Ookla Year-End 2023 Reports Shows Further Rise in U.S. Broadband Speeds

On January 16, Ookla released its Global Speed Index reports for December 2023, including for the United States. According to Ookla, median upload/download speeds in the U.S. for December 2023 were 227.27/26.59 Mbps for fixed broadband services and 111.01/9.68 Mbps for mobile broadband services. Those overall figures show significant improvement over Ookla's findings from March 2023 of 197.84/23.02 Mbps for fixed broadband services, and 81.26/9.44 Mbps for mobile broadband services. (For background, see my April 2023 blog post, "Ookla Reports Rising Fixed and Mobile Broadband Speeds in Early 2023.")

 

Ookla's December 2023 findings are yet another indicator of the success of the federal light-touch regulatory framework for broadband Internet access services, which encourages private market investment and innovation. That pro-free market approach was established in the FCC's 2017 Restoring Internet Freedom Order. Supporters of public utility regulation made dire predictions that the RIF Order would cause the Internet to slow to one word at a time or shuffle most Americans off into slow lanes while corporate elites enjoy fast lane privileges. The scare stories have proven totally false. 

 

On December 14, the Free State Foundation filed comments in the Securing and Safeguarding the Open Internet proceeding, recommending that the FCC stick to the pro-market policy of the RIF Order as the best way to promote continued advancements in broadband access for all Americans. The RIF Order's repeal of the agency's short-lived public utility regulation did not slow anyone’s speeds, and Ookla’s reports instead show that broadband speeds have continued to increase. FSF's comments urged the Commission to not reimpose public utility regulation on broadband Internet access services. 

Ookla Releases Updating Ranking of U.S. Fixed Broadband Provider Services

On July 17, Ookla released its U.S. Market Report for the second quarter of 2023, which ranks mobile and fixed broadband providers according to speeds and other service criteria. According to Ookla's Speedtest Intelligence® performance metrics, for Q2 of this year, Charter's Spectrum cable broadband service had the highest median download speed among fixed providers, at 243.02 Mbps. In a July 17 article, FierceTelecom reported that this is an increase from Q1, when Spectrum's median download speeds were 234.8 Mbps. For Q2, Cox ranked close second in median download speeds at 241.78 Mbps, Comcast's Xfinity was third with 233.25 Mbps and AT&T Internet was fourth with 210.12 Mbps. AT&T and Frontier were the two fixed providers for upload speeds, at 166.86 Mbps and 164.84, respectively. Ookla's Market Report also ranks U.S. fixed providers based on latency, consistency, and video. The report includes regional comparisons as well.

Certainly, the numbers shown in Ookla's Market Report are an improvement over figures cited in the FCC's 2022 Communications Marketplace Report as well as in my January 2023 Perspectives from FSF Scholars paper that reviewed the Commission's report. Continuing steady increases in fixed broadband speeds are predicated on strong network investment as well as network innovation. Ongoing and near-future rollouts of fiber and 10G cable broadband enabled by private market investment and innovation also will significantly boost upload and download speeds, latency, capacity, reliability, and security. To ensure further improvements in broadband network performance, the FCC should maintain its federal market-oriented policy towards broadband Internet access services that defines them as lightly-regulated "information services."

In Early 2023, Fixed Wireless Access Services Are Still Going Strong

On April 24 and 25, T-Mobile and Verizon Wireless released their respective first quarter results for 2023. Once again, both nationwide mobile providers reportedly had strong net subscriber additions to their fixed wireless access (FWA) broadband services.  

T-Mobile reportedly added 523,000 net subscribers to its FWA services. According to a May 17 article in FierceWireless,T-Mobile "has a goal to grow its existing 3.2 million FWA customers to around 7 million to 8 million FWA customers by the end of 2025" and that "it is looking at various options that may allow it to grow beyond that 7 million or 8 million figure."

