IB10045
Broadband Internet Access: Background and Issues
May 18, 2001

Download Locations:

National Council for Science and the Environment

Summary:

Broadband or high-speed Internet access is provided by a series of technologies that give users the ability to send and receive data at volumes and speeds far greater than current Internet access over traditional telephone lines. In addition to offering speed, broadband access provides a continuous, Òalways onÓ connection (no need to dial-up) and a ÒtwowayÓ capability, that is, the ability to both receive (download) and transmit (upload) data at high speeds. Broadband access, along with the content and services it might enable, has the potential to transform the Internet: both what it offers and how it is used. It is likely that many of the future applications that will best exploit the technological capabilities of broadband have yet to be developed.

There are multiple transmission media or technologies that can be used to provide broadband access. These include cable, an enhanced telephone service called digital subscriber line (DSL), satellite, fixed wireless, and others. While many (though not all) offices and businesses now have Internet broadband access, a remaining challenge is providing broadband over Òthe last mileÓ to consumers in their homes. Currently, a number of competing telecommunications companies are developing, deploying, and marketing specific technologies and services that provide residential broadband access.

From a public policy perspective, the goals are to ensure that broadband deployment is timely, that industry competes fairly, and that service is provided to all sectors and geographical locations of American society.

The federal government Ñ through Congress and the Federal Communications Commission (FCC) Ñ is seeking to ensure fair competition among the players so that broadband will be available and affordable in a timely manner to all Americans who want it. While the FCCÕs position is not to intervene at this time, some assert that legislation is necessary to ensure fair competition and timely broadband deployment. One proposal, H.R. 1542, would ease certain legal restrictions and requirements, imposed by the Telecommunications Act of 1996, on incumbent telephone companies who provide high speed data access. H.R. 1542 passed (273-157) the House, as amended, on February 27,2002. Proponents assert that restrictions must be lifted to give incumbent local exchange companies (ILECs) the incentive to build out their broadband networks.

Opponents argue that lifting restrictions would allow the ILECs to monopolize voice and data markets. An alternative approach, establishing Ònew toolsÓ to ensure that markets are open to competitors, is also being considered.

Another proposal would compel cable companies to provide Òopen accessÓ to competing Internet service providers. Supporters argue that open access is necessary to prevent cable companies from creating Òclosed networksÓ and stifling competition. Opponents of open access counter that healthy competition does and will exist in the form of alternate broadband technologies such as DSL and satellite.

Finally, legislation seeks to accelerate broadband deployment in rural and low income areas by providing loans, grants, or tax credits to entities deploying broadband technologies.