# August 3, 2000

# **Separate Statement of**

# **Commissioner Gloria Tristani**

# *Re: Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, and Possible Steps To Accelerate Such Deployment Pursuant to Section 706 of the Telecommunications Act of 1996. CC Docket No. 98-146.* 

I guardedly concur with today's Report. While the Report concludes that
certain populations are "particularly vulnerable to not receiving
advanced services in a timely fashion," it does not sufficiently state
the at risk status of these populations. Moreover, in order to comply
with our statutory mandate to "determine whether advanced
telecommunications capability is being deployed to all Americans in a
reasonable and timely fashion," we must have a better picture of the
deployment of advanced services than the existing data afford.

I am troubled about the factors and data that suggest certain
populations -- those living in rural areas, the U.S. territories, inner
cites, and tribal areas, as well as low income consumers and minorities
\-- are at heightened risk of not having access to advanced services if
left to market forces alone. As the Report indicates, the data show a
correlation between population density and the presence of broadband
subscribers, with areas of low population density much less likely to
have subscribers to broadband services. Thus, rural consumers and those
on Indian lands outside of population centers are particularly at risk.
Other factors, such as the limitations of particular technologies,
further increase this risk. Moreover, the correlation between income and
advanced services indicates that low-income consumers are likewise at
risk of not having access to broadband services, a risk heightened by
other factors including the poor quality existing plant in inner cities.

A review of data showing penetration rates for residential high-speed
services shows great variance in penetration rates among states. I note
that among certain states and U.S. territories, including Wyoming,
Puerto Rico, and New Mexico, residential penetration is as low as 0.23%.
These data underscore the need to learn more about the relationship
between penetration rates and particular population groups, so that we
may more closely monitor deployment of advanced services.

While the Commission undertook new data collection efforts in
preparation for this second report on the deployment of advanced
telecommunications capability, the available data do not provide a full
and accurate picture of the state of deployment. The data on which the
Report relies suffer from several weaknesses that undermine our ability
to draw well-supported conclusions and to identify with specificity
at-risk communities. The Commission must rectify this when we undertake
data collection efforts in the future.

As the Report itself acknowledges, the zip code data are of limited
usefulness, because providers were asked to report whether there is at
least one subscriber in a particular zip code, not the *number* of
subscribers in a particular zip code. Thus, the data do not indicate the
extent to which the presence of broadband in a particular zip code
indicates more widespread availability. The availability of data on
actual numbers of subscribers in a particular zip code or data at a more
granular geographic area would provide a better picture of the state of
deployment. Similarly, because providers were not required to
distinguish between residential and small business customers, the data
do not provide an accurate snapshot of deployment to residential users.
In some zip codes, broadband and advanced services may be available to
business users but unavailable, and perhaps unaffordable, to residential
users. In addition, the available data do not track service providers
with fewer than 250 lines installed to subscribers in any state.
Accordingly, there may be a substantial number of small providers' lines
that are unreported, another piece of data that is necessary for a more
complete view of deployment.

Another major weakness of the data is the lack of information concerning
deployment in the United States territories: Puerto Rico, Guam, the U.S.
Virgin Islands, the Northern Mariana Islands, and American Samoa. The
limited data suggest that there is virtually no advanced services
deployment outside the fifty states, but the Commission must engage in
further outreach to ensure full reporting and to understand how
reasonable and timely deployment in these areas can be assured.

It bears emphasizing that while the case studies included in the Report
provide instructive examples of successful broadband deployment
strategies, there is no evidence that these case studies are
representative of communities of their size in terms of advanced
services deployment. While I am pleased to read about deployment success
stories, the availability of broadband in four of the five communities
studied does not provide reassurance that deployment of advanced
services is reasonable and timely.

I commend the Commission's efforts in this year's Report, which I think
represents a substantial improvement both in breadth of data and
analysis over last year's effort. I particularly commend our staff's
work at interpreting the data. Once again, I am hopeful that the
Commission will continue to learn from its experience and ensure that it
has a more accurate picture of advanced services deployment in our next
report.

In sum, while our report again concludes that the deployment of advanced
services is reasonable and timely, it indicates there are populations at
risk of being left behind the high-speed bandwagon. As Congress
determined in Section 706 and throughout the Act, this Commission's
responsibility to encourage deployment of advanced services is to
[all]{.underline} Americans, whether they live in the suburbs, the
farms, the reservations, the inner cities, or outside the continental
United States. Congress, wisely foresaw and recognized that advanced
services must be universally available so that all Americans and all
communities throughout America can benefit and be part of the
information economy. In accordance with Congress's direction, we must
take the necessary steps to ensure that the populations that we have
identified as vulnerable and at risk, no longer remain so.