chairman kevin j. martin remarks to the georgetown university mcdonough school of business center...
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Chairman Kevin J. Martin
Remarks to the Georgetown UniversityMcDonough School of Business
Center for Business and Public Policy
November 30, 2006
Chairman Kevin J. Martin
High Speed Line Growth 1999-2005
0
10
20
30
40
50
60
1999 2000 2001 2002 2003 2004 2005
Mil
lio
ns
Satellite and Wireless
Fiber
Cable Modem
SDSL and Traditional Wireline
ADSL
Source: FCC's High Speed Services for Internet Access Report, July 2006
Chairman Kevin J. Martin
DSL Price Drop
Source: USA Today, Nov. 14, 2003, p. C1; Wall Street Journal, Nov. 28, 2003 and company websites 2005
$49.99
$14.95 $14.99
$49.99
$0
$10
$20
$30
$40
$50
$60
Feb. 02 Oct. 06
Verizon AT&T
Chairman Kevin J. Martin
High-Speed Providers by ZIP Code (1999 - 2005)
1999200020012002200320042005
Number of Reporting Providers*
*Providers serves at least one end user in a Zip Code. Technology used may be: aDSL; Other Wireline; Coaxial Cable; Fiber or Power Line; or Satellite or Wireless.
7 or more
4 to 6
1 to 3
Zero Delivery Areas
Chairman Kevin J. Martin
Other New Broadband Technologies
Wireless BroadbandLicensedUnlicensed (Wi-Fi and WiMax)
Broadband Over Powerline
FTTH
Chairman Kevin J. Martin
Broadband Over Powerline Deployments
Source: United Power Line Council, http://www.uplc.utc.org/file_depot/0-10000000/0-10000/7966/conman/BPL+Map+12_12.pdf
Chairman Kevin J. Martin
Total US Mobile Telephone Wireless Subscribers
219.4
194.5
169.5
148.1134.6
118.4
97.0
76.355.3
48.738.2
19.313.128.2
0
50
100
150
200
250
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Mill
ions
of S
ubsc
ribe
rs
Source: Cellular Telecommunications & Internet Association, Semi-Annual Survey, 2006
Chairman Kevin J. Martin
Cable2005
$43.04
Cable1995
$22.37
0.8
1
1.2
1.4
1.6
1.8
2
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005Year
No
rmal
ized
Pri
ce
-20%
0%
20%
40%
60%
80%
100%
Cable CPI
Cable Rates and the CPI (1995 -2005)
Source: FCC
Chairman Kevin J. Martin
Average Price for Cable Programming as of January 1, 2005 Comparison of Competition from DBS and from 2nd Cable Operator
$35.94
$43.33 $43.34
$0.00
$20.00
$40.00
$60.00
No Finding of Competition Competition from DBS Competition from SecondCable Operator
Chairman Kevin J. Martin
Historical Approach 1995
Local Cable
Operator
LocalBell
Company
IXC(e.g., AT&T, MCI, Sprint)
Several Providers
(e.g., Cellular One)
Video Local Phone Long Dist. Wireless
Chairman Kevin J. Martin
2000
Satellite Cable Telco Wireless
Vid
eo
Dat
a
Vo
ice
Chairman Kevin J. Martin
Where we are going
Bundled Triple PlayVoiceVideoData
Local Cable
Local Telco (merged with IXC)
Satellite
Wireless