No need for new regulations – there’s plenty of U.S. broadband competition: ACA Connects

June 27, 2022

Of U.S. households not served by multiple providers, “a significant share is already served, or soon will be,” by a provider receiving government funding who is therefore already subject to government oversight, the organization adds.

Stephen Hardy

ACA Connects, the trade organization that represents more than 600 smaller and medium-sized, independent communications services providers, asserts that a recently released study it sponsored shows that “the vast majority” of U.S. citizens have access to more than one legitimate provider of fixed broadband services. The survey results indicate that additional common-carrier-style regulation of the U.S. broadband market is unnecessary, ACA Connects concludes.

Findings from the survey, Broadband Competition is Thriving across America, include:

More than 90% of U.S. households have access to at least one broadband provider offering 100 Mbps downstream/20+ Mbps upstream (100/20+) and at least one other provider offering 25/3+ service
74% of U.S. households will have access to at least two broadband providers that offer 100/20+ service by 2025 based on historic data. If announced fiber to the premises (FTTP) rollouts complete as planned, this number will rise to 84% of all households by end-of-year 2025
Of U.S. households not served by multiple providers of broadband service, “a significant share is already served, or soon will be,” by a provider receiving government funding who is therefore already subject to government oversight. ACA Connects estimates nearly 7% of U.S. households fall into this category.

The projected share of households with at least two providers capable of offering 100/20+ service, according to a recent ACA Connects study. Projection 1 is based on historic trends; Projection 2 takes into account the announced plans of major incumbent telecommunications providers to increase the rate at which they invest in new fiber.

“The federal government has established a two-prong approach for bringing fast and reliable fixed broadband service to all Americans: enable and encourage entry and competition in a light-touch regulatory environment; and, where the economics are too challenging, subsidize and regulate the provision of service,” commented ACA Connects President and CEO Grant Spellmeyer. “After two decades, the results are now in. We have developed in the United States a broadband infrastructure that is robust, reliable, and competitive because of the combined efforts of the private and public sectors. Working together, the two sectors are making great strides in closing the broadband availability and adoption gaps that remain.

“Given that competition is widespread and thriving, and government has already ample regulatory authority to protect consumers where competition is lacking, there is no justification to impose additional heavy-hand common-carrier-style regulation on fixed broadband providers as a whole,” Spellmeyer continued. “Doing so would yield few, if any, tangible benefits but would discourage entry, investment, and innovation, to the detriment of consumers. However, even if new regulation were to be imposed on larger providers, there is a strong case for exempting smaller providers from any such regulation.”

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.