 

An April 25 article in FierceWireless by Sue Marek states that Verizon "reported 393,000 FWA net adds in the quarter, bringing its total FWA subscriber base to 1.9 million. Of those 393,000 FWA net adds, 137,000 came from the company's Business group." Additionally, an April 25 article in FierceWireless by Diana Goovaerts notes that Verizon "stands to gain 100MHz of additional C-Band spectrum later this year which it plans to deploy in urban areas to benefit FWA and wireless customers who are currently being served with 60MHz of C-Band."

 

With increased access to C-band spectrum, continued expansion of 5G network coverage, and growth of fiber for backhaul support, FWA is likely to be an attractive option for more Americans by the end of the year. And, as observed in a November 1, 2022 blog post, FWA is a particularly attractive option for those residing in areas with geographical terrain that are difficult-to-reach as well as in areas with lower population densities. These benefits of FWA are the subject of my April 2022 Perspectives from FSF Scholars, "Fixed Wireless Access is Boosting Rural Broadband and Consumer Choice." 

 

However, a replenished spectrum pipeline is a necessary condition for realizing the full potential of FWA and for maximizing the competitiveness of the broadband services marketplace. My blog post from March 9 of this year called attention to the lapsing of the FCC's authority to conduct spectrum license auctions. And the Free State Foundation's April 17 public comments to the NTIA urged the timely adoption and implementation of a National Spectrum Strategy that will boost the supply of spectrum for commercial and other private uses, particularly for licensed commercial use. Congress should promptly act to restore the FCC's spectrum auction authority, and the NTIA should act timely in adopting the implementation plan for the long-awaited National Spectrum Strategy.  

Ookla Reports Rising Fixed and Mobile Broadband Speeds in Early 2023

On April 17, Ookla released its Market Report for the United States for the first quarter of 2023. According to Ookla, during the first quarter of the year, Charter Communications' Spectrum was ranked highest among fixed broadband services with download speeds of 234.8 Mbps. Comcast was a close second for fixed providers with speeds of 232.85 Mbps. For mobile providers, T-Mobile ranked first with download speeds of 165.22 Mbps, and Verizon Wireless was second at 74.5 Mbps. Oookla's Market Report provides additional breakdowns for both fixed and mobile services for consistency and latency and performance in supporting video services. The report also includes rankings for fixed broadband by region and for major cities as well as separate ranking among mobile providers for 5G performance and availability.

Coinciding with the release of its U.S. Market Report for Q1 2023, Ookla also released updated findings for March 2023. Ookla found that median upload/download speeds in the U.S. for last month were 197.84/23.02 Mbps for fixed broadband services, and 81.26/9.44 Mbps for mobile broadband services.

The Ookla report's speed findings for early 2023 are an indicator of continuing improvements in broadband service capabilities and network deployment in the United States. The report's findings also are a reflection of the federal light-touch regulatory framework for broadband Internet access services, which encourages private market investment and innovation. Future improvements in broadband access are best achievable by maintaining the pro-free market approach embodied in the FCC's 2017 Restoring Internet Freedom Order. Additionally, Congress and the Commission take further steps to build on the progress being made in this space. My January 2023 Perspectives from FSF Scholars, "The 2022 Communications Marketplace Report: Timely FCC Action Could Accelerate Next-Gen Broadband Deployment," identified three such steps: (1) prioritize the lower 3 GHz band and other spectrum bands for repurposing for commercial services; (2) adopt fee caps and "shot clocks" on deployments of wireline facilities in state and local rights-of-way; and (3) ensure equitable access to broadband by prohibiting intentional discrimination, and not by imposing disparate impact liability. 

Carriers Set Record With New Fixed Wireless Subscribers

On October 21 and 27, Verizon Wireless and T-Mobile each released their third quarter results for 2022. Both nationwide carries posted record numbers of net subscriber additions to their fixed wireless access (FWA) broadband services. Verizon Wireless reported an impressive 342,000 fixed wireless net additions – a quarterly record for Verizon Wireless. And T-Mobile reported that it added a record high 578,000 high speed Internet customers. Although T-Mobile did not provide a specific service breakdown for that category, its record-breaking figure apparently consists primarily of net additions to its FWA services.

