The FCC’s Latest Statistics on Internet Speeds

FCC_New_LogoThe FCC recently released their annual report that looks at the number of nationwide broadband customers and data speeds. As always, this is an interesting snapshot in time of where broadband is at in the US. The data is gathered from carriers on FCC Form 477 and captures connections that are at least 200 kbps in one direction, meaning it is leaving out dial-up and other extremely slow connections to the web. I would note that these numbers are self-reported by the carriers, meaning it represents the speeds that ISPs say they are delivering, which is not the same as what customers are actually receiving.

The statistics show that overall broadband connections continue to grow. Total landline connections grew from 97.8 M in 2014 to 102.2 M in 2015. Cellular data connection grew from 223.5 M to 253.0 M. Together that’s an annual growth rate of 11%, with cellular continuing to grow faster that landlines. The 102 M landline connections in 2015 includes 84 M residential and 18 M business connections.

The latest breakdown of download speeds delivered to households show that 4.9% have less than 3 Mbps, 15.4% have between 3-10 Mbps, 23.9% have between 10–25 Mbps, 39.9% have between 25-200 Mbps and 15.9% have over 100 Mbps. Again, these are carrier reported numbers which is most important at the lower end of the scale. My work in rural areas, for example, shows that a lot of households that are being sold 3 Mbps or 6 Mbps connections are often actually only getting slower speeds like 1 Mbps.

But the statistics show an increase of speeds over time. For example, the number of connections sold that are 100 Mbps or faster rose from 9.5 M in 2014 to 15.4 M. The number of connections between 25 Mbps and 100 Mbps grew from 34.0 M in 2014 to 39.3 M. And the slowest connections under 3 Mbps shrank from 8.1 M in 2014 to 5.8 M. The FCC bases nationwide performance on these numbers and they put out a proud press release when they estimated that more than 50% of households in the country had speeds greater than 25 Mbps, their definition of broadband.

The report also looks annually at the state of competition, which might be the most important statistic for households since we know that competition generally means lower prices. One interesting statistic is the number of census blocks that have 3 or more providers competing at various speeds. The statistics count all satellite providers as if they were one provider. The FCC shows that 78% of census blocks nationwide have at least three ISPs offering 3 Mbps. 66% of census blocks have 3 providers offering at least 10 Mbps. But the numbers drop drastically when looking at higher speeds and only 4% of census blocks have 3 or more providers offering 25 Mbps  or faster. Less than 1% of census blocks have three providers offering 100 Mbps or higher – and that has to be a handful of places like Kansas City or Austin TX.

At the other end of the scale, 29% of all census blocks don’t have any ISPs offering 25 Mbps or faster. And a gigantic 53% of all census blocks have no ISP offering 100 Mbps or faster.

The report also looks at landline broadband by technology. The number of households by technology are: 59.7 M on cable modem, 28.2 M on DSL, 10.5 M on fiber, 2.1 M on satellite and 1.0 M on fixed wireless. The fiber number is up 1.3 M since 2014. I was surprised by the DSL number since the FCC shows DSL connections dropping only 400,000 since 2014. Other industry sources show DSL is bleeding customers.

The final FCC statistic tracked is the number of ISPs offering the various technologies. There are 958 providers of DSL, 390 cable companies, 984 FTTP providers, 969 fixed wireless providers, 11 satellite providers, and 97 cellular companies. It should be noted that some companies operate more than one kind of network.

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