed broadband and for 4G LTE, but we only consider one year of data for 5G.1013 We rank speeds from the fastest (1st) to the slowest (36th) and latency from the lowest (1st) to the highest (36th). 358. Fixed Broadband Results. The mean download speed in the United States in 2021 was 195.5 Mbps, ranking 9th out of 36 countries —a decline from a ranking of 5th out of 36 countries in 2020 when the mean download speed was 150.5 Mbps. The mean upload speed in the United States in 2021 was 72.9 Mbps, ranking 18th of 36 countries—a slight decline from a ranking of 17th out of 36 countries in 2020. For mean latency, although the United States slipped from a ranking of 25th out of 36 countries in 2017 to a ranking of 29th out of 36 countries in 2021, the mean latency in the United States improved from 29.6 ms in 2017 to 21.3 ms in 2021. 359. Mobile Broadband—4G LTE Results. For mean download speeds, the United States ranked 23rd out of 36 countries in 2021, with a mean download speed of 44.8 Mbps, an improvement from a ranking of 34th out of 36 countries in 2017. For mean upload speeds, the United States had the slowest mean upload speed out of 36 countries in 2021. The mean upload speed in the United States in 2021 was 9.9 Mbps, a decrease from 11.1 Mbps in 2019. For mean latency, the United States ranked 34th in 2021, with the mean latency of 41.5 ms, an improvement from the mean latency of 50.4 ms in 2017. 360. Mobile Broadband—5G Results. The mean download speed in the United States in 2021 was 187.7 Mbps, ranking 27th out of 36 countries. The mean upload speed in the United States in 2021 was 23.5 Mbps, ranking 31st out of 36 countries. For mean latency, the United States ranked 33rd out of 36 countries, with the mean latency of 33.0 ms. 3. Broadband Pricing Comparison 361. In section IV of Appendix G, we present analyses of fixed broadband and mobile broadband prices for the United States and 25 comparison countries. We collected fixed broadband and mobile broadband prices from the websites of the largest providers in each country between February and July of 2022.1014 We compare broadband prices using two methods: (1) a broadband price index; and (2) a hedonic broadband price index. The broadband price index ranks countries by their weighted average price, while the hedonic price index accounts for quality differences as well as country-level cost and demographic differences, such as population density, income, topography, and education levels, which are likely to affect pricing across countries. These analyses seek to provide meaningful broadband pricing comparison across countries. We rank the countries from the least expensive (1st) to the most expensive (26th) based on the two price indexes. 1011 Ookla does not specify which technologies are included in their fixed results because Ookla is unable to distinguish the technology that the test taker is using. Data based on Wi-Fi-using devices are included in these results. 1012 In the 2020 International Broadband Data Report, we considered only 4G LTE because 5G networks had been deployed in a very limited number of countries. See 2020 Communications Marketplace Report, 36 FCC Rcd at 3749, Appx. G: International Broadband Data Report. 1013 We present one year of data on mobile broadband—5G, for the year 2021, because these networks had limited deployment in most countries prior to 2021. 1014 We collected fixed residential broadband plan prices and terms from 84 providers in 26 countries, including the United States, between April and July of 2022. We also collected mobile broadband plan prices and terms from 84 providers from 26 countries, including the United States, between February and April of 2022. 213 Federal Communications Commission FCC 22-103 362. Fixed Broadband Results. Based on the broadband price index approach, without adjusting for cost, quality, and demand factor differences across countries, the United States ranked 24th among the 26 comparison countries across various measures for fixed broadband services, including fixed broadband service purchased on a standalone basis, fixed broadband service purchased in a bundle with video service, and the weighted combination of the standalone and bundle plans of fixed broadband service. However, using the hedonic price index approach, which adjusted for cost, demographics, and broadband plan characteristics, the United States ranked 13th among the 26 countries. The U.S. ranking remained unchanged after adding additional controls for fixed broadband network quality to the hedonic model. Further, after controlling for potential measures of broadband content quality, primarily based on the number and popularity of websites and domains in the official language of the country, in addition to the aforementioned adjustments for cost, demographics, broadband plan characteristics, and broadband network quality differences across countries, the United States ranked 5th among the 26 countries. 363. Mobile Broadband Results. Based on the broadband price index approach, without adjusting for cost, quality, and demand factor differences across countries, the United States ranked 24th among the 26 comparison countries in single-line plan pricing, multi-line pricing, as well as the overall pricing across single-line and multi-line plans of mobile broadband services. However, using the hedonic price index approach which adjusted for cost, demographics, and mobile broadband plan characteristics, the United States ranked 13th among the 26 countries. The ranking of the United States improved slightly to 12th out of the 26 countries after adding additional controls for mobile network quality to the hedonic model. Further, after controlling for potential measures of broadband content quality, primarily based on the number and popularity of websites and domains in the official language of the country, in addition to the aforementioned adjustments for cost, demographics, broadband plan characteristics, and mobile network quality differences across countries, the United States ranked 8th among the 26 countries. 4. International Regulatory Developments 364. We discuss several new market and regulatory developments, including national broadband, satellite, and 5G and 6G developments.1015 We limit our discussion to developments that have occurred since the last Report, and identify the relevant similarities and differences between the United States, the comparison countries, and others, based on multiple criteria.1016 365. Market Developments. Providers in a number of countries have continued to launch new broadband services and increase broadband speeds over the past two years.1017 For example, New Zealand fixed line broadband provider Chorus is pursuing Gigabit Passive Optical Network (GPON) technologies, marketed as “Hyperfibre,” for future infrastructure upgrades.1018 Similarly, Canadian broadband providers Bell and Rogers announced in August they would begin delivering internet services 1015 47 U.S.C. § 1303(b)(3) (“The Commission shall identify relevant similarities and differences in each community, including their market structures, the number of competitors, the number of facilities-based providers, the types of technologies deployed by such providers, the applications and services those technologies enable, the regulatory model under which broadband service capability is provided, the types of applications and services used, business and residential use of such services, and other media available to consumers.”). 1016 See 2020 Communications Marketplace Report, 36 FCC Rcd at 3119-27, paras. 306-18; 2018 Communications Marketplace Report, 33 FCC Rcd at 12707-13, paras. 280-89. 1017 See TeleGeography, TeleGeography GlobalComms Database, http://www.telegeography.com (last accessed Sept. 26, 2022). 1018 TeleGeography CommsUpdate, Chorus, Nokia Demo 25G PON Broadband (May 27, 2022), https://www.commsupdate.com/articles/2022/05/27/chorus-nokia-demo-25g-pon-broadband/; see generally Bernd Hesse, The Emerging PON Technologies Accelerating Worldwide Gigabit Deployment, Broadband Forum, https://www.broadband-forum.org/the-emerging-pon-technologies-accelerating-worldwide-gigabit-deployment (last visited Oct. 6, 2022). 214 Federal Communications Commission FCC 22-103 at 8 Gbps to select areas in Canada as of September 2022.1019 Operators in many countries are also beginning to retire older services such as copper networks, and 2G and 3G mobile wireless networks.1020 366. Providers in several countries are in the process of increasing fiber deployment. For example, as part of its pivot from copper to fiber, NBN Co, which manages Australia’s National Broadband Network (NBN), continues to upgrade its FTTP technology to provide “Home Ultrafast” 1 Gbps service to eight million premises by the end of 2023.1021 In February 2022, Chilean wholesale fiber- optic company On Net Fiber announced that it had rolled out some 21,000 miles of fiber cables to reach almost half of the homes in Chile, along with plans to increase its FTTP footprint by up to 22,369 miles across 15 regions by the end of 2022.1022 Israel has also sought to increase its fiber deployment.1023 In March 2022, Israel’s Ministry of Communications concluded a tender for fiber deployment in unserved parts of the country, aiming to connect 287,000 premises across 330 settlements within 15 months.1024 In Europe, over 198 million, or 57%, of all homes had access to fiber as of September 2021, compared to 176 million a year earlier.1025 367. The use of Internet services such as online news, VOD, voice and video calling, social networks, online shopping, and online banking has also continued to grow in many countries, and governments have become more active on these matters over the past two years. For example, in July 2022, the European Union adopted two new pieces of legislation to regulate online services, the Digital Services Act and the Digital Markets Act.1026 The Digital Services Act established tiered rules for online intermediary services with regard to transparency and content moderation, while the Digital Markets Act established rules for digital “gatekeepers.”1027 Further, as online video begins to capture a larger share of 1019 Tom Li, It World Canada, Bell to Roll Out 8 Gbps Internet Service (Aug. 4, 2022), https://www.itworldcanada.com/article/bell-to-roll-out-8-gbps-internet-service/496224. 1020 See Telecompaper, Majority of European Telcos Have Started Copper Network Shutdown – Berec (Dec. 14, 2021), https://www.telecompaper.com/news/majority-of-european-telcos-have-started-copper-network-shutdown- berec--1407720; Telecompaper, Orange Announces European Roadmap for 2G/3G Network Shutdown (Mar. 1, 2022), https://www.telecompaper.com/news/orange-announces-european-roadmap-for-2g3g-network-shutdown-- 1415953. 1021 TeleGeography CommsUpdate, NBN Co Makes FTTP Upgrades Available to 50,000 More FTTN Premises (Mar. 23, 2022), https://www.commsupdate.com/articles/2022/03/23/nbn-co-makes-fttp-upgrades-available-to- 50000-more-fttn-premises/; see also Robert Clark, Light Reading, After Seven Years of Copper, Australian NBN Pivots to Fiber (Sept. 24, 2020), https://www.lightreading.com/opticalip/fttx/after-seven-years-of-copper-australian- nbn-pivots-to-fiber/d/d-id/764170 (analyzing NBN Co’s fiber upgrade plans, initially announced in Sept. 2020). 1022 Telecompaper, Chile’s On Net Fibra Hits 3mln FTTH Premises, Targets 4mln (Feb. 7, 2022), https://www.telecompaper.com/news/chiles-on-net-fibra-hits-3-mln-ftth-premises-targets-4-mln--1413138. 1023 TeleGeography CommsUpdate, MoC Announces Results of Tender Related to Fibre Rollouts in Economically Unprofitable Areas (Mar. 9, 2022), https://www.commsupdate.com/articles/2022/03/09/moc-announces-results-of- tender-related-to-fibre-rollouts-in-economically-unprofitable-areas/. 1024 Id. 1025 Telecompaper, European Fibre Roll-Out Accelerates, 57% of Homes Can Access FTTH/B (May 24, 2022), https://www.telecompaper.com/news/european-fibre-roll-out-accelerates-57-of-homes-can-access-ftthb--1425414. 1026 Telecompaper, European Parliament Gives Final Approval to Landmark Tech Sector Regulations (Jul. 5, 2022), https://www.telecompaper.com/news/european-parliament-gives-final-approval-to-landmark-tech-sector- regulations--1430076. 1027 European Commission, The Digital Services Act: Ensuring a Safe and Accountable Online Environment, https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age/digital-services-act-ensuring-safe-and- accountable-online-environment_en (last visited Oct. 6, 2022); European Commission, The Digital Markets Act: Ensuring Fair and Open Digital Markets, https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital- age/digital-markets-act-ensuring-fair-and-open-digital-markets_en (last visited Oct. 6, 2022). 215 Federal Communications Commission FCC 22-103 revenue in key media markets,1028 some countries are beginning to look more closely at how online video providers contribute to local content markets.1029 368. National Broadband Developments.1030 Many countries continue to progress comprehensive broadband agendas, increasingly with a view towards new and innovative applications and services such as 5G, IoT, and artificial intelligence.1031 For example, the UK government announced a plan for the country called “Levelling Up” that includes the goal of providing “nationwide gigabit- capable broadband and 4G coverage, with 5G coverage for the majority of the population” by 2030.1032 In addition, the European Union set targets for Europe’s digital transformation by 2030, including development of digital skills, digital transformation of businesses, securing sustainable digital infrastructures, and digitalization of public services.1033 To help achieve its goals on broadband connectivity, the European Union established a Connecting Europe Facility, which is a key funding instrument that will provide over 2 billion euros (EUR) from 2021-2027 for secure and high-performance broadband, with 1 billion Euro available during 2021-2023 across several rounds of funding.1034 369. Over the past several years, as part of modernizing its universal service programs, the Commission has instituted a number of reforms to target support for broadband expansion and adoption in the United States.1035 Other regulators are likewise increasingly including broadband in their universal service obligations. For example, the Japanese government is considering amendments to its 1028 See Telecompaper, OTT Platforms to Account for one-fifth of European Sports Right Spend (Mar. 23, 2022), https://www.telecompaper.com/news/ott-platforms-to-account-for-one-fifth-of-european-sports-right-spend-- 1418671. 1029 See, e.g., Telecompaper, Dutch Govt Plans Law to Require Local Content Investment by SVOD Services (July 11, 2022), https://www.telecompaper.com/news/dutch-govt-plans-law-to-require-local-content-investment-by-svod- services--1430636. 1030 According to the International Telecommunications Union (ITU), at the end of 2020, 165 countries had national broadband plans of some sort. Countries are focusing less on developing targeted new plans, however, and are instead upgrading universal service programs, or developing broader digital transformation strategies that include but are not limited to connectivity. See Broadband Commission for Sustainable Development, The State of Broadband: People-Centered Approaches for Universal Broadband at 37 (2021), https://www.itu.int/dms_pub/itu- s/opb/pol/S-POL-BROADBAND.23-2021-PDF-E.pdf (State of Broadband Report 2021). The United Nations’ Broadband Commission for Sustainable Development has set seven global broadband targets, including a target for all countries to have a funded national broadband plan or strategy, or to include broadband in their universal access and services definition, by 2025. See generally State of Broadband Report 2021, Chapter 3 (discussing overall progress towards the targets). 1031 State of Broadband Report 2021 at 37. See, e.g., South Korea Ministry of Science & ICT, National Strategy for Artificial Intelligence (2019), https://www.msit.go.kr/eng/bbs/view.do?sCode=eng&mId=10&mPid=9&pageIndex=&bbsSeqNo=46&nttSeqNo=9 &searchOpt=ALL&searchTxt=. 1032 Vicki Deblasi, UK Government announces changes to permitted development rights for electronic communications infrastructure (Mar. 7, 2022), https://uk5g.org/updates/read-articles/dcms-announces-changes-to- permitted-development-rights-for-electronic-communications-infrastructure/. 1033 European Commission, Europe’s Digital Decade: Digital Targets for 2030, https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age/europes-digital-decade-digital-targets- 2030_en (last visited Oct. 6, 2022). 1034 See Telecompaper, EU to Allocate First EUR 1 bln CEF Funding to Gigabit and 5G Networks (Dec. 17, 2021), https://www.telecompaper.com/news/eu-to-allocate-first-eur-1-bln-cef-funding-to-gigabit-and-5g-networks-- 1408233; Telecompaper, EU Opens CEF Call for Funding 5G, Gigabit Network Projects (Jan. 12, 2022), https://www.telecompaper.com/news/eu-opens-cef-call-for-funding-5g-gigabit-network-projects--1410354. 1035 For a more detailed description of the Commission’s recent universal service reforms, see FCC, Universal Service, https://www.fcc.gov/general/universal-service (last visited Oct. 6, 2022). 216 Federal Communications Commission FCC 22-103 Telecommunications Business Act that would allow the Japanese Ministry of Internal Affairs and Communications (MIC) to include fixed broadband in its universal service regime for the first time.1036 Countries are also considering how to fund further broadband investments, with the European Union considering a new Connectivity Infrastructure Act,1037 and Member States1038 and European telecom operators1039 seeking to have large technology companies contribute to funding broadband deployment. 370. Satellite Developments. Many countries are also increasingly recognizing the possible impact of innovative satellite technologies. In February 2021, the Government of Quebec entered into a memorandum of understanding with Canadian satellite communications company Telesat to invest $400 million Canadian dollars (CAD) in the company’s LEO satellite network, Telesat Lightspeed. In exchange, Telesat committed to invest $1.6 billion CAD in Quebec by moving a “significant portion” of Lightspeed manufacturing and operations to the Canadian province.1040 In February 2022, the European Union announced that it planned to help fund the development of “a new secure satellite system to support government communications and wider broadband access” that would begin deployment in 2023 and start offering service in 2025.1041 Similarly, in October 2021, Egypt’s National Company for Telecommunications Services contracted a U.S. company to deploy the ground segment for its Ka-band TIBA-1 satellite, which will be used to provide broadband connectivity to rural and remote areas in the country.1042 And in June 2022, the Rwanda Space Agency signed an MoU with the Global Satellite Operators Association to ensure access to spectrum and deploy satellite communication services to improve rural connectivity.1043 371. Regulators in other countries are examining how best to deploy this new generation of satellite technologies, both independently and collectively. The governments of the United States, United Kingdom, Japan, Canada, Italy, Belgium, and Austria, along with various commercial entities, are partnering to develop and fund a satellite-based quantum technology encryption network, which is expected to cost more than $70 million USD.1044 With the launch of the European Space Agency and the 1036 Benjamin C. Han, Hiroki Kobayashi, and Stuart Beraha, Lexology, Spotlight: Telecoms and Internet Access in Japan (Jan. 11, 2022), https://www.lexology.com/library/detail.aspx?g=3d651375-4522-4659-8c2c-5e40e3c0c209. 1037 Telecompaper, European Commission plans Connectivity Infrastructure Act for Autumn (June 27, 2022), https://www.telecompaper.com/news/european-commission-plans-connectivity-infrastructure-act-for-autumn-- 1429109. 1038 Telecompaper, Italy, Spain and France Call on Tech Giants to Fund Network Costs (Aug. 2, 2022), https://www.telecompaper.com/news/italy-spain-and-france-call-on-tech-giants-to-fund-network-costs--1432970. 1039 See European Telecommunications Network Operators’ Association (ETNO), Joint EU and National Telecom Sector Statement on “Fair Contribution” (July. 18, 2022), https://etno.eu/news/all-news/8-news/747-joint-eu-and- national-telecom-sector-statement-on-fair-contribution.html; see also ETNO, 8 Common Questions on the “Fair Contribution” Debate (June 8, 2022), https://etno.eu/news/all-news/742:8-questions-fair-contribution.html. 1040 Telesat, Telesat Lightspeed to Receive $400 Million Investments from the Government of Quebec (Feb. 18, 2021), https://www.telesat.com/press/press-releases/telesat-lightspeed-to-receive-400-million-investment-from-the- government-of-quebec/. 1041 Telecompaper, EU Plans New Secure Satellite Communications System (Feb. 16, 2022), https://www.telecompaper.com/news/eu-plans-new-secure-satellite-communications-system--1414332. 1042 Mustapha Iderawumi, Africa News, NCTS Selects Hughes JUPITER System to Deliver Satellite Broadband in Egypt (Nov. 1, 2021), https://africanews.space/ncts-selects-hughes-jupiter-system-to-deliver-satellite-broadband-in- egypt/. 1043 TeleGeography CommsUpdate, Rwanda and GSOA sign MoU covering satellite communications (June 10, 2022), https://www.commsupdate.com/articles/2022/06/10/rwanda-and-gsoa-sign-mou-covering-satellite- communications/. 1044 Jason Rainbow, Space News, Governments Ally for Federal Quantum Encryption Satellite Network (June 11, 2021), https://spacenews.com/governments-ally-for-federated-quantum-encryption-satellite-network/. 217 Federal Communications Commission FCC 22-103 European Union’s new space program, the European Union will allocate 9 billion Euro for the 2021-2027 period, which will include investment towards satellite navigation and secure communications.1045 As part of its Five-Year Spectrum Outlook 2021-2026, the Australian Communications and Media Authority is considering how best to address spectrum management challenges arising from rapid innovations in satellite technologies and services.1046 372. 5G Developments. Many countries have been approaching broadband development and deployment with a particular focus on 5G infrastructure. Although commercial 5G services are now available in every region of the world, approaches to 5G development and the status of deployment efforts continue to vary across countries. As of August 2022, 208 operators had launched more than 112,700 5G deployments worldwide.1047 373. The Commission has focused on five key principles for delivering 5G that is fast, secure, resilient, and available everywhere in the United States: (1) making additional and appropriate spectrum available for 5G services; (2) expanding the reach of fiber facilities; (3) diversifying network equipment; (4) building secure and resilient supply chains; and (5) setting the technology standards of the future.1048 Some countries and regions have developed or are developing 5G plans that cover a range of policy initiatives, such as the European Union’s Digital Decade from 2021-2030, and Colombia’s December 2019 Action Plan for 5G Adoption.1049 374. Regulators around the world, including in the United States, have continued to allocate, auction, and/or license additional spectrum across various bands to support 5G services, with more than U.S. 130 billion spent on 5G assignments in 2021, and 50 countries planning further 5G assignments through the end of 2023.1050 For example, in December 2021, Australia concluded an auction of reallocated spectrum in the 850/900 MHz band for 5G services.1051 Australia also intends to auction spectrum in the 3.4-3.8 GHz range in early to mid-2023.1052 1045 Alexandra Brzozowski, Euractiv, EU Reaches for the Stars as New Space Programme Lifts Off (June 23, 2021), https://www.euractiv.com/section/outer-space/news/eu-reaches-for-the-stars-as-new-space-programme-lifts-off/. 1046 Australian Communications & Media Authority (ACMA), Five-Year Spectrum Outlook 2021-26 Work Program (Sept. 2021), https://www.acma.gov.au/publications/2021-09/plan/five-year-spectrum-outlook-2021-26. 1047 Ookla, Ookla 5G Map, https://www.speedtest.net/ookla-5g-map (last visited Oct. 6, 2022). As of November 30, 2021, there were 5G deployments in 112 countries, up from 99 countries on the same date the previous year. Isla McKetta, Ookla, Growing and Slowing: The State of 5G Worldwide in 2021 (Dec. 20, 2021), https://www.ookla.com/articles/state-of-worldwide-5g-2021. 1048 See, e.g., Remarks of Acting Chairwoman Jessica Rosenworcel to the 10th Americas Spectrum Management Conference (Oct. 12, 2021), https://www.fcc.gov/document/acting-chair-rosenworcel-americas-spectrum-management- conference. 1049 See European Commission, Europe’s Digital Decade: Digital Targets for 2030, https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age/europes-digital-decade-digital-targets- 2030_en (last visited Oct. 6, 2022); Government of Colombia, Plan 5G Colombia (Dec. 2019), https://mintic.gov.co/micrositios/plan_5g//764/articles-162230_recurso_1.pdf. 1050 Global Mobile Suppliers Association, 5G—5G Infographic June 2022 (July 1, 2022), https://gsacom.com/paper/5g-infographic-june-2022/; see also S&P Global, Upcoming Global Spectrum Auctions, 2021 Onwards (Apr. 2, 2021), https://www.spglobal.com/marketintelligence/en/news-insights/blog/upcoming-global- spectrum-auctions-2021-onward. 1051 ACMA, Spectrum Allocation and Auction Summary—850/900 MHz band (2021), https://www.acma.gov.au/spectrum- allocation-and-auction-summary-850900-mhz-band-2021 (last visited Oct. 6, 2022). ACMA also previously auctioned 5G spectrum in the 26 GHz band in April 2021. ACMA, Auction summary—26 GHz band (2021), https://www.acma.gov.au/auction-summary-26-ghz-band-2021 (last visited Oct. 6, 2022). 1052 ACMA, Five-Year Spectrum Outlook 2021-26 Work Program (Sept. 2021), https://www.acma.gov.au/publications/2021-09/plan/five-year-spectrum-outlook-2021-26. 218 Federal Communications Commission FCC 22-103 375. In the European Union, up to 64% of households had access to at least one 5G network, as of the end of 2021.1053 In line with the European Union’s Digital Decade targets and its earlier 2016 5G Action Plan,1054 European Union member states are focusing on several “pioneer band[s]” to harmonize the initial launch of 5G services across Europe,1055 with an initial emphasis on the 700 MHz, 3.4-3.8 GHz, and 26 GHz bands.1056 As of May 2022, 19 of the 27 European Union member states had assigned spectrum in the 700 MHz band, 21 had assigned spectrum in the 3.6 GHz band (3.4-3.8 GHz), and six had assigned spectrum in the 26 GHz band.1057 European operators are also repurposing spectrum in the 800, 1500, 1800, 2100, and 2600 MHz bands for 5G.1058 In February 2022, the European Commission enabled the use of existing spectrum in the 900 MHz and 1800 MHz bands for 5G by adopting updated technical criteria.1059 376. In February 2021, Chile became the first country in Latin America to auction spectrum suitable for 5G technologies, with four operators winning spectrum in the 700 MHz, 1700/2100 MHz, 3.5 GHz, and 26 GHz bands.1060 5G became commercially available in Chile in December 2021.1061 Canada and Mexico have also launched 5G services. Canada concluded the country’s 3.5 GHz band auction in July 2021 for 5G services. Canada’s top providers, Rogers Communication and Bell Canada, have announced they will offer commercial 5G standalone network services by 2023.1062 Similarly, Mexico has taken significant steps to facilitate 5G service deployment. In February 2022, for example, the Federal Institute of Telecommunications (IFT) authorized the largest Mexican incumbent, Telcel, to offer 5G services in Mexico in the 3.5 GHz band.1063 Mexico also completed a public auction in October 2021 that assigned regional blocks of spectrum in the 800 MHz and 2.5 GHz bands to AT&T and Telcel, and in September 1053 Telecompaper, EU 5G Coverage Up to 64% of Population, 31 mln Users—Study (May 12, 2022), https://www.telecompaper.com/news/eu-5g-coverage-up-to-64-of-population-31-mln-users-study--1424148. 1054 See European Commission, 5G for Europe: An Action Plan (Sept. 14, 2016), https://digital- strategy.ec.europa.eu/en/library/communication-5g-europe-action-plan-and-accompanying-staff-working-document. 1055 Radio Spectrum Policy Group, Strategic Roadmap Towards 5G for Europe: Opinion on Spectrum-Related Aspects for Next-Generation Wireless Systems (5G) (2016), https://rspg-spectrum.eu/wp- content/uploads/2013/05/RPSG16-032-Opinion_5G.pdf (identifying the following “pioneer band[s]”: 3400-3800 MHz; below 1 GHz, particularly the 700 MHz band; 24.25-27.5 GHz; and upper bands, including 31.8-33.4 GHz and 40.5-43.5 GHz). 1056 Radio Spectrum Policy Group, Strategic Spectrum Roadmap Towards 5G for Europe: RSPG Second Opinion on 5G Networks (2018), https://circabc.europa.eu/sd/a/fe1a3338-b751-43e3-9ed8-a5632f051d1f/RSPG18- 005final- 2nd_opinion_on_5G (identifying the 3.4-3.8 GHz band as the “key for success of 5G in Europe”). 1057 European Commission, 5G Observatory Quarterly Report 15—Status in March 2022 at 14-15 (2022), https://5gobservatory.eu/wp-content/uploads/2022/05/5G-Observatory-Quarterly-Report-15-May-2022.pdf. 1058 Id. at 15. 1059 Telecompaper, EU Updates Spectrum Rules for 5G in 900, 1,800 MHz Bands (Feb. 10, 2022), https://www.telecompaper.com/news/eu-updates-spectrum-rules-for-5g-in-900-1800-mhz-bands--1413697. 1060 TeleGeography CommsUpdate, Movistar, Entel, WOM Win 3500MHz 5G Auction (Feb. 17, 2021), https://www.commsupdate.com/articles/2021/02/17/movistar-entel-wom-win-3500mhz-5g-auction/. 1061 Juan Pedro Tomás, RCR Wireless News, Chile Kicks Off 5G Era with Initial Deployments (Dec. 20, 2021), https://www.rcrwireless.com/20211220/5g/chile-kicks-off-5g-era-initial-deployments. 1062 TeleGeography CommsUpdate, Bell Launches ‘5G+ 3500MHz Service in Ontario; Prepares to Deploy 5G SA core network (July 29, 2022), https://www.commsupdate.com/articles/2022/07/29/bell-launches-5g-3500mhz- service-in-ontario-prepares-to-deploy-5g-sa-core-network/. 1063 TeleGeography CommsUpdate, IFT Authorises Telcel to Offer 5G Services; Promises Largest 5G Network in LatAm (Feb. 11, 2022), https://www.commsupdate.com/articles/2022/02/11/ift-authorises-telcel-to-offer-5g- services-promises-largest-5g-network-in-latam. 219 Federal Communications Commission FCC 22-103 2022, Mexico plans to auction spectrum in the 600 MHz, 3.3 GHz, 3.5 GHz and 1500 MHz bands for 5G commercial use.1064 377. In Sub-Saharan Africa, 5G services are available in five countries1065 with several others implementing steps to facilitate 5G deployment. In March 2022, the Independent Communications Authority South Africa concluded the country’s multi-band auction of mobile spectrum in the 700 MHz, 800 MHz, 2.6 GHz, and 3.5 GHz bands.1066 5G services were first launched in South Africa in September 2019 when Rain announced the country’s first commercial-ready 5G network in Cape Town. Zambia and Nigeria also auctioned spectrum in 2022 to facilitate the deployment of 5G services. In April 2022, the Zambia Information and Communication Technology Authority issued licenses to Airtel Zambia and MTN Zambia for spectrum in the 800 MHz and 2.6 GHz bands.1067 And in May 2022, the Nigerian Communications Commission issued licenses to MTN and Mafab Communications for spectrum in the 3.5 GHz band.1068 While 5G development is still in its early stages in the region, countries like Kenya,1069 Ethiopia,1070 Uganda, and Angola continue to take steps to facilitate its deployment by issuing licenses, reallocating spectrum suitable for 5G, and conducting 5G trials.1071 378. In the Middle East and North Africa region, 5G uptake varies among countries. Some countries, particularly those in the Persian Gulf and Israel, have rapidly advanced 5G expansion through focused regulatory measures.1072 For example, in September 2020, the United Arab Emirates (UAE’s) Telecoms and Digital Government Regulatory Authority allocated the spectrum in the 26 GHz band for 5G wireless services, becoming the first country in the Middle East to enable the use of high-frequency spectrum for 5G.1073 In July 2021, Israel’s Ministry of Communications established a deactivation strategy and timeline for 2G and 3G networks, targeting December 2025, in order to foster the growth of 1064 TeleGeography CommsUpdate, IFT to Stage 5G Auction this Year; 600MHz, 1500MHz, 3.3GHz, 3.5GHz Up for Grabs (Feb. 4, 2022), https://www.commsupdate.com/articles/2022/02/04/ift-to-stage-5g-auction-this-year-600mhz- 1500mhz-3-3ghz-3-5ghz-up-for-grabs/. 1065 GSMA, The Mobile Economy: Sub-Saharan Africa 2021 at 2 (2021), https://www.gsma.com/mobileeconomy/wp- content/uploads/2021/09/GSMA_ME_SSA_2021_English_Web_Singles.pdf. (Sub-Saharan Africa 2021). 1066 Independent Communications Authority of South Africa, Press Release, ICASA Concludes Successful Spectrum Auction And Collects More Than R14.4 Billion Proceeds (Mar. 17, 2022), https://www.icasa.org.za/news/2022/icasa-concludes-successful-spectrum-auction-and-collects-more-than-r14-4- billion-proceeds. 1067 TeleGeography CommsUpdate, ZICTA Confirms New 800MHz and 2600MHz Spectrum Awards (July 22, 2022), https://www.commsupdate.com/articles/2022/07/22/zicta-confirms-new-800mhz-and-2600mhz-spectrum-awards/ . 1068 Nigerian Communications Commission, Press Release, NCC Issues Final Letters of Licence Awards to 5G Spectrum Winners (May 4, 2022), https://www.ncc.gov.ng/media-centre/news-headlines/1207-press-statement-ncc- issues-final-letters-of-licence-awards-to-5g-spectrum-winners. 1069 TeleGeography CommsUpdate, Kenyan regulator to enable 5G pilot networks this year (Feb. 25, 2022), https://www.commsupdate.com/articles/2022/02/25/kenyan-regulator-to-enable-5g-pilot-networks-this-year/. 1070 TeleGeography CommsUpdate, Ethio Telecom announces pre-commercial 5G launch (May 11, 2022), https://www.commsupdate.com/articles/2022/05/11/ethio-telecom-announces-pre-commercial-5g-launch/. 1071 See Sub-Saharan Africa 2021 at 21. 1072 See GSMA, Roadmaps for Awarding 5G Spectrum in the MENA Region at 7 (January 2022), https://www.gsma.com/spectrum/wp-content/uploads/2022/01/spec_mena_5g_report_01_22-1.pdf (GSMA Roadmaps for Awarding 5G Spectrum). 1073 TeleGeography CommsUpdate, UAE Allocates 26GHz Frequencies as Etisalat Uses 5G for Home Broadband (Sept. 16, 2021), https://www.commsupdate.com/articles/2020/09/16/uae-allocates-26ghz-frequencies-as-etisalat- uses-5g-for-home-broadband/. 220 Federal Communications Commission FCC 22-103 next generation technologies, given the scarcity of spectrum.1074 On the other hand, other countries are still in the early stages of considering how to facilitate future 5G deployment.1075 For example, in August 2022, Jordan’s Telecommunications Regulatory Commission (TRC) entered into an agreement with the country’s leasing telecommunications operators to undergo preparations for the introduction of 5G services in the upcoming years.1076 379. Operators around the world are increasingly considering using Open RAN to upgrade their networks to 5G.1077 Recognizing that Open RAN networks offer an alternative to traditional cellular network architecture and could enable diversity in suppliers, better network security, and lower costs, in March 2021, the Commission launched a Notice of Inquiry on the topic.1078 Moreover, in July 2021, the Commission convened an Open RAN Solutions Showcase to give fixed and mobile network operators an opportunity to hear directly from vendors of interoperable, open interface, standards-based 5G network equipment and services. These actions reflect the Commission’s continued efforts to ensure the United States leads the way in researching and developing innovative approaches to mobile network deployment. In Europe, operators have called on governments to provide more support for the Open RAN ecosystem,1079 with one operator announcing a target of deploying Open RAN in 30% of its towers by 2030.1080 The European Union is also examining the security of Open RAN.1081 380. 6G Developments. Even as it continues to build towards a 5G future, the Commission has recognized the need to start planning for 6G, the “next-next-generation” of wireless technology.1082 Likewise, regulators around the world are exploring the possibilities of 6G technology to further facilitate next-generation broadband connectivity. In June 2020, for example, Japan’s MIC introduced its “Beyond 5G Promotion Strategy – Roadmap towards 6G,” focused on the early development and deployment of “beyond 5G” advanced technologies.1083 Similarly, in July 2021, the Republic of Korea’s Ministry of 1074 TeleGeography CommsUpdate, Ministry Orders Shutdown of Israeli 2G, 3G Networks by 2025 (July 2, 2021), https://www.commsupdate.com/articles/2021/07/02/ministry-orders-shutdown-of-israeli-2g-3g-networks-by-2025/. 1075 GSMA Roadmaps for Awarding 5G Spectrum at 18-28. 1076 Jordan News, TRC Signs Agreement to Roll Out 5G Services, (Aug. 12, 2022), https://www.jordannews.jo/Section-109/News/TRC-signs-agreement-to-roll-out-5G-services-20410. 1077 See, e.g., Open RAN Policy Coalition, Compilation of Open RAN Announcements and Demonstrations (2021), https://www.openranpolicy.org/wp-content/uploads/2021/10/ORPC-Compilation-of-Announcements-and-Demos- 9.30.21.pdf; RCR Wireless News, Open RAN 101–Open RAN Adoption in in different regions: Why, What, When, How? (Reader Forum) (Aug. 6, 2020), https://www.rcrwireless.com/20200806/opinion/readerforum/open-ran-101- open-ran-adoption-in-different-regions-why-what-when-how-reader-forum 1078 See Open RAN Notice of Inquiry. 1079 Telecompaper, European Telcos Call for More EU Support for Developing Open RAN Ecosystem (Nov. 18, 2021), https://www.telecompaper.com/news/european-telcos-call-for-more-eu-support-for-developing-open-ran- ecosystem--1404709. 1080 Telecompaper, Vodafone Targets OpenRAN in 30 Percent of European Masts by 2030 (Mar. 1, 2022), https://www.telecompaper.com/news/vodafone-targets-openran-in-30-percent-of-european-masts-by-2030-- 1415967. 1081 Telecompaper, Open RAN Creates New Opportunities, but also Security Risks—EU Report (May 11, 2022), https://www.telecompaper.com/news/open-ran-creates-new-opportunities-but-also-security-risks-eu-report-- 1424010. 