FWA services, which are increasingly offered using 5G networks, are particularly important for their ability to connect costly and difficult-to-reach geographic areas of the country. For more on that point, see my April 2022 Perspectives from FSF Scholars, "Fixed Wireless Access is Boosting Rural Broadband and Consumer Choice." And along with cable mobile virtual network operator (MVNO) wireless services, FWA services are a vibrant form of intermodal competition in today's communications market. 

Study Finds Fixed Broadband Adoption and Speed Increases Spur Economic Growth

A study released in June 2022 titled "The Contribution of Fixed Broadband to the Economic Growth of the United States Between 2010 and 2020" found that fixed broadband adoption and higher speeds have spurred economic growth and benefitted consumers. 

As observed in the Telecom Advisory Services' study – authored by Raul Katz and Juan Jung of Telecom Advisory Services, LLC – the U.S. economy grew at an average annual rate of 3.3% between 2010 and 2020. Households with fixed broadband average download speeds of at least 25 Mbps grew from less than 1% in 2010 to over 65% in 2019. As a result, fixed average download speeds rose from about 10 Mbps in 2010 to about 174 Mbps in 2020. The study sought to isolate the contributions of those developments in broadband adoption and speeds to the growth of the U.S. gross domestic product (GDP) over ten years.

Notably, the Telecom Advisory Services study found that fixed broadband adoption drove nearly 11% of the accumulated growth in U.S. GPD, with speed improvement contributing an additional 11.5%. According to the study, "if broadband adoption and speeds had remained at 2010 levels, in 2020 the US GDP would have been $1.3 trillion lower ($19.6 trillion, rather than $20.9 trillion). This is equivalent to almost $4,000 annual dollars less for the average American." Additionally, as a result of fixed broadband infrastructure deployments and speed increases, "consumers receive[d] a surplus linked to the fulfillment of a whole new range of applications in the areas of communications, entertainment and information." The study found that "[a]ggregated consumer surplus at the national level increased to over $186 billion in 2020 (up from $81.6 billion in 2010) as a result of increased connectivity," and an additional $186.2 billon of consumer surplus was realized through fixed broadband speed increases.  

Importantly, fixed broadband deployment and fixed broadband speeds also have improved since the end of 2019. Data points showing increased access to broadband services over the last two years, including fiber services, are summarized in the Free State Foundation's July 1 comments to the FCC for its 2022 Communications Marketplace Report proceeding. The comments are available at FSF's website. 

More Indicators of a Bright Future for Fixed Wireless Access Services

My April 25 Perspectives from FSF Scholars, "Fixed Wireless Access is Boosting Rural Broadband and Consumer Choice" highlighted the potential for 5G-enabled fixed wireless access (FWA) services to fast and affordable bring broadband connectivity to several million Americans in rural and small markets within the next few years. The Perspectives observed strong first quarter 2022 FWA subscriber additions for Verizon as confirming evidence of that potential. And my April 30 blog post spotlighted strong quarterly results in FWA service subscriber additions for T-Mobile.

And there are other news items regarding 5G-enabled FWA's outlook. According to one report, at the end of the first quarter of 2022, Verizon and T-Mobile combined have over 1.4 million subscribers to their FWA services. Moreover, on April 28, Telecompetitor reported that UScellular's Home Internet+ fixed wireless is now offered in 10 markets. It is reported that UScellular has an average of 400 MHz of spectrum in those markets. Plus, UScellular has plans to expand to "dozens" of new markets in 2022. Additionally, the Chairman of DISH Network reportedly stated that there is potential for DISH to make competitive entry in the FWA services market to reach rural America. 

For more on FWA services as an important technology platform for helping to close the digital divide and connect all Americans, check out my Perspectives.   

FCC Report Finds Consumers Are Benefitting From Fixed Broadband Improvements

On January 5, the FCC released its Eleventh Measuring Broadband America Fixed Broadband Report. The Commission's report provides evidence of the strong performances of fixed broadband Internet service providers (ISPs) amidst government lockdowns, as consumers have upgraded to higher speed tiers and benefitted from the improved capabilities of cable and fiber broadband networks.  

