**Background**

High-speed Internet access (sometimes loosely referred to as "broadband
Internet access" or simply "broadband") allows users to access the
Internet and Internet-related services at significantly higher speeds
than traditional modems. High-speed Internet access makes the data
processing capabilities necessary to use the Internet available via
several devices or high-speed transmission technologies, including:

-   Digital Subscriber Line (DSL)

-   Cable Modem (CM)

-   Wireless Access

-   Satellite Access

-   Fiber To the Home (FTTH)

-   Power Line Broadband

There are many advantages of high-speed Internet access:

-   The connection is always on, which means you can access the Internet
    without the need to dial up your Internet service provider over a
    telephone line.

-   Information can be downloaded into your computer at significantly
    higher speeds than traditional modems.

-   Users can go online without tying up their telephone lines.

-   Businesses can use broadband networks for videoconferencing, and to
    let employees telecommute.

-   Users can tap into an expanded number of entertainment resources.

Statistics collected by the Federal Communications Commission (FCC)
indicate that there were nearly 17.4 million high-speed residential and
small business subscribers as of December 2002. Of these, approximately
5.5 million used asymmetric versions of DSL technology, approximately
11.3 million used CM, and approximately 0.5 million used another
high-speed technology. The number of residential and small business
subscribers using DSL and CM technology increased by 58% between
December 2001 and December 2002.

**How Does Broadband Work?**

> High speed Internet access makes the data processing capabilities
> necessary to use the Internet available via one of several high-speed
> transmission technologies. These data processing capabilities are
> "digital" in nature, meaning that they compress vast amounts of voice,
> video, and data information that are broken down into what are called
> "bits." These bits become words, pictures, etc. on our computer
> screens. The transmission technologies that make high speed Internet
> access possible move these bits much more quickly than do traditional
> telephone or wireless connections.
>
> -2-
>
> **Digital Subscriber Line (DSL)**

**Digital Subscriber Line** (DSL) is a wireline transmission technology
that brings data and information faster over copper telephone lines
already installed in homes and businesses.

Traditional phone service connects your home or business to a telephone
company office via copper wires. A DSL modem accesses the local
telephone company's central office where a DSL Access Multiplexer
(DSLAM) has been installed. The DSLAM then transmits the signal from the
copper telephone line onto a network backbone, and eventually to the
Internet. With high-speed Internet access that uses DSL transmission
technology, there is no need to "dial in" to a telephone number as with
a traditional modem. This service allows consumers and businesses to
have an "always-on" dedicated connection to the Internet.

The following are types of DSL transmission technologies that may be
used to provide high-speed Internet access:

-   **Symmetrical Digital Subscriber Line** (SDSL) -- used typically for
    business applications such as video conferencing. The traffic from
    the user to the network is upstream traffic, and from the network to
    the user is downstream traffic. When the data rate in both
    directions is equal, it is called a symmetric service.

-   **Asymmetrical Digital Subscriber Line** (ADSL) -- used primarily by
    residential users who receive a lot of data but do not send much,
    such as Internet surfers. ADSL provides faster speed in a downstream
    direction (from the telephone central office to the customer's
    premise) than upstream (from customer's premise to the telephone
    central office). When the upstream data rate is lower than the
    downstream rate, it is called an asymmetric service.

-   **ISDN Digital Subscriber Line** (IDSL) -- provides symmetrical
    connection with Integrated Services Digital Network (ISDN), and is
    designed to extend DSL to locations with a long distance to a
    telephone central office.

-   **High-data-rate Digital Subscriber Line** (HDSL) -- provides fixed
    symmetrical high speed access at T1 rate (1.5 Mbps), and is designed
    for business purposes.

-   **Very high-data-rate Digital Subscriber Line** (VDSL) -- provides
    both symmetrical and asymmetrical access with very high bit rate
    over the copper line. Deployment is very limited at this time.

**DSL Compared to ISDN**

ISDN is an affordable way to have rapid access to the Internet. It is a
digital technology that is widely available and is an option for
businesses located in areas not yet served by DSL.

DSL and ISDN are different transmission technologies, yet both offer
many of the same higher speed benefits to consumers. DSL offers
potentially higher transmission speeds as well as a choice of connection
speeds. ISDN is presently more widely available than DSL. DSL is an

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always-on service while ISDN requires dialing into a service provider's
network. If DSL transmission technology is not available in your area,
ISDN may serve as an acceptable substitute for use in providing
high-speed Internet access.

> **Cable Modem (CM)**

**Cable Modem** (CM) is a device that enables cable operators to provide
high-speed Internet access using the co-axial cables used for cable TV.

Today, most CMs are external devices that connect to the computer. They
will typically have two connections, one to the cable wall outlet and
the other to a computer. CMs are attached to the same cable TV company
lines that deliver pictures and sound to your TV set.

High-speed Internet access using CM offers both always-on capability and
speed. With this service, users never have to dial up using telephone
lines and their cable viewing is not hampered while on line. Speeds for
this service vary depending on the type of cable modem, cable network,
and traffic load, but are generally faster than those offered by
traditional dial-up Internet access.

