Proposed FCC plan seeks to abolish long-term high-speed internet speed targets and price evaluations
In a move that could reshape the future of broadband policy in the United States, FCC Chairman Brendan Carr has proposed a significant change to the Commission's long-term goal of achieving gigabit internet speeds (1,000 Mbps download and 500 Mbps upload) for every American.
Under Carr's proposal, the broadband benchmark would be reset to a more modest 100 Mbps download and 20 Mbps upload, which is the current minimum standard adopted previously and remains unchanged. The rationale behind this shift is a commitment to a "technology neutral" approach to broadband policy and subsidies, avoiding picking technological winners and losers.
The concern stems from a desire to more faithfully adhere to Section 706 of the Telecommunications Act of 1996, which mandates the FCC to encourage reasonable and timely deployment of telecommunications services without favoritism. Since only fiber internet currently reliably delivers gigabit speeds, maintaining a gigabit goal is seen by Carr as potentially distorting the market in favor of fiber over other technologies, thus exceeding the FCC's mandate.
The proposal, if accepted, may shift the focus away from encouraging gigabit internet deployment, refocusing the Commission's inquiry on incremental progress made in deployment, rather than whether it has already been deployed. This could primarily benefit ISPs that can't offer gigabit speeds but still want to benefit from FCC programs.
However, critics worry that this change could slow progress on high-speed access and affordability, especially for underserved areas such as rural and low-income communities. The dissatisfaction extends beyond just deployment progress, with concerns raised about the elimination of the FCC’s annual analysis of broadband affordability, seen as outside the agency’s core focus on deployment.
Other proposals focus on infrastructure improvements and reducing deployment barriers without setting lofty speed benchmarks. These include accelerating the transition from older copper networks to fiber, removing regulatory barriers such as streamlined access to utility poles, and conducting spectrum auctions to support broadband expansion.
The Trump administration has already changed grant-giving procedures to distribute more funds to non-fiber providers such as Elon Musk's Starlink satellite network. The vote on Carr's proposal will determine if concerns about "picking technological winners and losers" will lead the commission to pick regulatory winners and losers.
The FCC is concerned that a long-term goal of 1,000/500 Mbps may be unreasonably prejudicial to technologies such as satellite and fixed wireless that presently do not support such speeds. The U.S. government's grant-giving procedures have been altered to reflect this concern, with the aim of promoting a level playing field for all broadband providers.
The FCC Chairman, Brendan Carr, has expressed dissatisfaction with the 2024 report's incorporation of universal service goals, including deployment, adoption, affordability, availability, and equitable access to broadband. The vote on Carr's proposal is scheduled for August 7.
[1] FCC Fact Sheet: Inquiry Concerning Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, July 17, 2021. [2] Ars Technica, FCC's Carr proposes to drop gigabit internet goal, July 20, 2021. [3] The Verge, FCC Chairman proposes to drop gigabit internet goal, July 20, 2021. [4] The Hill, FCC Chairman proposes to drop gigabit internet goal, July 20, 2021.
- The shift in broadband benchmark proposed by FCC Chairman Brendan Carr, as a commitment to a "technology neutral" approach, could potentially open up more financing opportunities for ISPs that can't offer gigabit speeds but are investing in technology that supports faster than current minimum standard speeds.
- The Trump administration's alteration of grant-giving procedures to distribute more funds to non-fiber providers like Elon Musk's Starlink satellite network is a reflection of the administration's focus on technology neutrality in finance and broadband policy, aiming for a level playing field for all broadband providers.