1082 Remarks of Chairwoman Jessica Rosenworcel, Mobile World Congress, “New Frontiers of Partnerships,” Barcelona, Spain (Mar. 1, 2022), https://www.fcc.gov/document/chairwoman-rosenworcel-remarks-mobile-world- congress-2022. In July 2021, for example, the Commission reestablished the Technological Advisory Council (TAC) with a new focus on looking beyond 5G and conceptualizing 6G. Id. 1083 Ministry of Internal Affairs and Communications (MIC), Press Release, Release of “Beyond 5G Promotion Strategy—Roadmap towards 6G” (June 30, 2020), (continued….) 221 Federal Communications Commission FCC 22-103 Science and ICT (MSIT) introduced its “6G R&D Implementation Plan,” which includes an investment of $194 million USD by 2025 and outlines three pillars for the Republic of Korea’s global leadership in 6G technology.1084 In Saudi Arabia, the Communications and Information Technology Commission (CITC) designated the entire 6 GHz band for unlicensed use to promote the development and deployment of 6G technology.1085 And in Europe, the European Commission outlined its vision for 6G as of February 2022,1086 and some countries such as Finland have already announced several 6G initiatives.1087 381. Most countries in Sub-Sahara Africa are in the early stages of considering whether to make the 6 GHz band available for unlicensed use, with most of the discussions taking place in regional forums such as the African Telecommunications Union (ATU). In July 2021, the ATU published its fifth ATU-R Recommendations on spectrum management, encouraging African Administrations to consider designating the lower part of the 6 GHz band for license-exempt use.1088 And in June 2022, Kenya followed the ATU’s recommendations by updating its spectrum guidelines to allow for the use of short- range devices in the lower 6 GHz band. 382. COVID-19 Pandemic. In response to the COVID-19 pandemic, the Commission has undertaken a variety of initiatives to keep Americans connected,1089 and the importance of connectivity during the pandemic has been recognized internationally as well. In Canada, through the Universal Broadband Fund’s (UBF) Rapid Response Stream, over $2 billion USD have been allocated to bring high-speed Internet into households in rural and remote communities across Canada by 2030.1090 As of (Continued from previous page) https://www.soumu.go.jp/main_sosiki/joho_tsusin/eng/pressrelease/2020/6/30_7.html; MIC, Beyond 5G Promotion Strategy (June 2020), https://www.soumu.go.jp/main_sosiki/joho_tsusin/eng/presentation/pdf/Beyond_5G_Promotion_Strategy.pdf; see also Beyond 5G Promotion Consortium, What is Beyond 5G?, https://b5g.jp/en/about.html (last visited Oct. 6, 2022) (describing a complementary multistakeholder initiative established in Dec. 2020 to achieve “the early and smooth introduction of Beyond 5G”). 1084 Ministry of Science and ICT (MSIT), Press Release, 6G, Korea Takes the Lead Once Again: “6G R&D Implementation Plan” Established (July 2021), https://www.msit.go.kr/eng/bbs/view.do?sCode=eng&mId=4&mPid=2&pageIndex=&bbsSeqNo=42&nttSeqNo=51 7&searchOpt=ALL&searchTxt= (describing the three pillars of the strategy: securing next-generation key original technologies, gaining dominance in international standards and patents, and laying the foundation for 6G research and industry). 1085 Catherine Sbeglia Nin, RCR Wireless, Saudi Arabia Designates Entire 6 GHz Band for Unlicensed Use, Paving Way for Wi-Fi 6E (Mar. 31, 2021), https://www.rcrwireless.com/20210331/network-infrastructure/saudi-arabia- designates-entire-6-ghz-band-for-unlicensed-use-paving-way-for-wi-fi-6e. 1086 European Commission, Europe Sets Out 6G Vision at Mobile World Congress Barcelona (Mar. 1, 2022), https://digital-strategy.ec.europa.eu/en/news/europe-sets-out-6g-vision-mobile-world-congress-barcelona. 1087 Juan Pedro Tomás, RCR Wireless News, Finnish Government Unveils New 6G Initiative (May 13, 2022), https://www.rcrwireless.com/20220513/5g/finnish-government-unveils-new-6g-initiative; see generally 6G Finland, About Us, https://www.6gfinland.fi/about/ (last visited Oct. 6, 2022); 6G Flagship, Welcome Aboard We Are 6G Flagship, https://www.6gflagship.com/ (last visited Oct. 6, 2022). 1088 African Telecommunications Union, ATU-R-Recommendation-005, The Implementation of Emerging Radiocommunication Technologies Namely: 5G/IMT2020; HAPS; FSS ESIM; MSS Applications; FSS VSAT and Other Applications; Wi-Fi in 6 GHz; WiGig in 60 GHz and 5G NR-U (2021), https://www.atuuat.africa/wp- content/uploads/2021/08/En_ATU-R-Recommendation-005-0.pdf. 1089 See infra section V.; see also FCC, Keep Americans Connected, https://www.fcc.gov/keep-americans-connected (last visited Oct. 6, 2022). 1090 Ministry of Innovation, Science and Economic Development Canada, News Release, Government of Canada Invests Over $5.3 Million to Bring High-Speed Internet Access to 1,662 Households in Ontario (May 3, 2022), (continued….) 222 Federal Communications Commission FCC 22-103 May 2022, 180 projects supported through the UBF’s Rapid Response Stream have been announced in Canada.1091 Similarly, in the European Union, the pandemic has given greater urgency to connecting rural communities in countries like Germany,1092 and countries such as Italy are using their COVID-19 recovery funds to support broadband buildout.1093 383. Switzerland, for example, is considering increasing the minimum broadband speed offered via universal service from 10/1 Mbps to 80/8 Mbps in 2024, highlighting in its reasoning the increasing demand for broadband for work from home and virtual schooling during the pandemic.1094 In the Middle East and North Africa region, several countries, such as Algeria, Oman, Saudi Arabia, and Jordan, increased access to spectrum to enable operators to meet greater demand for broadband services during the pandemic period.1095 In the wake of the pandemic, countries in the region have shifted their focuses to economic recovery, particularly through initiatives aimed at boosting the digital sector. For example, Saudi Arabia’s Minister of Communication and Information Technology announced the government would provide $6.4 billion USD in investments to support the development of emerging technologies in the country.1096 384. Likewise, in order to accelerate post-pandemic economic recovery, the Republic of Korea launched its “Digital New Deal 2.0” in July 2021, which aims to create nearly one million new jobs by 2025 through government investment in key sectors.1097 In Africa, the ATU published its sixth set of (Continued from previous page) https://www.canada.ca/en/innovation-science-economic-development/news/2022/05/government-of-canada-invests- over-53-million-to-bring-high-speed-internet-access-to-1662-households-in-ontario-rural-communities-to-benefit- from-in.html. 1091 Ministry of Innovation, Science and Economic Development Canada, News Release, Government of Canada Invests Over $5.3 Million to Bring High-Speed Internet Access to 1,662 Households in Ontario (May 3, 2022), https://www.canada.ca/en/innovation-science-economic-development/news/2022/05/government-of-canada-invests- over-53-million-to-bring-high-speed-internet-access-to-1662-households-in-ontario-rural-communities-to-benefit- from-in.html. 1092 Janosch Delcker, Deutsche Welle, German Village’s Painfully Slow Internet Quickly Becomes a Major Problem (Aug. 29, 2021), https://www.dw.com/en/german-villages-painfully-slow-internet-quickly-becomes-a-major- problem/a-58267474. 1093 Elvira Pollina and Giuseppe Fonte, Reuters, Italy to Spend 60% More of EU Funds on Better Broadband, Sources Say (Apr. 13, 2021), https://www.reuters.com/business/media-telecom/exclusive-italy-spend-60-more-eu- funds-better-broadband-sources-say-2021-04-13/. 1094 Federal Council of Switzerland, Höhere Internet-Geschwindigkeit in der Grundversorgung (Higher Internet Speed in the Basic Service) (Dec. 10, 2021), https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen.msg-id-86370.html; Communications Commission of Switzerland, ComCom Extends Universal Service Licence for One Year (May 19, 2022), https://www.admin.ch/gov/en/start/documentation/media-releases.msg-id-88887.html (indicating that the current universal service license at 10/1 Mbps, which was set to expire in 2022, has been extended to 2023, pending a decision on whether to increase the required speed to 80/8 Mbps). 1095 World Bank, Global Digital Development Policy Response Database (Mar. 1, 2021), https://dataviz.worldbank.org/views/DD- COVID19/Overview?%3Aembed=y&%3AisGuestRedirectFromVizportal=y&%3Adisplay_count=n&%3AshowAp pBanner=false&%3Aorigin=viz_share_link&%3AshowVizHome=n. 1096 Aziz El Yaakoubi, Reuters, Saudi Arabia Announces $6.4 Billion Investments in Future Tech (Feb. 1, 2022), https://www.reuters.com/markets/funds/saudi-arabia-announces-64-billion-investments-future-tech-2022-02-01/; see also GSMA, The Mobile Economy Middle East & North Africa 2022 (2022), https://www.gsma.com/mobileeconomy/wp-content/uploads/2022/05/GSMA_MENA_ME2022_R_WebSingles.pdf. 1097 MSIT, Press Release, The Digital New Deal is to Lead Digital Transformation in the World After COVID-19 (July 15, 2021), https://www.msit.go.kr/eng/bbs/view.do?sCode=eng&mId=4&mPid=2&pageIndex=&bbsSeqNo=42&nttSeqNo=44 (continued….) 223 Federal Communications Commission FCC 22-103 spectrum recommendations on options for mitigating the effects of the pandemic.1098 The recommendations highlighted the importance of implementing additional efforts along with the release of temporary spectrum in order to maximum its use and accelerate broadband deployment. Some of the more widely used options include releasing spectrum to existing network operators at no additional cost and expediting license approvals. South Africa, Ghana, and Zambia all allotted temporary spectrum to mobile operators at no additional cost. Kenya and Mozambique implemented steps to fast-track regulatory approvals for new and conventional technologies for broadband deployment. At a global level, the International Telecommunications Union (ITU)—the United Nations specialized agency for telecommunications and information and communication technologies—has collected best practices from around the world on supporting access to and use of communications technologies throughout the pandemic.1099 IV. ENTRY AND EXPANSION CONDITIONS IN THE COMMUNICATIONS MARKETPLACE 385. New entry and incumbent expansion occurs in the context of underlying regulatory and market conditions that directly influence the total number of firms that can successfully compete and grow. To evaluate the competitiveness of any market, one must consider multiple factors, including, as discussed in section II, prices and trends in prices, non-price competition, investment, innovation, as well as any barriers to entry or expansion by incumbents.1100 While there is no single definition in the economics literature of what constitutes a barrier to entry,1101 it is nonetheless the case that high barriers to entry reduce the threat to incumbents of new entry.1102 In addition, barriers to expansion reduce the ability of existing competitors to successfully enter new geographic areas. A. The Fixed Communications Marketplace 386. In the fixed marketplace, as in the mobile wireless marketplace, there are both regulatory and non-regulatory barriers to entry. Regulatory barriers include provider difficulties in obtaining the legal right to deploy facilities (such as on poles, in rights-of-way, and in multi-tenant environments (Continued from previous page) 3&searchOpt=&searchTxt=. The four sectors are identified as the following: (1) Improve the Ecosystem of Data, Network, and AI (“DNA”); (2) Digitalize the Education Infrastructure; (3) Nurture Contactless Industries (e.g., smart healthcare); and (4) Digitalize Social Overhead Capital (e.g., smart logistics). 1098 African Telecommunications Union, ATU-R-Recommendation-006-0, Options and Factors for Consideration on Special Spectrum Release or System Authorization in Fight of Covid-19 and its Impact Mitigation (2020), https://www.atuuat.africa/wp-content/uploads/2022/06/ATU-R-Recommendation-006-0.pdf 1099 See ITU, COVID-19 Response and Recovery, https://www.itu.int/en/Pages/covid-19.aspx (last visited Oct. 6, 2022). 1100 Applications of AT&T Inc. and DIRECTV For Consent to Assign or Transfer Control of Licenses and Authorizations, Memorandum Opinion and Order, 30 FCC Rcd 9131, 9140, paras. 19-20 (2015); Applications of AT&T Wireless Services, Inc. and Cingular Wireless Corporation, Memorandum Opinion and Order, 19 FCC Rcd 21522, 21544-45, paras. 41-42 (2004). 1101 See, e.g., Joe S. Bain, Barriers to New Competition (1950); George J. Stigler, The Organization of Industry (1968); Carl Christian von Weizsacker, A Welfare Analysis of Barriers to Entry, 11 Bell Journal of Economics 399 (1980); Richard Gilbert, Mobility Barriers and the Value of Incumbency, Handbook of Industrial Organization 475 (Richard Schmalensee and Robert Willig eds. 1989); R. Preston McAfee, Hugo M. Mialon & Michael A. Williams, What is a Barrier to Entry?, 94 AEA Papers and Proceedings, 461 (2004). 1102 High economic profits encourage entry into the market, low economic profits discourage entry, and prolonged negative economic profits induce exit from the market. See, e.g., Hal R. Varian, Intermediate Microeconomics: A Modern Approach, 433-34 (9th ed. 2014); Dennis W. Carlton and Jeffrey M. Perloff, Modern Industrial Organization, 61, 76 (4th ed. 2005); see also George S. Ford, et al., Competition After Unbundling: Entry, Industry Structure, and Convergence, 59 Fed. Com. L.J. 344 (2007). 224 Federal Communications Commission FCC 22-103 (MTEs)). Geography, the general cost of deploying wireline networks, and access to spectrum (for terrestrial fixed wireless providers) are examples of non-regulatory barriers. 387. Commenters identify a wide variety of potential barriers to entry and expansion in the fixed marketplace. Some of these barriers are more general in scope and could potentially affect both incumbent and non-incumbent providers, such as the high cost of deploying networks in rural areas and supply chain issues. Others may disproportionately affect a particular group of providers, such as difficulties in accessing poles, rights of way, and multi-unit dwellings and MTEs. 388. Congress and the Commission have repeatedly recognized that the business case for delivering high-quality broadband service to sparsely populated rural and insular areas at affordable rates often requires financial subsidies, such as through the Universal Service Fund (USF) or separate programs, such as the Broadband Equity, Access, and Deployment Program (BEAD Program) authorized by the 2021 Infrastructure Act and managed by the National Telecommunications and Information Administration (NTIA).1103 Commenters acknowledge these costs,1104 as well as the importance of efficient management of such programs.1105 Commenters offer suggestions for how such programs can be best coordinated and implemented—some suggesting more stringent or flexible eligibility requirements,1106 and USTelecom suggesting means of ensuring the stability of such programs.1107 Apart from the need for funding, NCTA and WISPA, for example, raise the continuing importance of access to licensed and unlicensed spectrum in deploying networks.1108 389. The record also reflects potential barriers to entry and expansion based on current general economic conditions. Most significantly, NTCA observes that lengthy delays in the availability of telecommunications and broadband supplies, combined with significant increases in the cost of such equipment, are causing significant concern about the ability to meet deployment obligations under various government programs.1109 1103 See Report on the Future of the Universal Service Fund, WC Docket No. 21-476, Report, FCC 22-67, at 4-5, paras. 6-8 (Aug. 15, 2022), (Future of the USF Report); Infrastructure Investment and Jobs Act, Pub. L. No. 117-58, div. F, tit. I, § 60102, 135 Stat. 429, 1182-1205 (2021) (Infrastructure Act). 1104 ACA Comments at 6; NCTA Comments at 12; USTelecom Comments at 24. 1105 USTelecom Comments at 24-25 (coordination of various federal programs); WISPA Comments at 38-43 (funding of overbuilders). 1106 USTelecom Comments at 24-25 (coordination of various federal programs); NCTA Comments at 13-14 (reevaluate USF programs based on recent new federal funding programs, focus on competitive bidding); NTCA Comments at 11-12 (support high costs following deployment, strong vetting of potential USF recipients, high service standards for USF recipients; EchoStar Comments at 6-7 (access to USF and other federal funding for satellite services); WISPA Comments at 29-38 (various concerns regarding the NTIA’s definition of “Reliable Broadband Service” for BEAD Program purposes). 1107 USTelecom Comments 23-24 (expand USF contribution base to include services and entities that benefit from broadband access). In addition to comments regarding high-cost funding programs’ effect on broadband investment, some commenters argue that the Commission’s current classification of broadband promotes broadband innovation and investment. ACA Comments at 6-7; USTelecom Comments at 22. 1108 NCTA Comments at 14-19; WISPA Comments at 20-24. 1109 NTCA Comments at 7-8. An NTCA member survey showed that more than half of respondents named fiber order fulfillment delays as a significant barrier to deployment—twice as many as the previous year—while approximately 80% of responding companies reported they are experiencing an inability or delay in procuring supplies needed for network deployment. NTCA Comments at 7. The same survey revealed the effect of these delays, or the inability to procure supplies at any price, which is delayed installation of service at customer premises for 66.7% of responding companies and delayed network construction for 64% of responding companies. NTCA Comments at 7. 225 Federal Communications Commission FCC 22-103 390. Commenters argue that difficulty in accessing poles and government rights of way remains a roadblock to network deployment. The record contains allegations that pole owners process requests for access too slowly and shift too many costs, such as the costs of pole replacement, onto attachers.1110 Regarding access to rights of way, commenters claim that they experience permitting delays and fees that exceed reasonable costs.1111 391. Commenters also identify difficulty in accessing MTEs as a roadblock to deployment. They specifically reference commercial agreements that they argue serve to maintain monopolies in MTEs, such as exclusive wiring arrangements, bulk billing arrangements, and exclusivity agreements regarding access to rooftop antenna and distributed antenna system facilities.1112 According to some commenters, competitive disparities between providers are sometimes exacerbated by certain barriers to entry or expansion. For example, in addition to MTE-related practices favoring providers already serving such locations,1113 commenters identify policies that they argue disfavor smaller providers1114 and incumbent local exchange carriers.1115 The Commission took action earlier this year to address many of these issues, thereby helping to ensure competitive choice of communications services for those living and working in MTEs.1116 B. The Mobile Wireless Communications Marketplace 392. In the mobile wireless marketplace, there are both regulatory and non-regulatory factors that can affect entry or expansion. Regulatory barriers to entry arise from government regulations, rules, and restrictions that may have the effect of discouraging entry or expansion. For the most part, they are related to the inputs necessary to offer mobile wireless services. Spectrum policy, which affects the spectrum capacity available for mobile wireless services and infrastructure regulations that govern tower and antenna siting, may constitute barriers to entry or expansion. Non-regulatory or market conditions that may determine the number of providers that can operate in the market, or may deter entry or expansion, include efficiencies of size and scale, permanent asymmetries across service providers’ costs, and capital cost requirements, such as those costs incurred in acquiring spectrum or deploying a nationwide network.1117 1110 NTCA Comments at 5-6; INCOMPAS Comments at 28-30. INCOMPAS also argues that the current classification of Internet access service as a non-telecommunications service places attachers seeking to offer such service at a disadvantage. INCOMPAS Comments at 25 & n.61. 1111 INCOMPAS Comments at 26-28; NTCA Comments at 5-6; USTelecom Comments at 23; USTelecom Reply at 11; FSF Reply at 2. 1112 INCOMPAS Comments at 31-32; WISPA Comments at 44-45. In addition, WISPA arguments that state mandatory access laws favoring cable and telecommunications providers over fixed wireless providers are discriminatory and harmful to consumers. WISPA Comments at 45-46. 1113 See INCOMPAS Comments at 30-32. 1114 See, e.g., NTCA Comments at 10-11 (small provider needs for IP interconnection); WISPA Comments at 43-44 (information burdens on small providers with regard to broadband labels). 1115 USTelecom Comments at 20-21; FSF Reply at 2-3, 7-8. 1116 Improving Competitive Broadband Access to Multiple Tenant Environments, GN Docket 17-142, Report and Order and Declaratory Ruling, FCC 22-12, (Feb. 22, 2022), https://docs.fcc.gov/public/attachments/FCC-22- 12A1.pdf. 1117 Relatively high fixed costs in relation to the number of customers may limit the number of firms that can enter and survive in a market. See, e.g., John Sutton, Sunk Costs and Market Structure (1991); Luis Cabral, Introduction to Industrial Organization (2000); Dennis W. Carlton and Jeffrey M. Perloff, Modern Industrial Organization 41 (4th ed. 2005); George S. Ford, et al., Competition After Unbundling: Entry, Industry Structure, and Convergence, 59 Fed. Com. L.J. 59:2, 332, 337 (2007). 226 Federal Communications Commission FCC 22-103 393. Spectrum. The Commission has made significant efforts to make more spectrum available and to reduce the cost of infrastructure deployment. Increasing the total supply of spectrum bandwidth that the Commission allocates and licenses is important, and since the release of the 2020 Communications Marketplace Report, the Commission has continued its efforts to expand access to spectrum to support 5G and other advanced wireless services. The Commission has pursued a comprehensive strategy that emphasizes the need to free up spectrum in the low-, mid-, and high- frequency bands. The demand for mid-band spectrum for 5G networks has especially increased in recent years. Building on the mid-band efforts detailed in the 2020 Communications Marketplace Report, the Commission’s mid-band spectrum strategy over the last two years will further the deployment of 5G, IoT, and other advanced spectrum-based services.1118 394. In February 2021, for example, the Commission concluded Auction 107, which is thus far the largest auction of mid-band spectrum and the highest-grossing spectrum auction overall ever held in the United States.1119 This auction, which commenced on December 8, 2020, made available 280 megahertz of new flexible-use overlay licenses in the 3.7-3.98 GHz band (C-band).1120 In March 2021, the Commission released an order1121 that was the next step towards an auction to grant new initial licenses subject to flexible use in the 3450-3550 MHz (3.45 GHz) band by the end of 2021.1122 In January 2022, bidding in the 3.45 GHz auction (Auction 110) concluded following the close of bidding in the assignment phase.1123 In July 2022, the Commission began the bidding in the auction of mid-band 2.5 GHz band licenses (Auction 108).1124 Auction 108 offered county-sized overlay licenses in the single largest contiguous portion of available mid-band spectrum below 3 GHz, which had been underutilized, particularly in rural areas, for years.1125 Bidding in the auction concluded on August 29, 2022, and of the 1118 2020 Communications Marketplace Report, 36 FCC Rcd 3128-29, para. 324 (detailing actions in the 2.5 GHz, 3.55-3.65 GHz, 3.45-3.55 GHz, and 3.7-4.2 GHz bands). 1119 Auction 107 Closing Public Notice, 36 FCC Rcd at 4318; FCC, Press Release, First Phase of Record-Breaking 5G Spectrum Auction Concludes (Jan. 15, 2021), https://docs.fcc.gov/public/attachments/DOC-369265A1.pdf. 1120 Auction 107 Closing Public Notice, 36 FCC Rcd at 4318, para. 1; Expanding Flexible Use of the 3.7 to 4.2 GHz, GN Docket No. 18-122, Report and Order and Order of Proposed Modification, 35 FCC Rcd 2343, 2345, para. 4 (2020) (3.7 GHz Report and Order), upheld sub nom. PSSI Global Services, L.L.C. v. FCC, 983 F.3d 1 (D.C. Cir. 2020). 1121 Facilitating Shared Use in the 3100-3550 MHz Band, WT Docket 19-348, Second Report and Order, Order on Reconsideration, and Order of Proposed Modification, 36 FCC Rcd 5987 (2021) (3.45 GHz Second Report and Order). 1122 3.45 GHz Second Report and Order, 36 FCC Rcd at 5988, para. 1. In CTIA’s comments, it states that mid-band spectrum is a key factor for 5G because it provides high speeds over a broad coverage area and asserts that the lower 3 GHz band (3.1-3.45 GHz) is a top priority for U.S. wireless interests. CTIA notes that these frequencies are internationally harmonized and sit next to other full-power 5G spectrum, making this swath an ideal fit to provide large channels and the flexibility to be aggregated with other bands. CTIA Comments at 61. 1123 Auction of Flexible-Use Service Licenses in the 3.45-3.55 GHz Band Closes; Winning Bidders Announced for Auction 110, Public Notice, DA 22-39 (WTB/OEA Jan. 14, 2022) (Auction 110 Closing Public Notice). 1124 FCC, Press Release, FCC Starts 5G Mid-Band Spectrum Auction (July 29, 2022), https://docs.fcc.gov/public/attachments/DOC-385771A1.pdf. 1125 Auction of Flexible-Use Licenses in the 2.5 GHz Band for Next-Generation Wireless Services, Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 108, Bidding Scheduled to Begin July 29, 2022, AU Docket No. 20-429, Public Notice, FCC 22-24, at 5-6, para. 7 (Mar. 21, 2022) (Auction 108 Procedures Public Notice); see also FCC, Press Release, FCC Transforms 2.5 GHz Band For 5G Services (July 10, 2019), https://docs.fcc.gov/public/attachments/DOC-358396A1.pdf. 227 Federal Communications Commission FCC 22-103 63 bidders winning a total of 7,872 licenses for total net winning bids exceeding $419 million, 77% of them qualified as small businesses or as entities serving rural communities.1126 395. Spectrum policies are also an important component to providing broadband access to underserved communities. For example, in October 2021, WTB released a public notice seeking to supplement the record in the rulemaking on Modernizing and Expanding Access to the 70/80/90 GHz Bands to address the potential for use of the 71-76 GHz, 81-86 GHz, 92-94 GHz, and 94.1-95 GHz bands to provide broadband Internet access to consumers and communities that may otherwise lack robust, consistent connectivity.1127 The Commission also took steps towards the more efficient use of available spectrum. In July 2022, the Commission adopted a Report and Order creating the Enhanced Competition Incentive Program (ECIP) to establish incentives for wireless licensees to make underutilized spectrum available to small carriers, Tribal Nations, and entities serving rural areas.1128 396. Public Knowledge et al. state that it is of vital importance that the Commission continue the type of balanced spectrum policy it has pioneered in recent years by making new large contiguous blocks of spectrum available for the widest possible range of users on an unlicensed, licensed, and license by rule basis.1129 In CTIA’s comments, it states that, since the last Communications Marketplace Report, the Commission has made meaningful progress in freeing up critical mid-band spectrum for exclusive, licensed use, leading to the first and third highest grossing spectrum auctions to date.1130 CTIA asserts that a myriad of industries and communities have already realized the benefits of 5G, and it urges the Commission to continue to promote spectrum policies that encourage the rapid deployment of these advanced offerings.1131 397. Infrastructure. Wireless infrastructure constitutes another major input in the provision of mobile wireless services. Section 706 of the Telecommunications Act of 1996 directs the Commission to encourage deployment of advanced telecommunications capability by, among other things, “remov[ing] barriers to infrastructure investment.”1132 Encouraging investment in broadband deployment is essential to closing the connectivity gap and combatting digital discrimination, and the Commission has continued its efforts to facilitate the deployment of infrastructure necessary to support modern wireless networks. For example, in January 2021, the Commission released a Report and Order that expanded the Commission’s over-the-air reception devices (OTARD) rule1133 to include hub and relay antennas that are used for the distribution of broadband-only fixed wireless services to multiple customer locations, 1126 Auction of Flexible-Use Licenses in the 2.5 GHz Band Closes; Winning Bidders Announced for Auction 108, AU Docket No. 20-429, Public Notice, DA 22-910, at 1, para. 1 (WTB/OEA Sept. 1, 2022) (Auction 108 Closing Public Notice); see also FCC, Press Release, FCC Concludes 2.5 GHz Spectrum Auction: A Boost Of Mid-Band Spectrum For Rural America (Sept. 1, 2022), https://docs.fcc.gov/public/attachments/DOC-386826A1.pdf. 1127 Wireless Telecommunications Bureau Seeks to Supplement the Record on 70/80/90 GHz Bands Notice of Proposed Rulemaking, WT Docket No. 20-133, Public Notice, DA 21-1263 (WTB Oct. 8, 2021) (70/80/90 GHz Record Public Notice); see also Modernizing and Expanding Access to the 70/80/90 GHz Bands, et al., WT Docket No. 20-133, et al., Notice of Proposed Rulemaking and Order, 35 FCC Rcd 6039 (2020). 1128 ECIP Report and Order at 2, paras. 1-2; see also FCC, Press Release, FCC Establishes Enhanced Competition Incentive Program For Wireless Radio Services (July 14, 2022), https://www.fcc.gov/document/fcc-establishes- enhanced-competition-incentive-program (ECIP Press Release). 1129 Public Knowledge, OTI, and Consumer Reports Reply at 8. 1130 CTIA Comments at viii. 1131 CTIA Comments at viii. 1132 47 U.S.C. § 1302(a). 1133 Updating the Commission’s Rule for Over-the-Air Reception Devices, WT Docket No. 19-71, Report and Order, 36 FCC Rcd 537, 537-38, para. 2 (2021) (OTARD Report and Order). 228 Federal Communications Commission FCC 22-103 regardless of whether they are primarily used for this purpose, provided the antennas satisfy other conditions of the rule.1134 398. CTIA states that the deployments enabled by the Commission’s siting reforms are crucial to meeting consumers’ growing need for wireless data and the development of innovative technology, such as telehealth.1135 CCA states that it agrees with the Commission that supporting the deployment of 5G and other next-generation wireless services through smart infrastructure policy is critical, and CCA emphasizes that the Commission should continue identifying and addressing impediments to infrastructure deployment at the federal, state, and local level.1136 C. The Satellite Marketplace 399. Satellite Services. In recent years, there has been an expanded interest in NGSO orbits, ESIMs, commercial use of small, short-duration satellites for the provision of broadband services to remote locations, Earth observation, and IoT. Some operators are planning to provide services to other satellite service providers to provide data backhaul or satellite mission extension capability. As discussed in section VI, the Commission has acted to remove regulatory barriers in order to enable market-based efficient use of spectrum and facilitate the deployment of these systems. 400. Satellite Fleet Expansion. Recent trends in the satellite industry include investments in GSO and NGSO satellites1137 with the potential to provide download speeds of up to a gigabit per second and simultaneously process a terabit of data per second.1138 For example, Inmarsat’s Global Xpress system delivers high-speed broadband with a GSO constellation made up of Ka-band high speed mobile broadband satellites. 1139 The first Inmarsat-6 satellite, with both Ka-band and L-band payloads, was launched in 2021 and reached geostationary orbit in July 2022, and the second Inmarsat-6 satellite is due to be launched in the first quarter of 2023, with both Inmarsat-6 satellites planned to enter service in 2023.1140 Inmarsat plans to launch the next generation of its Global Xpress satellites in 2023 and 2024, to consist of three geostationary (GSO) satellites and two satellites in highly elliptical orbits (HEO) for coverage to arctic regions.1141 Telesat’s Telestar 19 VANTAGE satellite launched in July of 2018 is part of a new generation of Telesat GSO satellites that combine broad regional beams and high throughput satellite (HTS) spot beams in a design optimized for high bandwidth applications.1142 In November 2021, 1134 Id. at 537, para. 1. 1135 CTIA Comments at 63. 1136 CCA Comments at 8. 1137 Some satellite companies have reported that COVID-19-related supply chain issues have resulted in reductions in the size of planned constellations or delays in the manufacture and deployment of their planned satellites. See, e.g., Telesat Canada, SEC 2021 Form 20-F, at 24-25 (filed Mar. 3, 2022) (Telesat Canada 2021 SEC Form 20-F); EchoStar, Annual Report Year Ended Dec. 31, 2021, at 12 (Mar. 17, 2022), https://ir.echostar.com/static- files/673c54c0-e7ff-4f55-b5ff-05ea33a6ede2; see also Jason Rainbow, Space News, Seeking Regulatory Mercy: The case for extending constellation deployment deadlines (Aug. 17, 2022), https://spacenews.com/seeking-regulatory- mercy-the-case-for-extending-constellation-deployment-deadlines/. 1138 SIA Comments at 11. 1139 Id. at 11-12. 1140 Inmarsat, Press Release, Most Sophisticated Commercial Communications Satellite Ever Reaches Geostationary Orbit, Begins On-orbit Testing (July 25, 2022), https://www.inmarsat.com/en/news/latest- news/corporate/2022/most-sophisticated-commercial-communications-satellite-geostationary-orbit.html. 1141 Inmarsat, Satellites, https://www.inmarsat.com/en/about/technology/satellites.html (last visited Oct. 20, 2022). 1142 SIA Comments at 12; Telesat Canada, SEC 2021 Form 20-F, at 20, 63 (filed Mar. 3, 2022) (Telesat Canada 2021 SEC Form 20-F); Telstar, Telstar 19 VANTAGE Coverage Map, https://www.telesat.com/wp- content/uploads/2022/11/Telstar-19-VANTAGE.pdf (last visited Oct. 20, 2022). 229 Federal Communications Commission FCC 22-103 SES launched its SES-17, a high through-put GSO satellite which is expected to begin delivering broadband connectivity in the second half of 2022.1143 Hughes is currently in the process of constructing its next generation Ultra-High Density GSO Satellite, EchoStar XXIV (also known as Jupiter 3), which it expects to launch in the fourth quarter of 2022.1144 401. As discussed in section II.D, several providers have launched new NGSO satellites to provide low-latency, high-speed broadband, with more planned over the next decade.1145 In 2019, SES completed its 20-satellite O3B medium earth orbit (MEO) constellation. In 2022, SES plans to launch its first batch of O3B mPOWER MEO satellites, as part of an initial constellation of 11 high-throughput, low-latency satellites.1146 OneWeb has a constellation of 428 NGSO low earth orbit (LEO) satellites to provide high speed, low latency connectivity,1147 and began providing service to Alaska in late 2021.1148 SpaceX has launched over 2,600 Starlink NGSO LEO satellites.1149 Kepler has a constellation of 19 satellites in its LEO constellation.1150 Telesat has launched a demonstration satellite for its global LEO constellation,1151 and had plans for 198 LEO satellites, including 10 in-orbit spares, employing polar- orbits and inclined-orbits to provide global coverage and concentrated capacity over areas with high demand.1152 On July 30, 2020, the Commission granted authority to Kuiper Systems LLC (Amazon) to 1143 SES, Annual Report 2021, at 10, 16, 18, https://www.ses.com/sites/default/files/2022- 03/20220301_SES_AR2021_final.pdf (last visited Sept. 2, 2022). 1144 SIA Comments at 12; Echostar Comments at 2; EchoStar Annual Report Year Ended Dec. 31, 2021, at 4 (Mar. 17, 2022), https://ir.echostar.com/static-files/673c54c0-e7ff-4f55-b5ff-05ea33a6ede2. 1145 SIA Comments at 12-13. 1146 Id. at 13; SES, O3b mPOWER, https://www.ses.com/newsroom/o3b-mpower (last visited Aug. 30, 2022); SES, Our Medium Earth Orbit (MEO) Journey, https://www.ses.com/sites/default/files/2022- 06/SES_O3bmPower_PR_timeline_Landscape_2022_Final.pdf (last visited Aug. 30, 2022). 1147 OneWeb, Press Release, OneWeb Confirms Successful Launch of 34 Satellites, Delivering Ongoing Momentum at the Start of 2022 (Feb. 10, 2022), https://oneweb.net/resources/oneweb-confirms-successful-launch-34-satellites- delivering-ongoing-momentum-start-2022; OneWeb, Press Release, OneWeb to resume satellite launches through agreement with SpaceX (Mar. 21, 2022), https://oneweb.net/resources/oneweb-resume-satellite-launches-through- agreement-spacex. 1148 SIA Comments at 13; Capacity, Alaska community first to get broadband via OneWeb satellite (Oct. 22, 2021), https://www.capacitymedia.com/article/29otdn0ylukn01phmg3k0/news/alaska-community-first-to-get-broadband- via-oneweb-satellite. 1149 SIA Comments at 13; SpaceX ESIM and Kepler ESV Order at 1, para. 1. SpaceX has launched more than 3,000 Starlink satellites, of which more than 2,600 are in orbit and functioning. Stephen Clark, Falcon 9 rocket deploys SpaceX’s 3,000th Starlink internet satellite (Aug. 10, 2022), https://spaceflightnow.com/2022/08/10/falcon-9-rocket- deploys-spacexs-3000th-starlink-internet-satellite/. 1150 SIA Comments at 13; Kepler, Press Release, Kepler announces successful launch of 4 new Gen1 satellites including test bed for Aether™ Service (Jan. 13, 2022), https://www.globenewswire.com/en/news- release/2022/01/13/2366739/0/en/Kepler-Communications-Announces-Successful-Launch-of-4-New-GEN1- Satellites-Including-Test-Bed-for-%C3%86THER-Service.html. 1151 Telesat Canada, SEC 2021 Form 20-F, at 70 (filed Mar. 3, 2022) (Telesat Canada 2021 SEC Form 20-F). 1152 SIA Comments at 12; Telesat, Press Release, Telesat to Redefine Global Broadband Connectivity with Telesat Lightspeed, the World’s Most Advanced Low Earth Orbit (LEO) Satellite Network (Feb. 9, 2021), https://www.telesat.com/press/press-releases/manufacturer-announcement/; Telesat Canada, SEC 2021 Form 20-F, at 65-74 (filed Mar. 3, 2022) (Telesat Canada 2021 SEC Form 20-F). A larger Lightspeed constellation was originally planned, but the order was reduced. See Jason Rainbow, Space News, Telesat to order 100 fewer satellites for LEO constellation (May 6, 2022), https://spacenews.com/telesat-to-order-90-fewer-satellites-for-leo- constellation/; Telesat LEO Inc. Response to Comments, SAT-MPL-20200526-00053, SAT-APL-20210104-00002, SAT-APL-20220616-00059 (rec. Aug. 30, 2022) (where Telesat claims that it is no longer requesting that its first- (continued….) 