**Differences Between DSL and CM Service**

High-speed Internet access that uses CM offers shared bandwidth or speed
among neighbors on the same cable system. Speed is asymmetric and will
vary depending on the number of people on the network. With high-speed
Internet access that uses DSL service, you have a dedicated connection
to your home. In most cases, however, the performance of DSL-based
service depends on the distance between end user and phone company
central office.

Today, high-speed Internet access provided using either DSL or CM
typically is offered with a pricing plan that allows access to the
service for as long as needed without incurring additional usage
charges. Many phone and cable companies are offering bundled packages of
various services (such as telephone, cable, and high-speed Internet
access) to lower costs to consumers.

High-speed Internet access using CM is targeted towards residential use
while DSL-based service is targeted towards residential and business
uses.

**Advantages and Disadvantages of Having DSL or CM**

High-speed Internet access provided using DSL and cable modems is much
faster than dial-up modems, however their speeds differ. The distance
between the user's premises and the phone company's central office is a
primary factor in deciding if DSL-based Internet access service is
available and its speed. In contrast, the speed of CM-based Internet
access service does not depend on the distance from cable company to end
user. Because DSL transmission technology must access the local phone
company's central office, competitive providers using DSL technology
must coordinate with local phone companies to provide service. Because
both versions of high-speed Internet access (DSL and CM) are always on,
you may want to check with the provider about security precautions. DSL
and CM equipment are generally based on standard specifications and
required certification, however, the best advice is to check with the

-4-

service provider prior to purchase of such equipment. Different
varieties of DSL transmission technology provide different maximum
speeds, from twice as fast as analog modems to higher than 100 times
faster.

> **Getting DSL or CM Service**

Contact a provider in your geographical area. The provider may be your
local telephone service provider or one of its competitors (for
DSL-based Internet access), or your local cable company (for CM-based
Internet access). There are different high-speed Internet access
services available, and the equipment of one provider may not be
inter-operable in another area or with another provider. Check with your
service provider for technical compatibility.

Prior to getting high-speed Internet access service, residential users
should check with the service provider to find out the minimum data
speed that the provider can deliver. Consumers should also check the
cost of the service. After receiving the service, contact the provider
and make it aware of any adverse experience(s) you encounter.
Investigate obtaining service through a different provider if you are
not pleased with your current service or provider.

**Wireless Internet Access**

Wireless access providers connect homes and businesses to the Internet
using wireless, or radio connection technology, rather than using
technologies such as coaxial cable (CM) or twisted copper paired
telephone lines (DSL). Wireless providers can use mobile or fixed
wireless technologies.

Generally, with fixed wireless technology, a computer, or network of
computers, employs a radio link from the customer's location to the
service provider. This radio link is usually established between rooftop
antennas in order for the radio link to have direct line of sight
between the two antennas. These rooftop antennas are usually dish shaped
antennas with a very narrow beam of connectivity to prevent
interference. The antenna at the customer's location is connected by a
cable that runs between the rooftop antenna and the local transmitting
and receiving radio equipment. This terminal radio equipment is then
connected to the local computer network.

With mobile wireless Internet access, information is transmitted in
basically the same way wireless phone calls are transmitted. When a
consumer types information into his or her handheld wireless device, it
is converted to radio waves. The radio waves travel through the air
until they reach a receiver at a nearby base station. The base station
then sends the information through the telephone network and Internet
until it reaches its destination. When a consumer receives information
through the Internet on the consumer's wireless device, the data travels
through the telephone network until reaches a base station close to the
consumer's device. Then the base station sends out radio waves that are
detected by a receiver in the consumer's device.

**Advantages and Disadvantages of Wireless**

Fixed wireless access customers can be located between 2 and 35 miles
from the wireless provider's network between the two locations. Fixed
wireless provides Internet-access at

-5-

speeds ranging from one up to 155 megabits per second (Mbps). Of course
the fixed wireless radio access is dependent on the radio connection and
the quality of the radio connection will determine the ultimate quality
of service to the customer.

There are several types of new technologies under development that will
make it easier for consumers to access the Internet through fixed
wireless services. Some providers have initiated wireless access that
does not require line of sight radio connectivity. Since many customers
may not have line of sight capabilities, this technology could create
additional fixed wireless opportunities for consumers. Other providers
are implementing systems that are easy for the customer to install and
simply "plug and play."

There are thousands of commercial locations across the country, such as
restaurants, hotels, airports, bookstores, convention centers, and city
parks and squares, where customers can use laptop computers, handheld
devices, and other portable computing devices with special "wireless
modem cards" to connect to the Internet wirelessly. While consumers
cannot get wireless Internet access once outside these buildings or
"hotspots," inside the hotspots they can get Internet access on their
devices at speeds of up to 11 Mbps. Also, some wireless providers offer
customers packages where they can get wireless Internet access at a
collection of different hotspots. The technology that enables the
wireless access in hotspots is called "WiFi." This technology was
originally developed as a home networking technology to network home
computers wirelessly. There are currently efforts in the industry to
develop solutions to extend this technology for longer distances where
WiFi can be used as the last-mile solution for Internet access.

