Fact Sheet: 2016 Broadband Progress Report Chairman’s Draft Background Section 706 of the Telecommunications Act of 1996 requires the FCC to determine whether “advanced telecommunications capability” -- broadband -- is being deployed to all Americans in a “reasonable and timely fashion.” If the answer is negative, the Act requires the FCC to “take immediate action” to speed deployment. Following is a summary of Chairman Wheeler’s draft of the 2016 Broadband Progress Report, which he will circulate to his fellow commissioners for their consideration at the January 28 Open Meeting. The Conclusion  While the nation continues to make progress in broadband deployment, advanced telecommunications capability is not being deployed in a reasonable and timely fashion to all Americans. Factors leading to this conclusion are as follows: o Approximately 34 million Americans still lack access to fixed broadband at the FCC’s benchmark speed of 25 Mbps for downloads, 3 Mbps for uploads o A persistent urban-rural digital divide has left 39 percent of the rural population without access to fixed broadband  By comparison, only 4 percent living in urban areas lack access  10 percent lack access nationwide o 41 percent of Tribal Lands residents lack access o 41 percent of schools have not met the Commission’s short-term goal of 100 Mbps per 1,000 students/staff.  These schools educate 47 percent of the nation’s students,  Only 9 percent of schools have fiber connections capable of meeting the FCC’s long-term goal of 1 Gbps per 1,000 students. o Internationally, the U.S. continues to lag behind a number of other developed nations, ranking 16th out of 34 countries Other Findings  Advanced telecommunications capability requires access to both fixed and mobile broadband o Fixed and mobile service offer distinct functions meeting both complementary and distinct needs  Fixed broadband offers high-speed, high-capacity connections capable of supporting bandwidth-intensive uses, such as streaming video, by multiple users in a household.  But fixed broadband can’t provide consumers with the mobile Internet access required to support myriad needs outside the home and while working remotely.  Mobile devices provide access to the web while on the go, and are especially useful for real-time two-way interactions, mapping applications, and social media  But consumers who rely solely on mobile broadband tend to perform a more limited range of tasks and are significantly more likely to incur additional usage fees or forgo use of the Internet. o  The increasingly dynamic nature of residential and business communications requires both fixed and mobile broadband access. A standard reflecting access to both fixed and mobile broadband reflects current consumer needs, usage, and preference. However, given the current record, the FCC does not yet set a mobile speed benchmark, so deployment of mobile broadband is not reflected in the current assessment. Improved Access Percentage of Americans Lacking Access to Fixed Broadband at 25/3 2014 2013 2012 United States 10% 17% 20% Rural Areas 39% 53% 55% Urban Areas 4% 8% 11% Tribal Lands 41% 63% 68% Rural Areas 68% 85% 89% Urban Areas 14% 41% 47% U.S. Territories 66% 63% 100% Ongoing Commission/administration/industry actions to increase broadband deployment           Acceptance by 10 carriers in August, 2015 of $1.5 billion in annual support from Connect America Fund to expand rural broadband deployment to 3.6 million homes and business by the end of 2020 in 45 states and one territory. Authorization by Dec. 2015 of $34 million in support through the Rural Broadband Experiments program in 12 states Following modernization of the E-rate program to better support fiber and Wi-Fi in schools and libraries, the FCC has issued more than $2.8 billion in funding commitments, including $1 billion for broadband connections of 100 Mbps and higher, and $1.1 billion for Wi-Fi for Funding Year 2015. Further Notice considering modernization of Lifeline program to support broadband Open Internet order ensures an open platform for network and application innovations, which drive increased consumer demand for faster, better broadband Brought pole attachment rates for cable and telecom companies to near-parity HUD ConnectHome program to bring high-speed broadband to low-income housing in 27 cities As part of the Commission’s efforts to ensure access to robust and affordable mobile voice and broadband service, the Commission has conducted two Mobility Fund auctions: o Mobility Fund Phase I auction, with winning bidders eligible to receive a total of up to approximately $300 million in one-time support to provide 3G or better mobile voice and broadband services to areas where those services did not exist, and o Tribal Mobility Fund Phase I auction, with winning bidders eligible to receive a total of up to approximately $50 million in one-time support to provide 3G or better mobile voice and broadband services to Tribal lands. Investment by industry of $78 billion in network infrastructure in 2014 (US Telecom) Investment by wireless providers of $32 billion in 2014 (CTIA) -FCC-