230 Federal Communications Commission FCC 22-103 deploy a LEO constellation of 3,236 satellites designed to increase the availability of high-speed broadband services to consumers, government, and businesses.1153 In April 2022, Amazon signed contracts for up to 83 launches for the bulk of the planned 3,236 “Project Kuiper” satellites.1154 In November 2021, Kinéis, a French satellite company, was granted U.S. market access for its proposed constellation of 25 small LEO satellites to offer connectivity for IoT and maritime domain awareness.1155 402. Technological Innovation. Technological developments in the satellite industry include new satellite launch technologies, and next generation high throughput satellite systems.1156 Advances in launch technology include the development of reusable hardware and vehicles designed to launch smaller satellites.1157 As noted above, several high throughput systems are under construction or have been recently launched. 403. The current period of innovation in the space industry has resulted and will likely continue to result in a significant increase in the number of satellites and types of operations in orbit. The development of less expensive delivery systems, along with the production of small imaging satellites such as CubeSats, has lowered the cost of entry into the satellite imaging business.1158 The Commission has implemented amateur and experimental satellite rules to facilitate use of satellites for scientific and research missions and experimental testing.1159 The Commission recently made available a new, optional licensing process for commercial deployment of small satellites, which allowed small satellite applicants (Continued from previous page) round grant be expanded by the 117 satellites authorized in the grant, but that its “Final Constellation” will be 1,671 satellites). 1153 Kuiper Systems, LLC Application for authority to Deploy and Operate a Ka-band Non-Geostationary Satellite Orbit System, IBFS File No. SAT-LOA-20190704-00057, Order and Authorization, 35 FCC Rcd 8324 (2020). 1154 Amazon, Press Release, Amazon Secures Up to 83 Launches from Arianespace, Blue Origin, and United Launch Alliance for Project Kuiper (Apr. 5, 2022), https://press.aboutamazon.com/news-releases/news-release- details/amazon-secures-83-launches-arianespace-blue-origin-and-united. Amazon contracted for 18 launches on Arianespace’s Ariane 6 rocket, 38 launches with United Launch Alliance’s Vulcan Centaur and 12 launches, with an option for 25 more, with Blue Origin. Id. 1155 Kinéis Petition for Declaratory Ruling to Access the U.S. Market Using a Low-Earth Orbit Satellite System, Order, IBFS File No. SAT-PDR-20191011-00113 Call Sign S3054, Order and Declaratory Ruling, FCC-21-118 (Nov. 19, 2021). The constellation is planned to be placed in orbit in 2023. Kinéis, Une technologie, https://www.kineis.com/une-technologie-de-pointe/ (last visited Aug 30, 2022). 1156 Telesat Canada, 2021 SEC Form 20-F, at 20 (filed Mar. 3, 2022) (Telesat Canada 2021 SEC Form 20-F); Organisation of Economic Cooperation and Development (OECD), The Space Economy in Figures: How Space Contributes to the Global Economy at 108 (2019), https://doi.org/10.1787/c5996201-en. 1157 Organisation of Economic Cooperation and Development (OECD), Broadband Policy and Technology Developments at 43 (2021), https://www.oecd-ilibrary.org/docserver/e273ff77-en.pdf; Organisation of Economic Cooperation and Development (OECD), The Evolving Role of Satellite Networks in Rural and Remote Broadband Access at 21-22 (2017), https://www.oecd-ilibrary.org/science-and-technology/the-evolving-role-of-satellite- networks-in-rural-and-remote-broadband-access_7610090d-en. 1158 Streamlining Licensing Procedures for Small Satellites, IB Docket 18-86, Report and Order, 34 FCC Rcd 13077, 13078, para. 1 (2019) (Small Satellites Report and Order). 1159 The Commission’s rules set forth three different procedures for licensing satellites. Part 25 of the Commission’s rules govern licensing and operation of space stations and earth stations for the provision of satellite communication services, including commercial communication and remote sensing satellites. 47 CFR §§ 25.101-25.702. Part 5 of the Commission’s rules govern experimental operations. 47 CFR §§ 5.1-5.602. Part 97 of the Commission’s rules govern amateur radio service satellite operations. 47 CFR §§ 97.111-97.117, 97.207; see also Guidance On Obtaining Licenses For Small Satellites, Public Notice, 28 FCC Rcd 2555 (2013). 231 Federal Communications Commission FCC 22-103 to choose a streamlined part 25 licensing procedure and thereby take advantage of an easier application process, a lower application fee, and a shorter timeline for review.1160 404. In-space servicing, assembly, and manufacturing (ISAM) is a developing area that could augment the capabilities of existing spacecraft and give rise to new market segments.1161 For example, in 2020, Space Logistics, LLC’s Mission Extension Vehicle-1 (MEV-1) brought a deorbited Intelsat satellite back into service,1162 and in 2021, MEV-2 docked with another Intelsat satellite, which was running low on fuel, and extended its life for five years.1163 In October 2020, SpaceIce was granted an experimental license for a satellite designed to investigate freeze-casting in the microgravity environment. In November 2021, Astroscale Ltd. obtained U.S. earth station authorizations to support its ELSA-d testing of spacecraft capabilities for orbital debris removal, and NanoRacks LLC was granted an experimental license to demonstrate metal-cutting in space.1164 Proposed deployments of large satellite constellations in the intensely used LEO region, along with other satellites deployed in the LEO region, will have the potential to increase the risk of debris-generating events.1165 In April 2020, the Commission updated the Commission’s existing rules regarding orbital debris mitigation, which were adopted in 2004, to provide a clear regulatory framework for applicants for non-Federal satellite communications.1166 On September 30, 2022, the Commission released a Second Report and Order, which adopted new rules requiring satellite operators in low-Earth orbit to dispose of their satellites within five years of completing their missions. The new rules shorten the decades-old 25-year guideline for deorbiting satellites post-mission, taking an important step in a new era for space safety and orbital debris policy.1167 D. The Video and Audio Communications Marketplace 405. Regulatory Barriers. Many video and audio marketplace participants need authorization to operate from either the federal government or a local municipality. In addition, they often are subject to a range of regulations, including technical and interference standards, as well as programming and public interest obligations. As a result, some market participants face barriers to entry or compliance costs that are greater than or different from those of other participants. Many regulated entities, however, 1160 Streamlining Licensing Procedures for Small Satellites, IB Docket 18-86, Report and Order, 34 FCC Rcd 13077, 10378, para. 2 (2019) (Small Satellites Report and Order). The streamlined licensing process is available to commercially deployed small satellite systems as well as other small satellite systems that that also have the option of applying under the amateur or experimental rules. Small Satellites Report and Order, 34 FCC Rcd at 13080-81, para. 12. See also, e.g., Satellite Policy Branch Information Actions Taken, Public Notice, DA 20-1226 (IB Oct 16, 2020); Satellite Policy Branch Information Actions Taken, Public Notice, DA 21-630 (IB May 28, 2021) (granting authority for earth exploration satellite service to Loft Orbital Solutions, Inc.); Satellite Policy Branch Information Actions Taken, Public Notice, DA 20-1502 (IB Dec. 18, 2020) (granting authority for earth exploration satellite service to R2 Space, Inc. and Capella Space Corp. under the streamlined small satellite procedures). 1161 ISAM missions include satellite refueling, inspecting and repairing in-orbit spacecraft, capturing and removing debris, and transforming materials through manufacturing while in space. 1162 See Northrop Grumman, Space Logistics, https://www.northropgrumman.com/space/space-logistics-services/ (last visited Aug. 16, 2022). 1163 See Jason Rainbow, Space News, MEV-2 servicer successfully docks to live Intelsat satellite (Apr. 12, 2021), https://spacenews.com/mev-2-servicer-successfully-docks-to-live-intelsat-satellite/. 1164 Space Innovation Notice of Inquiry at 2-3, para. 5. 1165 Orbital Debris Report and Order and Further Notice, 35 FCC Rcd at 4156, 4158-59, paras. 3-4. Orbital debris, also known as “space debris,” consists of artificial objects orbiting the Earth that are not functional spacecraft. Orbital Debris NPRM, 33 FCC Rcd at 11353-54, para. 2. 1166 Orbital Debris Report and Order and Further Notice, 35 FCC Rcd at 4157, para. 2. 1167 Orbital Debris Second Report and Order at 2, para. 4. 232 Federal Communications Commission FCC 22-103 hold exclusive spectrum licenses and/or often enjoy a strong position as the legacy service provider in the marketplace. We discuss below a few of the basic regulatory issues that industry participants confront. 406. Broadcast television and radio stations operate pursuant to a license from the Commission and must receive authorization before they may construct and operate in the United States.1168 Further, broadcast stations are subject to the Communications Act of 1934, as amended, and regulations promulgated by the Commission thereunder. In allocating and authorizing broadcast stations, the Commission is charged with ensuring that such stations are distributed across the country and licensed to communities in a manner that serves the public interest.1169 In addition, licensees of broadcast stations must comply with certain obligations and rules to ensure that the licensed spectrum is used to serve the public interest.1170 These include structural limits governing ownership of broadcast television and radio stations.1171 Broadcast licenses are awarded for an eight-year term that can be renewed upon application and Commission approval.1172 407. Licenses for new commercial broadcast television and radio stations are awarded by auction. In June 2022, the Commission auctioned construction permits for 27 full power television stations.1173 This was the first full power television auction opportunity since 2011. While authorizations for new radio stations are available from the Commission periodically, in 2021, the Commission auctioned new construction permits for 135 commercial FM and four AM radio stations 1174—frequencies for radio stations are typically in high demand.1175 In fact, in many areas of the country no frequencies are available on which a new station could commence operation without causing impermissible interference to existing stations.1176 As a result, the Commission does not allocate many new broadcast radio stations, and stations that are allocated tend to be outside the top markets and for lower power. Given the limited number of new broadcast licenses, particularly in the television service or in large metropolitan areas, new entrants typically enter the broadcast television or radio business by purchasing a construction permit, a station, or a group of stations on the secondary market (i.e., by purchasing from an existing permittee or station owner). 408. MVPDs must obtain appropriate regulatory authority before providing video services and are subject to several Commission rules implicating the operation of their services, which vary depending on whether the entity is a cable MVPD or a non-cable MVPD.1177 These rules include regulations that govern an MVPD’s franchising and licensing, effective competition, program carriage, program access, must-carry and retransmission consent, protection of exclusive broadcast distribution rights, public interest programming, access to multiple dwelling units, and over-the-air reception devices.1178 1168 47 U.S.C. § 301. The Commission licenses broadcast spectrum to respective applicants and approves any assignment or transfer of control of broadcast licenses. Id. §§ 303(c), 308(a), 309(a), 310(d). 1169 Id. §§ 303, 307. 1170 Id. §§ 301, 303(c), 308(a), 309(a), 310(d). 1171 47 CFR § 73.3555. 1172 Id. § 73.1020. 1173 See infra section VI.D. 1174 Id. 1175 In addition, in 2021, the Commission opened a filing window for parties seeking construction permits for new Noncommercial Educational (NCE) FM stations. See id. 1176 See, e.g., FCC, How to Apply for a Radio or Television Broadcast Station, https://www.fcc.gov/media/radio/how-to-apply (last visited Oct. 6, 2022). 1177 See, e.g., 18th Video Competition Report, 32 FCC Rcd at 578-79, para. 25. 1178 Id. 233 Federal Communications Commission FCC 22-103 409. In addition to broadcast radio stations, the Commission has authorized satellite digital audio radio service (SDARS). Because there are no additional SDARS licenses available, any new entity wishing to provide SDARS service would be required to purchase licenses from SiriusXM, the only incumbent provider in the marketplace. In addition, because the service is delivered via satellite, SDARS requires a significant capital investment for operation.1179 410. Online audio and video providers generally are not subject to Commission regulation.1180 Nonetheless, statutes and regulations that are outside of the Commission’s purview can also have a competitive impact on non-broadcast service providers. For example, under federal copyright law, AM and FM radio stations, unlike other audio platforms, do not pay performance rights fees for sound recordings they transmit via over-the-air (OTA) broadcasts.1181 musicFIRST Coalition and Future of Music Coalition (musicFIRST/FMC) argue that this gives broadcast radio stations a significant competitive advantage over other audio delivery services.1182 The National Association of Broadcasters (NAB) responds that radio broadcasters pay royalties to the composers of the music they air OTA and stream online, and that broadcasters that webcast also pay performance rights fees to record labels and performers when they stream copyrighted sound recordings online.1183 Moreover, NAB disagrees that this differential treatment under copyright law confers any significant competitive advantage to terrestrial radio broadcasters, because terrestrial radio broadcasters must provide their OTA product for free and have many costs and burdens that do not apply to satellite and online marketplace competitors.1184 411. Marketplace Barriers. ACA Connects argues that programming and retransmission consent fees continue to rise, along with requirements that MVPDs carry lower-rated programming and multicast signals to receive the higher-rated channels and stations their customers want.1185 ACA Connects maintains that these challenges disproportionately affect smaller MVPDs (and ultimately their customers) as compared to larger MVPDs due to greater imbalances in bargaining power against cable programmers and broadcasters.1186 ACA Connects contends that the problems are particularly dire when it comes to retransmission consent as broadcasters have further consolidated and used their market power to extract escalating fees from MVPDs.1187 Most recently, according to ACA Connects, broadcasters have increased demands to pay for multicast channels as part of retransmission consent renewal agreements.1188 Further, although small and medium-sized MVPDs have sought to diminish retransmission consent fees by negotiating with broadcasters through buying groups, the buying groups did not meaningfully narrow the gap between what large and small MVPDs pay for retransmission consent.1189 According to DIRECTV, retransmission consent fees represent the fastest growing segment of programming costs.1190 1179 See SDARS Second Further Notice, 22 FCC Rcd at 22150, Appx. B. 1180 There are some exceptions. For example, the Commission’s closed captioning rules, 47 CFR § 79.4, require programming distributed via IP to be captioned if the programming was previously shown on television with captions. 1181 musicFIRST/FMC Comments at iv, 18; musicFIRST/FMC Reply at 3; NAB Reply at 19-20. 1182 musicFIRST/FMC Comments at iv, 18-22; musicFIRST/FMC Reply at 3-4. 1183 NAB Reply at 20. 1184 Id. at 21-25. 1185 ACA Connects Comments at 12. 1186 Id. 1187 Id. at 13. 1188 Id. at 15. 1189 Id. at 18-19. 1190 DIRECTV Comments at 2. 234 Federal Communications Commission FCC 22-103 DIRECTV blames the higher fees on the increased local and national consolidation of broadcasters, which gives broadcasters greater leverage in negotiating with MVPDs.1191 412. INCOMPAS explains that consumers are actively seeking alternatives to traditional MVPDs because of general dissatisfaction with increasing prices and an increase in program carriage disputes between MVPDs and broadcasters and cable networks.1192 INCOMPAS maintains, however, that these services face a highly concentrated marketplace for broadband internet access with almost 80% of the residential last mile broadband being served by only four companies: Comcast, Charter, AT&T, and Verizon.1193 INCOMPAS suggests that vertically integrated broadband providers and vertically integrated MVPDs may have incentives to engage in discriminatory practices.1194 413. NTCA argues that substantial and ongoing increases in retransmission consent fees have resulted in several MVPDs being forced to discontinue offering video service.1195 And a survey of NTCA’s members found that nearly all respondents that are considering or have definite plans to discontinue their video service cite increased programming costs and the difficulty of negotiating retransmission consent agreements as causes for the decision.1196 414. According to musicFIRST/FMC, consolidation of AM/FM radio stations has limited competition by allowing a small number of entities to acquire the majority of AM/FM stations.1197 They argue that consolidation resulted in large scale layoffs of local on-air and programming workforce and fewer airplay decisions being made in the local communities that stations serve.1198 MusicFIRST/FMC contend that independent commercial radio stations have been harmed by the consolidation of radio by virtue of having to compete against large radio clusters that wield outsized market share.1199 With their focus on intramodal competition, musicFIRST/FMC maintain that further consolidation of FM stations will harm “the relatively few remaining owners of commercial FM stations in local markets that are either stand-alone FM stations or are part of smaller local commercial clusters.”1200 415. Redrock Broadcasting argues consolidation should be limited so that no entity can hold more than 30% of the available radio or television station licenses in any market.1201 According to Redrock Broadcasting, this limit “will ensure competition, better local service to each community, freedom from predatory pricing practices that can injure local merchants, and provide an opportunity for single small operators, minorities, women and community groups to own stations to have a voice in their hometown.”1202 416. Rural Media Group (RMG) argues that the vertical integration of MVPDs has restricted access to independent cable networks and left rural viewers with fewer programming options.1203 RMG 1191 Id. at 3-4. 1192 INCOMPAS Comments at 36. 1193 Id. at 38. 1194 Id. at 38-39. 1195 NTCA Comments at 14. 1196 Id. at 14-15. 1197 musicFIRST/FMC Comments at 5. 1198 Id. at 5-6. 1199 Id. at 7; musicFIRST/FMC Reply at 2-3. 1200 musicFIRST/FMC Reply at 5. 1201 Redrock Broadcasting Comments at 2. 1202 Id. 1203 RMG Comments at 13-16. 235 Federal Communications Commission FCC 22-103 maintains that its programming on RFD-TV and the Cowboy Channel, which includes coverage of commodities and food supply chain issues, horses and ranching, rodeo, regional music, and rural lifestyle is not replicated by other cable networks.1204 According to RMG, many of the largest MVPDs refuse to carry RFD-TV and the Cowboy Channel, channels that serve rural communities.1205 When reviewing transactions, RMG encourages the Commission and policymakers to ensure that independent rural programming like RFD-TV can continue to obtain carriage on rapidly consolidating MVPD systems.1206 RMG reports that since filing its initial comments, a bipartisan Senate coalition introduced a resolution titled “Recognizing the need for greater access to rural and agricultural media programming,” that highlights many of the same concerns that RMG raised in its comments.1207 417. The Affiliates Associations maintain that “despite the proliferation of new content sources, there has been no significant new entrant into the local news space.”1208 According to Affiliates Associations, this makes the service provided by local broadcasters to their communities even more important.1209 The Affiliates Associations explain that vMVPDs, which are not subject to retransmission consent regulations, negotiate with broadcast networks rather than with local broadcasters.1210 They argue that direct negotiations between broadcast stations and vMVPDs would enable broadcasters to receive fair compensation and increased carriage of multicast channels.1211 Affiliates Associations want the Commission to classify vMVPDs as MVPDs for purposes of the retransmission consent rules.1212 Affiliates Associations also argue that the giant tech platforms use broadcasters’ own local news and public affairs programming without paying fair compensation.1213 418. NAB asserts that giant technology platforms “control the technologies that power both content discovery (search) and digital advertising, permitting them to make unilateral decisions and impose policies that impede broadcasters’ ability to connect with their audiences and to monetize their own content online.”1214 NAB argues that broadcasters compete against much larger competitors and need to achieve increased scale economies to remain economically viable.1215 NAB maintains that the Commission should reject requests to focus on intramodal competition and recognize that radio’s toughest competition “comes not from other terrestrial radio stations but from internet companies often owned by vastly larger entities, including the biggest tech platforms.”1216 According to NAB, TV broadcasters are hopeful that the multicasting capabilities of ATSC 3.0 will help them grow audiences and attract advertisers.1217 1204 Id. at 10. 1205 Id. at 16-19. 1206 Id. at 14. 1207 RMG Reply at 1-5. 1208 Four Network Affiliates Associations Reply at 5. 1209 Id. at 5-7. 1210 Id. at 11. 1211 Id. at 11-13. 1212 Id. at 14. 1213 Id. at 16-17. 1214 NAB Comments at 3-4; NAB Reply at 3-4. 1215 NAB Comments at 29, 35-36. 1216 NAB Reply at 11-18. 1217 NAB Comments at 45. 236 Federal Communications Commission FCC 22-103 V. CONNECTIVITY AND COVID-19 419. The COVID-19 pandemic resulted in unprecedented disruptions to life in America, as it did around the world. The temporary closures of in-person schools, businesses, and workplaces transformed the way that Americans learn, work, and engage in social and economic activities, with significant shifts from physical spaces to virtual settings. According to a Pew survey of U.S. adults in April 2021, 90% of adults say the Internet has been essential or important to them personally, 93% of parents with K-12 children at home say their children had some online instruction, and 81% of adults talked with others via video calls at some point since the onset of the pandemic.1218 Many Americans have had to adapt to their new digital reliance. The COVID-19 pandemic has also highlighted the role innovative technologies play in improving public safety and preventing the spread of infection.1219 For example, about 40% of Americans reported that they use technology or the Internet in ways that were new or different to them, and approximately 29% of U.S. broadband users took actions to increase the speed, reliability, or quality of their Internet connection after the onset of the COVID-19 pandemic.1220 420. Among the most pronounced changes in Americans’ activities in response to the pandemic was the shift to telework. Telework accounted for an average of 48.6% of paid working days between May 2020 and March 2021, nearly ten times the pre-pandemic level.1221 As state and local governments started to loosen their COVID-19 restrictions, firms continued to report flexibility in work arrangements. The Federal Reserve Bank of Atlanta estimated that as of January 2021, 34.3% of full- time employees in the private sector were teleworking at least one day a week.1222 A Bureau of Labor Statistics 2021 Business Response Survey conducted between July and September 2021 indicated that 22% of jobs continued to involve teleworking at least some of the time.1223 Taking advantage of the ability to work from anywhere, many employees moved from dense metropolitan cities to smaller towns or rural and suburban areas.1224 Although increasing numbers of workers are returning to their office, telework is expected to remain a significant aspect of the labor market post-pandemic.1225 421. Fixed Broadband. When millions of Americans were ordered to stay home and many activities shifted online, ISPs experienced tremendous increases in network demand. Fixed residential connections increased by 6.6% from 2019 to 2020, doubling the growth rate of 3.3% from 2018 to 2019. 1218 Pew Research Center, The Internet and the Pandemic at 1-2, 8 (2021), https://www.pewresearch.org/internet/wp- content/uploads/sites/9/2021/09/PI_2021.09.01_COVID-19-and-Tech_FINAL.pdf (Pew Pandemic Research Report). 1219 CTA Comments at 2-3. 1220 Pew Pandemic Research Report at 2. 1221 Jose Maria Barrero, Nickolas Bloom & Steven J. Davis, Why Working from Home Will Stick, NBER Working Paper 28731, at 9 (2021), https://www.nber.org/system/files/working_papers/w28731/w28731.pdf. 1222 Federal Reserve Bank of Atlanta, WFH is Onstage and Here to Stay, Chart 1 (Feb. 24, 2021), https://www.atlantafed.org/blogs/macroblog/2021/02/24/wfh-onstage-and-here-to-stay. 1223 U.S. Bureau of Statistics, Telework during the COVID-19 pandemic: estimates using the 2021 Business Response Survey (Mar. 2022), https://www.bls.gov/opub/mlr/2022/article/telework-during-the-covid-19- pandemic.htm#:~:text=Loewenstein%20found%20that%2C%20between%20October,teleworking%20because%20o f%20the%20pandemic.&text=The%20Federal%20Reserve%20Bank%20of,least%201%20day%20per%20week. 1224 WISPA Comments at 16 (employees moving out of the densest parts of big cities “with more than 10,000 people per square mile, jumped 17% to about 2.9 million during the first year of the pandemic, from March 2020 to February 2021”). 1225 OECD ECOSCOPE, Telework after COVID-19: survey evidence from managers and workers on implications for productivity and well-being (July 28, 2021), https://oecdecoscope.blog/2021/07/28/telework-after-covid-19- survey-evidence-from-managers-and-workers-on-implications-for-productivity-and-well-being/; see also WISPA Comments at 16-17. 237 Federal Communications Commission FCC 22-103 Connections continued to grow at a rate of 3.6% from 2020 to 2021.1226 Multiple sources reported how the COVID-19 pandemic impacted traffic on networks in the United States, with the increased traffic estimates ranging between 20% and 40% during the early stages of the pandemic.1227 422. Mobile Wireless. During the COVID-19 pandemic lockdown, the surging demand for connectivity also affected mobile wireless service. CTIA reports the shift in demand based on data from AT&T, T-Mobile, UScellular, and Verizon Wireless on a weekly basis for each Monday between March 23, 2020 and July 27, 2020 compared to each provider’s average of pre-pandemic Mondays between February 24 and March 13, 2020.1228 During this period, these major wireless providers saw a 25% increase in texting.1229 Voice minutes increased by up to 24.3% on the first Monday (March 23, 2020) during the tracking period, compared to the pre-pandemic baseline.1230 Although demand for voice remained higher than the pre-pandemic levels, the voice minutes used gradually trended down compared to the peak at the beginning of the COVID-19 pandemic. On July 27, 2020, the highest voice minutes reported by the four providers was only 12.2% higher than its pre-pandemic levels.1231 In contrast, although data usage increased by up to 9.2% on March 23, 2020 compared to the pre-pandemic baseline, the demand for mobile data contracted between mid-April and mid-May as consumer mobility was 1226 See supra Fig. II.A.10 (staff calculations based on the total fixed terrestrial residential connections for any reported speeds—101.277 million connections in 2018, 104.629 million connections in 2019, 111.528 million connections in 2020, and 115.541 million connections in 2021). 1227 2020 Communications Marketplace Report, 36 FCC Rcd at 3164, para. 420; see also Broadband Internet Technical Advisory Group (BITAG), 2020 Pandemic Network Performance at 4 (2021), https://www.bitag.org/documents/bitag_report.pdf (“Large cable operators reported downstream traffic growing 20% and upstream traffic growing 35%, while smaller cable operators reported downstream growing 27% and upstream growing 36% during the shelter-in-place orders”) (BITAG Report); NTCA, Tele-Everything and Its Impact to The Network at 4 (2020), https://www.nctatechnicalpapers.com/Paper/2020/2020-tele-everything-and-its- impact-to-the-network/download (“Peak upstream utilization occurred the week ending April 18, 2020, with a 35% increase over the pre-shutdown levels. For downstream traffic, the largest change in peak utilization occurred for the week ending March 28, 2020, at 20%.”); Recon Analytics, U.S. Broadband Network Performance During COVID-19 and Beyond at 2 (2021), http://reconanalytics.com/2021/11/us-broadband-network-performance-during- covid-19-and-beyond/ (“Internet traffic increased significantly: fiber/copper traffic peaked at 27.3% above pre- pandemic levels; mobile internet traffic hit the highest point at 22.6% above pre-pandemic levels; and cable internet peak utilization crested at 22.1% above pre-pandemic levels.”). See also NCTA Comments at 5 (NCTA tracked the performance of cable broadband networks between March 2020 and July 2021 and shows in the figure that both upstream and downstream peak traffic growth accelerated throughout 2020 and remained at the relatively high levels in 2021.); INCOMPAS Comments at 10; USTelecom Comments at 12 (“In 2020 alone, broadband usage increased by 40 percent over the prior year.”); WISPA Comments at 17 (“In 2020, WISPA reported the results of a member survey showing that consumer demand for broadband increased more than 35 percent during the early stages of the pandemic. Since January 2021, individual WISPA members have reported steady 12 percent year-over-year growth (including churn) for the number of installation for residential customers . . . Per customer usage of bandwidth also has increased. As one WISPA member reported, “[b]efore Covid the average usage was 7-10 mbps, now it’s 11 mbps to 50 mbps.”). 1228 CTIA, The Wireless Industry Responds to COVID-19, https://www.ctia.org/covid-19 (last visited Oct. 6, 2022) (CTIA COVID-19 Website). 1229 CTIA, How Wireless Kept Americans Connected During COVID-19 (June 23, 2020), https://www.ctia.org/news/report-how-wireless-kept-americans-connected-during-covid-19. 1230 Id.; see also CTIA Comments at 5 (“The wireless industry routed 2.9 trillion minutes of voice traffic in 2020, an average of 8,900 minutes per person. At the beginning of the pandemic, voice traffic increased 20-40 percent on wireless networks. This is all the more significant because nearly 80 percent of voice connections in the United States are wireless.”). 1231 Id. 238 Federal Communications Commission FCC 22-103 severely restricted by the stay-at-home orders.1232 As the stay-at-home orders were gradually lifted, individual movements were on the rise, and demand increased again.1233 By July 27, 2020, the highest increase in demand for wireless data reported by the four providers was 28.4% higher than its pre- pandemic levels as shown in Figure V.1.1234 Overall mobile wireless data traffic reached a record 42 trillion megabytes in 2020. This growth represents a 207% increase in traffic since 2016 and a 108-fold increase in mobile traffic since 2010.1235 The change in mobile wireless data usage patterns is documented in detail in section II.B.1.d. Fig. V.1 Upper Range of Increase in Mobile Data Use Reported Weekly by the Top 4 Providers for each Monday Compared with the Average of Mondays from 2/4-3/16/2020 Source: CTIA COVID-19 Website. 423. The surge in demand for wireless broadband service induced by the COVID-19 pandemic lockdown resulted in a slight decrease in average download speeds on mobile networks during the first few weeks since network capacity was initially constrained in the near-term. The weighted average mobile broadband download speed in the United States went from 44 Mbps on March 13, 2020 to 41 Mbps on March 29, 2020, according to the Ookla Speedtest data.1236 The slowdown of mobile broadband 1232 CTIA COVID-19 Website; see also Francesco Rizzato, Opensignal, Analyzing mobile data consumption and experience during the COVID-19 pandemic (Oct. 5, 2020), https://www.opensignal.com/2020/10/05/analyzing- mobile-data-consumption-and-experience-during-the-covid-19-pandemic (Opensignal COVID-19 Mobile Data Report). 1233 CTIA COVID-19 Website. 1234 Id. 1235 CTIA Comments at 2; see also CTIA, 2021 Annual Survey Highlights at 8 (July 27, 2021), https://www.ctia.org/news/2021-annual-survey-highlights (2021 CTIA Annual Survey Highlights). 1236 Anna-Maria Kovacs, U.S. broadband networks rise to the challenge of surging traffic during the pandemic, at 5, Fig. 3 (2020), https://www.ustelecom.org/wp-content/uploads/2020/06/PP-2020-06-Kovacs-internet- performance.pdf. 239 Federal Communications Commission FCC 22-103 speed was short-lived, however, and on April 26, 2020, the average download speed had increased to 45 Mbps.1237 424. Video. As noted above, traditional MVPD subscriptions have been falling since 2013. Figure II.A.2 above shows that the greatest decline in traditional MVPD subscribers took place in 2020 (a loss of 7.3 million subscribers from 2019). The COVID-19 pandemic likely contributed to this decline, although large declines were seen in 2019 and 2021 as well.1238 The COVID-19 pandemic may have also fueled growth for SVOD services.1239 From 2019 to 2020, Figure II.E.9 shows that SVOD subscriptions increased by 68.9 million, an increase of approximately 31%. 425. Figure II.E.17 above shows that broadcast TV station advertising revenue decreased between 2019 and 2020. Both local and national advertising revenue earned by broadcast TV stations declined by more than 15%, but we note that because 2020 was an election year, political advertising revenue was up significantly from 2019. Therefore, total advertising revenue for broadcast TV stations, which includes national advertising, local advertising, political advertising, and online advertising, fell by only about 4%, and total station revenue was up by less than 1% due to an increase in retransmission consent revenue. In 2021, local and national advertising revenues increased but they did not return to pre- pandemic levels. 426. There is some evidence that people watched more video programming during the first year of the COVID-19 pandemic. Figure V.2 shows time spent watching TV per day from the Bureau of Labor Statistics’ American Time Use Survey.1240 The figure shows that time spent watching TV in the third and fourth quarters of 2020 was higher than in the same quarters in 2019. The survey shows that average minutes spent watching TV per day increased 16.8 minutes from 155.4 to 172.2 minutes from third quarter 2019 to third quarter 2020. From fourth quarter 2019 to fourth quarter 2020, time spent watching TV increased 18.5 minutes from 171.7 to 190.2 minutes. Although there is evidence that time spent watching video increased during the first year of the COVID-19 pandemic, it is unclear whether video viewing habits have shifted permanently. By the second quarter of 2021, time spent watching TV was similar to its 2019 level. 1237 CTIA Comments at 5. 1238 From 2018 to 2019, MVPD subscriptions fell by 6.5 million and from 2020 to 2021, MVPD subscriptions fell by 6.7 million. 1239 See NAB Comments at 3, 14; MPA Reply at 2. 1240 The American Time Use Survey defines time watching television as any time people report their main activity involved watching television, videos, or movies. This includes time spent watching live programming, DVDs, or streaming services on television sets, computers, and portable devices. Rachel Krantz-Kent, U.S. Bureau of Labor Statistics, Television, capturing America’s attention at prime time and beyond at 2 (Sept. 2018), https://www.bls.gov/opub/btn/volume-7/pdf/television-capturing-americas-attention.pdf. 240 Federal Communications Commission FCC 22-103 Fig. V.2 Time Spent Watching TV per Day (2011-2021, quarterly) Source: Bureau of Labor Statistics, American Time Use Survey, Average Time per Day – Watching TV, all persons 15+, Series ID: TUU10101QA01014236, https://data.bls.gov/PDQWeb/tu (last visited Oct. 6, 2022). Note: Data collection issues prevent the publication of 2020 Q1 and Q2 estimates. 