Remarks of FCC Commissioner Robert M. McDowell
Catholic University School of Law Symposium
March 15, 2007
12:30 p.m.
Broadband Deployment in a Multi-Media World:  
Moving Beyond the Myths to Seize the Opportunities
Good afternoon.  Thank you, Dave, for your warm introduction.  Im delighted to join you 
today.  Thank you also to Commissioner Kathleen Abernathy for inviting me to this symposium.  
Also, before we get started, I must single out my intern, third year CUA law student Guy 
Parrinello, who is here today.  Guy  thank you for all of your assistance and hard work.  Its been a 
pleasure having you as part of my team.  Another of my interns, California Western law student 
Melissa Slawson, is also here.  Hello and thank you to Melissa.
I want to congratulate Davina Sashkin and all of the CUA communications law students on 
todays symposium.  The depth and breadth of the issues presented today is extremely impressive.  
How great that law students are tackling in a substantive way the issues at the core of 
communications policy.
Today, I want to speak with you about broadband deployment in a multi-media world.  As a 
preliminary matter, I want to let you know that, at first blush, many of the statistics surrounding our 
nations broadband penetration rate can be misleading.  We are not always getting the whole story.  
Its important to distinguish the myths surrounding our nations progress in this regard, and I will 
first spend some time highlighting these distinctions.  It is more important, though, to move beyond 
these myths.  We should never stop striving to look over the horizon.  What actions should the 
Commission take to continue to increase the rate of broadband penetration and foster more choices 
for all types of consumers?   We should seize every opportunity to continue to move America 
forward.  
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Lets begin with the myths.  
Broadband Subscribers Per 100 Inhabitants, June 2006 
Source: Organization for Economic Co-operation and Development As of June 2006 
56,502,3511219.21.49.88.0UnitedStates
2,025,1121119.30.07.411.9Belgium
11,622,9291019.40.04.914.6UnitedKingdom
7,161,872922.40.111.510.8Canada
2,046,222822.74.04.314.4Sweden
1,137,697724.60.43.820.4Norway
1,309,800625.00.23.121.7Finland
1,945,358526.20.49.016.9Switzerland
12,770,911426.44.58.813.2Korea
80,672327.30.70.026.5Iceland
4,705,829228.80.511.117.2Netherlands
1,590,539129.32.89.017.4Denmark
Total SubscribersRankTotalOtherCableDSL
You may have heard that the Organization for Economic Cooperation and Development 
(OECD) has concluded that the United States is the largest broadband market in the world  with 
over 56 million broadband subscribers.  Nonetheless, the OECD currently ranks the United States as 
12th in the world in terms of broadband penetration  behind Denmark, the Netherlands, Iceland, 
Switzerland and Sweden, among others.  I hear this figure used a lot for a variety of purposes, but it 
is important to put it into context.  
First, OECD does not account for population density, which puts a country as large as ours -
- with sizable rural areas -- at a disadvantage.  No other country above the U.S. on the OECD list 
occupies an entire continent like we do.  No other country above us on this list is 75 percent rural, 
like the U.S. is.  In Iceland, number three on the OECD list, almost 65 percent of its total population 
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lives in its largest city, Reykjavik.  Its a small enough community that the Reykjavik telephone 
book lists citizens by their first name, allegedly.  
Furthermore, if you compare many of our states on an individual basis with some countries 
that are allegedly beating us in the broadband race, we are actually winning.  Anyone here from 
New Jersey?  You might appreciate knowing that your state has a similar population density as 
fourth-ranked Korea, yet has a higher penetration rate (30 subscribers per 100 residents, versus 26 
for Korea).  Anyone here from Alaska?  Heres another fact:  As of June 2006, Alaska, which has a 
land mass roughly the size of Western Europe, but less than one percent of its population, had 18.7 
broadband subscribers per 100 residents, versus Frances 17.7. 
Putting this complicated picture into even more context, consider that the U.S. has a 
population density of 31 people per square kilometer, compared with Korea at 483 people per 
square kilometer  thats almost 16 times more dense than the U.S. Similarly, the U.S. population 
is significantly larger than some of the higher-rated countries.  For instance, the U.S. is comprised 
of 300 million people, while first-ranked Denmark has only 5 million, second-ranked Netherlands 
has 16 million, and third-ranked Iceland has only 300,000.  In short, we have more people to 
connect than others ahead of us on the list and a much larger land mass to cover. 