The Eleventh Measuring Broadband America Fixed Broadband Report provides a snapshot of the performance of eleven ISPs during the months of September and October 2020. Significantly, the FCC's report found a significant rise in advertised broadband speeds: "The weighted average advertised speed of the participating ISPs was 193.9 Mbps, representing an increase of 33% from the previous year's Tenth Report and over 43% from the Ninth Report." This metric is noteworthy in light of the report's finding that "[f]or most of the major broadband providers that were tested, measured download speeds were 100% or better than advertised speeds during the peak hours (7 p.m. to 11 p.m. local time)." Indeed, all five cable broadband ISPs tested in the report delivered downstream and upstream speeds in excess of what they advertised. Taken together, median download speeds for those cable ISPs averaged 114% of their advertised speeds, and their upload speeds averaged 111%. 

 

(Chart 2: Weighted average advertised download speed among the top 80% service tiers based on technology  – FCC, Eleventh Measuring Broadband America Fixed Broadband Report (2021))

The FCC's report also tested the consistency of fixed broadband speeds, and the results were favorable:

Customers of Charter, Comcast, Cox, Mediacom, Optimum, Frontier Fiber, and Verizon, for example, experienced median download speeds that were very consistent; i.e., they provided greater than 95% of the advertised speed during peak usage period to more than 80% of panelists for more than 80% of the time. In particular, Charter, Comcast, Cox and Mediacom provided 100% or greater than their advertised speed during the peak usage period to more than 80% of their panelists for more than 80% of the time. 

Not surprisingly, the FCC's report observed that fiber broadband services had the lowest latency and lowest packet loss among the different fixed network technologies, and cable broadband services also were superior to DSL in those performance categories.

 

According to the FCC's report, "a large number of subscribers, between 30% to 60%, migrated to a higher speed tier using a different technology from what they had in September-October 2019. This is in sharp contrast to the previous year when only 1% to 8% of subscribers migrated to a different technology." Quite reasonably, the report suggested that the notable migration of consumers to higher download speed tiers and to faster technologies was related to the COVID crisis: "[B]y the time the validated data collection period for this Report was underway, approximately 42% of the U.S. workforce was working remotely from their homes. Similarly, 93% of households reported some form of remote learning and distance education during this time period." The report offered a positive verdict: "Despite all the challenges, the MBA measurements showed that for the most part, the ISP networks were able to keep up with this unprecedented increased load on their networks."

 

The benefits for consumers identified in the FCC's Eleventh Measuring Broadband America Fixed Broadband Report should serve as reminders of the importance of the Commission maintaining a light-touch regulatory policy that fosters strong private sector investment in next-generation network infrastructure. As pointed out in Free State Foundation comments to the Commission and in Perspectives from FSF Scholars papers – including FSF Senior Fellow Andrew Long's paper "Lessons From the FCC's Broadband Deployment Report" and my paper "The FCC Should Reaffirm Its Successful Internet Freedom Policy" – the Title I status of broadband Internet services has encouraged the heavy investment in fixed and mobile network facilities that is necessary to enable broadband networks to supply growing consumer demands. In 2022, the Commission should stick to this pro-investment and pro-consumer broadband policy. 

Study Predicts that Cable "10G" Platform Will Generate Substantial Economic Benefits

Telecom Advisory Services has released a study regarding the potential impact of the emerging cable "10G" platform on the U.S. economy. It concludes that the benefits could be quite substantial: "at least $330 billion in economic output and ... more than 676,000 new jobs over 7 years."

With all of the current attention appropriately paid to 5G mobile broadband, the letter "G" brings to mind the term "generation" (as in "fifth generation"). "10G," however, refers to "10 gigabit." Championed by CableLabs, 10G is an emerging suite of technologies and standards, including DOCSIS® 4.0, that promises to deliver up to 10x faster download speeds, lower latency, improved security, and greater reliability – all over existing network infrastructure. No digging or new fiber required.