427. Audio. The COVID-19 pandemic had a significant impact on the advertising revenue of terrestrial broadcast radio stations. Total broadcast radio revenue declined 24.2% from 2019 to 2020.1241 This decline was likely due to reduced radio listening in cars while commuting because of increased teleworking as well as a decline in demand for advertising by businesses.1242 In 2021, radio station revenue was still 17.1% lower than its 2019 level.1243 428. FCC Actions in Response to the COVID-19 Pandemic. The Commission undertook several initiatives to provide temporary regulatory flexibility to ensure Americans stayed connected. For instance, the Commission waived the strict geographic requirement to allow affiliated competitive eligible telecommunications carriers (ETCs) to spend their universal service support in any affiliated ETC’s designated service area so they can respond to the COVID-19 pandemic by spending funds where they were needed most.1244 The Commission also issued several waivers and extensions for the Rural Health Care, E-Rate, and Lifeline program rules and deadlines to ensure connectivity for various needs.1245 To help wireless service providers meet increased consumer demand for broadband during the COVID-19 pandemic, the Commission issued more than 200 grants of Special Temporary Authority (STA) to use additional spectrum to wireless service providers.1246 For instance, the Commission granted requests for 1241 Justin Nielson, S&P Global, US TV and radio station ad projections 2022-32: Political offsets dwindling core (July 15, 2022). 1242 See NAB Comments at 23–27; musicFIRST/FMC Comments at 11; Justin Nielson, S&P Global, US TV and radio station ad projections: Post-pandemic bump (June 17, 2021). 1243 Justin Nielson, S&P Global, US TV and radio station ad projections 2022-32: Political offsets dwindling core (July 15, 2022). 1244 2020 Communications Marketplace Report, 36 FCC Rcd at 3166, para. 427; Connect America Fund, WC Docket No. 10-9-, Order, 35 FCC Rcd 2964. 1245 Id. at 3167-68, paras. 428-30. 241 Federal Communications Commission FCC 22-103 STAs to more than 100 Wireless ISPs for temporary access to the lower 45 megahertz of the 5.9 GHz band to expand and improve broadband service provided largely in rural and suburban communities.1247 429. COVID-19 Telehealth Program. One critical component of the Commission’s pandemic response has been the COVID-19 Telehealth Program. The Commission established the COVID-19 Telehealth Program in 2020 pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020.1248 The COVID-19 Telehealth Program distributes funding appropriated by Congress to help health care providers furnish telehealth services to patients at their homes or mobile locations in response to the COVID-19 pandemic.1249 Between April 16, 2020 and July 8, 2020, the Commission approved 539 funding applications in 47 states plus the District of Columbia and Guam for a total of $200 million in funding.1250 430. In December 2020, Congress appropriated another $249.95 million for a second round of funding to be distributed by the Commission.1251 On March 29, 2021, the Commission adopted a new order to establish a second round of the COVID-19 Telehealth Program to fund telehealth and connected care services as required by Congress in the Consolidated Appropriations Act, 2021 (Consolidated Appropriations Act).1252 During this second round of the program, the Commission approved applications by 446 health care providers and awarded more than $256 million in funding.1253 Over the course of the two funding rounds, the COVID-19 Telehealth Program has approved 985 awards to health care providers in each state, territory, and the District of Columbia.1254 431. Emergency Broadband Benefit (EBB) and the Affordable Connectivity Program (ACP). At Congress’s direction, the Commission has established a series of programs designed to offer discounted broadband service and connected devices to help low-income households get connected and stay connected to work, school, family, and social services. The EBB Program was established as a response to the COVID-19 pandemic, which accentuated concern about broadband affordability problems that disproportionately affected low-income households.1255 On May 12, 2021, the Commission launched the EBB Program,1256 with a $3.2 billion appropriation through the Consolidated Appropriations Act of (Continued from previous page) 1246 Id. at 3165, para. 424; see also CTIA Comments at 7. 1247 Id. at 3165, para. 424; see also WISPA Comments at 23 (“More than 200 WISPs have obtained STAs in this band.”). 1248 COVID-19 Telehealth Program, Promoting Telehealth for Low-Income Consumers, WC Docket No. 20-89, Report and Order, 35 FCC Rcd 3366 (2020). 1249 Wireline Competition Bureau Announces Covid-19 Telehealth Program Application Portal Will Open Monday, WC Docket No. 20-89, Public Notice, 35 FCC Rcd 3076 (WCB 2020). 1250 2020 Communications Marketplace Report, 36 FCC Rcd at 3166, para. 426. 1251 COVID-19 Telehealth Program, Promoting Telehealth for Low Income Consumers, WC Docket No. 20-89, Report and Order and Order on Reconsideration, 36 FCC Rcd 7141, 7142-43, paras. 2-3 (2021) (COVID-19 Telehealth Round Two Order). 1252 COVID-19 Telehealth Round Two Order, 36 FCC Rcd at 7141-42, para. 1. 1253 See FCC, COVID-19 Telehealth Program (Invoices & Reimbursements), Final List of COVID-19 Telehealth Program Round 2 Awardees (June 30, 2022), https://www.fcc.gov/covid-19-telehealth-program-invoices- reimbursements. 1254 Id. 1255 Emergency Broadband Benefit Program, WC Docket No. 20-445, Report and Order, 36 FCC Rcd 4612, 4613, para. 1 (2021) (EBB Program Report and Order); see also Pew Pandemic Research Report at 5-6. 1256 Wireline Competition Bureau Announces Emergency Broadband Benefit Program Launch Date, WC Docket. No. 20-445, Public Notice, 36 FCC Rcd 7614 (WCB 2021) (EBB Launch Date Public Notice). The Commission established the EBB Program rules in the EBB Program Report and Order. 242 Federal Communications Commission FCC 22-103 2021.1257 The EBB Program provided eligible low-income households with a monthly discount off the cost of broadband service and certain connected devices during an emergency period relating to the COVID-19 pandemic, and participating providers could receive a reimbursement for such discounts.1258 432. Through the EBB Program, participating broadband providers offered eligible households a monthly discount of up to $50 off the standard rate of broadband service, or up to $75 on Tribal lands.1259 Participating providers could also offer an eligible household a connected device, such as a laptop, desktop computer, or tablet, at a discounted price and receive a reimbursement of up to $100, provided that the eligible household is charged a co-payment of more than $10 but less than $50 toward the purchase of the device.1260 A household qualified for the EBB Program if at least one member of the household: (1) met the qualifications for participation in the Lifeline program; (2) had applied for and been approved to receive benefits under the free and reduced price lunch program or the school breakfast program; (3) had experienced a substantial loss of income since February 29, 2020; (4) had received a Federal Pell Grant in the current award year; or (5) met the eligibility criteria for a participating provider’s existing low-income or COVID-19 program.1261 The EBB Program ended on December 31, 2021 and was immediately replaced by the ACP.1262 433. Congress created the ACP as part of its investment in broadband affordability, deployment, and access in the November 2021 Infrastructure Investment and Jobs Act (Infrastructure Act).1263 In establishing the ACP, Congress made several changes to the EBB Program to transform it from an emergency program designed to respond to a public health crisis to a longer-term broadband affordability program, and appropriated to the Commission an additional $14.2 billion for the program.1264 Under the ACP, eligible households can receive a discount of up to $30 per month, with an enhanced benefit of up to a $75 monthly discount available for eligible consumers on qualifying Tribal lands, off the price of broadband service. Like the EBB Program, the ACP provides a one-time discount of up to $100 for a laptop, desktop, or tablet per household, provided that the household contributes more than $10 but less than $50 toward the cost of the device.1265 As with the EBB Program, a household qualifies for the ACP if a member of the household (1) qualifies for Lifeline; (2) had applied for and been approved to receive benefits under the free and reduced price lunch program or the school breakfast program; (3) had received a Federal Pell Grant in the current award year; or (4) meets the eligibility criteria for a participating provider’s existing low-income program, subject to approval by the Commission.1266 The Infrastructure Act expanded eligibility to those households with a member that receives assistance through the Special Supplemental Nutritional Program for Woman, Infants, and Children (WIC) and 1257 Consolidated Appropriations Act, 2021, Pub. L. No. 116-260, 134 Stat. 1182 (2020), https://www.congress.gov/bill/116th-congress/house-bill/133/text (Consolidated Appropriations Act). 1258 Consolidated Appropriations Act, 2021, Pub. L. No. 116-260, 134 Stat. 1182, 2130, 2135, div. N, tit. IX, div. N, tit. V, § 904(i) (2020). 1259 EBB Program Report and Order, 36 FCC Rcd at 4614, para. 4. 1260 Id. at 4614, para. 5. 1261 Id. at 4631, para. 43. 1262 Affordable Connectivity Program; Emergency Broadband Benefit Program, WC Docket Nos. 21-450, 20-445, Report and Order and Further Notice of Proposed Rulemaking, FCC 22-2, at 3, para. 2 (Jan. 21, 2022) (ACP Report and Order and Further Notice). 1263 Infrastructure Investment and Jobs Act, Pub. L. No. 117-58, 135 Stat. 429 (2021), https://www.congress.gov/117/plaws/publ58/PLAW-117publ58.pdf (Infrastructure Act). 1264 ACP Report and Order and Further Notice at 2, para. 1. 1265 47 U.S.C. § 1752(b)(5); ACP Report and Order and Further Notice at 65, para. 136. 1266 Id. at 26, para. 49. 243 Federal Communications Commission FCC 22-103 those households with an income below 200% of the Federal Poverty Guidelines.1267 Congress eliminated as a qualifying criteria substantial loss of income since February 29, 2020 and participation in a provider’s COVID-19 program.1268 434. As directed by Congress, the EBB Program ended on December 31, 2021.1269 At the end of the EBB Program, the more than 9 million households enrolled in the EBB Program transitioned to the ACP.1270 As of December 31, 2021, nearly half of the enrolled households were automatically qualified for the EBB Program through their enrollment for the Lifeline program,1271 the Commission’s universal service program to make communications services affordable for low-income consumers.1272 Under the EBB Program and the ACP, providers offering fixed or mobile broadband service, including cable providers, wireless Internet service providers, electric cooperatives, or municipal governments, could participate and offer qualifying supported broadband service to enrolled households. Qualifying Internet service offerings had to include a broadband connection—fixed or mobile—that permitted households to rely on these connections for purposes essential to participating in society during the pandemic, such as telework, remote learning, and telehealth.1273 As shown in Figure V.3 below, about 32.7% of enrollees participating in the EBB Program received the subsidies for fixed broadband service, including broadband connections via cable, DSL, and fiber.1274 Among the 9 million households that were enrolled in the EBB Program at the program’s end, 66.8% received discounted mobile broadband services.1275 1267 Id. 1268 Id.. 1269 Id. at 3, para. 2. 1270 Id.; USAC, Emergency Broadband Benefit Program Enrollments and Claims Tracker—Total Enrolled Households-Weekly, https://www.usac.org/about/emergency-broadband-benefit-program/emergency-broadband- benefit-program-enrollments-and-claims-tracker/#total-enrolled (last visited Oct. 6, 2022). Importantly, the ACP website is updated on a regular basis and all previous information and data are replaced by new information and data at that time. 1271 USAC, Additional EBB Program Data—Total Enrolled EBB Program Subscribers by Method of Verification, https://www.usac.org/about/emergency-broadband-benefit-program/emergency-broadband-benefit-program- enrollments-and-claims-tracker/additional-ebb-program-data/ (last visited Oct. 6, 2022). 1272 Lifeline provides up to a $9.25 monthly discount on service for low-income subscribers and up to $34.25 per month for those on Tribal lands. To qualify for the program, consumers must have an income that is at or below 135% of the Federal Poverty Guidelines or participate in certain federal assistance programs, such as the Supplemental Nutrition Assistance Program (SNAP), Medicaid, Federal Housing Assistance, Supplemental Security Income, the Veterans and Survivors Pension Benefit, or certain Tribal programs. FCC, Lifeline Support for Affordable Communications, https://www.fcc.gov/lifeline-consumers (last visited Oct. 6, 2022). 1273 EBB Program Report and Order, 36 FCC Rcd at 4617, para. 13; ACP Report and Order and Further Notice at 7, para. 11. 1274 USAC, Additional EBB Program Data, https://www.usac.org/about/emergency-broadband-benefit- program/emergency-broadband-benefit-program-enrollments-and-claims-tracker/additional-ebb-program-data/ (last visited Oct. 6, 2022) (navigate to "Total Enrolled EBB Program Subscribers by Service Type” section). 1275 Id. 244 Federal Communications Commission FCC 22-103 Fig. V.3 Total Enrolled Emergency Broadband Benefit Subscribers by Service Type EBB (as of Dec. 31, 2021) ACP (as of Sept. 1, 2022) Service Type Subscribers Percent Subscribers Percent Mobile Broadband 6,039,916 66.8% 7,617,944 56.3% Fixed Broadband 2,957,312 32.7% 5,798,425 42.9% Fixed Wireless or Satellite 51,308 0.6% 98,467 0.8% Total 9,048,536 100.0% 13,514,836 100.0% Source: Universal Service Administrative Co. (USAC) additional EBB Program and ACP data.1276 435. As of September 1, 2022, the total enrollment, including those households previously enrolled in the EBB Program, had exceeded 13 million households.1277 The percentage of households enrolled in the ACP that qualified through Lifeline decreased to 35.8% from 48.9% at the end of the EBB Program.1278 Over the course of the EBB Program and the ACP, the mix of service types on which households received discounted service shifted slightly away from mobile broadband service.1279 Of the more than 13 million households enrolled in the ACP as of September 1, 2022, 56.3% received subsidies for their mobile broadband service, and 42.9% received discounted fixed broadband services.1280 According to a study submitted by commenters, awareness of the ACP varies widely among consumers 1276 Fixed Broadband includes cable, DSL, and fiber. See USAC, Additional EBB Data, https://www.usac.org/about/emergency-broadband-benefit-program/emergency-broadband-benefit-program- enrollments-and-claims-tracker/additional-ebb-program-data/ (last visited Oct. 6, 2022) (navigate to "Total Enrolled EBB Program Subscribers by Service Type” section); see also USAC, Additional ACP Data, https://www.usac.org/about/affordable-connectivity-program/acp-enrollment-and-claims-tracker/additional-acp- data/ (last visited Oct. 6, 2022) (navigate to "Total Enrolled ACP Subscribers by Service Type” section). 1277 USAC, Additional ACP Data—Total Enrolled ACP Subscribers by Service Type, https://www.usac.org/about/affordable-connectivity-program/acp-enrollment-and-claims-tracker/additional-acp- data/ (last visited Oct. 6, 2022). Our analysis is based on data reported up to September 1, 2022. ACP enrollments, however, continued to increase and are expected to change over time. As of December 5, 2022, the number of households enrolled in the ACP exceeded 15 million. USAC, ACP Enrollment and Claims Tracker, https://www.usac.org/about/affordable-connectivity-program/acp-enrollment-and-claims-tracker/ (last visited Dec. 9, 2022). 1278 Staff calculations are based on USAC data. See USAC, Additional EBB Data, https://www.usac.org/about/emergency-broadband-benefit-program/emergency-broadband-benefit-program- enrollments-and-claims-tracker/additional-ebb-program-data/ (last visited Oct. 6, 2022); see also USAC, Additional ACP Data, https://www.usac.org/about/affordable-connectivity-program/acp-enrollment-and-claims- tracker/additional-acp-data/ (last visited Oct. 6, 2022). 1279 USAC, Additional ACP Data—Total Enrolled ACP Subscribers by Service Type, https://www.usac.org/about/affordable-connectivity-program/acp-enrollment-and-claims-tracker/additional-acp- data/ (last visited Oct. 6, 2022) (USAC Additional ACP Data); see also USAC, Additional ACP Data—Total Enrolled ACP Subscribers by Method of Verification, https://www.usac.org/about/affordable-connectivity- program/acp-enrollment-and-claims-tracker/additional-acp-data/ (last visited Oct. 6, 2022). 1280 USAC Additional ACP Data. The ACP reduced the regular monthly broadband service subsidy cap to $30 but retained the $75 cap on Tribal lands. In addition, it adjusted the income threshold from 135% to 200% of the Federal Guidelines and added the Special Supplemental Nutritional Program for Woman, Infants, and Children as a qualifying program. ACP Report and Order and Further Notice at 34, para. 64. 245 Federal Communications Commission FCC 22-103 across mobile service providers. Approximately 70% of consumers relying on pre-paid services provided by Metro by T-Mobile, Cricket Wireless, or Boost Mobile are aware of the ACP.1281 In contrast, fewer than 45% of mobile wireless consumers serviced by AT&T, T-Mobile, or Verizon Wireless are aware of the program.1282 436. Figures V.4 and V.5 show enrollments per 1,000 households for the EBB Program and the ACP by county, respectively. Puerto Rico, Apache County (Arizona), and McKinley County (New Mexico) were among the highest-participating areas in the EBB Program. Because the ACP is an extension of the EBB Program, ACP enrollments increased relative to EBB in most counties. Fig. V.4 EBB Program Subscribers per 1,000 Households by County (as of Dec. 2021) Source: Universal Service Administrative Co. (USAC) additional EBB Program data.1283 1281 Recon Analytics Ex Parte at 1 (the awareness of the ACP among pre-paid mobile wireless consumers is: Metro by T-Mobile—68.2%, Cricket Wireless—67.8%, Boost Mobile—70.2%, Google Fi—68.7%, and Tracfone/Straight Talk—58%). 1282 Recon Analytics Ex Parte at 1 (on the top three national providers’ networks, the awareness of the ACP among mobile wireless consumers is: AT&T—45.5%, T-Mobile—41.6%, and Verizon Wireless—39%). 1283 USAC, EBB Households and Claims by County (May 2021—December 2021), https://www.usac.org/wp- content/uploads/about/documents/acp/EBB-Households-and-Claims-by-County-May-2021-Dec-2021.xlsx (last visited Oct. 6, 2022). 246 Federal Communications Commission FCC 22-103 Fig. V.5 ACP Program Subscribers per 1,000 Households by County (as of Sept. 2022) Source: Universal Service Administrative Co. (USAC) additional ACP data.1284 437. Emergency Connectivity Fund. Before the COVID-19 pandemic, millions of students who lacked home broadband connections and access to computers were caught in the “homework gap.”1285 The COVID-19 pandemic has exacerbated the inequities between students who have a broadband connection and those who do not when temporary in-person school closures forced learning to take place remotely.1286 Pursuant to the American Rescue Plan Act of 2021, the Commission established the Emergency Connectivity Fund (ECF) program on May 10, 2021 to distribute up to $7.171 billion to eligible schools and libraries for the purchases of Wi-Fi hotspot devices, modems, routers, devices that combine a modem and router, connected devices and broadband connections for use by students, school staff, and library patrons at locations that include locations other than the schools and libraries.1287 438. The ECF program reimburses 100% of the reasonable costs associated with the eligible broadband Internet services and equipment, and sets a maximum support cap of $400 for connected devices (i.e., laptop and tablet computers) and a $250 support cap for Wi-Fi hotspots provided to an individual student, school staff, or library patron.1288 This program allows students, school staff, and 1284 USAC, ACP Households and Claims by County (January—August 2022), https://www.usac.org/wp- content/uploads/about/documents/acp/ACP-Households-and-Claims-by-County-January-August-2022.xlsx (last visited Oct. 6, 2022). 1285 Establishing Emergency Connectivity Fund to Close the Homework Gap, WC Docket No. 21-93, Report and Order, 36 FCC Rcd 8696, 8697-98, paras. 1, 3 (2021) (ECF Report and Order); see also Pew Research Center, As schools close due to the coronavirus, some U.S. students face a digital ‘homework gap’ (Mar. 16, 2020), https://www.pewresearch.org/fact-tank/2020/03/16/as-schools-close-due-to-the-coronavirus-some-u-s-students-face- a-digital-homework-gap/ (“15% of U.S. households with school-age children do not have a high-speed internet connection at home, according to a previously published Pew Research Center analysis of 2015 U.S. Census Bureau data.”). 1286 ECF Report and Order, 36 FCC Rcd at 8696, 8697-98, paras. 1, 3. 1287 Id. at 8697-98, paras.1, 3-4. 1288 Id. at 8730-31, 8734, paras. 69, 71, 78. 247 Federal Communications Commission FCC 22-103 library patrons who do not have an Internet connecting device or service at home to be connected and gain educational resources online. USAC and the Commission have opened and closed three application filing windows, with the requests received totaling more than $9.2 billion.1289 As requests received during the third application filing window exceeded the amount of available funds, the funding requests will be prioritized, with support going to the schools and libraries with the greatest need and a preference to rural schools and libraries.1290 It is not expected that there will be any additional application filing windows for the ECF program.1291 As of November 16, 2022, total funding committed had exceeded $6.3 billion, and applications are continuing to be reviewed.1292 439. Regulatory Flexibility for the E-Rate Program. On October 7, 2021, the Wireline Competition Bureau (WCB) issued a second extension of its waiver of the gift rule for the E-Rate Program, that allowed service providers to offer, and E-Rate Program participants to solicit and accept, improved broadband connections or equipment for telehealth or remote learning during the COVID-19 pandemic.1293 This second extension was effective through June 30, 2022.1294 440. Regulatory Flexibility for Lifeline Program. WCB has also granted multiple waivers relating to the COVID-19 pandemic to ensure that participants in the Lifeline program did not lose access to vital connectivity services during the worst parts of the pandemic. Beginning on March 17, 2020, WCB temporarily waived the Lifeline program’s annual recertification and reverification requirements for such participants.1295 In addition, on March 30, 2020, WCB waived the non-usage rules and general de-enrollment rules to prevent Lifeline subscribers from being involuntary de-enrolled during the pandemic and,1296 on April 29, 2020, WCB eased documentation requirements for subscribers demonstrating eligibility based on income to facilitate the application process for individuals who lost their employment during the pandemic.1297 Relatedly, beginning on June 1, 2020, the Bureau streamlined 1289 See FCC, Press Release, FCC Announces Over $5 Billion in Funding Requests Received in the Emergency Connectivity Fund Program (Aug. 25, 2021), https://www.fcc.gov/document/fcc-announces-over-5-billion- emergency-connectivity-fund-requests; FCC, Press Release, FCC Announces Nearly $1.3 Billion in Funding Requests Received in Emergency Connectivity Fund Program Second Application Filing Window (Oct. 25, 2021), https://docs.fcc.gov/public/attachments/DOC-376868A1.pdf; FCC, Press Release, FCC Announces Over $2.8 Billion in Funding Requests for Final Window in Ongoing Work to Close the Homework Gap (May 25, 2022), https://docs.fcc.gov/public/attachments/DOC-383685A1.pdf. 1290 FCC, Press Release, FCC Announces Over $2.8 Billion in Funding Requests for Final Window in Ongoing Work to Close the Homework Gap (May 25, 2022), https://docs.fcc.gov/public/attachments/DOC-383685A1.pdf. 1291 Id. (explaining that applications from all 50 states, the District of Columbia, and Puerto Rico were received in the third and final application filing window for the ECF program). 1292 FCC, Press Release, FCC Announces Nearly $84 Million in Emergency Connectivity Funding for Schools and Libraries (Nov. 16, 2022), https://docs.fcc.gov/public/attachments/DOC-389226A1.pdf.. 1293 Rural Health Care Universal Service Support Mechanism; Schools and Libraries Universal Service Support Mechanism, WC Docket No. 02-60, CC Docket No. 02-6, Order, 35 FCC Rcd 2741 (WCB 2020); Schools and Libraries Universal Service Support Mechanism, WC Docket No. 02-60, CC Docket No. 02-6, Order, 35 FCC Rcd 9416 (WCB 2020); Rural Health Care Universal Service Support Mechanism; Schools and Libraries Universal Service Support Mechanism, WC Docket No. 02-60, CC Docket No. 02-6, Order, 35 FCC Rcd 14544 (WCB 2020); Rural Health Care Universal Service Support Mechanism; Schools and Libraries Universal Service Support Mechanism, WC Docket No. 02-60, Order, DA 21-1257 (WCB Oct. 7, 2021) (Oct. 7, 2021 E-Rate Gift Rule Waiver). 1294 Oct. 7, 2021 E-Rate Gift Rule Waiver at 1, para. 2. 1295 Lifeline and Link Up Reform and Modernization, WC Docket No. 11-42, Order, 35 FCC Rcd 2729 (WCB 2020). 1296 Id. The waiver of the Lifeline non-usage requirements expired on May 1, 2021. See Lifeline and Link Up Reform and Modernization, WC Docket No. 11-42, Order, DA 21-229, at 1, para. 1 (WCB 2021). 1297 Lifeline and Link Up Reform and Modernization, WC Docket No. 11-42, Order, 35 FCC Rcd 4482 (WCB 2020). 248 Federal Communications Commission FCC 22-103 the enrollment process for subscribers residing on rural Tribal lands by enabling carriers to begin providing service to those subscribers prior to the submission of all required documentation.1298 These waivers were extended multiple times to last largely through June 30, 2022.1299 441. Regulatory Flexibility for the Rural Health Care Program. On February 12, 2021, WCB waived the Commission’s rules to extend the close of the funding year 2021 application filing window for the Rural Health Care Program until June 1, 2021.1300 WCB found that an extension of the application filing window for funding year 2021 was necessary in light of the ongoing disruptions caused by the COVID-19 pandemic to program participants, the emergence of the more contagious new COVID-19 variants, and the overwhelming burden placed on health care providers to administer COVID-19 testing and vaccines.1301 On April 8, 2021, WCB waived Commission rules regarding service delivery deadlines, invoice deadlines, and deadlines to respond to information requests to give RHC Program participants additional flexibility with additional deadlines in light of the COVID-19 pandemic.1302 On March 3, 2022, WCB waived the Commission’s rules to extend the close of the funding year 2022 application filing window for the Rural Health Care Program until June 1, 2022.1303 WCB found that an extension of the application filing window for funding year 2022 was necessary in light of the persistent and ongoing disruptions caused by the COVID-19 pandemic to program participants and the shortage and burnout of health care staff aggravated by the surge of the Omicron variant.1304 VI. COMMISSION ACTIONS ALREADY TAKEN TO PROMOTE COMPETITION, ENCOURAGE UNIVERSAL DEPLOYMENT OF COMMUNICATIONS SERVICES AND ENSURE INCLUSION 442. RAY BAUM’S Act of 2018 requires the Commission to describe the actions it has taken over the previous two years in addressing the competitive challenges and opportunities in the communications marketplace. A. The Fixed Communications Marketplace 443. Measuring Broadband Deployment. In January 2021, the Commission adopted BDC rules requiring facilities-based fixed service providers to report the availability of BIAS service and to indicate whether the service offered is residential, business, or both.1305 Fixed providers must report the maximum advertised download and upload speeds offered for each technology to the location or in the area.1306 In addition, fixed providers must report latency information associated with each maximum 1298 Lifeline and Link Up Reform and Modernization, WC Docket No. 11-42, Order, 35 FCC Rcd 5510 (WCB 2020). 1299 Lifeline and Link Up Reform and Modernization, WC Docket No. 11-42, Order, DA 22-323 (WCB Mar. 25, 2022). WCB concluded that the primary motivating factor for the waivers, the effect of the COVID-19 pandemic, diminished and there are genuine program integrity concerns associated with a general extension beyond June 30, 2022. However, the Bureau granted an extension of the waiver of the Lifeline recertification and reverification requirements for Lifeline consumers residing on Tribal lands. See Lifeline and Link Up Reform and Modernization, Order, WC Docket No. 11-42, Order, DA 22-691, at 3-4, paras. 1, 6-7 (WCB June 30, 2022). 1300 Rural Health Care Support Mechanism, WC Docket No. 02-60, Order, 36 FCC Rcd 1604 (WCB 2021) (Rural Health Care Support Mechanism Order). 1301 Rural Health Care Support Mechanism Order, 36 FCC Rcd at 1606, para. 5. 1302 Promoting Telehealth in Rural America, WC Docket No. 17-310, Order, 36 FCC Rcd 7051 (WCB 2021) (Promoting Telehealth in Rural America Order). 1303 Rural Health Care Support Mechanism, WC Docket No. 02-60, Order, DA 22-221 (WCB Mar. 3, 2022). 1304 Id. at 1, para. 1. 1305 BDC Third Report and Order, 36 FCC Rcd at 1130-31, paras. 9-10. 1306 For services offered below 25/3 Mbps, providers must report the speed associated with the service using two speed tiers: (1) greater than 200 kbps in at least one direction and less than 10/1 Mbps and (2) greater or equal to (continued….) 249 Federal Communications Commission FCC 22-103 speed and technology combination for a particular geographic area.1307 Fixed providers may report broadband availability data using either coverage polygons or a list of locations. Regardless of how the data are reported, the Commission overlays the availability data onto the Fabric locations, and fixed availability challenges must be made on a location basis. 444. Consumers may challenge the accuracy of the coverage maps at a particular location where they own property, reside, or are authorized to request service.1308 Similarly, governmental and other entities may challenge fixed availability data at various locations by submitting in individual or bulk form, the required information about the challenge, as well as evidence to support it.1309 Consumers and governmental and other entities may also challenge the Fabric data on the basis of: (1) wrong placement of a location on the map; (2) a location not being broadband serviceable; (3) a serviceable location not being reflected in the Fabric; or (4) information about a location being incorrect in the Fabric.1310 Challenges to the fixed availability data and Fabric are intended to improve the accuracy of the broadband availability data, as well as the Fabric data over time. 445. Rural Digital Opportunity Fund. The Rural Digital Opportunity Fund auction, a program aimed at expanding broadband in unserved rural areas, concluded on November 25, 2020.1311 The Commission started the process of authorizing funding for winning bidders which had received approval for the long-form applications on September 15, 2021 and, as of December 15, 2022, has authorized $5.76 billion to provide service to over 3.24 million locations.1312 Winners are committed to providing 1 Gbps/500 Mbps to over 97% of locations being funded.1313 446. Bringing Puerto Rico Together and Connect USVI Funds. In June 2021, the Commission authorized funding for the winning proposals from the Stage 2 Bringing Puerto Rico Together Fund and Connect USVI Fund competitive bidding processes⸺$127.1 million and $84.5 million, respectively.1314 This funding will provide support over a 10-year period for deployment of fixed voice and broadband (Continued from previous page) 10/1 Mbps and less than 25/3 Mbps. For speeds greater than or equal to 25/3 Mbps, the provider must report the maximum advertised download and upload speeds associated with the service. BDC Third Report and Order, 36 FCC Rcd at 1136, para. 22. 1307 Id. at 1138, para. 27. 1308 Consumers must choose a dispute category from pre-approved options in the online BDC portal (e.g., no service at the location, provider failed to install service within ten business days, provider denied request for service, or reported speed not offered). BDC Third Report and Order, 36 FCC Rcd at 1155-56, para. 72. 1309 Id. at 1162, para. 90. 1310 Id. at 1161-62, 1163-64, paras. 89, 95. 1311 Rural Digital Opportunity Fund Phase I Auction (Auction 904) Closes, AU Docket No. 20-34, WC Docket Nos. 19-126 and 10-90, Public Notice, 35 FCC Rcd 13888, 13888, para. 1 (OEA/WCB 2020) (Auction 904 Closing Public Notice). 1312 Rural Digital Opportunity Fund Support Authorized for 466 Winning Bids, AU Docket No. 20-34, WC Docket Nos. 19-126 and 10-90, Public Notice, DA 21-1158 (OEA/WCB Sept. 15, 2021); FCC, Auction 904: Rural Digital Opportunity Fund, https://www.fcc.gov/auction/904/round-results (navigate to the “Authorized Auction 904 Long- Form Applicants (updated 12/15/2022)” subheading and click on the link to the spreadsheet) (last visited Dec. 22, 2022). 1313 See FCC, Auction 904: Rural Digital Opportunity Fund, https://www.fcc.gov/auction/904/round-results (last visited July 6, 2022). The 97% referenced above is calculated using the spreadsheet found at this link, 1314 Wireline Competition Bureau Authorizes Stage 2 Support for Puerto Rico Telephone Company and Liberty Communications of Puerto Rico, WC Docket Nos. 18-143 and 10-90, Public Notice, 36 FCC Rcd 9914 (WCB, 2021) (Bringing Together Puerto Rico Winning Applicant Announcement); Connect USVI Fund Stage 2 Support Authorized for Broadband VI, WC Docket Nos. 18-143 and 10-90, Public Notice, 36 FCC Rcd 9405 (WCB 2021) (USVI Fund Winning Applicant Announcement). 250 Federal Communications Commission FCC 22-103 services. Bringing Puerto Rico Together Stage 2 funding will support deployment of service at a minimum speed of 100/20 Mbps, with service obligations at some funded locations as high as 1 Gbps/500 Mbps.1315 In the U.S. Virgin Islands, the Connect USVI Stage 2 support will result in the deployment of 1 Gbps/500 Mbps service to all funded locations.1316 447. Rural Broadband Accountability Plan. The Rural Broadband Accountability Plan (RBAP) is a new effort to monitor and ensure compliance for universal service high-cost programs, including the Rural Digital Opportunity Fund and Connect America Fund Phase II Auction.1317 The RBAP makes a number of changes and enhancements to existing audit and verification procedures. Under the RBAP, the number of audits and verifications will double in 2022 as compared to 2021, and inspectors will conduct on-site audits as well as audits and verifications based on random selection.1318 The largest dollar recipients will be subject to an on-site audit in at least one state, and higher-risk recipients will be subject to additional audits and verifications.1319 In addition, for the first time, results of 1315 See Bringing Together Puerto Rico Winning Applicant Announcement, 36 FCC Rcd at 9914, para. 1 (identifying Puerto Rico Telephone Co., Inc. (PRTC) and Liberty Communications of Puerto Rico (Liberty) as the winning applicants); PRTC Uniendo a Puerto Rico Fund Stage 2 Fixed Support Application Form, WC Docket Nos. 18-143 and 10-90, Initial Overview at 1 (filed June 22, 2021) (PRTC Network Description); Liberty Uniendo a Puerto Rico Fund Stage 2 Fixed Support Application Form, WC Docket Nos. 18-143 and 10-90, Initial Overview at 4 (filed June 22, 2021) (Liberty Network Description). We refer to the Bringing Together Puerto Rico Winning Applicant Announcement, PRTC Network Description, and Liberty Network Description together as the Bringing Together Puerto Rico Broadband Speed Requirements. 1316 See USVI Fund Winning Applicant Announcement, 36 FCC Rcd at 9405, para. 1 (identifying Broadband VI as the winning applicant); Broadband VI Uniendo a Puerto Rico Fund Connect USVI Fund Stage 2 Fixed Support Application Form, WC Dockets Nos. 18-143 and WC 10-90, Initial Overview at 1 (filed June 11, 2021) (together with the USVI Fund Winning Applicant Announcement, the USVI Fund Broadband Speed Requirements). In June 2020, the Commission similarly authorized a total of $258.8 million in funding to wireless carriers participating in Stage 2 of the Bringing Puerto Rico Together Fund and the Connect USVI Fund to facilitate the restoration, hardening, and expansion of mobile networks capable of providing 4G LTE and 5G-NR services over a three-year term. Wireline Competition Bureau Authorizes Stage 2 Mobile Support for Certain Providers Participating in the Uniendo a Puerto Rico Fund and the Connect USVI Fund, WC Docket Nos. 18-143 and 10-90, Public Notice, 35 FCC Rcd 6321, 6324, Attach. A (WCB 2020) (authorizing support for AT&T Mobility, PRTC, and T-Mobile in Puerto Rico, and AT&T Mobility in the U.S. Virgin Islands); Wireline Competition Bureau Authorizes Stage 2 Mobile Support for T-Mobile in Puerto Rico, WC Docket Nos. 18-143 and 10-90, Public Notice, 35 FCC Rcd 10303, 10305, Attach. A (WCB 2020) (authorizing additional mobile support in September 2020 for T-Mobile based on its acquisition of PR Wireless, LLC); Wireline Competition Bureau Authorizes Stage 2 Mobile Support for Viya in the U.S. Virgin Islands, WC Docket Nos. 18-143 and 10-90, Public Notice, 35 FCC Rcd 11555, 11557, Attach. A (WCB 2020) (authorizing support to Virgin Islands Telephone Corp. d/b/a Viya). Carriers must restore network coverage in the territories to at least pre-hurricane levels by the conclusion of the support period, providing outdoor transmission rates of at least 10 Mbps download and 1 Mbps upload speeds for 4G LTE and 35/3 Mbps for 5G-NR service. 47 CFR §§ 54.1509(c), 54.1514(b)(1). On October 28, 2022, in light of damage caused by hurricanes in the fall of 2022, the Commission released a Further Notice of Proposed Rulemaking proposing to extend by 24 months (until December 2025) the phase-down of frozen support for incumbent fixed providers in Puerto Rico and the U.S. Virgin Islands for the areas in which they were not awarded long-term support for broadband services, as well as the end of mobile support in Puerto Rico and the U.S. Virgin Islands. The Uniendo a Puerto Rico Fund and the Connect USVI Fund; Connect America Fund, WC Docket Nos. 18-143 and 10-90, Further Notice of Proposed Rulemaking, FCC 22-79 (Oct. 28, 2022), https://docs.fcc.gov/public/attachments/FCC- 22-79A1.pdf. 1317 FCC, Rural Broadband Accountability Plan, https://www.fcc.gov/rbap (last visited Oct. 21, 2022). 