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As an interesting aside, lets take a quick look at the latest study undertaken by the European 
Competitive Telecommunications Association.  
ECTA Broadband Scorecard Q3 2006
Source: European Competitive Telecommunications Association  As of September 2006
? GermanyGermanyPortugal10
? AustriaAustriaGermany9
? FranceLuxembourgUK8
? BelgiumUKAustria7
? LuxembourgFranceFrance6
? UKBelgiumFinland5
? SwedenSwedenBelgium4
? FinlandFinlandNetherlands3
? NetherlandsNetherlandsDenmark2
? DenmarkDenmarkSweden1
Q3 2006Q3 2005Q3 2004Ranking
ECTA recently reported a significant slow down in the broadband take rate across Europe, 
falling from a 23 percent annual penetration growth rate to only 14 percent growth between April 
and September 2006.  Growth stalled in a number of countries including Denmark and Belgium
(which experienced just four percent growth) and France, where growth was only ten percent after a 
strong performance in 2005.  ECTA also reports that growth has also slowed in Sweden  a nation 
ahead of the U.S., according to the OECD.  It is interesting that this slowdown comes at a time of 
great activity by European regulators.  To me, therefore, these findings provide a powerful incentive 
for the FCC to continue its market-based policies that encourage broadband deployment by an array 
of competitive entrants.   
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The OECDs numbers do have merit in at least one respect, however.  The overall point is 
that the U.S. can do better. I agree.  We can.  We are.  And we will.  America loves nothing more 
than hard fought economic competition.  Americans intuitively recognize  and history certainly 
demonstrates  that free market principles will always triumph over government centralized 
planning that squelches creativity and entrepreneurialism.  Thus, as we move forward, its important 
to keep in mind that, while broadband deployment in the smaller, more densely-populated European 
countries is slowing, the truth is -- broadband deployment in our country is accelerating.  
Yes, despite notions to the contrary, significantly more Americans are adopting broadband 
services each day.  The FCC recently released a status report on high-speed services for Internet 
access.  As of June 30, 2006, high-speed lines connecting homes and businesses to the Internet 
increased by 26 percent during the first half of 2006; from 51.2 million to 64.6 million lines in 
service.  And, for the full twelve month period ending June 30, 2006, high-speed lines increased by 
52 percent (or 22.2 million lines).  
The numbers for wireless services are particularly encouraging.  On January 31, 2007, the 
FCC released its most recent status report on high-speed services for Internet access.  As set forth in 
the High-Speed Services Report, wireless growth was significant during the first six months of 
2006.  
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First, with respect to services that exceed 200 kbps in at least one direction (and Ill talk 
more about that low hurdle in a minute), almost 60 percent of all new high-speed lines were mobile 
broadband wireless lines.  
Services That Exceed 200 kpbs In At Least One Direction
Source:  High-Speed Services for Internet Access: Status as of June 30, 2006  (FCC Jan. 31, 2007)
64,614,27051,156,35042,436,90437,352,52031,950,57422,995,44415,787,647Total Lines
22,575,010
948,160
337,438
610,722
28,513,500
700,083
11,872,309
495,365
360,976
11,015,968
5,208
19,515,619
904,539
394,348
510,191
26,469,242
448,257
3,814,122
426,928
257,431
3,129,763
4,571
16,316,309
898,468
411,731
486,737
23,936,536
315,651
965,068
376,837
208,695
379,536
4,872
13,817,280
1,468,566
--
--
21,357,400
159,653
549,621
--
--
--
--
11,398,199    
1,407,121
--
--
18,592,636
130,928
421,690
--
--
--
--
7,675,114
1,215,713
--
--
13,684,225
111,386
309,006
--
--
--
--
5,101,493
1,186,680
--
--
9,172,895
105,991
220,588
--
--
--
--
ADSL
SDSL and Traditional  Wireline
SDSL
Traditional Wireline
Cable Modem
Fiber
Satellite and Wireless
Satellite
Fixed Wireless
Mobile Wireless
Power Line and Other
JunJun                   DecJun                     DecJunJun
20062005200420032002
Technology
7
Also, with respect to two-way services, mobile wireless broadband connections showed the 
largest percentage increase:  from a mere 83,503 units at the end of 2005, to 1.91 million by mid-
2006  an eye-popping 2,187 percent in just six months!  In fact, between June 2005 and June 2006, 
mobile wirelesss share of total broadband lines rose from one percent to 17 percent.  
