High-Capacity Broadband Data Unveiled: Incumbents Overwhelmingly Dominate the high-capacity Broadband Market

Today, the Federal Communications Commission (FCC) issued a public notice allowing for the disclosure of aggregated data on the high-capacity broadband market. The data from the largest, most comprehensive data collection in its history demonstrates what American businesses and consumers have long suffered firsthand — this market is sick and in need of COMPETIFY. The data demonstrates without question that the majority of high-capacity broadband lines across America are controlled and operated by monopolies or, at best duopolies. Although some will try to spin the facts, we’ll let the data speak for itself.


Effective Competition is Scarce

There is effective competition in, at most, 3% of locations nationwide.

  1. Fewer than 1% of locations are served by at least four providers.
  2. Only 2% of locations are served by three providers.

97% of the high-capacity broadband market is controlled by one — and sometimes two — providers.

  1. There is a monopoly In 73% of locations.
  2. There is a duopoly in 24% of locations.

Incumbents are dominant even when the data is aggregated to larger geographic areas.

  1. Over 99% of census blocks are “highly concentrated” markets under the Department of Justice’s Herfindahl-Hirschman Index (HHI).
  2. Over 82% of census blocks have an HHI of 10,000 — the highest possible number on the HHI scale.

The incumbents pocket a majority share of all high-capacity broadband revenues.

  1. Incumbents earn 74% of all high-capacity broadband revenues that are generated within their own territories.
  2. Incumbents have more than an 80% revenue share for all services with speeds up to 50 Mbps.

The impact on consumers and the economy:

  1. Billions in extra costs for consumers.
  2. Less wireless competition and higher cell phone bills.
  3. Less competitive American businesses.
  4. Delayed upgrades to higher speeds and capacities.
  5. Less innovative enterprise services, like VoIP, wireless Internet access, and cloud storage.