1318 FCC, FACT SHEET: Rural Broadband Accountability Plan, https://docs.fcc.gov/public/attachments/DOC- 379729A1.pdf (last visited Oct. 21, 2022). 1319 Id. 251 Federal Communications Commission FCC 22-103 verifications, audits, and speed and latency performance testing will be made publicly available.1320 The Commission established the RBAP as part of an ongoing effort to increase accountability and to build upon existing audit and verification processes performed by the Universal Service Administrative Company (USAC).1321 448. Enhanced Alternative Connect America Model Support. On May 21, 2022, the Commission sought comment on a proposal to achieve widespread deployment of 100/20 Mbps broadband service throughout the rural areas served by carriers currently receiving Alternative Connect America Model (A-CAM) support.1322 The Commission sought comment on whether such enhancements to the A-CAM program would be an efficient means of funding deployment in a manner complementary to other federal and state efforts such as through the Infrastructure Investment and Jobs Act.1323 449. Precision Agriculture Connectivity Task Force. The Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States (Precision Agriculture Connectivity Task Force or Task Force) continued its work in 2021 and 2022 by providing advice and recommendations to the Commission and the U.S. Department of Agriculture (USDA) on how to assess and advance deployment of broadband access service on unserved and underserved agricultural lands and to promote precision agriculture for both cropping and husbandry.1324 The Task Force met six times in 2021.1325 In November 2021, the Precision Agriculture Connectivity Task Force submitted a report to the Commission including recommendations that the Commission and USDA: (1) improve federal broadband maps and consistently validate user experiences through crowd sourcing, on-the-ground 1320 Id. 1321 Id. 1322 Connect America Fund: A National Broadband Plan for Our Future High-Cost Universal Service Support et al., WC Docket No. 10-90, Notice of Proposed Rulemaking, FCC 22-35 (May 20, 2022), https://docs.fcc.gov/public/attachments/FCC-22-35A1.pdf. 1323 Id. at 22-40, paras. 59-111. 1324 See FCC Announces the Establishment of the Task Force for Reviewing Connectivity and Technology Needs of Precision Agriculture in the United States and Seeks Nominations for Membership, Public Notice, 34 FCC Rcd 5057 (WCB 2019) (announcing the 2019-20 charter); FCC Announces the Membership and First Meeting of the Re- chartered Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States, GN Docket No. 19-329, Public Notice, DA 21-1542 (WCB Dec. 9, 2021), https://docs.fcc.gov/public/attachments/DA-21-1532A1.pdf (2021-22 Precision Agriculture Connectivity Task Force Re-Charter Public Notice); see also Agriculture Improvement Act of 2018, Pub. L. No. 115-334, 132 Stat. 4490, § 12511(b)(2) (2018 Farm Bill) (establishing the Task Force and setting forth its duties and obligations). The Precision Agriculture Connectivity Task Force will perform duties and submit reports consistent with section 12511 of the 2018 Farm Bill and in consultation with the Department of Agriculture in successive terms until the Task Force ends on January 1, 2025. Id. § 12511(b)(3), (6). 1325 See FCC Announces Next Meeting of the Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States on March 21, 2021, GN Docket No. 19-329, Public Notice, 36 FCC Rcd 4165 (WCB 2021); FCC Announces Next Meeting of the Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States on July 8, 2021, GN Docket No. 19-329, Public Notice, 36 FCC Rcd 9440 (WCB 2021); FCC Announces Next Meeting of the Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States on August 19, 2021, GN Docket No. 19-329, Public Notice, 36 FCC Rcd 11399 (WCB 2021); FCC Announces Next Meeting of the Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States on September 14, 2021, GN Docket No. 19-329, Public Notice, 36 FCC Rcd 12777 (WCB 2021); FCC Announces Next Meeting of the Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States on October 14, 2021, GN Docket No. 19-329, Public Notice, 36 FCC Rcd 13875 (WCB 2021); FCC Announces Next Meeting of the Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States on November 10, 2021, GN Docket No. 19-329, Public Notice, DA 21-1045 (WCB Oct. 20, 2021), https://docs.fcc.gov/public/attachments/DA-21-1314A1.pdf. 252 Federal Communications Commission FCC 22-103 testing, and independent data verification; (2) increase incentives and subsidies through federal broadband programs to increase adoption of precision agriculture and build out a robust infrastructure that will support precision agriculture networks and operations; (3) enhance high-speed standards to meet technology needs in agriculture; (4) improve collaboration between federal agencies and remove regulatory impediments; and (5) increase digital access to education and training for individuals engaged in farming.1326 In December 2021, the Commission re-chartered the Task Force for a new two-year term.1327 The Task Force met five times in 20221328 and adopted interim reports submitted by each of its four working groups in December 2022.1329 450. Supporting Survivors of Domestic Violence. The Commission opened an inquiry in July 2022 to evaluate how the FCC’s low-income programs might help survivors of domestic violence and other harmful abuse get access to connectivity services.1330 The Notice of Inquiry seeks comment on whether the Lifeline and Affordable Connectivity Programs can be modified to support the connectivity needs of survivors.1331 Specifically, the inquiry seeks comment on whether survivors are currently able to fully utilize these programs and to gain a better understanding of whether and how these programs might be modified to support survivors, while continuing to protect the programs against waste, fraud, and abuse.1332 451. E-Rate. For over two decades, schools and libraries have relied on the Commission’s E- Rate program to secure affordable telecommunications and broadband services to provide connectivity 1326 Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States, Report adopted as of November 10, 2021 at 4 (2021), https://www.fcc.gov/sites/default/files/precision-ag-report- 11102021.pdf. 1327 Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States Charter (filed Dec. 2, 2021), https://www.fcc.gov/sites/default/files/precision-ag-task-force-charter-12022021.pdf; see also 2021-22 Precision Agriculture Connectivity Task Force Re-Charter Public Notice. 1328 2021-22 Precision Agriculture Connectivity Task Force Re-Charter Public Notice (setting Jan. 13, 2022 as the date of the second term’s first meeting); FCC Announces Next Meeting of the Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States on March 21, 2022, GN Docket No. 19-329, Public Notice, DA 22-219 (WCB Mar. 3, 2022), https://docs.fcc.gov/public/attachments/DA-22- 219A1.pdf; FCC Announces Next Meeting of the Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States on July 21, 2022, GN Docket No. 19-329, Public Notice, DA 22-666 (WCB June 23, 2022), https://docs.fcc.gov/public/attachments/DA-22-666A1.pdf; FCC Announces Next Meeting of the Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States on October 5, 2022, GN Docket No. 19-329, Public Notice, DA 22-966 (WCB Sept. 16, 2022), https://docs.fcc.gov/public/attachments/DA-22-966A1.pdf; FCC Announces Next Meeting of the Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States on December 2, 2022, GN Docket No. 19-329, Public Notice, DA 22-1164 (WCB Nov. 8, 2022), https://docs.fcc.gov/public/attachments/DA-22-1164A1.pdf. 1329 See FCC, Precision Ag Connectivity Task Force Meeting – December 2022, https://www.fcc.gov/news- events/events/2022/12/precision-ag-connectivity-task-force-meeting-december-2022 (last visited Dec. 6, 2022). As in the 2019-20 term, four working groups are assisting the Task Force in carrying out its work: (1) Mapping and Analyzing Connectivity on Agricultural Lands; (2) Examining Current and Future Connectivity Demand for Precision Agriculture; (3) Encouraging Adoption of Precision Agriculture and Availability of High-Quality Jobs on Connected Farms; and (4) Accelerating Broadband Deployment on Unserved Agricultural Lands. 1330 Lifeline and Link Up Reform and Modernization et al., WC Docket No. 11-42, Notice of Inquiry, FCC 22-56 (July 18, 2022), https://docs.fcc.gov/public/attachments/FCC-22-56A1.pdf. 1331 Id. at 8-16, 19, paras. 19-47, 63-65. 1332 In addition to seeking comment relating to the Lifeline and Affordable Connectivity Programs, the Commission in the Notice of Inquiry also explores ways to keep calls to hotlines and shelters from appearing on call logs, due to the potential for abusers to exploit this information. Id. at 16-19, 20, paras. 48-62, 66-67. 253 Federal Communications Commission FCC 22-103 for schools and libraries.1333 At the same time, the Commission has been mindful of the need to protect limited E-Rate funds by requiring them to be used for eligible services and equipment provided to eligible entities, for eligible purposes, and in accordance with program rules.1334 On December 16, 2021, the Commission proposed a change to the E-Rate program targeted at several goals: streamlining program requirements for applicants and service providers, strengthening program integrity, preventing improper payments, and decreasing the risk of fraud, waste, and abuse.1335 Specifically, the Commission sought comment on a proposal to implement a central document repository (the bidding portal) through which service providers would be required to submit bids to the E-Rate program administrator, the Universal Service Administrative Company (USAC), instead of directly to applicants.1336 452. For far too long, Tribal libraries have been unable to participate fully in the E- Rate program.1337 This situation has exacerbated enduring inequities, as Tribal libraries often serve as a critical source of Internet access in underserved areas across the nation.1338 In 2018, Congress acted to address this gap through passage of the Museum and Library Services Act of 2018, which amended the Library Services and Construction Act to explicitly include Tribal libraries in the definition of libraries.1339 Consistent with this legislation, on January 28, 2022, the Commission modified the definition of “library” in its E-Rate program rules to include Tribal libraries and clarify Tribal libraries are eligible to participate in the E-Rate program.1340 The Commission also waived the E-Rate FCC Form 471 application filing deadline for new Tribal libraries applying for E-Rate support in funding year 2022 recognizing that special circumstances warranted additional flexibility for these applicants to complete their competitive bid processes and submit their applications.1341 In furtherance of the E-Rate program and other broadband affordability initiatives, on June 24, 2022, the Commission also executed a Memorandum of Understanding (MOU) with the Institute of Museum and Library Services to jointly promote public awareness and facilitate the availability of federal funding opportunities for broadband.1342 The partnership will work to generate efforts to promote the availability of affordable broadband programs, in recognition of the significant role that libraries and other community anchor institutions play in promoting digital access and inclusion.1343 The Commission’s and Institute of Museum and Library 1333 Promoting Fair and Open Competitive Bidding in the E-Rate Program, WC Docket No. 21-455, Notice of Proposed Rulemaking, FCC 21-124, at 1, para. 1 (Dec. 16, 2021), https://docs.fcc.gov/public/attachments/FCC-21- 124A1.pdf. 1334 Id. at 1-2, para. 2. 1335 Id. at 2, para. 3. 1336 Id. at 6-14, paras. 11-36. 1337 Schools and Libraries Universal Service Support Mechanism, CC Docket No. 02-6, Report and Order, FCC 22- 8, at 1, para. 1 (2022), https://docs.fcc.gov/public/attachments/FCC-22-8A1.pdf. 1338 Id. at 1, para. 1. 1339 Id. at 2-3, para. 5. 1340 Id. at 3-6, paras. 7-13. 1341 See Request for Waiver by Alaska Federation of Natives, CC Docket No. 02-6, Order, DA 22-231, at 3-4, para. 8 (WCB Mar. 22, 2022), https://docs.fcc.gov/public/attachments/DA-22-231A1.pdf (directing USAC to treat as timely filed all applications with a new Tribal library as a recipient of service that are filed within 65 days of the application filing window deadline, or by May 26, 2022). 1342 FCC, Press Release, FCC and Institute of Museum and Library Services Sign Agreement to Promote Broadband Access (June 24, 2022), https://docs.fcc.gov/public/attachments/DOC-384621A1.pdf. 1343 Id.; Infrastructure Act, § 60104(c). 254 Federal Communications Commission FCC 22-103 Services’ coordination will also focus on communities where broadband access has been especially challenging such as rural and Tribal areas.1344 453. Rural Health Care Program. On February 22, 2022, the Commission proposed and sought comment on several revisions to the Commission’s Rural Health Care (RHC) Program rules designed to ensure that rural healthcare providers receive funding necessary for broadband and telecommunications services to provide vital healthcare services, while limiting costly inefficiencies and the potential for waste, fraud, and abuse.1345 The RHC Program provides vital support to assist rural health care providers with the costs of broadband and other communications services.1346 The Commission took this action in an effort to improve the accuracy and fairness of RHC Program support and increase the efficiency of program administration.1347 In addition, WCB waived the mechanism for funding that was planned to go into effect out of concerns that the mechanism provided insufficient support.1348 454. Connected Care Pilot Program. The Connected Care Pilot Program was established to provide up to $100 million in USF support to help eligible health care providers defray the costs of providing connected care services to their patients and study how the USF can help support the continuing trend toward connected care services, with an emphasis on providing connected care services to low- income and veteran patients.1349 On June 21, 2021, the Commission released an Order providing further guidance on the administration of the Pilot Program, including guidance on eligible services, competitive bidding, invoicing, and data reporting for selected participants.1350 From January 2021 to March 2022, the Commission selected 107 projects to receive funding through the program.1351 The projects selected by the Commission represent a broad array of geographic areas and a diversity of provider types, involve patients in underserved communities, and will address a range of health conditions.1352 455. Interagency Information Sharing and Coordination. The Commission and the U.S. Department of Agriculture’s (USDA) Rural Utilities Service (RUS) began coordinating on broadband funding as early as 2014, when the agencies entered into a Memorandum of Understanding that governs sharing information on their respective funding programs. Pursuant to the 2014 Memorandum of Understanding, the Commission and RUS have maintained an ongoing dialogue at the staff- and leadership levels to avoid duplication and coordinate their broadband funding efforts. In early 2021, the Commission, the National Telecommunications and Information Administration (NTIA) and USDA/RUS 1344 FCC, Press Release, FCC and Institute of Museum and Library Services Sign Agreement to Promote Broadband Access (June 24, 2022), https://docs.fcc.gov/public/attachments/DOC-384621A1.pdf; Infrastructure Act, § 60104(c). 1345 Promoting Telehealth in Rural America, WC Docket No. 17-310, Further Notice of Proposed Rulemaking, FCC 22-15 (Feb. 22, 2022), https://docs.fcc.gov/public/attachments/FCC-22-15A1.pdf. 1346 Id. at 1, para. 1. 1347 Id. at 2, para. 1. 1348 Promoting Telehealth in Rural America Order, 36 FCC Rcd 7051; Promoting Telehealth in Rural America, WC Docket No. 17-310, Order, 36 FCC Rcd 791 (WCB 2021); Promoting Telehealth in Rural America, WC Docket No. 17-310, Order, DA 22-401 (WCB Apr. 12, 2022); Promoting Telehealth in Rural America, WC Docket No. 17-310, Order, DA 22-580 (WCB May 25, 2022). 1349 Federal Communications Commission Announces Final Set of Projects Selected for the Connected Care Program, WC Docket No. 18-213, Public Notice, DA 22-23, at 1, para. 1 (WCB Mar. 17, 2022) (Final Set of Projects for Connected Care Program Public Notice). 1350 Promoting Telehealth for Low Income Consumers, WC Docket No. 18-213, Second Report and Order, 36 FCC Rcd 10642, 10643, para. 1 (2021). 1351 FCC, Press Release, FCC Announces Final Group of Approved Projects for Connected Care Pilot Program (Mar. 16, 2022), https://www.fcc.gov/document/fcc-announces-final-group-connected-care-pilot-program-projects. 1352 Final Set of Projects for Connected Care Program Public Notice at 1, para. 2. 255 Federal Communications Commission FCC 22-103 began regular meetings to facilitate coordination as they implemented the existing broadband funding programs, as well as new funding programs established by Congress in the Consolidated Appropriation Act, 2021.1353 The Consolidated Appropriations Act, 2021 included the Broadband Interagency Coordination Act of 2020, which required the Commission, USDA and NTIA to enter into an interagency agreement to coordinate for the distribution of funds for broadband deployment and to share information about existing or planned projects receiving funding in their respective programs.1354 In June 2021, the Commission entered into the required agreement with USDA and NTIA to share information about and coordinate the distribution of federal broadband deployment funds.1355 Specifically, under the agreement, the agencies will consult with one another and share information about the distribution of new funds from the Commission’s high-cost programs that support broadband buildout in rural areas, the RUS grant and loan programs, and programs administered or coordinated by NTIA. Recognizing the importance of a comprehensive approach to federal broadband funding, in May 2022, the Commission, USDA and NTIA entered into an agreement with the U.S. Department of Treasury (Treasury) to share information about and collaborate regarding the collections and reporting of certain data and metrics relating to broadband deployment, including deployment funded by Treasury-administered programs.1356 This agreement provides that the agencies will consult with one another and share information on data collected from programs administered by the Commission and the USDA’s Rural Utilities Service, programs administered or coordinated by NTIA, and Treasury’s Coronavirus Capital Projects Fund and the Coronavirus State and Local Fiscal Recovery Funds. 456. Future of the USF Report. As directed by Congress in Section 60104(c) of the Infrastructure Act, the Commission released a report on August 15, 2022 evaluating the implications of federal investments in broadband in the Infrastructure Act and other recent legislation on how the Commission should achieve its universal service goals for broadband.1357 In the Future of the USF Report, the Commission established as goals universal deployment, affordability, adoption, availability, and equitable access to broadband throughout the United States.1358 The Commission also made recommendations for further actions by the Commission and Congress to improve the ability of the Commission to achieve its goals1359 and addressed arguments concerning the lawfulness of the USF.1360 457. Multiple Tenant Environments. Millions of people work and live in multiple tenant environments (MTEs), with a third of Americans residing in apartments, condominiums, or other 1353 See, e.g., Consolidated Appropriations Act, 2021, Pub. L. No. 116-260, 134 Stat. 1182, 2138, 2139, div. N, tit. IX, § 905(c) (establishing the Tribal Broadband Connectivity Program) and § 905(d) (establishing the Broadband Infrastructure Program) (2020)). 1354 Id., 134 Stat. at 3214, div. FF, tit. IX, § 904. 1355 Interagency Agreement Between the Federal Communications Commission, U.S. Department of Agriculture, and the National Telecommunications and Information Administration of the U.S. Department of Congress (June 25, 2021), https://www.fcc.gov/document/fcc-ntia-usda-sign-interagency-pact-broadband-funding-deployment. 1356 Memorandum of Understanding Regarding Information Sharing, dated as of May 9, 2022, between the Federal Communications Commission, U.S. Department of Agriculture, the National Telecommunications and Information Administration of the U.S. Department of Commerce, and the U.S. Department of the Treasury (May 11, 2022), https://docs.fcc.gov/public/attachments/DOC-383278A1.pdf. 1357 Future of the USF Report. 1358 Id. at 6-8, paras. 11-16. 1359 Id. at 12-54, paras. 27-111. Specifically in regard to its goal of affordability, the Commission made recommendations for further actions by the Commission and Congress related to the Lifeline program and the Affordable Connectivity Program. Id. at 29-40, paras. 55-74. 1360 Id. at 54-58, paras. 112-19. 256 Federal Communications Commission FCC 22-103 multiunit buildings.1361 To ensure competitive choice of communications services for those living and working in MTEs, and to address practices that undermine longstanding rules promoting competition in MTEs, on February 15, 2022, the Commission took three specific actions.1362 First, the Commission adopted new rules prohibiting providers from entering into certain types of revenue sharing agreements that are used to evade the Commission’s existing rules.1363 Second, the Commission adopted new rules requiring providers to disclose the existence of exclusive marketing arrangements in simple, easy-to- understand language.1364 Third, the Commission clarified that existing Commission rules regarding cable inside wiring prohibit so-called “sale-and-leaseback” arrangements, which effectively deny access to alternative providers.1365 In taking these actions, the Commission sought to promote tenant choice and competition in the provision of communications services to the benefit of those who live and work in MTEs.1366 458. Combating Digital Discrimination. One of the Commission’s foremost goals is to ensure that every person in the United States has equal access to high-quality, affordable broadband internet access service.1367 Among many steps towards achieving that goal, in February 2022 Chairwoman Rosenworcel established the cross-agency Task Force to Prevent Digital Discrimination.1368 On March 17, 2022, the Commission commenced a proceeding “to ensure that all people of the United States benefit from equal access to broadband internet access service,” with the intention of preventing and identifying steps the Commission should take to eliminate “digital discrimination of access based on income level, race, ethnicity, color, religion, or national origin,” consistent with Congress’s directive in section 60506 of the Infrastructure Investment and Jobs Act (Infrastructure Act).1369 In a Notice of Inquiry focusing on the requirements encompassed in section 60506, the Commission sought comment on the meaning of the terms and concepts included in the relevant provisions and how they should be applied in the context of facilitating equal access to broadband, preventing digital discrimination, and identifying steps the Commission should take to eliminate digital discrimination.1370 The Commission also sought comment on the framework of the rules it should adopt to achieve the goal of ensuring all people in the United States have equal access to broadband regardless of “income level, race, ethnicity, color, religion, or national origin.”1371 On December 21, 2022, the Commission adopted a Notice of Proposed Rulemaking proposing and seeking comment on possible definitions of “digital discrimination of access” as used in the Infrastructure Act and seeking comment on the rule or rules we should adopt to prevent digital 1361 Improving Competitive Broadband Access to Multiple Tenant Environments, GN Docket 17-142, Report and Order and Declaratory Ruling, FCC 22-12, at 2, para. 1 (Feb. 15, 2022), https://docs.fcc.gov/public/attachments/FCC-22-12A1.pdf. 1362 Id. at 2, para. 2. 1363 Id. at 9-14, paras. 16-26. 1364 Id. at 17-22, paras. 33-42. 1365 Id. at 24-29, paras. 47-60. 1366 Id. at 3, para. 2. 1367 Implementing the Infrastructure Investment and Jobs Act: Prevention and Elimination of Digital Discrimination, GN Docket No. 22-69, Notice of Inquiry, FCC 22-21, at 1, para. 1 (Mar. 17, 2022) (Digital Discrimination NOI), https://docs.fcc.gov/public/attachments/FCC-22-21A1.pdf. 1368 FCC, Press Release, Chairwoman Rosenworcel Announces Cross-Agency Task Force to Prevent Digital Discrimination (Feb. 8, 2022), https://docs.fcc.gov/public/attachments/DOC-380060A1.pdf. 1369 Digital Discrimination NOI at 1-2, para. 2 (quoting the Infrastructure Investment and Jobs Act, Pub. L. No. 117- 58, 135 Stat. 429 (2021)). Section 60506 of the Infrastructure Act is codified at 47 U.S.C. § 1754, Digital Discrimination. 1370 Id. at 5-12, paras. 10-28. 1371 Id. at 13-14, paras. 29-33. 257 Federal Communications Commission FCC 22-103 discrimination of access, as required by Congress.1372 Further, as directed by the Infrastructure Act, the Commission proposed to revise our informal consumer complaint process to accept complaints of digital discrimination, and proposed to adopt model policies and best practices for states and localities combating digital discrimination (the Commission sought a recommendation from the Communications Equity and Diversity Council, a Federal Advisory Committee, to assist in this process).1373 459. Pole Attachments. In January 2021, WCB issued the Pole Replacement Declaratory Ruling, clarifying that it is unreasonable and inconsistent with section 224 of the Communications Act, the Commission’s rules, and past Commission precedent, for utilities to impose the entire cost of a pole replacement on a requesting attacher when the attacher is not the sole cause of a pole replacement.1374 Following this decision, on March 18, 2022, the Commission released a Further Notice of Proposed Rulemaking that sought comment on whether additional reforms to the Commission’s pole attachment rules are necessary to facilitate broadband deployment, with a particular focus on the role of pole replacements in new broadband deployments.1375 The Commission also sought comment on whether it should require utilities to share information with potential attachers concerning the condition and replacement status of their poles and other measures that may help avoid or expedite the resolution of disputes between the parties.1376 460. Access Stimulation. The Commission also proposed to adopt rules that would modify the intercarrier compensation regime to address ongoing harmful arbitrage practices that raise costs for long- distance carriers and their customers and, as the Commission has recognized in the past, divert funds away from network investment.1377 In July 2022, the Commission adopted a Further Notice of Proposed Rulemaking seeking comment on proposed changes to its access stimulation rules to ensure that they apply to traffic that terminates through providers of IP-enabled services.1378 The Commission proposed to require these providers to count and report their terminating-to-originating call traffic ratios to the Commission to determine compliance with the access stimulation rules.1379 461. Calling Services for Incarcerated People. Access to affordable communications services is critical for everyone in the United States, especially for incarcerated people whose primary or only communications option is to purchase telephone service from providers that typically operate on a monopoly basis. In May 2021, the Commission lowered the interim rate caps on interstate inmate calling services, established caps on international calling services rates for the first time, reformed the ancillary charge rules for third-party financial transaction fees, and adopted a new mandatory data collection to 1372 Implementing the Infrastructure Investment and Jobs Act: Prevention and Elimination of Digital Discrimination, GN Docket No. 22-69, Notice of Proposed Rulemaking, FCC 22-98, at 5-31, 34-50, paras. 12-51, 58-92 (Dec. 22, 2022), https://docs.fcc.gov/public/attachments/FCC-22-98A1.pdf. 1373 Id. at 31-34, 50-52, paras. 52-57, 93-96. 1374 Accelerating Wireline Broadband Deployment by Removing Barriers to Infrastructure Investment, WC Docket No. 17-84, Declaratory Ruling, 36 FCC Rcd 776 (WCB 2021). 1375 Accelerating Wireline Broadband Deployment by Removing Barriers to Infrastructure Investment, WC Docket No. 17-84, Second Further Notice of Proposed Rulemaking, FCC 22-20, at 15-22, paras. 27-34 (Mar. 18, 2022), https://docs.fcc.gov/public/attachments/FCC-22-20A1.pdf. 1376 Id. at 11-15, paras. 19-26. 1377 See USF/ICC Transformation Report and Order and Further Notice, 26 FCC Rcd at 17875, para. 663, aff’d, In re FCC 11-161, 753 F.3d 1015 (10th Cir. 2014) (“Access stimulation imposes undue costs on consumers, inefficiently diverting capital away from more productive uses such as broadband deployment.”). 1378 Updating the Intercarrier Compensation Regime to Eliminate Access Arbitrage, WC Docket No. 18-55, Further Notice of Proposed Rulemaking, FCC 22-54 (July 15, 2022). 1379 Id. at 6-22, paras. 10-56. 258 Federal Communications Commission FCC 22-103 gather data to set permanent interstate and international rates caps.1380 In September 2022, the Commission improved communications access for incarcerated people with communications disabilities by requiring calling services providers to provide access to all relay services eligible for Telecommunications Relay Services fund support in any correctional facility that is located where broadband is available and is part of a correctional system that houses 50 or more incarcerated people. The Commission also restricted provider charges for relay services and point-to-point video calls, and adopted rules requiring the refund of unused consumer balances, among other reforms.1381 Also in September 2022, the Commission adopted a Further Notice of Proposed Rulemaking seeking comment on additional actions to make telephone service for all incarcerated individuals more equitable and affordable.1382 B. The Mobile Wireless Marketplace 462. Broadband Deployment and Universal Access. The Commission has continued its work to ensure universal access to mobile services and evaluate the status of broadband deployment since the release of the 2020 Communications Marketplace Report. In January 2021, as noted above, the Commission adopted a Third Report and Order that took key additional steps to ensure that both the new data collection itself, and the measures for verifying the accuracy of the data collected, will yield a robust and reliable data resource for the Commission, Congress, federal and state policymakers, and consumers to evaluate the status of broadband deployment throughout the United States.1383 For mobile services, the Commission required additional information regarding provider networks and propagation, which will allow the Commission to verify provider data more effectively.1384 The order also established the requirements for challenges to mobile service coverage reporting and for challenges to the Fabric data.1385 463. In July 2021, the Chiefs of WTB, OEA, and OET released the BDC Mobile Technical Requirements Public Notice seeking comment on proposed technical requirements for the mobile challenge, verification, and crowdsourcing processes required under the Broadband DATA Act.1386 In March 2022, the proposed processes and methodology set forth in the public notice for collecting challenge process data and for determining when the threshold to create a cognizable challenge has been met were adopted.1387 In addition, the Bureaus and Offices adopted detailed processes for mobile providers to respond to challenges, for the Commission to initiate a verification request to a mobile service provider, and for mobile providers to respond to verification requests to confirm broadband coverage in areas they claim have service.1388 Further, the order provided a technical appendix that set forth the parameters and metrics that must be collected both for on-the-ground test data to support 1380 Rates for Interstate Inmate Calling Services, WC Docket No. 12-375, Third Report and Order, Order on Reconsideration, and Fifth Further Notice of Proposed Rulemaking, 36 FCC Rcd 9519 (2021). 1381 Rates for Interstate Inmate Calling Services, WC Docket No. 12-375, Fourth Report and Order and Sixth Further Notice of Proposed Rulemaking, FCC 22-76, at 8-43, paras. 19-92 (Sept. 30, 2022) (Rates for Interstate Inmate Calling Services Fourth Report and Order). 1382 Id. at 43-65, paras. 93-162. 1383 BDC Third Report and Order, 36 FCC Rcd at 1127, para. 2. 1384 See Id. at 1130, para. 9. 1385 Id. at 1130, para. 9. 1386 Comment Sought on Technical Requirements for the Mobile Challenge, Verification, and Crowdsource Processes Required Under the Broadband Data Act, WC Docket No. 19-195, Public Notice, 36 FCC Rcd 11196 (WTB/OEA/OET 2021) (BDC Mobile Technical Requirements Public Notice). 1387 BDC Mobile Technical Requirements Order at 2, para. 2. 1388 Id. 259 Federal Communications Commission FCC 22-103 challenge submissions, rebuttals to cognizable challenges, and responses to verification requests, and for infrastructure information to support challenge rebuttals and responses to verification requests.1389 464. In May 2022, the Task Force, WTB, WCB, OEA, and OET sought comment on a petition filed by the Competitive Carriers Association (CCA) seeking clarification or waiver of the engineering certification requirements for BDC filings.1390 On July 8, 2022, the Task Force and Bureaus and Offices, responding to CCA’s petition, issued a Declaratory Ruling and Limited Waiver regarding the requirement that a corporate engineering officer or certified professional engineer certify providers’ BDC filings.1391 The Declaratory Ruling clarified that a corporate engineering officer means a corporate officer that has at least a Bachelor of Science in engineering (BSE) degree and has direct knowledge of, and responsibility for, the carrier’s network design and construction.1392 The Limited Waiver allows, for the first three BDC bi-annual filing cycles, BDC submissions to be certified by an “otherwise qualified engineer,” which means an engineer with either “(i) a bachelor’s or postgraduate degree in electrical engineering, electronic technology, or another similar discipline, and at least seven years of relevant experience in broadband network design and/or performance; or (ii) specialized training relevant to broadband network engineering and design, deployment, and/or performance, and at least ten years of relevant experience in broadband network engineering, design, and/or performance.”1393 465. On September 15, 2022, the Task Force, together with the WTB, OET, and OEA, released a public notice establishing procedures for mobile wireless broadband service providers, governmental entities, and other third parties that use their own hardware and software to submit on-the- ground speed test data in connection with as part of the mobile challenge and verification processes as part of the BDC.1394 The public notice announces that if a mobile provider uses hardware and software other than the FCC Speed Test app or a third-party speed test app approved by OET for use in the mobile challenge process, it must incorporate the test methodology and collect the metrics that OET-approved apps must gather for consumer mobile challenges and that governmental and third-party challenger speed test data must contain.1395 The public notice also establishes a procedure by which entities submitting mobile challenges and mobile providers responding to mobile challenges will disclose their methodology for collecting on-the-ground data.1396 466. The Commission has also continued its work to ensure that mobile providers meet their commitments to serve remote Alaska in exchange for receiving high-cost support under the Alaska Plan. 1389 Id. 1390 Broadband Data Task Force, Wireless Telecommunications Bureau, Wireline Competition Bureau, and Office of Economics and Analytics Seek Comment on Competitive Carriers Association Petition for Declaratory Ruling or Limited Waiver Regarding the Requirement for a Certified Professional Engineer to Certify Broadband Data Collection Maps, WC Docket No. 19-195, Public Notice, DA 22-543 (May 17, 2022); Petition of Competitive Carriers Association (CCA) for Declaratory Ruling or Limited Waiver, WC Docket No. 19-195 (filed May 13, 2022), https://www.fcc.gov/ecfs/search/search-filings/filing/1051393345823. 1391 Establishing the Digital Opportunity Data Collection; Competitive Carriers Association Petition for Declaratory Ruling or Limited Waiver Regarding the Requirement for a Certified Professional Engineer to Certify Broadband Data Collection Maps, WC Docket No. 19-195, Declaratory Ruling and Limited Waiver, DA 22-733 (July 8, 2022) (BDC Declaratory Ruling and Limited Waiver). 1392 BDC Declaratory Ruling and Limited Waiver at 3-4, para. 6. 1393 Id. 1394 Broadband Data Task Force Establishes Process for Entities to Use Their Own Software and Hardware to Collect On-The-Ground Mobile Speed Test Data as Part of the Broadband Data Collection, WC Docket No. 19- 195, Public Notice, DA 22-962 (Sept. 15, 2022) (BDC Software and Hardware Process Public Notice). 1395 BDC Software and Hardware Process Public Notice at 2, para. 5. 1396 Id. at 3, para. 6. 