Services That Exceed 200 kpbs In Both Directions
Source:  High-Speed Services for Internet Access: Status as of June 30, 2006 (FCC Jan. 31, 2007)
50,448,05737,251,651     43,787,87122,966,048     28,319,48215,863,16910,029,042Total Lines
18,301,930
946,900
336,612
610,228
28,220,563
698,990
2,274,465
27,489
333,072
1,913,904
5,208
13,176,095     15,921,353
869,772          874,263
387,451          368,736
482,321          505,527
22,664,106     26,200,400
314,229          447,244
223,274          340,110
10,966            36,331
191,229         220, 276
21,079            83,503
4,174              4,501
3,768,019        5,695,548
1,407,121        1,468,566
-- --
-- --
17,567,468     20,891,624
129,636          157,127
93,805          106,616
-- --
-- --
-- --
-- --
2,536,368
1,215,713
--
--
11,935,866
110,829
64,393
--
--
--
--
1,852,879
1,186,680
--
--
6,819,395
104,015
66,073
--
--
--
--
ADSL
SDSL and Traditional 
Wireline
SDSL
Traditional Wireline
Cable Modem
Fiber
Satellite and Wireless
Satellite
Fixed Wireless
Mobile Wireless
Power Line and Other
JunJun            DecJun          DecJunJun
20062005200420032002
Technology
8
In addition, the Wireless Competition Report, which the Commission released in September, 
discusses the proliferation of next generation wireless networks.  
Next Generation Network Rollout in the U.S.
Source:  FCC 11th CMRS Competition Report (FCC Sept. 2006) Yellow= CDMA 1xEVDO or WCDMA/HSDPS Service
Green= GPRS/EDGE or CDMA 1xRTT Service
White= No Next Generation Rollout
As reflected in green, advanced broadband wireless technologies have been launched in 
counties containing about 269 million people, or about 94 percent of the United States.  The latest
fourth generation wireless technologies (as reflected in yellow) are available in counties containing 
63 percent (CDMA 1xEVDO) and 20 percent (WCDMA/HSPDA) of the U.S. population 
respectively.  
I am pleased to learn that, in the months that have passed since we released our report, 
wireless carriers have continued to invest the necessary capital and build the network upgrades to 
make advanced broadband services available to many more millions of potential subscribers.  And, 
its not only the largest companies making these investments. Regional companies, as well as 
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smaller companies, are also deploying the latest wireless technologies and offering advanced 
services to their customers.  Moreover, Mobile Virtual Network Operators (MVNOs) and a host of
specialized companies serving specific demographic groups, such as young professionals and 
Hispanic consumers, are also riding the wave.   
Ill temper my enthusiasm for a moment  albeit slightly  to acknowledge the critics.  Some 
say that we should throw away the High-Speed Services Report as worthless because it includes
services that run at only 200 kbps. Having this speed qualify as broadband may be insufficient, as 
consumers expect faster transport of ever-larger bandwidth-intensive files, especially given the 
skyrocketing amount of user-generated content flowing upstream from consumers homes and 
businesses.  This incredibly powerful wave of consumer demand, however, appears to be pushing 
the network operators to offer fatter and faster pipes at competitive prices.  
High-Speed Lines by Information Transfer Rates
Source:  High-Speed Services for Internet Access: Status as of June 30, 2006 (FCC Jan. 31, 2007)
18,04457,1012,247,73029,506,20918,618,97314,166,213Total Lines
--
--
3,543
0
13,380
0
54
0
0
--
--
12,270
27,779
15,779
0
207
0
0
11,255
11
891
2,099,654
133,339
0
2,580
0
0
6,111,807
9,223
10,363
23,039,748
315,266
--
17,220
--
--
12,176,743
327,370
583,221
3,053,382
221,227
--
313,011
--
--
4,273,080
826
434
292,937
1,093
467,876
27,904
9,102,064
0
ADSL
SDSL
Traditional Wireline
Cable Modem
Fiber
Satellite
Fixed Wireless
Mobile Wireless
Power Line and 
Other
Greater than
or equal to
100 mbps in
the faster
direction
Greater than
or equal to
25 mbps and
less than 100
mbps in
the faster
direction
Greater than
or equal to
10 mbps and
less than 25
mbps in the
faster
direction
Greater than
or equal to
2.5 mbps and
less than 10
mbps in the
faster
direction
Greater than
200 kbps and 
less than 2.5 
mbps in the 
faster
direction
Exceeding 200 kbps in both directions, and:
Exceeding
200 kbps 
in only one 
direction
Technology
10
As depicted in this slide, this most recent High-Speed Services Report does capture and 
include data regarding services operating at speeds significantly higher than 200 kbps.  And, I hope 
that future FCC studies continue to capture more detail regarding consumer take-rates of services at 
faster speeds.  With respect to substance, we are seeing here that more than 50 million of the 64.6 
million broadband lines in service across America exceed 200 kbps in both directions.  Moreover, 
over 63 percent of those lines have transfer rates in the faster direction of 2.5 Mbps or greater.  
