# Presentation: 770630

## U.S. Telecommunications 

- Regulation and Market Developments
- September 2008

##  High Speed Line Growth (2000 – 2007)*

** ****High Speed Line Growth**** ****(2000 – 2007)***

-  All figures as of June 30th.                                                                                         Source:  *FCC’s High Speed Services for Internet Access Report, March 2008, at 6.*

- 2007

## High-Speed Lines in the US by Technology as of June 30, 2007

- Source:  *FCC’s High Speed Services for Internet Access Report, March 2008, at 6.*

- SDSL & Traditional        Wireline                     1%

## U.S. Investment in Fiber Networks

- Telecommunications companies expect to make $50 billion in capital expenditures in 2008-2009 regarding broadband investment.
- Verizon has said it expects to invest $18 billion in net capital from 2004 -2010 in deploying their FiOS network.
- Spending by carriers on telecommunications equipment in 2008:
- Fiber: $10.6 billion
- Industry-wide, spending on fiber-related telecommunications equipment  is estimated to grow almost $13.5 billion annually in the next three years.

## Wireline Broadband Prices and Speeds

- 2001

- 2007

- $10

- $20

- $30

- $40

- $50

- $60

** ****768 kbps - 1.5Mbps**

**1.5Mbps**

**Wireline Broadband Prices and Speeds**
- Declining Prices, Increasing Speeds

_**Source**_**:** US Telecom: The Broadband Association, Wireline Broadband Pricing 2001-2007, June 2008

- (Based on Maximum Advertised Price Downstream Speed Tier)

## 768 kbps

- 1.5 mbps

- Up to 3 mbps

- Up to 7 mbps

- Up to 15 mbps

## Promoting an Open Internet

- In 2005, the Commission adopted an Internet Policy Statement that set forth four consumer-based principles:
- Consumers are entitled to access the lawful Internet content of their choice;
- Consumers are entitled to run applications and use services of their choice, subject to the needs of law enforcement;
- Consumers are entitled to connect their choice of legal devices that do not harm the network; and
- Consumers are entitled to competition among network providers, application and service providers, and content providers.

## FCC Affirms Its Authority to Protect Vibrant and Open Internet 

- Peer connections
- Terminated with
- False “reset” message

**All Internet Users Affected**

- ISP #1

- ISP #2

- ISP #3

**?**

**?**

- user seeking
-  peer content

- user seeking
-  peer content

- user seeking
-  peer content

**?**

- User/peer
- w/ content

- User/peer
- w/ content

## Total US Mobile Telephone Wireless Subscribers

*Source: Cellular Telecommunications & Internet Association, Semi-Annual Survey, 2007.*

## Growth in the Mobile Telephone Industry(June 2002 – June 2007)

**DOWN****43%**
** ****From $0.12 per minute in June 2002**

**Subscribers**

**Service**
**Revenues**

**Price per minute**

**243 Million**
**Subscribers in June 2007**

**$133 Billion in**
**Annualized Revenues     June 2007**

**Price per minute $0.07 in June 2007**

- Source: Cellular Telecommunications & Internet Association; FCC.

**UP 88%**
** ****From $71**
**Billion in Annualized Revenues  June 2002**

**Minutes of Use**

**734 Avg Monthly MOUs in June 2007**

**UP**
**81%**
** ****From **
**135 Million **
**Subscribers **
**In June 2002**

**UP**
**84% ****From 398 Average Monthly MOUs in June 2002**
** **

## Comparison of 700 MHz and AWS-1 Auction Revenues vs. All Others

- Note: 700 MHz Auction revenues do not account for bidding credits. (FCC, April 2008)

## 700 MHz Auction: Openness Conditions  

- Consumers will be able to use the wireless device of their choice;
- Consumers will be able to download the legal software they want;
- Consumers will be able to download the  applications they want.