260 Federal Communications Commission FCC 22-103 Due to the unique challenges of providing communications services in remote Alaska, the Commission adopted the Alaska Plan Report and Order in 2016, as a ten-year plan to ensure eligible remote areas were able to receive advanced communications services.1397 This order required mobile service provider participants to submit performance plans committing to cover a specific number of Alaskans by specified last-mile mobile technology subject to middle-mile technology available.1398 The Alaska Plan Report and Order also required each mobile service provider participant to certify that it met the obligations contained in its performance plan by the end of year five (ending December 31, 2021) and the end of year ten (ending December 31, 2026).1399 467. The Alaska Plan Report and Order required mobile provider participants receiving more than $5 million annually in Alaska Plan high-cost funding to support their certifications with drive test data.1400 After seeking comment on a drive test model,1401 in May of this year, WTB released an Order and Request for Comment adopting drive-test parameters and a model for the drive tests that are required under the Alaska Plan.1402 WTB will use the data derived from these drive tests, combined with FCC Form 477 coverage data and complementary middle-mile data, to verify that those mobile providers receiving more than $5 million annually have met their commitments.1403 WTB also sought comment on a proposal to require mobile provider participants subject to the drive-test requirement to submit new drive-test data consistent with the drive-test model and parameters if they fail to meet a buildout milestone and later seek to cure a compliance gap.1404 468. While the drive-test data were initially due in March 2022, WTB adopted an order in November 2021 that extended the deadline for the providers to submit drive test data to September 30, 2022.1405 In July of this year, to address concerns of testing burdens, WTB adopted a waiver order to allow the mobile providers subject to the Alaska Plan’s drive-test requirement to test certain specified roadless grid cells, which was determined based on the criteria set forth in the order, using nearby proxy grid cells chosen by WTB with the specifications outlined in the order.1406 469. After Hurricanes Irma and Maria caused extensive damage to Puerto Rico and the U.S. Virgin Islands in September 2017, the Commission created a multi-stage fund for the repair, hardening, and upgrading of the communications networks on those islands,1407 and Stage 2 of the fund allocated 1397 Connect America Fund et al., WC Docket No. 16-271, Report and Order and Further Notice of Proposed Rulemaking, 31 FCC Rcd 10139, 10140, para. 1 (2016) (Alaska Plan Report and Order and Further Notice). 1398 Alaska Plan Report and Order and Further Notice, 31 FCC Rcd at 10166, 10172-73, paras. 85, 102. 1399 Id. at 10166-67, 10173, paras. 85, 103; see also 47 CFR § 54.321; Connect America Fund—Alaska Plan, WC Docket No. 16-271, Order and Request for Comment, DA 22-484, at 3, 6, paras. 4, 9 (WTB May 5, 2022) (Alaska Drive Test Order). 1400 Alaska Plan Report and Order and Further Notice, 31 FCC Rcd at 10173, para. 103. 1401 Wireless Telecommunications Bureau Seeks Comment on Drive Test Parameters and Model for Alaska Plan Participants, WC Docket No. 16-271, Public Notice, 36 FCC Rcd 11279 (WTB 2021). 1402 Alaska Drive Test Order at 2, para. 1. 1403 Alaska Drive Test Order at 3, 6, paras. 4, 9; see also 47 CFR § 54.321; Alaska Plan Report and Order and Further Notice, 31 FCC Rcd at 10166-67, 10173, paras. 85, 103. 1404 Id. at 2, para. 1. 1405 Connect America Fund—Alaska Plan, WC Docket No. 16-271, Order, DA 21-1394 (WTB Nov. 8, 2021). 1406 Connect America Fund—Alaska Plan, WC Docket No. 16-271, Order, DA 22-755 (WTB July 13, 2022). 1407 See Uniendo a Puerto Rico Fund and the Connect USVI Fund; Connect America Fund; ETC Annual Reports and Certifications, WC Docket Nos. 18-143, 10-90, 14-58, Report and Order and Order on Reconsideration, 34 FCC Rcd 9109, 9110, paras. 1-3 (2019) (PR-USVI Stage 2 Report and Order). 261 Federal Communications Commission FCC 22-103 more than $250 million over three years for mobile services.1408 In April 2022, T-Mobile, one of the recipients of the Stage 2 mobile-service funds, petitioned the Commission to declare that Stage 2 funds could be used for DAS, which would provide mobile services solely within buildings, such as hospitals.1409 In July 2022, WCB, in consultation with WTB, acting under its delegated authority, adopted a Declaratory Ruling clarifying that Stage 2 funds are presumptively appropriate for deploying DAS to public or publicly accessible facilities that aid disaster response where the market would otherwise not support DAS deployment.1410 The Ruling also clarified that “[f]or an indoor DAS deployment to be constructed consistent with the PR-USVI Stage 2 Report and Order, it must be capable of remaining operational independent of the communications network outside the building; otherwise, the DAS network would not be adding any hardening benefit to what the surrounding mobile service would provide during a disaster.”1411 Providers must also certify that the DAS deployments constructed with Stage 2 funds meet the Commission’s minimum performance requirements for 4G LTE or 5G service.1412 470. Spectrum Policies. Congress requires that the Commission implement spectrum policies that promote competition, innovation, and the efficient use of spectrum to serve the public interest, convenience, and necessity.1413 Therefore, the Commission has established policies to make spectrum available to mobile providers and new entrants through initial licensing, primarily by competitive bidding,1414 and through secondary market transactions.1415 The Commission has worked vigorously to make spectrum available in the low-, mid-, and high-frequency bands for mobile providers to develop and deploy new technologies like 5G1416 and support existing 4G LTE networks.1417 1408 PR-USVI Stage 2 Report and Order, 34 FCC Rcd at 9110, para. 3. 1409 Petition of T-Mobile USA, Inc. for Declaratory Ruling, WC Docket No. 18-143, at 1, 7 (filed Apr. 7, 2022); Uniendo a Puerto Rico Fund and the Connect USVI Fund; Connect America Fund, WC Docket Nos. 18-143 and 10-90, Declaratory Ruling, DA 22-719, at 2 & n.12 (WCB July 6, 2022) (PR/USVI DAS Declaratory Ruling). 1410 PR/USVI DAS Declaratory Ruling at 4-5, paras. 9-10. 1411 Id. at 5-6, para. 12. 1412 Id. at 6-7, para. 15. 1413 47 U.S.C. § 309(j)(3)(B). 1414 The Commission generally provides a bidding credit—or discount—to promote participation by small businesses and rural service providers, including businesses owned by members of minority groups and women. 47 U.S.C. § 309(j)(3)(B), (j)(4)(D); see also 47 CFR § 1.2110; Updating Part 1 Competitive Bidding Rules et al., WT Docket No. 14-170 et al., Report and Order, Order on Reconsideration of the First Report and Order, Third Order on Reconsideration of the Second Report and Order, and Third Report and Order, 30 FCC Rcd 7493 (2015) (modified by erratum, Aug. 25, 2015). 1415 Mobile Spectrum Holdings Report and Order, 29 FCC Rcd at 6143-44, 6167-68, 6190, 6193, 6221-22, 6223-24, paras. 17, 67-69, 135, 144, 225-27, 231-32. The Commission generally has adopted “flexible use” policies, thereby allowing licensees to decide which services to offer and what technologies to deploy on spectrum used for the provision of mobile wireless services. 1416 CTIA states that since wireless operators first launched 5G service in 2019, three nationwide networks—and regional provider networks across the United States—already cover more than 300 million Americans, up from 200 million last year. CTIA Comments at iii, 10-11. CTIA asserts that 5G has the potential to impact nearly every industry vertical, such as transportation, manufacturing, agriculture, education, retail, healthcare, energy, home and consumer goods, and information services. CTIA Comments at 29-36; see also CTA Comments at 5-10 (stating that competition and innovation continue to thrive in other consumer technology verticals, such as telemedicine and health, smart homes, transportation, and robotics). 1417 According to CTIA, in 2020, 99% of Americans had a choice of obtaining 4G LTE service from three or more wireless providers from among national operators and more than 100 regional operators, including resellers and MVNOs. See CTIA Comments at iv, 10-11. 262 Federal Communications Commission FCC 22-103 471. In particular, over the past two years, the Commission has pursued a comprehensive strategy to make available more mid-band spectrum,1418 which is uniquely suited for 5G deployment because of its favorable technical characteristics. In February 2021, the Commission concluded Auction 107, which is thus far the largest auction of mid-band spectrum and the highest-grossing spectrum auction overall ever held in the United States.1419 This auction, which commenced on December 8, 2020, made available new flexible-use overlay licenses in the 3.7-3.98 GHz band (C-band) for 280 megahertz of spectrum or more than half of the C-band.1420 By repacking existing satellite operations into the upper 200 megahertz of the C-band, the Commission is making a significant amount of spectrum available for flexible terrestrial use throughout the contiguous United States in a manner that ensures the continuous and uninterrupted delivery of services currently offered in the band.1421 This auction’s net winning bids exceeded $81.1 billion, with 21 bidders winning all of the available 5,684 licenses.1422 472. In March 2021, the Commission released an order that also took steps to advance the Commission’s objectives to make more mid-band spectrum available for 5G.1423 The order continued the implementation of the Beat China by Harnessing Important, National Airwaves for 5G Act of 2020, which required the Commission to start an auction to grant new initial licenses subject to flexible use in the 3450-3550 MHz (3.45 GHz) band by the end of 2021.1424 The order adopted a framework that will enable full-power commercial use1425 of this band and require that future licensees deploy their networks quickly.1426 In January 2022, bidding in that auction (Auction 110) concluded following the close of bidding in the assignment phase.1427 The net proceeds of Auction 110 exceeded $22.4 billion with 23 bidders winning a total of 4,041 licenses.1428 Collectively, the 3.45 GHz band and the neighboring 3.5 GHz and 3.7 GHz bands will offer 530 megahertz of contiguous mid-band spectrum for 5G services.1429 1418 See, e.g., CCA Comments at 11 (asserting that the Commission has made important progress recently in developing mid-band spectrum, such as the 3.45 GHz band and the 3.7 GHz band). 1419 Auction 107 Closing Public Notice, 36 FCC Rcd at 4318; FCC, Press Release, First Phase of Record-Breaking 5G Spectrum Auction Concludes (Jan. 15, 2021), https://docs.fcc.gov/public/attachments/DOC-369265A1.pdf. 1420 Auction 107 Closing Public Notice, 36 FCC Rcd at 4318, para. 1; 3.7 GHz Report and Order, 35 FCC Rcd at 2345, para. 4. 1421 3.7 GHz Report and Order, 35 FCC Rcd at 2345, para. 4. 1422 Auction 107 Closing Public Notice, 36 FCC Rcd at 4318, para. 1. CTIA states that in the last three years alone, the wireless industry invested more than $108 billion in Commission-led spectrum auctions, pointing to this C-band auction as representing the largest investment in a spectrum auction to date. CTIA further states that, in total, the industry has made more than $230 billion in payments to the government for the spectrum needed to power wireless networks and carry the increasing volumes of consumer services across the country. CTIA Comments at 9-10; see also CCA Comments at 11-12. 1423 3.45 GHz Second Report and Order, 36 FCC Rcd at 5987. 1424 Id. at 5988, para. 1. In CTIA’s comments, it states that mid-band spectrum is a key factor for 5G because it provides high speeds over a broad coverage area and asserts that the lower 3 GHz band (3.1-3.45 GHz) is a top priority for U.S. wireless interests. CTIA notes that these frequencies are internationally harmonized and sit next to other full-power 5G spectrum, making this swath an ideal fit to provide large channels and the flexibility to be aggregated with other bands. CTIA Comments at 61. 1425 Commercial use as it is used here refers to non-federal, primary, flexible use of the 3.45 GHz band and do not preclude use of the band for private mobile radio services. 3.45 GHz Second Report and Order, 36 FCC Rcd at 5988, para. 1 & n.1; see also 47 U.S.C. § 332(d)(3); 47 CFR § 20.3. 1426 3.45 GHz Second Report and Order, 36 FCC Rcd at 5988, para. 1. 1427 Auction 110 Closing Public Notice at 1, para. 1. 1428 Id. at 1, para. 1. 1429 3.45 GHz Second Report and Order, 36 FCC Rcd at 5988, para. 1. 263 Federal Communications Commission FCC 22-103 Within the last two years, WTB granted licenses in all three of these bands, and the 3.5 GHz band is also available for opportunistic use.1430 All three of these bands are available for fixed and mobile use.1431 473. In July 2022, the Commission began the bidding in the auction of mid-band 2.5 GHz band licenses (Auction 108).1432 Auction 108 offered the single largest contiguous portion of available mid-band spectrum below 3 GHz, and the licenses made available in this auction will help extend 5G service beyond the most populated areas.1433 This auction made available approximately 8,000 new flexible-use geographic overlay licenses in the 2.5 GHz band, mostly in rural areas.1434 Bidding in the auction concluded on August 29, 2022, with 63 bidders winning a total of 7,872 licenses and total net winning bids exceeding $419 million.1435 474. The Commission conducted Auction 108 in accordance with the July 2019 2.5 GHz Report and Order, which transformed the regulatory framework governing the 2.5 GHz band.1436 The 2.5 GHz Report and Order included a pre-auction priority window for Tribal Nations to apply to obtain the unassigned spectrum on rural Tribal lands to address the needs of their communities.1437 To further the goal of ensuring that this fallow spectrum be used to provide high-speed broadband service, particularly in rural areas, the auction offered county-sized licenses for the remaining spectrum in this band to entities that will use it, therefore making this valuable mid-band spectrum more available for advanced wireless services, including 5G.1438 475. The Commission has continued taking steps to sustain and spur growth of the white space ecosystem promoting innovative and efficient uses of spectrum. In January 2022, the Commission adopted two orders resolving pending issues associated with white space devices and the white spaces databases.1439 These actions will provide additional certainty to white space device users, manufacturers, 1430 See, e.g., Wireless Telecommunications Bureau Grants Auction 110 Licenses, Public Notice, DA 22-462 (WTB May 4, 2022); Wireless Telecommunications Bureau Grants Auction 107 Licenses, Public Notice, DA 21-839 (WTB July 23, 2021); Wireless Telecommunications Bureau Grants Auction 103 Priority Access Licenses, Public Notice, DA 21-300 (WTB Mar. 12, 2021); see also Promoting Investment in the 3550-3700 MHz Band, GN Docket No. 17- 258, Report and Order, 33 FCC Rcd 10598, 10628, para. 53 (2018) (3.5 GHz Report and Order); 47 CFR § 96.33, 96.35. 1431 See, e.g., 3.45 GHz Second Report and Order, 36 FCC Rcd at 5988, para. 1; 3.7 GHz Report and Order, 35 FCC Rcd at 2353, para. 22; 3.5 GHz Report and Order, 33 FCC Rcd at 10598-99, paras. 1-2. 1432 FCC, Press Release, FCC Starts 5G Mid-Band Spectrum Auction (July 29, 2022), https://docs.fcc.gov/public/attachments/DOC-385771A1.pdf. 1433 Auction 108 Procedures Public Notice at 3, para. 1. 1434 Id. 1435 Auction 108 Closing Public Notice at 1, para. 1. 1436 2.5 GHz Report and Order, 34 FCC Rcd at 5447, para. 3. 1437 Id. at 5463-69, paras. 47-65. 1438 Id. at 5450, para. 13. 1439 Amendment of Part 15 of the Commission’s Rules for Unlicensed Operations in the Television Bands, Repurposed 600 MHz Band, 600 MHz Guard Bands and Duplex Gap, and Channel 37, et al., ET Docket No. 14- 165, et al., Second Order of Reconsideration, Further Notice of Proposed Rulemaking, and Order, FCC 22-6, at 2, para. 1 (Jan. 26, 2022) (White Space Devices Order); see also Unlicensed White Space Device Operations in the Television Bands, ET Docket No. 20-36, Report and Order, 35 FCC Rcd 12603 (2020) (revising rules to facilitate the development of new and innovative narrowband Internet of Things devices in TV white spaces and expand the ability of unlicensed white space devices to deliver wireless broadband services in rural areas and areas where fewer broadcast stations are on the air). 264 Federal Communications Commission FCC 22-103 and database administrators to enable unlicensed white space devices to operate efficiently and protect other spectrum users.1440 476. In the 6 GHz Order and Further Notice, the Commission opened up the entire 6 GHz band (5.925-7.125 GHz) for unlicensed indoor lower power access points.1441 In this April 2020 order, the Commission found that these access points will be ideal for connecting devices, in homes and businesses, such as smartphones, tablet devices, laptops, and Internet-of-Things devices, to the Internet.1442 Shortly thereafter, a petition was filed with the D.C. Circuit Court of Appeals seeking judicial review of this order.1443 The petitioners represented licensed commercial wireless service providers, electric utilities, public safety entities, and broadcasters operating in the 6 GHz band;1444 these petitioners asserted that the 6 GHz Report and Order contravenes the Communications Act of 1934, as amended, and the Administrative Procedure Act.1445 On December 28, 2021, the D.C. Circuit largely rejected these challenges.1446 It held that “the petitioners have failed to provide a basis for questioning the Commission’s conclusion that the [6 GHz Report and Order] will protect against a significant risk of harmful interference,” and “den[ied] the petitions for review in all respects save one.”1447 The single remand was based on complaints by the NAB concerning interference in the 2.4 GHz band.1448 477. In March of this year, OET released a public notice that sought comment on NAB’s arguments in the Commission’s proceeding regarding broadcasters’ experience in the 2.4 GHz band, how that experience relates to the kinds of contention-based protocol operations prescribed for indoor use in the 6 GHz rules, and whether the 2.4 GHz experience warrants reservation of a portion of the 6 GHz band for mobile indoor operations or any other modifications to the Commission’s 6 GHz rules.1449 478. WTB and PSHSB released a public notice in August 2021 that provided guidance regarding the adoption of new rules for the 5.850-5.925 GHz (5.9 GHz) band.1450 In particular, WTB and PSHSB provided guidance to intelligent transportation system (ITS) licensees seeking waivers of the Commission’s rules to operate roadside units with cellular vehicle to everything (C-V2X)-based 1440 White Space Devices Order at 2, para. 1. 1441 6 GHz Order and Further Notice, 35 FCC Rcd at 3860, para. 18, aff’d in part and remanded in part, AT&T Services, Inc. v. FCC, 21 F.4th 841, 853-54 (D.C. Cir. 2021). 1442 6 GHz Order and Further Notice, 35 FCC Rcd at 3854, para. 3. NCTA points out that the Commission’s 6 GHz decision authorized 1200 megahertz of mid-band spectrum for shared unlicensed use, allowing broadband providers and equipment manufacturers to access the 160-megahertz channels enabled by the current Wi-Fi 6/6E standard and provide significant improvements in speed and spectrum efficiency. NCTA states that the FCC is poised to expand on these improvements and unleash additional consumer benefits as it considers as part of its 6 GHz Further Notice proceeding, which would allow increased Wi-Fi power levels for low-power indoor Wi-Fi. NCTA Comments at 15- 16; see also Public Knowledge, OTI, and Consumer Reports Reply at 9. 1443 AT&T Services, Inc. v. FCC, 21 F.4th 841, 842, 845 (D.C. Cir. 2021). 1444 AT&T, 21 F.4th at 842-43, 845. 1445 Id. at 843, 845 (citing 47 U.S.C. § 151, et seq., 5 U.S.C. § 706(2)(A)). 1446 Id. at 843, 854. 1447 Id. at 843. 1448 Id. at 853-55; 6 GHz Order and Further Notice, 35 FCC Rcd at 3915, para. 168. 1449 Office of Engineering and Technology Seeks Comment Following Court Remand of 6 GHz Band Order, ET Docket No. 18-295, GN Docket No. 17-183, Public Notice, DA 22-253 (OET Mar. 10, 2022). 1450 Wireless Telecommunications Bureau and Public Safety and Homeland Security Bureau Provide Guidance for Waiver Process to Permit Intelligent Transportation System Licensees to Use C-V2X Technology in the 5.895-5.925 GHz Band, ET Docket No. 19-138, Public Notice, 36 FCC Rcd 12406 (WTB/PSHSB 2021) (5.9 GHz Waiver Public Notice). 265 Federal Communications Commission FCC 22-103 technology in the upper 30 megahertz (5.895-5.925) portion of the 5.9 GHz band, prior to adoption of final rules providing for such use, as well as guidance for waivers associated with equipment certifications and on-board units.1451 Similarly, in June 2022, WTB and PSHSB sought comment in a public notice on a joint filing by certain automakers, state departments of transportation, and equipment manufacturers requesting a waiver of the Commission’s rules applicable to ITS operations in the upper 30 megahertz portion of the 5.9 GHz band.1452 When combined with existing Wi-Fi spectrum in the adjacent 5 GHz band, the Commission’s actions over the last several years will allow for near-term deployment of a high-throughput, 160-megahertz channel that will enable gigabit connectivity for schools, hospitals, small businesses, and other consumers. 479. In October 2021, WTB released a public notice seeking to supplement the record in the rulemaking on Modernizing and Expanding Access to the 70/80/90 GHz Bands to address the potential for use of the 71-76 GHz, 81-86 GHz, 92-94 GHz, and 94.1-95 GHz bands to provide broadband Internet access to consumers and communities that may otherwise lack robust, consistent connectivity.1453 In this public notice, WTB sought comment on whether High Altitude Platform Stations or other stratospheric- based platform services could be deployed for this purpose in the 70/80/90 GHz bands.1454 The 70/80/90 GHz bands are allocated on a co-primary basis for Federal and non-Federal use, variously for terrestrial, satellite, radio astronomy, and radiolocation uses.1455 WTB also sought additional information regarding the potential use of these bands to provide broadband Internet access to customers on airplanes and aboard ships.1456 480. The Commission also took steps towards the more efficient use of available spectrum. In July 2022, the Commission adopted a Report and Order creating the Enhanced Competition Incentive Program (ECIP) to establish incentives for wireless licensees to make underutilized spectrum available to small carriers, Tribal Nations, and entities serving rural areas.1457 The Report and Order built on the Congressional goals of the Making Opportunities for Broadband Investment and Limiting Excessive and Needless Obstacles to Wireless Act (MOBILE NOW Act), by considering steps to “increase the diversity of spectrum access” and the “availability of advanced telecommunications services in rural areas” and to facilitate transactions that will benefit the public interest.1458 Under ECIP, any covered geographic licensee may offer spectrum to an unaffiliated eligible entity through a partition and/or disaggregation, and any covered geographic licensee eligible to lease in an included service may offer spectrum to an unaffiliated eligible entity through a long-term leasing arrangement.1459 As a result, ECIP encourages licensees to partition, disaggregate, or lease spectrum to better match available spectrum resources with 1451 5.9 GHz Waiver Public Notice, 36 FCC Rcd at 12406. 1452 Wireless Telecommunications Bureau and Public Safety and Homeland Security Bureau Seek Comment on a Request for Nationwide Waiver of Intelligent Transportation System Rules to Use C-V2X Technology in the 5.895- 5.925 GHz Band, ET Docket No. 19-138, Public Notice, DA 22-611 (WTB/PSHSB June 7, 2022); see also Public Safety and Homeland Security Bureau Seeks Comment on Waiver Requests from Intelligent Transportation System Licensees to Use C-V2X Technology in the 5.895-5.925 GHz Band, ET Docket No. 19-138, Public Notice, DA 22- 617 (PSHSB June 7, 2022). 1453 70/80/90 GHz Record Public Notice at 1, para. 1; see also Modernizing and Expanding Access to the 70/80/90 GHz Bands, et al., WT Docket No. 20-133, et al., Notice of Proposed Rulemaking and Order, 35 FCC Rcd 6039 (2020). 1454 70/80/90 GHz Record Public Notice at 1, para. 1. 1455 Id. at 1, para. 2. 1456 Id. at 1, para. 1. 1457 ECIP Report and Order at 2, para. 1; see also ECIP Press Release. 1458 ECIP Report and Order at 2, para. 1. 1459 Id. at 6-7, 18-19, paras. 2, 18; ECIP Press Release at 1. 266 Federal Communications Commission FCC 22-103 entities that seek to provide needed services to underserved communities.1460 In the same Report and Order, the Commission also provided for reaggregation of previously partitioned and disaggregated licenses up to the original license size, while adopting appropriate safeguards.1461 The Second Further Notice sought comment on whether to expand program eligibility to allow non-common carriers serving non-rural areas to be eligible to participate in the program, and whether to adopt alternative construction requirements for wireless radio licensees generally, including a safe harbor.1462 481. As mobile networks transition to 5G, the Commission is continuing to explore ways to leverage certain technologies to ensure network security and 5G leadership. For example, in March 2021, the Commission released its first inquiry exploring how the Commission can accelerate the development and deployment of Open RAN.1463 This notice of inquiry will help the Commission develop information that can inform providers’ decision making as they examine which equipment and services to deploy in their next generation networks.1464 In particular, the Commission sought comment on the status of Open RAN: where the technology is today, and what steps are required to deploy Open RAN networks broadly and at scale.1465 The Commission sought input on whether, and if so how, deployment of Open RAN- compliant networks could further the Commission’s policy goals and statutory obligations, advance legislative priorities, and benefit American consumers by making state-of-the-art wireless broadband available faster and to more people in additional parts of the country.1466 Commission staff are continuing to analyze the comments, replies, and ex partes1467 that have been filed in this docket. The Commission hosted an Open RAN showcase in July 2021, in which more than 30 vendors participated and shared the latest development of their Open RAN solutions with wireless service providers.1468 In addition, collaborating with the National Science Foundation (NSF) and Platforms for Advanced Wireless Research (PAWR), the Commission launched two new innovation zones in Boston and Raleigh to test 1460 ECIP Report and Order at 2, para. 2; ECIP Press Release at 1. 1461 ECIP Report and Order at 2, para. 3. 1462 Id. 1463 See Open RAN Notice of Inquiry, 36 FCC Rcd at 5947. 1464 Id. at 5948-49, para. 3. In CTIA’s comments, it asserts that Open RAN has the potential to advance competition and innovation over the next decade. CTIA states that industry development of Open RAN is part of a larger evolution and paradigm shift in telecommunications networks. See CTIA Comments at 19. 1465 Open RAN Notice of Inquiry, 36 FCC Rcd at 5948-49, para. 3. 1466 Id. 1467 See, e.g., Letter from Kristian Toivo, Executive Director, Telecom Infra Project, to Marlene H. Dortch, Secretary, FCC, GN Docket No. 21-63 (filed Sept. 26, 2022); Letter from Adriana Rios Welton, U.S. Cellular Corporation, to Marlene H. Dortch, FCC, GN Docket No. 21-63 (filed Aug. 31, 2022); Letter from Jeffrey H. Blum, Executive Vice President, DISH Network, to Marlene H. Dortch, Secretary, FCC, GN Docket No. 21-63 (filed Mar. 16, 2022); Letter from Jared M. Carlson, Vice President, Ericsson, to Marlene H. Dortch, Secretary, FCC, GN Docket No. 21-63 (filed Feb. 25, 2022); Letter from Caressa D. Bennet and E. Alex Espinoza, Womble Bond Dickinson LLP, Counsel, Mavenir Systems, to Marlene H. Dortch, Secretary, FCC, GN Docket No. 21-63 (filed Jan. 10, 2022); Letter from Colleen Thompson, Director, AT&T, to Ms. Marlene H. Dortch, Secretary, FCC, GN Docket No. 21-63 (filed Dec. 2, 2021); Letter from John Hunter, Senior Director, T-Mobile, to Marlene H. Dortch, Secretary, FCC, GN Docket No. 21-63 (filed Dec. 2, 2021); Letter from Alexi Maltas, General Counsel, CCA, to Marlene H. Dortch, Secretary, FCC, GN Docket No. 21-63 (filed Nov. 16, 2021); Letter from Carri Bennet, General Counsel, and E. Alex Espinoza, Regulatory Counsel, RWA, to Marlene H. Dortch, Secretary, FCC, GN Docket No. 21-63 (filed Oct. 22, 2021). 1468 FCC Announces Open RAN Solutions Showcase Agenda, Public Notice (July 12, 2021), https://www.fcc.gov/document/fcc-announces-open-ran-solutions-showcase-agenda. 267 Federal Communications Commission FCC 22-103 new advanced technologies and prototype networks, including Open RAN.1469 Further, the Commission allows wireless service providers to replace covered equipment that pose threats to national security with alternative closed or Open RAN equipment through the Secure and Trusted Communication Networks Reimbursement Program.1470 482. Wireless Infrastructure Siting. Wireless providers will need to deploy a vast amount of new equipment and will need to modify older equipment to upgrade networks within a relatively short amount of time in order to match the demand for advanced wireless technologies. The Commission’s over-the-air reception devices (OTARD) rule prohibits laws, regulations, or restrictions imposed by State or local governments or private entities that impair the ability of antenna users to install, maintain, or use over-the-air reception devices.1471 In January 2021, the Commission released a Report and Order that expanded the rule’s coverage to include hub and relay antennas that are used for the distribution of broadband-only fixed wireless services to multiple customer locations, regardless of whether they are primarily used for this purpose, provided the antennas satisfy other conditions of the rule.1472 This rule adjustment should allow fixed wireless service providers to bring faster Internet speeds, lower latency, and advanced applications, such as the Internet of Things, telehealth, and remote learning, to all areas of the country, and to rural and underserved communities in particular.1473 483. On September 13, 2022, WTB held a workshop on environmental and historic preservation review processes that are required prior to the construction of communications facilities supporting Commission licensed services.1474 The workshop included information relevant to the construction of new communications towers and the collocation of communications equipment on existing towers and other structures, including requirements for Antenna Structure Registration.1475 C. The Satellite Marketplace 484. On May 13, 2020, the Commission adopted rules expanding the scope of operations available with ESIMs.1476 The Commission extended licensing rules for ESIMs that operate with GSO FSS space stations to additional frequency bands available for blanket licensing of earth stations at fixed 1469 FCC, Press Release, FCC Designates New Innovation Zones for Advanced Wireless Technology Research and Innovation (Aug. 5, 2021), https://docs.fcc.gov/public/attachments/DOC-374691A1.pdf. 1470 Wireline Competition Bureau Finalizes Application Filings, Procedures, Cost Catalog, and Replacement List for the Secure and Trusted Communications Networks Reimbursement Program, WC Docket No. 18-89, Public Notice, 36 FCC Rcd 12190 (WCB 2021). 1471 OTARD Report and Order, 36 FCC Rcd at 537-38, para. 2. 1472 Id. at 537, para. 1. 1473 Id. at 537, para. 1. In February 2021, the Children’s Health Defense and four individual petitioners filed a petition for review in the Court of Appeals in the D.C. Circuit asserting that this order violated their rights under the Americans with Disabilities Act, the Fair Housing Act, and the Constitution. However, in February 2022, the D.C. Circuit Court of Appeals denied the petition. Children’s Health Defense, et al. v. FCC, 25 F.4th 1045 (D.C. Cir. 2022). 1474 Wireless Telecommunications Bureau Announces September 13, 2022 Workshop on Environmental Compliance and Historic Preservation Review Procedures, Public Notice, DA 22-754 (WTB July 13, 2022) (WTB NEPA and NHPA Workshop). 1475 WTB NEPA and NHPA Workshop at 1, para. 1. 1476 Amendment of Parts 2 and 25 of the Commission’s Rules to Facilitate the Use of Earth Stations in Motion Communicating with Geostationary Orbit Space Stations in Frequency Bands Allocated to the Fixed Satellite Service; Facilitating the Communications of Earth Stations in Motion with Non-Geostationary Orbit Space Stations, IB Docket Nos. 17-95 and 18-315, Second Report and Order, Report and Order, and Further Notice of Proposed Rulemaking, 35 FCC Rcd 5137 (2020) (ESIMs Second Report and Order and Further Notice). 268 Federal Communications Commission FCC 22-103 locations.1477 The Commission also adopted rules enabling the licensing of ESIMs with NGSO FSS space stations based on the regulatory framework adopted for ESIM communications with GSO FSS networks.1478 485. On November 18, 2020, the Commission further streamlined its rules governing satellite services by more closely aligning the licensing processes for space stations and earth stations.1479 The Commission created an optional, unified license framework to authorize the blanket-licensed earth stations and space stations in a satellite system under a single license.1480 The Commission also harmonized the build-out requirements for earth stations and space stations and eliminated unnecessary reporting rules to reduce regulatory burdens and provide additional operational flexibility.1481 486. On August 3, 2022, the Commission permitted use of the 17.3-17.7 GHz band for GSO FSS downlinks on a co-primary basis with incumbent services and use of the 17.7-17.8 GHz band for GSO FSS downlinks on a unprotected basis with respect to fixed service operations, thereby creating a contiguous band for fixed-satellite downlink operations, and enabling greater flexibility and efficiency.1482 The Commission also defined an extended Ka-band, streamlining licensing of FSS earth stations in a harmonized regulatory framework for similar FSS transmissions in the conventional and extended Ka- bands.1483 In addition, the Commission sought comment on whether to allow operations of non- geostationary satellite orbit (NGSO) in the FSS (space-to-Earth) in the 17.3-17.8 GHz band and the appropriate technical rules and standards.1484 487. Growth in space activity has heightened concerns about the risks of orbital debris, and post-mission disposal of spacecraft is a necessary part in the mitigation of orbital debris, with orbital lifetime a crucial element affecting both collision risk. On April 24, 2020, the Commission comprehensively updated the Commission’s rules regarding orbital debris mitigation.1485 The updated regulations were designed to ensure that the Commission’s actions concerning radio communications, including licensing U.S. spacecraft and granting access to the U.S. market for non-U.S. spacecraft, mitigate the growth of orbital debris, while at the same time not creating undue regulatory obstacles to new satellite ventures.1486 Post-mission disposal and orbital lifetime are crucial factors in the mitigation of orbital debris, as they not only affect the collision risk of a space station or system, but also affect spacecraft that are unable to complete post-mission disposal, particularly when left at higher altitudes where they may persist indefinitely, will contribute to the growing congestion in the space environment over the long-term, and increase risks to space operations.1487 On September 30, 2022, the Commission shortened the 25-year benchmark for post-mission disposal of NGSO space stations to five years for space stations in LEO.1488 1477 ESIMs Second Report and Order and Further Notice, 35 FCC Rcd at 5139-44, paras. 5-20. 1478 Id. at 5139, 5146-58, paras. 5, 26-61. 1479 Further Streamlining Part 25 Rules Governing Satellite Services, IB Docket No. 18-314, Report and Order, 35 FCC Rcd 13285 (2020). 1480 Id. at 13290-97, paras. 15-36. 1481 Id. at 13297-307, paras. 37-65. 1482 17 GHz Report and Order at 2, para. 1. 1483 Id. at 2, para. 2. 1484 Id. at 2, para. 3. 1485 Orbital Debris Report and Order and Further Notice, 35 FCC Rcd at 4157, para. 1. 1486 Id. at 4157, para. 2. 1487 Orbital Debris Second Report and Order at 2, para. 4. 1488 Id. at 2, para. 4. 269 Federal Communications Commission FCC 22-103 D. The Video and Audio Communications Marketplace 488. Next Generation Television Standard. The Commission’s work to enable the deployment of the ATSC 3.0 broadcast transmission standard is proceeding.1489 As reported in the 2020 Communications Marketplace Report, the Commission has previously taken a number of actions to allow broadcasters, manufacturers, and consumers to explore this new technology by: authorizing television stations to use the ATSC 3.0 broadcast transmission standard; setting forth applicable operational requirements, MVPD carriage rights, public interest obligations, and technical standards; and providing guidance for ATSC 3.0 television broadcasters.1490 489. In January 2021, the Commission adopted a technical modification to the Commission’s rules governing the use of a DTS, or single frequency network, by a broadcast television station.1491 The Commission provided greater flexibility and additional clarity in the Commission’s rules to foster the potential use of DTS as stations seek to operate in ATSC 3.0.1492 Specifically, the rule changes were designed to give stations greater flexibility in the placement of transmitters, thereby allowing broadcasters to enhance signal capabilities and coverage, improve indoor and mobile reception, and increase spectrum efficiency by reducing the need for additional television translator stations operating on separate channels.1493 490. New Broadcast Stations. Over the last two years, the Commission has taken steps to allow new entities to enter the broadcast marketplace and for existing licensees to expand or improve their service. In October 2021, the Commission updated the TV Table of Allotments (TV Table) to codify Commission actions taken over the past several years that modified the channel allotments reflected in the TV Table, including primarily actions related to the incentive auction and repacking process authorized by The Middle Class Tax Relief and Job Creation Act of 2012.1494 After this update, 1489 For example, as of November 16, 2022, the Commission has licensed at least one station to commence ATSC 3.0 operations in a total of 78 DMAs. Moreover, the Commission is aware of approximately 120 models of television sets with ATSC 3.0 tuners currently available in the United States from four manufacturers. See, e.g., NAB Comments, GN Docket No. 16-142, at 4-5 (rec. Aug. 8, 2022) (“Hisense is expected to make its 3.0 compatible sets available later this month, at which point we expect there will be approximately 120 models of television sets with 3.0 receivers available at a variety of price points from four manufacturers”); Pearl TV Comments, GN Docket No. 16-142, at 14 (rec. Aug. 8, 2022) (“consumers will soon have over 120 models of TV sets from four different manufacturers to choose from, with more on the way”). 