Some say the Wireless Competition Report is insignificant, claiming it does not accurately 
measure service coverage in rural areas.  I believe, however, that the report is by no means 
depressing or meaningless.  In fact, in several sections, the information is hopeful, positive and even 
exciting.  These figures illustrate that we have come a long way in broadband deployment in a short 
time.  While we still have far to go  we need to continue to turn the green areas of our map into 
yellow areas, for instance  we should not lose sight of the fact that broadband has had the fastest 
penetration rate of any technology in modern history.  That is to say, broadband has been deployed 
faster than: electricity, radios, TVs, VCRs, DVD players, PCs and every other technology in 
American history.  Nevertheless, we should never stop striving for ubiquitous pipes that are fatter 
and faster. 
Which brings me to the crux of this afternoons message:  These numbers suggest that 
wireless broadband is the wave of the future.  Clearly the Internet is going wireless.  Its no secret 
that wireless technologies offer an additional means to bring advanced, innovative services  and 
the associated benefits -- to all Americans, no matter where they live or work.  So, what concrete 
steps should the Commission take to further accelerate adoption of mobile multi-media broadband 
technologies? What should the FCC do to seize every opportunity to move our country forward and 
continue to drive up the rate of wireless broadband penetration?  I respectfully offer the following:
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First, we must maximize opportunities for deployment in the 700 MHz band. The FCC is 
gearing up to auction 60 megahertz of prime spectrum in the 700 MHz band.  Why is this spectrum 
prime?  As Professor Tramont has long known:  spectrum is not fungible.  Because of their low 
spectral location, the radio waves in the 700 MHz band travel much farther and have more building 
penetration power than higher frequencies such as the personal communications service (PCS) 
spectrum (at 1900 MHz), or even the original cellular spectrum (at 850 MHz).  This makes 700 
MHz particularly attractive for any type of wireless service and significantly reduces the capital 
expenditure needed to construct a network.    
Given Congress mandate that we deposit the proceeds from this auction no later than June 
30, 2008, practically speaking we must quickly wrap up our work on the service rules for this band, 
and we must start the auction before the leaves start falling from the trees.  I am delighted that the 
Chairman has already indicated that the forthcoming rules will include market sizes even smaller 
that the smallest of the AWS auction. Whenever possible, we must avoid assigning spectrum over 
broad geographic areas to entities that may use it only in limited portions of these areas. I would 
also urge that we not tinker too much with the original flexible rules, which are expressly designed 
to accommodate myriad offerings beyond the traditional stovepipes.  Its important that all entrants 
have the ability to freely employ new, smart technologies, which drive down the cost of service and 
encourage efficient spectrum use. 
Second, we must vigorously promote widespread unlicensed use of the vacant TV channels.  
This spectrum, commonly called white spaces, is located sporadically in the VHF and UHF 
spectrum bands between 54 and 806 MHz.  Last June, in my first month at the Commission, we 
adopted a new equipment testing regime that facilitates deployment of unlicensed devices, including 
mobile WiFi, which operate in the 5 GHz band.  This testing regime is radically innovative in that it 
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permits operation of these devices while, at the same time, ensuring that the devices not cause 
harmful interference to incumbent government users in the 5 GHz band. I am hopeful that the work 
to ease equipment roll-out in the 5 GHz band will be replicated as the Commissions Office of 
Engineering and Technology conducts its ongoing testing of consumer devices designed for 
deployment in the white spaces.  It is important that the Commission do its part to ensure that new 
consumer equipment designed for use in this spectrum does not cause harmful interference to the 
current operators in the white spaces. So, maybe we should start calling them gray spaces.  
Third, we must create regulatory parity, when possible.  With respect to video franchising, I 
pressed for a follow up, fast-track rulemaking to quickly build a record on the possibility of 
extending the de-regulatory benefits set forth in our recently released order to all video providers, 
be they incumbent cable providers or over-builders.  We will release that order no later than 
September.  All market players deserve the certainty and regulatory even-handedness necessary to 
spark investment, speed competition, and make America a stronger player in the global economy.  
