FCC Announces Posting Of Broadband Data From Urban Rate Survey And Seeks Comment On Calculation Of Reasonable Comparability Benchmark For Broadband Services

The Federal Communications Commission’s Wireline Competition Bureau proposes a specific methodology for calculating the reasonable comparability benchmark for fixed broadband services.

In the USF/ICC Transformation Order, the Commission required that as a condition of receiving Connect America Fund support, recipients must offer voice and broadband services in supported areas at rates that are reasonably comparable to rates for similar services in urban areas.

The methodology proposed here would result in a broadband benchmark that ranges from $68.48 to $71.84 for services meeting the current broadband performance standard of 4 Mbps downstream/1 Mbps upstream, with the specific benchmark depending on the associated usage allowance. The Bureau also announces the posting of the fixed broadband services data collected in the 2013 urban rate survey.

The first approach calculates the average using a subsample of observations based solely on download speed, without regard to usage or upstream speeds.

The second approach calculates the average by identifying the subset of observations that meet or exceed a minimum service level, and then for each provider that is captured in that sub-sample, computing the average based on the lowest rate offered by that provider that meets or exceeds the specified service level.

The third approach uses a simple weighted linear regression model that takes into account the impact of three dimensions of service on rates: upload speed, download speed, and usage allowance, if any.

We seek comment on survey proposals applying the aforementioned approaches.