1490 2020 Communications Marketplace Report, 36 FCC Rcd at 3161, para. 413; see also Authorizing Permissive Use of the “Next Generation” Broadcast Television Standard, GN Docket No. 16-142, Report and Order and Further Notice of Proposed Rulemaking, 32 FCC Rcd 9930 (2017); Authorizing Permissive Use of the “Next Generation” Broadcast Television Standard, GN Docket No. 16-142, Second Report and Order and Order on Reconsideration, 35 FCC Rcd 6793, 6794, 6797-6807, 6810-11, paras. 1, 9-28, 34-37 (2020). 1491 Rules Governing the Use of Distributed Transmission System Technologies, MB Docket No. 20-74, Report and Order, 36 FCC Rcd 1227 (2021) (DTS Order). Microsoft Corporation filed a Petition for Reconsideration of the DTS Order on May 21, 2021. Petition for Reconsideration of Action in Proceeding, Public Notice, MB Docket Nos. 20-74, 16-142 (June 32, 2020). The petition remains pending. 1492 DTS Order, 36 FCC Rcd at 1227, para. 1. 1493 Id. 1494 See Expanding the Economic and Innovation Opportunities of Spectrum Through Incentive Auction, GN Docket No. 12-268, Order, 36 FCC Rcd 15891 (2021); The Middle Class Tax Relief and Job Creation Act of 2012, Pub. L. No. 112-96, §§ 6402 (codified at 47 U.S.C. § 309(j)(8)(G)), 6403 (codified at 47 U.S.C. § 1452), 126 Stat. 156 (2012); Expanding the Economic and Innovation Opportunities of Spectrum Through Incentive Auctions, GN Docket No. 12-268, Report and Order, 29 FCC Rcd 6567, 6568-70, para. 1 (2014), aff’d, National Ass’n of Broadcasters v. FCC, 789 F.3d 165 (D.C. Cir. 2015) (subsequent citations omitted); Incentive Auction Closing and Channel Reassignment Public Notice: The Broadcast Television Incentive Auction Closes; Reverse Auction and Forward Auction Results Announced; Final Television Band Channel Assignments Announced; Post-Auction (continued….) 270 Federal Communications Commission FCC 22-103 27 allotments in the TV Table were available for licensing.1495 Auction 112 made full power television construction permits on these allotted-but-unlicensed channels available.1496 The auction, which took place between June 7 and June 15, 2022, raised a total of $33,043,250 in net bids, with seven bidders winning a total of 18 construction permits.1497 Winning bidders have made all required payments, and Commission staff has processed all long form applications, thereby granting the new construction permits. 491. In addition, between July 27, 2021 and August 5, 2021, the Commission held broadcast Auction 109,1498 auctioning new construction permits for 135 commercial FM and four AM radio stations.1499 While none of the AM permits received bids, 67 bidders placed winning bids on 97 new FM construction permits for a total of $12,344,110.1500 Winning bidders have made all required payments and filed their long-form applications. 492. Finally, in November 2021, the Media Bureau opened a filing window for parties seeking construction permits for new Noncommercial Educational (NCE) FM stations.1501 This filing window provided the first new licensing opportunity for noncommercial stations in more than 10 years. The Bureau received 1,282 applications for new NCE FM stations during the window, indicative of the pent- up demand for such stations.1502 The Bureau has granted more than 600 applications, and the (Continued from previous page) Deadlines Announced, GN Docket No. 12-268, Public Notice, 32 FCC Rcd 2786 (2017) (Broadcast Incentive Auction Closing and Channel Reassignment Public Notice). 1495 Auction of Construction Permits for Full Power Television Stations; Comment Sought on Competitive Bidding Procedures for Auction 112, AU Docket No. 21-449, Public Notice, DA 21-1444, at 2, paras. 2-3 (Nov. 19, 2021). 1496 Id. 1497 Auction of Construction Permits for Full Power Television Stations; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 112; Bidding Scheduled io Begin June 7, 2022, AU Docket No. 21-449, Public Notice, DA 22-125, at 3, para. 1 (Feb. 10, 2022); Auction of Construction Permits for Full Power Television Stations Closes; Winning Bidders Announced for Auction 112, AU Docket No. 21-449, Public Notice, DA 22-659, at 1, para. 1 (June 23, 2022). 1498 Auction 109 replaced canceled FM Auction 106, which was to have taken place beginning April 28, 2020, but was postponed due to the COVID-19 pandemic. Auction 106 Postponed, AU Docket No. 19-290, Public Notice, 35 FCC Rcd 2886 (2020). 1499 Auction of AM and FM Broadcast Construction Permits; 114 Bidders Qualified to Participate in Auction 109; One FM Broadcast Construction Permit Removed From Auction 109, AU Docket No. 21-39, Public Notice, DA 21- 780, at 1, para 1. (July 1, 2021); Auction of AM and FM Broadcast Construction Permits Closes; Winning Bidders Announced for Auction 109, AU Docket No. 21-39, Public Notice, DA 21-983, at 1, para. 1 (Aug. 12, 2021). 1500 Id. at 1, para. 1, Attach. A. 1501 Media Bureau Announces NCE FM New Station Application Filing Window; Window Open from November 2, 2021 to November 9, 2021, MB Docket No. 20-343, Public Notice, 36 FCC Rcd 7449 (2021). 1502 Media Bureau Dismisses Defective Singleton Applications Submitted in the November 2021, Filing Window For New Noncommercial Education FM Stations, MB Docket No. 20-343, Public Notice, 36 FCC Rcd 16718 (2021). Many of these applications were not mutually exclusive with any other application filed in the window and therefore acceptable for filing. Id. 75 of the applications filed in the window were dismissed for failure to comply with filing requirements. Id. at 16719. The Bureau also identified 231 groups of mutually exclusive (MX) applications, comprised of 833 total applications, and provided a 60-day settlement period, ending January 28, 2022, for MX applicants to enter into and file settlement agreements and/or submit technical amendments to resolve conflicts to allow for the grant of some of these applications. Id. at 16718-16719; Media Bureau Identifies Groups of Mutually Exclusive Applications Submitted in the November 2021, Filing Window for New Noncommercial Educational FM Stations; Opens Window to Accept Settlements and Technical Amendments, MB Docket No. 20-343, Public Notice, DA 21-1476 (Nov. 29, 2021). 271 Federal Communications Commission FCC 22-103 Commission continues to identify tentative selectees in groups of mutually exclusive applicants and grant construction permits to enable the introduction of new noncommercial radio service.1503 493. LPTV/TV Translator Digital Transition. Following the conclusion of the broadcast incentive auction, which saw significant changes to the television spectrum band, the Commission sought to fully transition all television operations to digital transmissions. Accordingly, the Commission set a deadline of July 13, 2021 for all LPTV and TV translator stations to convert to digital operations.1504 To date, all LPTV and TV translator facilities have ceased analog operations and, with limited exceptions, all have completed their conversion to digital. The limited number of stations that have not yet completed converting their facilities to digital operations are expected do so by early 2023. VII. COMMISSION AGENDA TO FURTHER PROMOTE COMPETITION, ENCOURAGE UNIVERSAL DEPLOYMENT OF COMMUNICATIONS SERVICES, AND ENSURE INCLUSION 494. RAY BAUM’S Act of 2018 also requires the Commission to describe the agenda of the Commission for the next two-year period for addressing competitive challenges and opportunities in the communications marketplace. A. The Fixed Communications Marketplace 495. Over the next two years, we expect the Commission to continue its efforts to connect every American to an affordable, high-speed broadband connection. As has historically been the case, a key component of that effort will be through use of the Commission’s USF Programs. The Commission expects to complete a targeted inquiry commenced in May 2022 into the management and administration of the high-cost program to improve its efficiency and efficacy1505 and begin considering appropriate next steps. Further, we expect to consider the services funded by the Lifeline Program and also work to better align the Lifeline and Affordable Connectivity Programs. We would evaluate whether voice services should remain a part of the Lifeline program and how the Lifeline Program can best operate with the ACP. We expect to leverage lessons learned from implementation of the EBB Program and the ACP that may be able to be applied to the Lifeline Program. We also expect to continue our reform of the Rural Health Care Program to protect program integrity and ensure program participants receive adequate levels of support.1506 We also expect to continue to evaluate developments concerning the burden of Universal Service contributions on households and businesses, the USF contribution factor, and contribution base, as well as the scope of the Commission’s authority under section 254(d), and consider further actions if necessary, to the existing contributions methodology.1507 1503 See, e.g., Comparative Consideration of 27 Groups of Mutually Exclusive Applications for Permits to Construct New Noncommercial Educational FM Stations, NCE FM 2021 Window, Memorandum Opinion and Order, FCC 22-61 (Aug. 2, 2022). 1504 See Amendment of Parts 73 and 74 of the Commission’s Rules to Establish Rules for Digital Low Power Television and Television Translator Stations, MB Docket No. 03-185, Third Report and Order and Fourth Notice of Proposed Rulemaking, 30 FCC Rcd 14927, 14932-33, paras. 8-9 (2015); see also Broadcast Incentive Auction Closing and Channel Reassignment Public Notice. Given the April 13, 2017 release date of the Broadcast Incentive Auction Closing and Channel Reassignment Public Notice, the LPTV/translator digital transition date was July 13, 2021. The Commission also required all LPTV and TV translator stations to terminate analog operations on that date, regardless of whether their digital facilities were operational. 47 CFR § 74.731(m). In accordance with our rules, all licenses for analog operations automatically cancelled after 11:59 pm on July 13, 2021, without any affirmative action by the Commission. 1505 Connect America Fund: A National Broadband Plan for Our Future High-Cost Universal Service Support et al., WC Docket No. 10-90, Notice of Proposed Rulemaking, FCC 22-35, at 22-40, paras. 59-111 (May 20, 2022). 1506 See Promoting Telehealth in Rural America, WC Docket No. 17-310, Further Notice of Proposed Rulemaking, FCC 22-15 (Feb. 22, 2022). 1507 Future of the USF Report at paras. 88-106. 272 Federal Communications Commission FCC 22-103 496. Going forward, our broadband deployment policymaking and future reports will be heavily informed by the BDC. This includes not only most effectively targeting USF support, but also in evaluating the success of other policies affecting fixed communications marketplace entry and expansion, such as what we expect to be our continuing work regarding access to rights of way, poles, and MTEs, our work combatting digital discrimination,1508 and consideration of recommendations from the Precision Agriculture Connectivity Task Force. 497. Given the recent unprecedented levels of federal funding made available for broadband buildout through Congressional action, including the $42.45 billion for the Broadband, Equity, Access, and Deployment Program (BEAD) being administered by the National Telecommunications and Information Administration (NTIA), we anticipate that in addition to continuing our close coordination with other federal agencies (including NTIA, U.S. Department of the Treasury, and the Department of Agriculture) to ensure the most efficient use of federal funding, it will be necessary to evaluate the funding needs of existing and future providers that have already deployed high-speed broadband networks and to consider the creation of new support processes. 498. We also expect to evaluate our rules pertaining to communications services for incarcerated people, such as the methodology to be used in setting permanent interstate and international rate caps, additional reforms to our ancillary service charge rules, and expanding access to all eligible relay services for incarcerated people with communication disabilities.1509 B. The Mobile Wireless Communications Marketplace 499. Spectrum. Incumbent service providers need additional spectrum to increase their coverage or capacity, while new entrants need access to spectrum to enter a geographic area. In addition, average data usage per connection has been substantially increasing in recent years, and this growth is expected to continue, in turn increasing service providers’ need for additional spectrum. Forward thinking spectrum policy is critical for next generation wireless networks. To spur greater investment in the mobile wireless industry, the Commission will continue to make available a significant amount of additional spectrum across a range of low-, mid-, and high-band frequencies to ensure a competitive mobile wireless services marketplace. 500. Congress is considering legislation that will affect the Commission’s authority to grant licenses or permits through systems of competitive bidding.1510 Pending future provision of authority, the Commission intends to examine for potential re-auction its inventory of licenses in services well-suited for 5G that were previously offered at auction.1511 The Commission has authority to conduct competitive bidding for licenses to use spectrum to be identified between 3.1 and 3.45 GHz only after November 30, 2024.1512 Current law further provides the Commission with authority to conduct competitive bidding for licenses to use 30 megahertz of spectrum yet to be identified.1513 In the interim, the FCC has several active proceedings in which it is considering whether and how to enable sharing or repurpose bands, potentially creating opportunities for spectrum auctions beyond FY2023. For example, the FCC recently 1508 Infrastructure Act, § 60506, codified at 47 U.S.C. § 1754. 1509 See Rates for Interstate Inmate Calling Services Fourth Report and Order at 43-65, paras. 93-162. 1510 Congress recently extended that authority from a prior deadline through Dec. 16, 2022. Continuing Appropriations and Ukraine Supplemental Appropriations Act, 2023, Pub. L. No. 117-180, Div. C, sec. 101 (Sept. 30, 2022). 1511 See Estimate of Systems of Competitive Bidding for Fiscal Year 2023, Public Notice, DA 22-1030 (OEA Sept. 30, 2022). 1512 Infrastructure Investment and Jobs Act, Pub. L. No. 117-58, § 90008(b)(3) (2021) (codified at 47 U.S.C. § 921 note). 1513 Spectrum Pipeline Act of 2015, Pub. L. No. 114-74, § 1004(a) (2015) (codified at 47 U.S.C. § 921 note). 273 Federal Communications Commission FCC 22-103 put a freeze on new and modified applications in the 12.7 GHz band to preserve the current landscape as the Commission considers actions that might encourage more efficient use of that band.1514 501. OET released a public notice seeking comments in connection with the remand by the D.C. Circuit Court of Appeals regarding the Commission’s 6 GHz Report and Order.1515 The court largely rejected the challenges to this order; the one issue on remand was limited in scope to NAB’s arguments regarding interference in the 2.4 GHz band.1516 To address the issues raised by NAB, OET invited comment in the 6 GHz Remand Public Notice regarding this and other surrounding issues.1517 The comment period for this public notice ended in early June of this year. OET is currently evaluating the comments, replies, and ex partes that have been filed in the relevant dockets. 502. Infrastructure. To meet rapidly increasing demand for wireless services and prepare our national infrastructure for 5G, the Commission will continue to evaluate ways to help facilitate wireless infrastructure investment and deployment. Supporting the deployment of 5G and other next-generation wireless services through smart infrastructure policy is critical. The wireless infrastructure landscape has shifted toward the development of 5G networks and technologies that require dense deployment of smaller antennas across provider networks in locations closer to customers.1518 503. In October 2021, the Commission began collaborating with NTIA on a project to help NTIA meet its Section 106 Tribal outreach obligations for NTIA’s Broadband Infrastructure Programs (including the Tribal Broadband Connectivity Program) that provide federal assistance for broadband construction and other projects by allowing NTIA to use the Commission’s Tower Construction Notification System (TCNS).1519 TCNS notifies all 547 federally recognized Tribal Nations of infrastructure deployment proposed on Tribal or ancestral lands and provides Tribal representatives with the opportunity to participate in the Section 106 review of projects that may impact historic properties of religious or cultural Tribal significance.1520 C. The Satellite Marketplace 504. On December 15, 2021, the Commission proposed revisions to the spectrum sharing requirements among NGSO FSS systems to facilitate the deployment of NGSO FSS systems capable of providing broadband services with higher speeds and lower latency than previous satellite offerings. The Commission proposed, inter alia, to adopt a rule that NGSO FSS licensees and market access recipients are entitled to protection from NGSO FSS systems authorized through later processing rounds. The 1514 180-Day Freeze on Applications for New or Modified Authorizations for the 12.7-13.25 GHz Band, Public Notice, DA 22-974 (WTB Sept. 19, 2022). 1515 Office of Engineering and Technology Seeks Comment Following Court Remand of 6 GHz Band Order, ET Docket No. 18-295, GN Docket No. 17-183, Public Notice, DA 22-253 (OET Mar. 10, 2022) (6 GHz Remand Public Notice). 1516 AT&T, 21 F.4th at 843, 845, 854. 1517 6 GHz Remand Public Notice at 2-3. 1518 Updating the Commission’s Rule for Over-the-Air Reception Devices, WT Docket No. 19-71, Notice of Proposed Rulemaking, 34 FCC Rcd 2695, 2697, para. 7 (2019). 1519 Letter to Tribal Leader from Joel Taubenblatt, Acting Bureau Chief, Wireless Telecommunications Bureau, FCC, and Douglas Kinkoph, Associate Administrator, Office of Internet Connectivity and Growth, NTIA (Oct. 22, 2021), https://www.fcc.gov/sites/default/files/ntia_tcns_tribal_leader_letter_10.22.21.pdf. 1520 See FCC, Tower Construction Notification System, https://www.fcc.gov/sites/default/files/wireless/outreach/notification/TCNS_industry.pdf (last visited Aug. 15, 2022). 274 Federal Communications Commission FCC 22-103 proposed revisions would also promote competition and make it easier for new competitors to enter the market.1521 505. The Commission plans further revisions to its orbital debris mitigation requirements. The Commission plans to address maneuverability, accidental explosion risk and collision risks associated with larger constellations. On September 30, 2022, the Commission, given the risks associated with the increasing congestion in the orbital environment, adopted a rule reducing the post-mission disposal time frame.1522 The Commission continues to assess potential maneuverability requirements as well as other topics from the earlier Further Notice,1523 such as maneuverability, accidental explosion risk, and collision risks associated with larger constellations.1524 506. On Aug 8, 2022, the Commission adopted a Notice of Inquiry to examine the opportunities and challenges of in-space servicing, assembly, and manufacturing (ISAM) that can support sustained economic activity in space, and to facilitate capabilities for ISAM.1525 Missions can include satellite refueling, inspecting and repairing in-orbit spacecraft, capturing and removing debris, and transforming materials through manufacturing while in space.1526 In this proceeding, the Commission seeks to develop a record on where these capabilities are today and the steps needed to promote their development. As part of the proceeding, we seek to develop a record on the efforts to minimize the creation of new debris in connection with ISAM, as well as on the opportunities to leverage these capabilities to clean up existing debris, i.e., both orbital debris mitigation and orbital debris remediation.1527 The information developed in this Notice of Inquiry can help position the United States to realize the critical benefits of ISAM while ensuring space safety and sustainability.1528 With this proceeding, the Commission advances the National Science and Technology Council’s ISAM National Strategy to support and stimulate government, academic, and commercial development of ISAM capabilities.1529 507. On November 3, 2022, Commission Chairwoman Rosenworcel announced a plan to reorganize the agency to better support the needs of the growing satellite industry, promote long-term technical capacity at the Commission, and navigate 21st century communications policy.1530 This plan would reorganize the Commission’s International Bureau into a new Space Bureau and a standalone Office of International Affairs. These changes will help ensure that the Commission’s resources are better aligned so that the agency can continue to fulfill its statutory obligations and keep pace with the rapidly changing realities of the satellite industry and global communications policy. 1521 Non-GSO Spectrum Sharing Order and NPRM at 1-2, 6, 18, paras. 1-2, 14-16. 1522 Orbital Debris Second Report and Order at 2, para. 4. 1523 Orbital Debris Report and Order and Further Notice. 1524 Orbital Debris Second Report and Order at 3-4, para. 8. 1525 Space Innovation Notice of Inquiry. 1526 Id. at 1, para. 2. 1527 Id. at 1-2, para. 3. 1528 Id. 1529 See National Science and Technology Council, In-Space Servicing, Assembly, and Manufacturing Interagency Working Group, In-Space Servicing, Manufacturing, and Assembly National Strategy (2022), https://www.whitehouse.gov/wp-content/uploads/2022/04/04-2022-ISAM-National-Strategy-Final.pdf (ISAM National Strategy). 1530 FCC, Press Release, Chairwoman Rosenworcel Announces Plan To Modernize The FCC By Establishing A Space Bureau And Office Of International Affairs (Nov. 3, 2022), https://www.fcc.gov/document/chairwoman- rosenworcel-proposes-space-bureau. 275 Federal Communications Commission FCC 22-103 D. The Video and Audio Communications Marketplace 508. Next Generation Television Standard. Over the next two years, the Commission will continue to monitor technological and marketplace developments, remaining alert for potential regulatory actions to help foster innovative, and competitive, service by television broadcasters while also protecting consumers. In this regard, the Commission adopted a Third Further Notice of Proposed Rulemaking (Third ATSC 3.0 Further Notice) in June 2022 seeking comment on the progress of broadcasters’ deployment of Next Gen TV and the current status of the ATSC 3.0 marketplace.1531 The item also seeks comment on the scheduled 2023 sunset of two requirements related to broadcasters’ provision of ATSC 3.0 service.1532 The first is the requirement that a Next Gen TV station’s ATSC 1.0 simulcast primary video programming stream be “substantially similar” to its 3.0 primary programming stream, which the Commission enacted to protect viewers’ access to the broadcast programming they receive today, while providing broadcasters with flexibility to innovate and experiment with new, innovative Next Gen TV programming features using Next Gen TV technology.1533 The second is a requirement that Next Gen TV stations comply with the ATSC A/322 standard, which creates certainty about the ability of 3.0-equipped consumer equipment to receive primary broadcast signals.1534 In addition, the Third ATSC 3.0 Further Notice asks whether holders of essential patents for the ATSC 3.0 standards are licensing those patents on reasonable and non-discriminatory terms.1535 Furthermore, the Third ATSC 3.0 Further Notice seeks comment on the extent to which ATSC 3.0 is being used to deploy enhanced accessibility features.1536 The Commission hopes to issue an Order addressing the issues raised in the Third ATSC 3.0 Further Notice in the near term. 509. Structural Ownership Rules. The Commission also continues to examine its broadcast ownership regulations, particularly through the statutorily required quadrennial review of the media ownership rules. Section 202(h) of the Telecommunications Act of 1996 requires the Commission to review its media ownership rules every four years to determine whether they remain “necessary in the public interest as the result of competition.”1537 Pursuant to that mandate, the Media Bureau recently released a Public Notice stating that it has initiated the 2022 Quadrennial Review of its media ownership rules.1538 The Commission’s review will consider whether the key structural ownership rules remain in the public interest in light of the current media marketplace or whether, alternatively, the public interest would benefit from modification or elimination of these rules. Retention, modification, or elimination of these structural ownership rules may impact competition in the video and/or audio marketplace. 510. LPTV FM Operation on Channel 6. Historically, a number of analog LPTV stations licensed on television channel 6 programmed an audio signal that could be received by FM radio listeners at 87.75 MHz, which is adjacent to the noncommercial educational portion of the FM radio dial 1531 Authorizing Permissive Use of the “Next Generation” Broadcast Television Standard, GN Docket No. 16-142, Third Further Notice of Proposed Rulemaking, FCC 22-47 (June 22, 2022). 1532 Id. at 1, 3-5, 13-16, paras. 1, 6-7, 24-32. 1533 Id. at 1, 3-4, 13-15, paras. 1, 6, 24-29. 1534 Id. at 1, 4-5, 15-16, paras. 1, 7, 30-32. 1535 Id. at 1, 5-6, 13, paras. 1, 8, 23. 1536 Id. at 9, para. 17. 1537 Telecommunications Act of 1996, Pub. L. No. 104-104, § 202(h), 110 Stat. 56, 111-12 (1996) (1996 Act); Consolidated Appropriations Act, 2004, Pub. L. No. 108-199, § 629, 118 Stat. 3, 99-100 (2004) (Appropriations Act) (amending Sections 202(c) and 202(h) of the 1996 Act). In 2004, Congress revised the then-biennial review requirement to require such reviews quadrennially. See Appropriations Act § 629, 118 Stat. at 100. 1538 Media Bureau Opens Docket and Seeks Comment for 2022 Quadrennial Review of Media Ownership Rules, MB Docket No. 22-459, Public Notice, DA 22-1364 (MB Dec 22, 2022). 276 Federal Communications Commission FCC 22-103 (specifically, channel 201 at 88.1 MHz).1539 When LPTV stations converted to the use of a digital transmission standard, however, stations offering an audio signal on the FM band were unable to continue providing this service, because the digital audio portion of their signal could no longer be received by standard FM receivers.1540 Responding to applications from such operators, the Commission has granted special temporary authority to 13 channel 6 LPTV stations to continue providing such service. And in June 2022, the Commission adopted a Notice of Proposed Rulemaking exploring whether to allow continued analog FM radio operations by existing digital channel 6 LPTV stations and seeking comment on related technical issues.1541 FM broadcasting by these LPTV stations may help bring diverse, niche, local programming to communities, including weather, news, sports, and community events. 511. Communications Equity and Diversity Council. On June 29, 2021, Chairwoman Rosenworcel re-chartered the former Advisory Committee on Diversity and Digital Empowerment as the Communications Equity and Diversity Council (CEDC) for a two-year charter into 2023.1542 The CEDC is tasked with making recommendations to the Commission on diversity and equity issues across the media, communications, and tech sectors, including how to help small and diverse businesses enter and compete in the communications, media, digital news and information, and audio and video programming industries.1543 The mission of the CEDC is to present recommendations to the Commission on “advancing equity in the provision of and access to digital communication services and products for all people of the United States, without discrimination on the basis of race, color, religion, national origin, sex, or disability.”1544 The council is intended to allow stakeholders to exchange ideas and develop recommendations to the Commission on various issues including mentoring for small business; access to capital; developing skills necessary for employment in the media and technology industries; diversity in media ownership; and procurement opportunities. In this way, the CEDC’s efforts will result in potential recommendations to foster new, small, and diverse participants in the audio and video marketplaces. VIII. PROCEDURAL MATTERS 512. This Communications Marketplace Report is issued pursuant to section 401 of the Repack Airwaves Yielding Better Access for Users of Modern Services Act of 2018 (codified at 47 U.S.C. § 163), section 103(b) of the Broadband Data Improvement Act (codified at 47 U.S.C. § 1303(b)), and section 623(k) of the Communications Act of 1934, as amended (codified at 47 U.S.C. § 543(k)). 513. IT IS ORDERED that this Communications Marketplace Report shall be published on the website of the Federal Communications Commission and that the Office of Legislative Affairs shall submit copies of this Communications Marketplace Report to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate. 1539 Amendment of Parts 73 and 74 of the Commission’s Rules to Establish Rules for Digital Low Power Television and Television Translator Stations, MB Docket No. 03-185, Third Notice of Proposed Rulemaking, 29 FCC Rcd 12536, 12554, para. 47 (2014). 1540 Id. 1541 Amendment of Parts 73 and 74 of the Commission’s Rules to Establish Rules for Digital Low Power Television and Television Translator Stations, MB Docket No. 03-185, Fifth Notice of Proposed Rulemaking, FCC 22-40 (June 7, 2022). 1542 FCC, Press Release, FCC Acting Chairwoman Announces Expanded Focus of Advisory Committee on Diversity and Digital Empowerment to Take on Broader Tech Sector Issues (June 24, 2021), https://docs.fcc.gov/public/attachments/DOC-373555A1.pdf. 1543 Id. 1544 FCC Seeks Nominations for Membership on Communications Equity and Diversity Council, Public Notice, DA 21-795, at 1 (MB July 6, 2021). 277 Federal Communications Commission FCC 22-103 514. IT IS FURTHER ORDERED that the proceeding in GN Docket No. 22-203 is TERMINATED. FEDERAL COMMUNICATIONS COMMISSION Marlene H. Dortch Secretary 278 Federal Communications Commission FCC 22-103 APPENDIX A LIST OF COMMENTERS Comments ACA Connects—America's Communications Association (ACA Connects) Comments (filed Jul. 1, 2022) (ACA Connects Comments) Competitive Carriers Association (CCA) Comments (filed Jul. 1, 2022) (CCA Comments) Consumer Technology Association (CTA) Comments (filed Jul. 1, 2022) (CTA Comments) CTIA Comments (filed Jul. 1, 2022) (CTIA Comments) DIRECTV, LLC Comments (filed Jul. 1, 2022) (DIRECTV Comments) EchoStar Satellite Services, LLC and Hughes Network Systems, LLC (Echostar) Comments (filed Jul. 1, 2022) (Echostar Comments) INCOMPAS Comments (filed Jul. 1, 2022) (INCOMPAS Comments) musicFIRST Coalition; Future of Music Coalition (FMC) Comments (filed Jul. 1, 2022) (musicFIRST/FMC Comments) National Association of Broadcasters (NAB) Comments (filed Jul. 4, 2022) (NAB Comments) NCTA—The Internet & Television Association Comments (filed Jul. 1, 2022) (NCTA Comments) NTCA—The Rural Broadband Association Comments (filed Jul. 1, 2022) (NTCA Comments) Prison Policy Initiative (PPI) Comments (filed Jul. 1, 2022) (PPI Comments) Redrock Broadcasting Comments (filed June 23, 2022) (Redrock Broadcasting Comments) Rural Media Group (RMG) Comments (filed Jul. 1, 2022) (RMG Comments) Satellite Industry Association (SIA) Comments (filed Jul. 1, 2022) (SIA Comments) The Free State Foundation (FSF) Comments (filed Jul. 1, 2022) (FSF Comments) USTelecom Comments (filed Jul. 1, 2022) (USTelecom Comments) Wireless Internet Service Providers Association (WISPA) Comments (filed Jul. 1, 2022) (WISPA Comments) Reply Comments ABC Television Affiliates Association, CBS Television Network Affiliates Association, FBC Television Affiliates Association, NBC Television Affiliates (Four Network Affiliates Associations) Reply Comments (filed Aug. 1, 2022) (Four Network Affiliates Associations Reply) Motion Picture Association (MPA) Reply Comments (filed Aug. 1, 2022) (MPA Reply) musicFIRST Coalition; Future of Music Coalition (FMC) Reply Comments (filed Aug. 1, 2022) (musicFIRST /FMC Reply) National Association of Broadcasters (NAB) Reply Comments (filed Aug. 1, 2022) (NAB Reply) NCTA—The Internet & Television Association Reply Comments (filed Aug. 1, 2022) (NCTA Reply) Public Knowledge, Open Technology Institute (OTI), and Consumer Reports Reply Comments (filed Aug. 1, 2022) (Public Knowledge, OTI, and Consumer Reports Reply) Rural Media Group (RMG) Reply Comments (filed Aug. 1, 2022) (RMG Reply) SES Americom, Inc.; O3b Limited (SES) Reply Comments (filed Aug. 1, 2022) (SES and O3b Reply) The Free State Foundation (FSF) Reply Comments (filed Aug. 1, 2022) (FSF Reply) USTelecom Reply Comments (filed Aug. 1, 2022) (USTelecom Reply) Ex Partes CTIA Ex Parte (filed Sept. 22, 2022) (CTIA Ex Parte) INCOMPAS Ex Parte (filed Nov. 3, 2022) (INCOMPAS Nov. 3 Ex Parte) INCOMPAS Ex Parte (filed Nov. 4, 2022) (INCOMPAS Nov. 4 Ex Parte) Public Knowledge Ex Parte (filed Sept. 16, 2022) (Public Knowledge Ex Parte) Recon Analytics Ex Parte (filed Aug. 26, 2022) (Recon Analytics Ex Parte) Satellite Industry Association (SIA) Ex Parte (filed Sept. 6, 2022) (SIA Ex Parte) 279 Federal Communications Commission FCC 22-103 APPENDIX B FIXED BROADBAND SERVICES APPENDIX B-1: Adoption Rate for Fixed Terrestrial Services in the United States (Dec. 31, 2021) APPENDIX B-2: Percentage of Households Living in Census Blocks with Zero, One, Two, or At Least Three Provider Options for 25/3 Mbps Fixed Terrestrial Services (Dec. 31, 2021) APPENDIX B-3: Percentage of Households Living in Census Blocks with Zero, One, Two, or At Least Three Provider Options for 100/20 Mbps Fixed Terrestrial Services (Dec. 31, 2021) APPENDIX B-4: Percentage of Households Living in Census Blocks with Zero, One, Two, or At Least Three Provider Options for 940/500 Mbps Fixed Terrestrial Services (Dec. 31, 2021) 280 Federal Communications Commission FCC 22-103 APPX. B-1 Adoption Rate for Fixed Terrestrial Services in the United States (Dec. 31, 2021)1 25/3 Mbps 100/20 Mbps 940/500 Mbps United States 79.4% 32.7% 15.9% Alabama 68.0% 29.2% 18.7% Alaska 66.1% * * Arizona 81.5% 20.6% * Arkansas 60.8% 31.3% 13.7% California 83.6% 28.0% 11.1% Colorado 83.8% 24.4% 17.0% Connecticut 82.4% 29.6% 3.4% Delaware 98.8% 37.5% * District of Columbia 85.4% 36.8% * Florida 90.1% 37.7% 11.4% Georgia 79.7% 40.3% 19.0% Hawaii * * * Idaho 63.1% 36.1% 16.6% Illinois 75.4% 32.6% 11.5% Indiana 71.5% 32.4% 12.7% Iowa 66.1% 29.0% 7.6% Kansas 72.9% 31.3% 22.2% Kentucky 71.0% 29.9% 9.2% Louisiana 67.6% 26.1% 14.6% Maine 78.5% 12.5% 1.6% Maryland 89.9% 40.8% * Massachusetts 91.1% 29.1% * Michigan 77.8% 26.4% 8.4% Minnesota 75.5% 20.7% 4.0% Mississippi 56.6% 31.1% 22.0% Missouri 67.7% 34.2% 20.1% Montana 68.1% 16.0% 10.5% Nebraska 73.2% 26.9% 11.2% 1 * Data not reported to maintain confidentiality. 281 Federal Communications Commission FCC 22-103 25/3 Mbps 100/20 Mbps 940/500 Mbps Nevada 82.8% 21.9% 12.3% New Hampshire 91.9% 24.8% 1.6% New Jersey 92.8% 57.1% * New Mexico 66.3% 14.8% 6.3% New York 85.2% 50.6% * North Carolina 81.4% 33.2% 17.0% North Dakota 81.6% 46.7% 3.1% Ohio 76.8% 22.2% 6.0% Oklahoma 65.7% 27.4% 16.4% Oregon 78.5% 21.8% 8.9% Pennsylvania 82.4% 29.0% * Puerto Rico 27.6% 9.4% * Rhode Island 90.2% 46.6% * South Carolina 81.0% 35.7% 11.4% South Dakota 80.6% 34.2% 1.4% Tennessee 77.5% 39.7% 19.9% Texas 79.0% 40.0% 20.8% Utah 81.2% 29.7% 15.5% Vermont 73.2% 17.2% 10.1% Virginia 81.6% 35.7% * Washington 79.7% 23.2% 14.1% West Virginia 58.7% 23.3% 8.2% Wisconsin 72.9% 20.2% 8.5% Wyoming 74.9% 17.8% 2.6% Source: FCC Form 477 Deployment and confidential Residential Connections Data; Staff Block Estimates. 