Finally, wireless carriers are planning to provide some measure of
high-speed Internet access on mobile, or cellular, phones using what is
called "third generation" technology. This technology would give mobile
phone users, with the appropriate digital phone, the ability to access
the Internet via their phone at speeds up to 2 Mbps in order to provide
multi-media types of services. These mobile devices would be connected
via radio to a network of base stations that in turn provide connection
around the country. Most of the national cellular phone carriers are on
an evolutionary path to provide data services over their networks, and
many carriers have already upgraded their networks to provide mobile
Internet access at speeds comparable to landline dial-up Internet
access.

This capability would give mobile phone users with the appropriate
digital phone, the ability to access the Internet via their phone at
speeds up to 2 Mbps in order to provide multi-media types of services.
Future generations of mobile phone service promise even faster speeds
but are envisioned for some time in the future.

**Internet Access Via Satellite**

Satellites are used to transmit telephone, television and data signals
originated by common carriers (broadcasters and distributors of
broadcast), and cable TV program material. High-speed Internet access
via satellite provides consumers another wireless alternative and is
ideal for businesses and consumers who can't subscribe to traditional
high speed Internet access methods, such as people residing in remote
areas.

-6-

Over the past few years companies have developed a line of service that
fills the need for high speed Internet connections in rural and remote
locations. Using satellites that orbit far above the earth's atmosphere,
companies are able to offer satellite Internet access, including two-way
internet service (the satellites both send and receive data) that is
affordable for most homes and

businesses. Because the systems work both up stream and down stream,
there is no need for a phone line in order for these services to work.

The download and upload speed for satellite internet access depends on
several factors including: the satellite internet provider, the
consumer's line of sight to the orbiting satellite, the

service package purchased, and the weather. Typically a consumer can
expect to receive about 500 kilobits per second (kbps) download and
approximately 80 kbps upload. While this type of

connection is slower than many Internet access services provided using
CM and DSL connections, it is about 10 times faster than a dial-up
modem.

Setting up satellite Internet access today can be more costly and more
involved than obtaining high-speed Internet access using DSL or Cable
Modem. A user must have: a two or three foot dish (or base station as it
is often called), a satellite internet modem, and a clear line of sight
to the provider's satellite. The dish will most likely account for the
largest part of the startup cost.

**Advantages and Disadvantages of Satellite**

Satellite access to the Internet is an alternative to DSL service and CM
service, and in particular, its major advantage is its ability to reach
areas that other alternatives can not. The line of sight is required for
a satellite dish in order to see the satellite. In extreme weather
conditions, the service may get impacted. The cost of satellite
equipment and installation is higher than other alternatives, and
sometimes, providers absorb the cost with various contractual and
marketing promotions. Due to long haul satellite links, the transmission
delay may be higher than other alternatives. This should not cause any
problem for current Internet applications which are mostly Web surfing
and e-mail applications.

**Fiber to the Home (FTTH)**

A fiber optic connection is another transmission technology that may be
used to provide high-speed Internet access to some consumers. Fiber
optics (optical fibers) are long, thin transparent fibers of glass or
plastic about the diameter of a human hair and arranged in bundles
called optical cables. They are enclosed by material in which
Light-Emitting Diodes (LEDs) send light through the fiber to a detector
that turns the light into an electrical signal. They are used to
transmit light signals over long distances.

New equipment and techniques are making it feasible to add fiber to the
home at a lower cost than ever before. In fact, installation costs for
fiber are almost equal to costs to install copper. While costs can vary,
fiber-to-the-home installations average \$2,100. Once the fiber
connection is made, however, providers can offer communications packages
that include phone, digital and basic cable TV, video-on-demand,
pay-per-view services and high speed Internet access.

Optical fiber is lightweight, flexible, and the connection is extremely
fast; however its availability and use are limited at this time.

-7-

#### Power Line Broadband

Power Line Broadband (also known as Power Line Communications) is the
delivery of data communications over the existing electric power
distribution network. It is another way of accessing the Internet, which
would allow consumers to surf the Web and read their e-mails with

speeds much higher than dial-up access, and comparable to the speeds of
DSL and CM. Power Line Broadband transmits the user signal over the low
voltage (110/220V) and

medium voltage (4-20KV) power distribution grid. It also uses the
existing electric wires and outlets for delivery of the user signal at
home. Other means of signal delivery at home can be WiFi as an extension
to Power Line access.

Power Line Broadband is an emerging broadband access technology and is
currently under various development and field trials. Its major
advantage is its ability to reach virtually every household in the
nation since the power lines are installed virtually everywhere. The
service is anticipated to be gradually available to consumers at an
affordable price in the coming years.

**The Home (FTTH)**

For general information on other telecommunication-related issues, you
may contact the FCC's Consumer & Governmental Affairs Bureau in the
following ways:

Internet at [**www.fcc.gov/cgb**](http://www.fcc.gov/cgb/)

Consumer Center: 1-888-CALL-FCC (1-888-225-5322) voice

1-888-TELL-FCC (1-888-835-5322) TTY

Address: Federal Communications Commission

Consumer & Governmental Affairs Bureau

445 12^th^ Street, SW

Washington, D.C. 20554

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