Accordingly, I am examining the possible classification of wireless broadband Internet access 
service as an information service.  Previously, the Commission has classified Internet access over 
cable modem, wireline and power line facilities as information services, thereby establishing a 
consistent regulatory framework. In recognition of the important consumer benefits that stem from 
the certainty associated with regulating like services in a similar manner, the Commission is close to 
adopting this order.    
Fourth, lets be practical.  We must expeditiously act on requests from Commission 
licensees seeking regulatory relief to facilitate broadband deployment.  What do I mean by that?  
Earlier this month, the Commission favorably ruled on a request for waiver seeking authority to 
design, build and operate a broadband video network at higher powers.  Our action had a very 
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tangible practical effect:  This new entrant will require fewer numbers of base stations and its costs 
will be significantly reduced. In granting this request, the Commission enabled this licensee to 
ultimately roll-out an innovative and exciting mobile broadband video service to American 
consumers living in urban, rural, insular and tribal areas.  If we want America to move forward, this 
is precisely the type of action the Commission must take to provide the certainty necessary for our 
countrys entrepreneurs to forge ahead with advanced broadband offerings.  We simply cannot let 
government inaction create market distortions.  
Fifth, we must create incentives for the private sector to bring public safety along for the 
ride.  I recently read that our nations emergency response providers typically pay $3,500 - $5,000 
each for radios alone!  Thats right  radios alone.  Lets do the math:  Here in Washington, D.C., 
there are roughly 10,000 public safety boots on the ground.  That translates to an outlay of 
between $35 million and $50 million dollars just for radios.  Its no wonder that these folks dont 
have the means to take advantage of the latest technologies.  I want that to change.
While commercial wireless technologies may not be appropriate for every type of public 
safety communication, public safety agencies may find it useful to employ commercial systems, or 
to partner with commercial entities, to fulfill their critical role in securing the homeland.  I applaud 
the private sector companies that have stepped up to coordinate with public safety agencies in the 
New York City and Washington, DC regions.  These companies are developing and constructing 
networks that employ advanced commercial wireless technologies yet also meet the stringent 
requirements necessary for public safety use.  These broadband systems will provide these agencies 
with cost-effective and robust interoperability, while offering the necessary high data throughputs in 
a spectrally efficient manner.  By using the latest proven and reliable commercial off-the-shelf 
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technologies, these public safety agencies  and, more importantly, the taxpayers who fund them 
are benefiting from the considerable discounts associated with economies of scale.   
Finally, we must encourage market entry by small businesses, rural telephone companies, 
and businesses owned by members of minority groups and women.  This year in particular the 
Commission is in an excellent position to ensure that wireless licenses are disseminated among a 
wide variety of applicants.  We have been working hard to open new windows of opportunity for all 
types of spectrum license applicants, as well as unlicensed operators. In last summers extremely 
successful Advanced Wireless Services spectrum auction, 55 percent of winning bidders identified 
themselves as small or very small businesses, rural telephone companies, and businesses owned by 
members of minority groups or women.  I would urge that we enhance and improve upon the 
positive aspects of last summers auction to provide a second meaningful opportunity for 
participation in the upcoming 700 MHz auction.
Separately, I expect that the technology innovation spurred by the Commissions leadership 
in the white spaces proceeding will play a critical role in the global multi-media marketplace, 
including fostering job growth and related business opportunities.  For this reason, I am hopeful that 
advances in wireless technology and multi-media applications will make it easier for new and 
diverse players to enter the market.  Hopefully, we can spark a virtuous cycle of innovation, 
investment, deployment, job creation, lower prices and increased consumer choice.
In sum, effective personal telecommunications should deliver reliable, ever-increasing 
bandwidth to individuals at ever-decreasing cost.  And, in spite of the myths, Im bullish on the 
future.  Each step the Commission takes to foster choice for all kinds of consumers -- residential, 
businesses, governments and public safety agencies -- moves us closer to ubiquitous, multi-media 
broadband availability.  I am hopeful that, by eliminating the barriers and reducing the uncertainty 
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that may hinder new entrants from constructing new delivery platforms and owners of existing 
platforms to upgrade their facilities, the Commission will ensure greater competition among, and 
within, various broadband platforms.  
Thank you for inviting me here today and best of luck to you all.