282 Federal Communications Commission FCC 22-103 APPX. B-2 Percentage of Households Living in Census Blocks with Zero, One, Two, or At Least Three Provider Options for 25/3 Mbps Fixed Terrestrial Services (Dec. 31, 2021) Households (millions) Zero One Two At least Three United States 129.659 1.6% 8.5% 20.6% 69.3% Alabama 2.035 5.3% 14.2% 24.2% 56.3% Alaska 0.271 8.5% 21.1% 46.0% 24.4% Arizona 2.756 2.1% 5.4% 10.7% 81.8% Arkansas 1.213 6.2% 18.0% 25.3% 50.5% California 13.588 0.3% 3.1% 12.0% 84.6% Colorado 2.303 0.6% 2.9% 7.2% 89.3% Connecticut 1.424 0.2% 7.4% 24.5% 67.9% Delaware 0.394 1.8% 16.6% 36.9% 44.7% District of 0.319 0.3% 0.5% 1.5% 97.7% Columbia Florida 8.695 1.7% 9.2% 27.8% 61.3% Georgia 4.080 3.2% 10.5% 26.9% 59.4% Hawaii 0.494 0.5% 17.9% 32.5% 49.1% Idaho 0.698 2.8% 7.5% 18.5% 71.2% Illinois 5.012 0.6% 3.8% 12.7% 82.8% Indiana 2.693 1.0% 5.1% 12.9% 81.1% Iowa 1.301 0.8% 6.3% 18.4% 74.5% Kansas 1.159 0.2% 4.5% 11.2% 84.1% Kentucky 1.811 2.8% 15.5% 22.4% 59.3% Louisiana 1.850 6.0% 14.6% 28.4% 51.0% Maine 0.587 0.7% 18.0% 34.0% 47.3% Maryland 2.336 0.8% 8.3% 28.9% 62.0% Massachusetts 2.767 0.6% 18.0% 34.2% 47.1% Michigan 4.060 2.6% 11.6% 24.1% 61.7% Minnesota 2.283 0.4% 4.8% 9.0% 85.8% Mississippi 1.169 11.6% 21.3% 27.9% 39.2% Missouri 2.498 2.1% 7.2% 12.3% 78.4% Montana 0.454 4.6% 16.0% 30.2% 49.3% Nebraska 0.783 0.2% 2.4% 9.0% 88.4% Nevada 1.200 1.1% 7.7% 22.1% 69.1% New 0.561 1.5% 18.0% 37.1% 43.4% Hampshire 283 Federal Communications Commission FCC 22-103 Households (millions) Zero One Two At least Three New Jersey 3.444 0.7% 11.9% 36.0% 51.4% New Mexico 0.836 4.0% 11.7% 18.5% 65.7% New York 7.755 0.3% 9.4% 26.8% 63.5% North Carolina 4.245 1.3% 8.9% 23.3% 66.5% North Dakota 0.326 0.4% 22.4% 34.3% 42.8% Ohio 4.834 0.9% 7.3% 20.2% 71.6% Oklahoma 1.550 3.0% 10.2% 19.5% 67.4% Oregon 1.693 1.3% 4.5% 9.7% 84.6% Pennsylvania 5.236 1.4% 13.8% 31.1% 53.7% Puerto Rico 1.331 0.0% 0.3% 1.7% 98.0% Rhode Island 0.443 0.1% 5.3% 42.0% 52.6% South Carolina 2.094 2.4% 12.4% 26.3% 58.9% South Dakota 0.357 0.7% 14.4% 16.1% 68.9% Tennessee 2.795 2.3% 10.4% 22.7% 64.6% Texas 10.750 0.9% 4.0% 11.9% 83.3% Utah 1.093 0.9% 2.3% 6.6% 90.2% Vermont 0.274 2.7% 13.7% 32.1% 51.6% Virginia 3.353 1.9% 10.5% 30.5% 57.1% Washington 3.026 2.3% 7.9% 16.8% 73.0% West Virginia 0.746 6.7% 25.9% 32.4% 35.0% Wisconsin 2.448 2.2% 11.1% 20.0% 66.6% Wyoming 0.237 1.6% 6.5% 13.2% 78.7% Source: Form 477 Deployment Data; Staff Block Estimates for 2021 (2020 Census Blocks) 284 Federal Communications Commission FCC 22-103 APPX. B-3 Percentage of Households Living in Census Blocks with Zero, One, Two, or At Least Three Provider Options for 100/20 Mbps Fixed Terrestrial Services (Dec. 31, 2021) Households (millions) Zero One Two At least Three United States 129.659 5.4% 30.5% 42.8% 21.3% Alabama 2.035 12.4% 35.9% 36.7% 14.9% Alaska 0.271 14.8% 32.6% 50.4% 2.2% Arizona 2.756 7.6% 54.8% 31.8% 5.8% Arkansas 1.213 22.7% 38.0% 29.7% 9.7% California 13.588 2.0% 16.5% 38.7% 42.7% Colorado 2.303 5.9% 24.3% 29.3% 40.5% Connecticut 1.424 0.9% 57.6% 34.6% 6.9% Delaware 0.394 4.7% 40.0% 54.0% 1.4% District of 0.319 0.3% 1.3% 4.9% 93.4% Columbia Florida 8.695 4.5% 29.9% 53.6% 12.0% Georgia 4.080 7.0% 25.0% 54.0% 14.1% Hawaii 0.494 0.7% 39.9% 58.5% 0.9% Idaho 0.698 15.9% 33.8% 35.8% 14.5% Illinois 5.012 4.3% 29.7% 44.3% 21.7% Indiana 2.693 6.8% 28.7% 42.0% 22.5% Iowa 1.301 4.4% 33.9% 40.6% 21.1% Kansas 1.159 7.4% 33.2% 30.7% 28.6% Kentucky 1.811 7.7% 34.2% 45.8% 12.4% Louisiana 1.850 11.0% 33.9% 40.7% 14.3% Maine 0.587 7.0% 68.8% 20.5% 3.7% Maryland 2.336 2.2% 27.9% 65.2% 4.7% Massachusetts 2.767 1.4% 40.8% 34.4% 23.4% Michigan 4.060 7.7% 36.8% 34.9% 20.6% Minnesota 2.283 3.0% 17.1% 29.8% 50.2% Mississippi 1.169 22.1% 42.0% 27.2% 8.7% Missouri 2.498 11.1% 27.0% 43.1% 18.8% Montana 0.454 21.3% 62.8% 14.3% 1.7% Nebraska 0.783 5.6% 33.6% 36.5% 24.3% Nevada 1.200 2.6% 36.5% 42.0% 18.9% New 0.561 2.8% 40.3% 52.4% 4.5% Hampshire 285 Federal Communications Commission FCC 22-103 Households (millions) Zero One Two At least Three New Jersey 3.444 1.1% 30.5% 62.9% 5.4% New Mexico 0.836 12.2% 25.1% 29.5% 33.2% New York 7.755 0.5% 22.5% 43.3% 33.8% North Carolina 4.245 3.7% 36.6% 43.9% 15.9% North Dakota 0.326 0.8% 53.4% 25.7% 20.1% Ohio 4.834 4.2% 37.3% 37.9% 20.6% Oklahoma 1.550 13.4% 39.1% 41.6% 5.9% Oregon 1.693 5.9% 22.7% 52.1% 19.3% Pennsylvania 5.236 2.8% 36.7% 52.4% 8.0% Puerto Rico 1.331 0.0% 6.1% 20.4% 73.5% Rhode Island 0.443 0.2% 12.2% 87.2% 0.4% South Carolina 2.094 6.9% 34.6% 41.9% 16.6% South Dakota 0.357 6.8% 37.4% 40.2% 15.6% Tennessee 2.795 6.2% 32.5% 45.9% 15.5% Texas 10.750 5.6% 25.4% 42.2% 26.9% Utah 1.093 3.5% 29.3% 28.7% 38.6% Vermont 0.274 11.0% 43.2% 41.6% 4.2% Virginia 3.353 5.2% 28.5% 57.3% 9.1% Washington 3.026 10.8% 39.3% 42.1% 7.8% West Virginia 0.746 16.7% 64.4% 16.6% 2.2% Wisconsin 2.448 9.9% 39.4% 44.9% 5.7% Wyoming 0.237 8.4% 15.8% 41.4% 34.4% Source: Form 477 Deployment Data; Staff Block Estimates for 2021 (2020 Census Blocks) 286 Federal Communications Commission FCC 22-103 APPX. B-4 Percentage of Households Living in Census Blocks with Zero, One, Two, or At Least Three Provider Options for 940/500 Mbps Fixed Terrestrial Services (Dec. 31, 2021) Households (millions) Zero One Two At least Three United States 129.659 54.9% 41.0% 3.7% 0.4% Alabama 2.035 59.9% 35.7% 4.3% 0.0% Alaska 0.271 97.2% 2.8% 0.0% 0.0% Arizona 2.756 80.0% 17.3% 2.7% 0.0% Arkansas 1.213 64.7% 30.8% 4.0% 0.5% California 13.588 57.6% 37.9% 4.3% 0.2% Colorado 2.303 65.3% 32.7% 2.0% 0.0% Connecticut 1.424 62.9% 32.7% 4.3% 0.1% Delaware 0.394 43.3% 56.7% 0.0% 0.0% District of 0.319 15.2% 84.5% 0.3% 0.0% Columbia Florida 8.695 52.6% 44.6% 2.4% 0.4% Georgia 4.080 47.1% 49.4% 3.5% 0.0% Hawaii 0.494 39.8% 60.2% 0.0% 0.0% Idaho 0.698 70.6% 26.0% 3.3% 0.1% Illinois 5.012 73.1% 24.9% 1.8% 0.2% Indiana 2.693 54.9% 40.8% 4.1% 0.1% Iowa 1.301 56.1% 39.0% 4.3% 0.6% Kansas 1.159 50.5% 37.7% 11.0% 0.8% Kentucky 1.811 47.8% 46.8% 5.3% 0.0% Louisiana 1.850 64.6% 30.7% 4.3% 0.4% Maine 0.587 82.7% 16.1% 1.2% 0.0% Maryland 2.336 33.9% 65.5% 0.5% 0.1% Massachusetts 2.767 51.8% 48.1% 0.1% 0.0% Michigan 4.060 77.3% 21.7% 1.0% 0.0% Minnesota 2.283 25.5% 48.4% 21.3% 4.8% Mississippi 1.169 59.5% 31.3% 8.5% 0.6% Missouri 2.498 58.6% 37.7% 3.7% 0.0% Montana 0.454 83.2% 15.6% 1.2% 0.1% Nebraska 0.783 58.6% 33.7% 6.9% 0.9% Nevada 1.200 70.3% 24.9% 4.5% 0.3% New Hampshire 0.561 39.3% 58.3% 2.5% 0.0% New Jersey 3.444 32.0% 67.9% 0.1% 0.0% 287 Federal Communications Commission FCC 22-103 Households (millions) Zero One Two At least Three New Mexico 0.836 80.1% 18.5% 1.4% 0.0% New York 7.755 35.0% 60.4% 4.3% 0.3% North Carolina 4.245 54.4% 38.8% 6.8% 0.0% North Dakota 0.326 33.0% 50.0% 16.5% 0.5% Ohio 4.834 65.2% 34.2% 0.6% 0.0% Oklahoma 1.550 59.2% 34.5% 5.5% 0.8% Oregon 1.693 48.1% 48.9% 2.9% 0.0% Pennsylvania 5.236 58.6% 41.0% 0.3% 0.0% Puerto Rico 1.331 50.1% 43.5% 6.2% 0.2% Rhode Island 0.443 15.8% 83.9% 0.3% 0.0% South Carolina 2.094 56.4% 39.8% 3.5% 0.2% South Dakota 0.357 50.3% 37.4% 11.1% 1.1% Tennessee 2.795 45.6% 47.3% 6.9% 0.2% Texas 10.750 48.1% 46.4% 4.9% 0.6% Utah 1.093 46.6% 22.8% 15.0% 15.6% Vermont 0.274 52.0% 44.2% 3.6% 0.2% Virginia 3.353 45.9% 53.1% 1.0% 0.0% Washington 3.026 60.7% 36.8% 1.1% 1.4% West Virginia 0.746 93.2% 6.7% 0.2% 0.0% Wisconsin 2.448 73.6% 25.8% 0.6% 0.0% Wyoming 0.237 75.4% 23.0% 1.5% 0.0% Source: Form 477 Deployment Data; Staff Block Estimates for 2021 (2020 Census Blocks) 288 Federal Communications Commission FCC 22-103 APPENDIX C MEASURING BROADBAND AMERICA REPORT The Eleventh Measuring Broadband America Report is published as an Appendix attachment to the 2022 Communications Marketplace Report. It can be accessed here: https://www.fcc.gov/reports- research/reports/consolidated-communications-marketplace-reports/CMR-2022. 289 Federal Communications Commission FCC 22-103 APPENDIX D MOBILE WIRELESS SERVICES APPENDIX D-1: Estimated Total Mobile Wireless Connections: 2003-2021 APPENDIX D-2: Change in CPI, 1997-2021 APPENDIX D-3: Annualized Average Revenue Per Reported Subscriber Unit (ARPU): 1993-2021 APPENDIX D-4: Mobile Wireless Coverage Maps APPENDIX D-5: Mobile Wireless Coverage 290 Federal Communications Commission FCC 22-103 APPX. D-1 Estimated Total Mobile Wireless Connections: 2003–2021 NRUF CTIA Year Connections Increase from Connections Per Estimated (millions) previous year 100 People Connections (millions) (millions) 2003 160.6 18.8 54 158.7 2004 184.7 24.1 62 182.1 2005 213.0 28.3 71 207.9 2006 241.8 28.8 80 233.0 2007 263.0 21.2 86 255.4 2008 279.6 16.6 91 270.3 2009 290.7 11.1 94 285.6 2010 301.8 11.1 97 296.3 2011 317.3 15.5 101 316.0 2012 329.2 11.9 105 326.5 2013 339.2 10.0 108 335.7 2014 357.1 17.2 114 355.4 2015 378.2 21.1 121 377.9 2016 398.4 20.2 127 395.9 2017 410.7 12.3 126 400.2 2018 421.7 11.0 128 421.8 2019 430.3 8.6 130 442.5 2020 438.7 8.4 132 468.9 2021 456.9 18.2 138 498.9 Source: NRUF 2003–2021; CTIA Year-End 2021 Wireless Industry Indices Report; Census data. 291 Federal Communications Commission FCC 22-103 APPX. D-2 Change in CPI, 1997-2021 Year CPI Wireless Telephone Telephone Services Residential Services CPI CPI Telephone Services CPI Annual Annual Annual Annual Annual Annual Annual Annual Index Index Index Index Change Change Change Change Average Average Average Average 1997 100.0 100.0 100.0 1998 101.6 1.6% 95.1 100.7 1999 103.8 2.2% 84.9 -10.7% 100.1 -0.6% 2000 107.3 3.4% 76.0 -10.5% 98.5 -1.6% 2001 110.3 2.8% 68.1 -10.4% 99.3 0.8% 2002 112.1 1.6% 67.4 -1.0% 99.7 0.4% 2003 114.6 2.3% 66.8 -0.9% 98.3 -1.4% 2004 117.7 2.7% 66.2 -0.9% 95.8 -2.5% 2005 121.7 3.4% 65.0 -1.8% 94.9 -0.9% 2006 125.6 3.2% 64.6 -0.6% 95.8 0.9% 2007 129.2 2.9% 64.4 -0.3% 98.2 2.6% 2008 134.1 3.8% 64.2 -0.2% 100.5 2.2% 2009 133.7 -0.4% 64.3 0.0% 102.4 1.9% 100.0 2010 135.8 1.6% 62.4 -2.9% 102.4 0.0% 101.6 2011 140.1 3.2% 60.1 -3.6% 101.2 -1.1% 103.3 1.7% 2012 143.0 2.1% 59.7 -0.8% 101.7 0.5% 105.6 2.2% 2013 145.1 1.5% 58.6 -1.8% 101.6 -0.1% 108.1 2.4% 2014 147.5 1.6% 57.4 -2.1% 101.1 -0.4% 111.1 2.7% 2015 147.7 0.1% 55.2 -3.8% 99.3 -1.8% 113.4 2.1% 2016 149.5 1.3% 54.7 -1.0% 98.8 -0.5% 114.5 1.0% 2017 152.7 2.1% 48.8 -10.7% 91.8 -7.2% 116.1 1.4% 2018 156.5 2.4% 47.6 -2.5% 90.4 -1.5% 117.2 1.0% 2019 159.3 1.8% 46.4 -2.5% 89.4 -1.1% 120.8 3.0% 2020 161.3 1.3% 47.3 2.0% 92.2 3.2% 128.9 6.7% 2021 165.9 2.9% 48.2 1.7% 94.4 2.4% 136.2 5.7% 1997 to 65.9% -51.8% -5.6% 36.2% 2021 Source: Data from Bureau of Labor Statistics. All CPI figures were taken from BLS databases. Bureau of Labor Statistics, https://www.bls.gov/. Beginning of January 2010, the CPIs for local telephone service and long-distance were discontinued and replaced by a new CPI for land-line (now renamed as residential) telephone service.1 Unadjusted for inflation. 1 The index used in this analysis, the CPI for All Urban Consumers (CPI-U), represents about 93% of the total U.S. population. Bureau of Labor Statistics, Consumer Price Index: Frequently Asked Questions, https://www.bls.gov/cpi/questions-and-answers.htm. The CPI category “Telephone Services” has two components: wireless telephone services and landline telephone services. Additional information can be found at Bureau of Labor Statistics, Consumer Price Index: How the Consumer Price Index Measures Price Change for Telephone Services, https://www.bls.gov/cpi/factsheets/telephone-services.htm. 292 Federal Communications Commission FCC 22-103 APPX. D-3 Annualized Average Revenue Per Reported Subscriber Unit (ARPU): 1993–2021 Year Total Annual Percentage Average Reported Average Monthly Service Revenue Change Subscribers Revenue per Active (thousands) Subscriber Unit 1993 $10,895,175 11,861,362 $76.55 1994 $14,229,922 30.6% 18,299,487 $64.80 1995 $19,081,239 34.1% 26,757,320 $59.43 1996 $23,634,971 23.9% 35,554,818 $55.40 1997 $27,485,633 16.3% 46,375,849 $49.39 1998 $33,133,175 20.6% 58,455,471 $47.23 1999 $40,018,489 20.8% 71,885,076 $46.39 2000 $52,466,020 31.1% 90,048,320 $48.55 2001 $65,316,235 24.5% 109,318,848 $49.79 2002 $76,508,187 17.1% 125,002,023 $51.00 2003 $87,624,093 14.5% 141,658,059 $51.55 2004 $102,121,210 16.5% 161,980,026 $52.54 2005 $113,538,221 11.2% 186,801,940 $50.65 2006 $125,456,825 10.5% 213,077,033 $49.07 2007 $138,869,304 10.7% 234,921,960 $49.26 2008 $148,084,170 6.6% 252,539,475 $48.87 2009 $152,551,854 3.0% 265,038,212 $47.97 2010 $159,929,648 4.9% 280,392,201 $47.53 2011 $169,767,314 6.2% 306,840,648 $46.11 2012 $185,013,936 9.0% 314,685,754 $48.99 2013 $189,192,812 2.3% 323,133,932 $48.79 2014 $187,848,477 (0.7%) 335,606,098 $46.64 2015 $191,949,025 2.2% 358,228,494 $44.65 2016 $188,524,256 (1.8%) 378,554,642 $41.50 2017 $179,091,135 (5.0%) 386,013,771 $38.66 2018 $182,779,484 2.1% 402,376,536 $37.85 2019 $187,361,982 2.5% 423,609,827 $36.86 2020 $189,912,414 1.4% 448,206,414 $35.31 2021 $204,214,004 7.5% 476,179,415 $35.74 Source: CTIA Year-End 2021 Wireless Industry Indices Report. 293 Federal Communications Commission FCC 22-103 APPX. D-4 Mobile Wireless Coverage Maps The maps presented below are based on Commission estimates derived from census block analysis of December 2021 FCC Form 477 coverage maps, using the centroid methodology.2 Nationwide 4G LTE Coverage, Year-End 2021 (FCC Form 477) 2 The centroid methodology provides estimates of the percentage of the population located in census blocks with a certain number of service providers and represents network coverage. That a particular service provider has indicated that it has network coverage in a particular census block does not necessarily mean that it offers service to residents in that census block. In addition, the fact that a service provider reports coverage in a particular census block does not mean that it necessarily provides coverage everywhere in the census block. This is likely to be particularly relevant in larger rural census blocks. For both these reasons, the number of service providers in a census block does not necessarily reflect the number of choices available to a particular individual or household. 294 Federal Communications Commission FCC 22-103 Nationwide 5G Coverage, Year-End 2021 (FCC Form 477) 295 Federal Communications Commission FCC 22-103 APPX. D-5 Mobile Wireless Coverage The figures presented below are based on Commission estimates derived from census block analysis of December 2021 FCC Form 477 coverage maps, using both the centroid3 and the actual area4 coverage methodologies. Appx. D-5.i Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data.5 3 The centroid methodology is applied to U.S. census blocks overlaid on service provider coverage maps. Under this methodology, if the geometric center point, or centroid, of a census block is within the coverage boundary of a coverage map, then we consider that block to be “covered” by that service provider and/or technology. We then aggregate the population, land area, and road miles of the covered census blocks to generate our total coverage estimates. We note that these coverage estimates represent deployment of mobile networks and do not indicate the extent to which service providers affirmatively offer service to residents in the covered areas. While we recognize that this analysis likely overstates the coverage experienced by some consumers, especially in large or irregularly shaped census blocks, we find that it is nonetheless useful because estimated coverage can be compared across network technologies and service providers. For a more detailed discussion of the centroid methodology, see Twentieth Wireless Competition Report, 32 FCC Rcd at 9016, para. 71. 4 For the actual area methodology, since we do not know the distribution of either the population or road miles at the sub-census block level, as noted above, we must approximate the percentage that is covered by each technology. To do this, we assume that both population and road miles are distributed uniformly across each census block. The fraction of the population or road miles covered in a census block is assumed to be proportional to the fraction of the actual area covered. We then sum the estimated covered population (road miles) across blocks to estimate the total covered population (road miles) within the United States. Unlike the centroid methodology where each block is either covered or not, the actual area coverage methodology acknowledges that many blocks are only partially covered. Because it is unclear which census blocks should be considered covered or not, we do not report the number of blocks covered in these results. This applies to all figures using the actual area methodology. 5 Note that the number of service providers in a census block represents network coverage only. Network coverage does not necessarily reflect the number of service providers that actively offer service to individuals located in a given area. This applies to all figures presented in Appx. D. 296 Federal Communications Commission FCC 22-103 Appx. D-5.ii Estimated Overall Wireless Coverage by Census Block FCC Form 477, Centroid Method, Dec. 2021 Number of Square % of Road Population Providers % of Total Miles Total Miles % of Total Number of Contained with U.S. Contained U.S. Contained U.S. Road Blocks in Those Coverage in Population in Those Square in Those Miles Blocks a Block Blocks Miles Blocks U.S. Total 7,935,728 334,724,982 100.0% 3,577,898 100.0% 6,867,154 100.0% 1 or more 7,871,050 334,561,534 100.0% 2,860,882 80.0% 6,652,412 96.9% 2 or more 7,765,320 333,901,413 99.8% 2,590,798 72.4% 6,347,038 92.4% 3 or more 7,399,111 329,697,486 98.5% 2,094,052 58.5% 5,609,021 81.7% 4 or more 1,907,155 55,594,774 16.6% 693,872 19.4% 1,709,517 24.9% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.iii Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 297 Federal Communications Commission FCC 22-103 Appx. D-5.iv Estimated Overall Wireless Coverage in the United States by Provider FCC Form 477, Centroid Method, Dec. 2021 Square % of Road % of Population % of Total Miles Total Miles Total Number Contained Provider U.S. Contained U.S. Contained U.S. of Blocks in Those Population in Those Square in Those Road Blocks Blocks Miles Blocks Miles U.S. Total 7,935,728 334,724,982 100.0% 3,577,898 100.0% 6,867,154 100.0% AT&T 7,741,641 330,523,156 98.7% 2,673,479 74.7% 6,403,757 93.3% T-Mobile 7,212,492 327,255,910 97.8% 1,945,984 54.4% 5,339,834 77.8% Verizon 7,516,496 327,929,288 98.0% 2,401,215 67.1% 6,005,105 87.4% Wireless Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.v Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 298 Federal Communications Commission FCC 22-103 Appx. D-5.vi Estimated 4G LTE Coverage by Census Block FCC Form 477, Centroid Method, Dec.2021 Number of Square % of Road % of Population Providers % of Total Miles Total Miles Total Number Contained with U.S. Contained U.S. Contained U.S. of Blocks in Those Coverage Population in Those Square in Those Road Blocks in a Block Blocks Miles Blocks Miles U.S. Total 7,935,728 334,724,982 100.0% 3,577,898 100.0% 6,867,154 100.0% 1 or more 7,757,998 333,724,607 99.7% 2,610,855 73.0% 6,345,822 92.4% 2 or more 7,508,874 330,987,667 98.9% 2,192,776 61.3% 5,759,305 83.9% 3 or more 6,627,901 316,056,904 94.4% 1,423,490 39.8% 4,351,974 63.4% 4 or more 1,439,574 46,008,629 13.7% 367,669 10.3% 1,053,948 15.3% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.vii Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 299 Federal Communications Commission FCC 22-103 Appx. D-5.viii Estimated 4G LTE Coverage in the United States by Provider FCC Form 477, Centroid Method, Dec. 2021 Square % of Road % of Population Miles % of Total Total Miles Total Number Contained Containe Provider U.S. U.S. Contained U.S. of Blocks in Those d in Population Square in Those Road Blocks Those Miles Blocks Miles Blocks U.S. Total 7,935,728 334,724,982 100.0% 3,577,898 100.0% 6,867,154 100.0% AT&T 7,479,356 327,403,101 97.8% 2,303,837 64.4% 5,845,295 85.1% T-Mobile 6,317,629 310,941,047 92.9% 1,248,390 34.9% 3,980,869 58.0% Verizon 7,310,821 325,718,384 97.3% 2,094,826 58.5% 5,548,533 80.8% Wireless Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.ix Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 300 Federal Communications Commission FCC 22-103 Appx. D-5.x Estimated 5G Coverage by Census Block FCC Form 477, Centroid Method, Dec. 2021 Number of Square % of Road % of Population Providers % of Total Miles Total Miles Total Number Contained with U.S. Contained U.S. Contained U.S. of Blocks in Those Coverage Population in Those Square in Those Road Blocks in a Block Blocks Miles Blocks Miles U.S. Total 7,935,728 334,724,982 100.0% 3,577,898 100.0% 6,867,154 100.0% 1 or more 7,205,179 327,081,784 97.7% 1,943,406 54.3% 5,305,997 77.3% 2 or more 5,592,678 294,033,829 87.8% 949,428 26.5% 3,282,635 47.8% 3 or more 2,880,359 194,175,083 58.0% 230,465 6.4% 1,241,102 18.1% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xi Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 301 Federal Communications Commission FCC 22-103 Appx. D-5.xii Estimated 5G Coverage in the United States by Provider FCC Form 477, Centroid Method, Dec. 2021 Square % of Road % of Population % of Total Miles Total Miles Total Number Contained Provider U.S. Contained U.S. Contained U.S. of Blocks in Those Population in Those Square in Those Road Blocks Blocks Miles Blocks Miles U.S. Total 7,935,728 334,724,982 100.0% 3,577,898 100.0% 6,867,154 100.0% AT&T 4,994,400 260,800,459 77.9% 960,155 26.8% 3,066,658 44.7% T-Mobile 6,780,958 316,007,565 94.4% 1,725,734 48.2% 4,844,187 70.5% Verizon 3,510,954 225,178,007 67.3% 369,222 10.3% 1,683,968 24.5% Wireless Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xiii Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 302 Federal Communications Commission FCC 22-103 Appx. D-5.xiv Estimated Wireless Coverage in Rural Areas by Census Block FCC Form 477, Centroid Method, Dec. 2021 % of % of Number of Square Road Total Population Total Providers % of Total Miles Miles Rural Number Contained Rural with Rural U.S. Contained Contained U.S. of Blocks in Those U.S. Coverage Population in Those in Those Rural Blocks Square in a Block Blocks Blocks Road Miles Miles U.S. Total 3,433,590 58,782,633 100.0% 3,023,291 100.0% 4,572,033 100.0% 1 or more 3,372,995 58,638,630 99.8% 2,317,883 76.7% 4,368,517 95.5% 2 or more 3,277,029 58,092,421 98.8% 2,065,078 68.3% 4,083,648 89.3% 3 or more 2,955,454 54,846,921 93.3% 1,607,301 53.2% 3,410,590 74.6% 4 or more 1,177,167 20,690,931 35.2% 590,291 19.5% 1,288,735 28.2% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xv Estimated Wireless Coverage in Non-Rural Areas by Census Block FCC Form 477, Centroid Method, Dec. 2021 % of % of Number Square Total Road Total of Population % of Total Miles Non- Miles Non- Providers Number Contained Non-Rural Contained Rural Contained Rural with of Blocks in Those U.S. in Those U.S. in Those U.S. Coverage Blocks Population Blocks Square Blocks Road in a Block Miles Miles U.S. Total 4,502,138 275,942,349 100.0% 554,607 100.0% 2,295,121 100.0% 1 or more 4,498,055 275,922,904 100.0% 542,999 97.9% 2,283,895 99.5% 2 or more 4,488,291 275,808,992 100.0% 525,720 94.8% 2,263,391 98.6% 3 or more 4,443,657 274,850,565 99.6% 486,751 87.8% 2,198,431 95.8% 4 or more 729,988 34,903,843 12.6% 103,581 18.7% 420,782 18.3% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 303 Federal Communications Commission FCC 22-103 Appx. D-5.xvi Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xvii Estimated Rural Wireless Coverage in the United States by Provider FCC Form 477, Centroid Method, Dec. 2021 Population % of Total Road Miles % of Total Number of Provider Contained in Rural U.S. Contained in U.S. Rural Blocks Those Blocks Population Those Blocks Road Miles U.S. Total 3,433,590 58,782,633 100.0% 4,572,033 100.0% AT&T 3,288,254 57,930,559 98.6% 4,152,244 90.8% T-Mobile 2,773,254 52,784,270 89.8% 3,147,003 68.8% Verizon Wireless 3,079,423 55,599,817 94.6% 3,779,667 82.7% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 304 Federal Communications Commission FCC 22-103 Appx. D-5.xviii Estimated Non-Rural Wireless Coverage in the United States by Provider FCC Form 477, Centroid Method, Dec. 2021 % of Total % of Total Population Road Miles Number of Non-Rural Non-Rural Provider Contained in Contained in Blocks U.S. U.S. Road Those Blocks Those Blocks Population Miles U.S. Total 4,502,138 275,942,349 100.0% 2,295,121 100.0% AT&T 4,453,387 272,592,597 98.8% 2,251,513 98.1% T-Mobile 4,439,238 274,471,640 99.5% 2,192,831 95.5% Verizon Wireless 4,437,073 272,329,471 98.7% 2,225,438 97.0% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xix Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 305 Federal Communications Commission FCC 22-103 Appx. D-5.xx Estimated 4G LTE Coverage in Rural Areas by Census Block FCC Form 477, Centroid Method, Dec. 2021 % of % of Number of Square Population Total Road Miles Total Providers % of Total Miles Number Contained Rural Contained Rural with Rural U.S. Contained of Blocks in Those U.S. in Those U.S. Coverage Population in Those Blocks Square Blocks Road in a Block Blocks Miles Miles U.S. Total 3,433,590 58,782,633 100.0% 3,023,291 100.0% 4,572,033 100.0% 1 or more 3,273,050 57,995,446 98.7% 2,084,489 68.9% 4,086,696 89.4% 2 or more 3,058,277 56,002,476 95.3% 1,702,792 56.3% 3,559,809 77.9% 3 or more 2,371,296 47,338,437 80.5% 1,037,821 34.3% 2,381,010 52.1% 4 or more 810,697 15,499,734 26.4% 298,539 9.9% 730,965 16.0% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xxi Estimated 4G LTE Coverage in Non-Rural Areas by Census Block FCC Form 477, Centroid Method, Dec. 2021 % of % of Number Square Total Road Total of Population % of Total Miles Non- Miles Non- Providers Number Contained Non-Rural Contained Rural Contained Rural with of Blocks in Those U.S. in Those U.S. in Those U.S. Coverage Blocks Population Blocks Square Blocks Road in a Block Miles Miles U.S. Total 4,502,138 275,942,349 100.0% 554,607 100.0% 2,295,121 100.0% 1 or more 4,484,948 275,729,161 99.9% 526,366 94.9% 2,259,126 98.4% 2 or more 4,450,597 274,985,191 99.7% 489,984 88.3% 2,199,496 95.8% 3 or more 4,256,605 268,718,467 97.4% 385,669 69.5% 1,970,964 85.9% 4 or more 628,877 30,508,895 11.1% 69,130 12.5% 322,983 14.1% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 306 Federal Communications Commission FCC 22-103 Appx. D-5.xxii Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xxiii Estimated Rural 4G LTE Coverage in the United States by Provider FCC Form 477, Centroid Method, Dec. 2021 % of Total Population % of Total Road Miles Number of U.S. Rural Provider Contained in Rural U.S. Contained in Blocks Road Those Blocks Population Those Blocks Miles U.S. Total 3,433,590 58,782,633 100.0% 4,572,033 100.0% AT&T 3,066,626 55,810,207 94.9% 3,659,726 80.0% T-Mobile 2,093,650 43,601,040 74.2% 2,037,091 44.6% Verizon Wireless 2,900,457 53,949,050 91.8% 3,367,120 73.6% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 307 Federal Communications Commission FCC 22-103 Appx. D-5.xxiv Estimated Non-Rural 4G LTE Coverage in the United States by Provider FCC Form 477, Centroid Method, Dec. 2021 % of Total % of Total Population Road Miles Number of Non-Rural Non-Rural Provider Contained in Contained in Blocks U.S. U.S. Road Those Blocks Those Blocks Population Miles U.S. Total 4,502,138 275,942,349 100.0% 2,295,121 100.0% AT&T 4,412,730 271,592,894 98.4% 2,185,570 95.2% T-Mobile 4,223,979 267,340,007 96.9% 1,943,779 84.7% Verizon Wireless 4,410,364 271,769,334 98.5% 2,181,413 95.0% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xxv Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 308 Federal Communications Commission FCC 22-103 Appx. D-5.xxvi Estimated 5G Coverage in Rural Areas by Census Block FCC Form 477, Centroid Method, Dec. 2021 % of % of Number of Square Population Total Road Miles Total Providers % of Total Miles Number Contained Rural Contained Rural with Rural U.S. Contained of Blocks in Those U.S. in Those U.S. Coverage Population in Those Blocks Square Blocks Road in a Block Blocks Miles Miles U.S. Total 3,433,590 58,782,633 100.0% 3,023,291 100.0% 4,572,033 100.0% 1 or more 2,771,969 52,644,502 89.6% 1,459,152 48.3% 3,122,180 68.3% 2 or more 1,542,702 34,252,552 58.3% 586,981 19.4% 1,429,736 31.3% 3 or more 262,691 7,917,432 13.5% 65,393 2.2% 192,045 4.2% Source: Based on centroid analysis of Dec.2021 FCC Form 477 and 2020 Census data. Appx. D-5.xxvii Estimated 5G Coverage in Non-Rural Areas by Census Block FCC Form 477, Centroid Method, Dec. 2021 % of % of Number Square Total Road Total of Population % of Total Miles Non- Miles Non- Providers Number Contained Non-Rural Contained Rural Contained Rural with of Blocks in Those U.S. in Those U.S. in Those U.S. Coverage Blocks Population Blocks Square Blocks Road in a Block Miles Miles U.S. Total 4,502,138 275,942,336 100.0% 554,607 100.0% 2,295,121 100.0% 1 or more 4,433,210 274,437,280 99.5% 484,254 87.3% 2,183,817 95.2% 2 or more 4,049,976 259,781,280 94.1% 362,447 65.4% 1,852,900 80.7% 3 or more 2,617,668 186,257,648 67.5% 165,072 29.8% 1,049,057 45.7% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 309 Federal Communications Commission FCC 22-103 Appx. D-5.xxviii Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xxix Estimated Rural 5G Coverage in the United States by Provider FCC Form 477, Centroid Method, Dec. 2021 % of Population % of Total Road Miles Total U.S. Number of Provider Contained in Rural U.S. Contained in Rural Blocks Those Blocks Population Those Blocks Road Miles U.S. Total 3,433,590 58,782,633 100.0% 4,572,033 100.0% AT&T 1,488,174 31,164,279 53.0% 1,501,444 32.8% T-Mobile 2,498,382 48,225,731 82.0% 2,783,529 60.9% Verizon Wireless 358,803 10,642,062 18.1% 301,717 6.6% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 310 Federal Communications Commission FCC 22-103 Appx. D-5.xxx Estimated Non-Rural 5G Coverage in the United States by Provider FCC Form 477, Centroid Method, Dec. 2021 % of Total Population % of Total Road Miles Number Non-Rural Provider Contained in Non-Rural U.S. Contained in of Blocks U.S. Road Those Blocks Population Those Blocks Miles U.S. Total 4,502,138 275,942,349 100.0% 2,295,121 100.0% AT&T 3,506,226 229,636,180 83.2% 1,565,214 68.2% T-Mobile 4,282,576 267,781,834 97.0% 2,060,658 89.8% Verizon Wireless 3,152,151 214,535,945 77.7% 1,382,251 60.2% Source: Based on centroid analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xxxi Source: Based on actual area coverage analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 311 Federal Communications Commission FCC 22-103 Appx. D-5.xxxii Estimated Wireless Coverage in the United States by Provider FCC Form 477, Actual Area Method, Dec. 2021 % of % of % of Total Total Covered Total Covered Covered Provider U.S. U.S. Road U.S. Population Square Miles Population Square Miles Road Miles Miles U.S. Total 334,724,982 100.0% 3,577,898 100.0% 6,867,154 100.0% AT&T 330,430,493 98.7% 2,667,170 74.5% 6,386,192 93.0% T-Mobile 327,313,942 97.8% 1,958,678 54.7% 5,346,239 77.9% Verizon Wireless 327,765,192 97.9% 2,377,276 66.4% 5,970,222 86.9% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xxxiii Estimated 4G LTE Coverage by Census Block FCC Form 477, Actual Area Coverage Method, Dec. 2021 % of Number of % of % of Total Covered Total Providers Covered Covered Total U.S. U.S. Road U.S. with Coverage Population Square Miles Square Population Miles Road in a Block Miles Miles U.S. Total 334,724,982 100.0% 3,577,898 100.0% 6,867,154 100.0% 1 or more 333,608,736 99.7% 2,601,811 72.7% 6,321,362 92.1% 2 or more 330,829,571 98.8% 2,183,082 61.0% 5,738,804 83.6% 3 or more 316,211,882 94.5% 1,431,843 40.0% 4,355,412 63.4% 4 or more 45,846,185 13.7% 365,321 10.2% 1,046,957 15.2% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 312 Federal Communications Commission FCC 22-103 Appx. D-5.xxxiv Estimated 4G LTE Coverage in the United States by Provider FCC Form 477, Actual Area Method, Dec. 2021 % of % of % of Total Total Covered Total Covered Covered Provider U.S. U.S. Road U.S. Population Square Miles Population Square Miles Road Miles Miles U.S. Total 334,724,982 100.0% 3,577,898 100.0% 6,867,154 100.0% AT&T 327,295,282 97.8% 2,295,559 64.2% 5,825,115 84.8% T-Mobile 311,386,970 93.0% 1,273,697 35.6% 4,011,466 58.4% Verizon Wireless 325,508,670 97.2% 2,083,496 58.2% 5,523,772 80.4% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xxxv Estimated 5G Coverage by Census Block FCC Form 477, Actual Area Coverage Method, Dec. 2021 % of Number of % of % of Total Covered Total Providers Covered Covered Total U.S. U.S. Road U.S. with Coverage Population Square Miles Square Population Miles Road in a Block Miles Miles U.S. Total 334,724,982 100.0% 3,577,898 100.0% 6,867,154 100.0% 1 or more 327,095,449 97.7% 1,950,408 54.5% 5,311,228 77.3% 2 or more 293,952,538 87.8% 952,868 26.6% 3,283,373 47.8% 3 or more 194,034,354 58.0% 231,663 6.5% 1,240,281 18.1% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 313 Federal Communications Commission FCC 22-103 Appx. D-5.xxxvi Estimated 5G Coverage in the United States by Provider FCC Form 477, Actual Area Method, Dec. 2021 % of % of % of Total Total Total Covered Covered Covered Provider U.S. U.S. U.S. Population Square Miles Road Miles Population Square Road Miles Miles U.S. Total 334,724,982 100.0% 3,577,898 100.0% 6,867,154 100.0% AT&T 260,651,318 77.9% 954,587 26.7% 3,059,631 44.6% T-Mobile 316,128,682 94.4% 1,740,063 48.6% 4,859,178 70.8% Verizon Wireless 224,973,346 67.2% 370,362 10.4% 1,679,169 24.5% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xxxvii Source: Based on actual area coverage analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 314 Federal Communications Commission FCC 22-103 Appx. D-5.xxxviii Estimated Rural Wireless Coverage in the United States by Provider FCC Form 477, Actual Area Coverage, Dec. 2021 % of Total U.S. Covered % of Total Rural Covered Road Provider Rural Road Population U.S. Population Miles Miles U.S. Total 58,782,633 100.0% 4,572,033 100.0% AT&T 57,886,832 98.5% 4,136,034 90.5% T-Mobile 52,832,837 89.9% 3,153,440 69.0% Verizon Wireless 55,514,087 94.4% 3,747,450 82.0% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xxxix Estimated Non-Rural Wireless Coverage in the United States by Provider FCC Form 477, Actual Area Coverage, Dec. 2021 % of Total Non- % of Total Non- Covered Covered Road Provider Rural U.S. Rural U.S. Road Population Miles Population Miles U.S. Total 275,942,349 100.0% 2,295,121 100.0% AT&T 272,543,661 98.8% 2,250,158 98.0% T-Mobile 274,481,105 99.5% 2,192,800 95.5% Verizon Wireless 272,251,105 98.7% 2,222,772 96.8% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 315 Federal Communications Commission FCC 22-103 Appx. D-5.xl Estimated 4G LTE Coverage in Rural Areas by Census Block FCC Form 477, Actual Area Coverage Method, Dec. 2021 Number of Covered % of Total Rural Covered Road % of Total Rural Providers Population U.S. Population Miles U.S. Road Miles U.S. Total 58,782,633 100.0% 4,572,033 100.0% 1 or more 57,933,015 98.6% 4,064,464 88.9% 2 or more 55,922,348 95.1% 3,541,327 77.5% 3 or more 47,423,683 80.7% 2,381,080 52.1% 4 or more 15,292,570 26.0% 723,069 15.8% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xli Estimated 4G LTE Coverage in Non-Rural Areas by Census Block FCC Form 477, Actual Area Coverage Method, Dec. 2021 % of Total Non- % of Total Non- Number of Covered Covered Road Rural U.S. Rural U.S. Road Providers Population Miles Population Miles U.S. Total 275,942,349 100.0% 2,295,121 100.0% 1 or more 275,675,720 99.9% 2,256,898 98.3% 2 or more 274,907,223 99.6% 2,197,477 95.7% 3 or more 268,788,199 97.4% 1,974,332 86.0% 4 or more 30,553,615 11.1% 323,888 14.1% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xlii Estimated Rural 4G LTE Coverage in the United States by Provider FCC Form 477, Actual Area Coverage, Dec. 2021 % of Total % of Total U.S. Covered Covered Road Provider Rural U.S. Rural Road Population Miles Population Miles U.S. Total 58,782,633 100.0% 4,572,033 100.0% AT&T 55,748,792 94.8% 3,641,122 79.6% T-Mobile 43,854,187 74.6% 2,060,614 45.1% Verizon Wireless 53,869,234 91.6% 3,346,784 73.2% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 316 Federal Communications Commission FCC 22-103 Appx. D-5.xliii Estimated Non-Rural 4G LTE Coverage in the United States by Provider FCC Form 477, Actual Area Coverage, Dec. 2021 % of Total Non- % of Total Non- Covered Covered Road Provider Rural U.S. Rural U.S. Road Population Miles Population Miles U.S. Total 275,942,349 100.0% 2,295,121 100.0% AT&T 271,546,491 98.4% 2,183,993 95.2% T-Mobile 267,532,783 97.0% 1,950,852 85.0% Verizon Wireless 271,639,436 98.4% 2,176,988 94.9% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xliv Estimated 5G Coverage in Rural Areas by Census Block FCC Form 477, Actual Area Coverage Method, Dec. 2021 Number of Covered % of Total Rural Covered Road % of Total Rural Providers Population U.S. Population Miles U.S. Road Miles U.S. Total 58,782,633 100.0% 4,572,033 100.0% 1 or more 52,711,976 89.7% 3,127,804 68.4% 2 or more 34,308,321 58.4% 1,432,095 31.3% 3 or more 7,926,322.5 13.5% 192936.4 4.2% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xlv Estimated 5G Coverage in Non-Rural Areas by Census Block FCC Form 477, Actual Area Coverage Method, Dec. 2021 % of Total Non- % of Total Non- Number of Covered Covered Road Rural U.S. Rural U.S. Road Providers Population Miles Population Miles U.S. Total 275,942,349 100.0% 2,298,858 100.0% 1 or more 274,383,474 99.4% 2,183,424 95.1% 2 or more 259,644,217 94.1% 1,851,278 80.7% 3 or more 186,108,032 67.4% 1,047,345 45.6% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 317 Federal Communications Commission FCC 22-103 Appx. D-5.xlvi Estimated Rural 5G Coverage in the United States by Provider FCC Form 477, Actual Area Coverage, Dec. 2021 % of Total U.S. Covered % of Total Rural Covered Road Provider Rural Road Population U.S. Population Miles Miles U.S. Total 58,782,633 100.0% 4,572,033 100.0% AT&T 31,185,954 53.1% 1,496,174 32.7% T-Mobile 48,349,083 82.3% 2,796,923 61.2% Verizon Wireless 10,617,788 18.1% 300,623 6.6% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. Appx. D-5.xlvii Estimated Non-Rural 5G Coverage in the United States by Provider FCC Form 477, Actual Area Coverage, Dec. 2021 % of Total Non- % of Total Non- Covered Covered Road Provider Rural U.S. Rural U.S. Road Population Miles Population Miles U.S. Total 275,942,349 100.0% 2,295,121 100.0% AT&T 229,465,364 83.2% 1,563,457 68.1% T-Mobile 267,779,599 97.0% 2,062,255 89.9% Verizon Wireless 214,355,558 77.7% 1,378,546 60.1% Source: Based on actual area analysis of Dec. 2021 FCC Form 477 and 2020 Census data. 318 Federal Communications Commission FCC 22-103 APPENDIX E REPORT ON CABLE INDUSTRY PRICES The Report on Cable Industry Prices is published as an Appendix attachment to the 2022 Communications Marketplace Report. It can be accessed here: https://www.fcc.gov/reports- research/reports/consolidated-communications-marketplace-reports/CMR-2022. 319 Federal Communications Commission FCC 22-103 APPENDIX F DEPLOYMENT AND ADVANCED TELECOMMUNICATIONS CAPABILITY The information on deployment and advanced telecommunications capability is published as an Appendix attachment to the 2022 Communications Marketplace Report. It can be accessed here: https://www.fcc.gov/reports-research/reports/consolidated-communications-marketplace-reports/CMR- 2022. 320 Federal Communications Commission FCC 22-103 APPENDIX G INTERNATIONAL BROADBAND DATA REPORT The International Broadband Data Report is published as an Appendix attachment to the 2022 Communications Marketplace Report. It can be accessed here: https://www.fcc.gov/reports- research/reports/consolidated-communications-marketplace-reports/CMR-2022. 321 Federal Communications Commission FCC 22-103 STATEMENT OF COMMISSIONER BRENDAN CARR APPROVING IN PART AND CONCURRING IN PART Re: Communications Marketplace Report, GN Docket No. 22-203 When we adopted the Commission’s prior Communications Marketplace Report in 2020, I voted to approve in part and concur in part because, in my view, we could have gone further in recognizing the converged market for connectivity.1551 I continue to have that view this go around. So I am again voting to approve in part and concur in part. 1551 Communications Marketplace Report et al., GN Docket No. 20-60, Report, 36 FCC Rcd 2945 (2020) (Statement of Commissioner Carr) (“I would go even further than the Report does in recognizing the converged market for connectivity that now exists. The Commission’s decades-old approach of viewing different technologies—including mobile, fixed, satellite, and broadcast offerings—as competing in distinct and separate markets no longer matches the way that Americans consume these services.”). 322