The Growth of the Broadband Internet Access Market in California

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Transcript of The Growth of the Broadband Internet Access Market in California

THE GROWTH OF THE BROADBAND INTERNET ACCESS MARKET IN CALIFORNIADEPLOYMENT, COMPETITION, ADOPTION, AND CHALLENGES FOR POLICY

JAMES E. PRIEGERPROFESSOR OF ECONOMICS AND PUBLIC POLICYPEPPERDINE UNIVERSITY SCHOOL OF PUBLIC POLICYMALIBU, CALIFORNIA

NUMBER OF BROADBAND LINES1999 TO 2013

Source: FCC. The counting of mobile BB lines was revised In 2008.

BROADBAND IN CALIFORNIA38.7 million broadband lines in California.

The annualized growth rate of broadband lines in California has been 30.4% since 1999.

138 broadband providers in California (including mobile).

A typical California consumer has access to several providers and types of broadband

Source: author’s calculations using data from National BB Map. BB defined as 3 Mbps down/768 kbps up or better.

BROADBAND IN CALIFORNIA97.9% of Californians lived in Census block

groups with access to fixed broadband speeds of 10 Mbps/1.5 Mbps service.

80% of Californians have adopted broadband in the home (including mobile broadband).

99.8% of Californian business establishments were in areas with access to a fixed broadband provider of 10 Mbps/1.5 Mbps service.

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FIXED BROADBAND: ACCESS TO PROVIDERS10 MBPS DOWN/1.5 MBPS UP, 2010 TO 2014

Source: author’s calculations using data from National BB Map

FIXED BROADBAND: ACCESS TO VARIOUS DOWNLOAD SPEEDS2010 TO 2014

Source: author’s calculations using data from National BB Map

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state total speed ≥ 10 Mbpsspeed ≥ 25 Mbps speed ≥ 50 Mbpsspeed ≥ 100 Mbps speed ≥ 1 Gbps

THE ADOPTION CHALLENGE: WHY 20% CHOOSE NOT TO SUBSCRIBE

Source: Pew Research Center, 2013

WHAT ARE REASONABLE GOALS FOR BROADBAND ADOPTION? A 5-YEAR TIMEFRAME

WHAT ARE REASONABLE GOALS FOR BROADBAND ADOPTION? A 5-YEAR TIMEFRAME

POLICY TO SUPPORT ACCESS AND ADOPTION

First, do no harm: Resist old (and new) temptations for state Internet regulation

Remove real-world barriers to encourage deployment of broadband infrastructure

Coordinate state and federal efforts to encourage deployment and adoption

THANK YOU!

Contact me if you would like a copy of the report.

James.Prieger@Pepperdine.edu