In a September Perspectives from FSF Scholars, "'10G' Can Help Future-Proof Broadband Infrastructure," I discussed how – with some facilitating tweaks to the regulatory environment – cable broadband providers could help policymakers accomplish the goal of universal high-speed Internet access:

• Existing coverage could be extended into areas as yet unserved.
• Current offerings, which deliver gigabit downstream speeds to the vast majority (93 percent) of U.S. homes passed, are more than sufficient to enable rural Americans (and others lacking broadband access) to engage fully in virtual work, education, healthcare, and entertainment.
• And, with an upgrade path to 10G on the horizon, subsidized facilities constructed today could remain competitive with rival technology platforms (fiber-to-the-home, Wi-Fi 6 and 6E, and the aforementioned 5G) for years to come.

"Assessing the Economic Potential of 10G Networks," the just-released Telecom Advisory Services study prepared by Dr. Raul Katz and Fernando M. Callorda, forecasts the impact that 10G deployments might have in terms of contributions to the U.S. Gross Domestic Product (GDP), increased consumer surplus, and jobs created. Without vouching for their precise accuracy, I would like to highlight the following claims:

• Over the next seven years, network investment and related spending will contribute $126.7 billion to GDP – and create 376,000 jobs.
• New applications and use cases enabled by 10G's faster speeds will add $131.7 billion to GDP – and lead to nearly 300,000 additional jobs.
• Speed increases will generate $71.5 billion in consumer surplus.

As I do in the paper referenced above, the report points out that "Congress could encourage the deployment of 10G by cable operators [in unserved rural areas] by no longer requiring that broadband providers obtain designation as an Eligible Telecommunications Carrier by the applicable state agency as a prerequisite to participating in federal universal service support programs" and "policymakers could encourage future 10G deployment by eliminating excessive fees and inequitable attachment requirements imposed by utility pole owners on cable operators."

Ookla Reports Speed Increases for U.S. Fixed and Mobile Broadband

On July 8, Ookla released its "Q2 2020 Speedtest® United States Market Report." According to Ookla:

[M]edian download speed over mobile in the U.S. increased 15.8% between Q2 2019 and Q2 2020 to 29.00 Mbps. The median upload speed for mobile was 5.74 Mbps, down 15.2% from Q2 2019. 

Median download speed over fixed broadband increased 19.6% during the last year to 86.04 Mbps in Q2 2020, and median upload speed increased 1.5% to 11.86 Mbps in Q2 2020.

In the wake of the COVID-19 outbreak and government lockdowns, these reported speed increases are welcome news. They also go to show the soundness of the FCC's pro-investment, pro-deployment, light-touch regulatory approach to broadband Internet access services.

Additionally, Ookla's report contains interesting comparative figures for fixed and wireless broadband Internet services according to speed and other metrics. This includes comparisons of 5G speeds and 5G device availability. 

Charter's New Wireless Service "Spectrum Mobile" Increases Competition

Last month, Charter Communications launched a new mobile wireless broadband service, Spectrum Mobile. Spectrum Mobile’s unlimited data plan starts at just $45 a month. Consumers will enjoy the benefits of over $27 billion in technology and infrastructure invested by Charter since 2014. Spectrum Mobile consumers who also use Charter’s fixed broadband service will enjoy high-speed connections at home and on the go.

This new wireless offering solidifies Charter as one of the leaders in both wireline and wireless broadband, and it spurs further competition in the broadband market. Charter joins Comcast as the other major cable provider to enter into the mobile wireless market. This benefits consumers by putting downward pressure on wireless prices and by encouraging additional network investment from wireless competitors.

NTIA Study Shows Mobile Is a Substitute for Fixed at All Income Levels

A new study by Guilia McHenry, the Chief Economist in the Office of Policy Analysis and Development at the National Telecommunications & Information Administration (NTIA), shows that consumers of all income levels are substituting mobile broadband for fixed broadband. Brian Fung highlighted some of the study’s findings in a Washington Post article:

In 2013, 8 percent of households making $50,000 to $75,000 a year were mobile-only. Fast-forward a couple of years, and that figure now stands at 18 percent. Seventeen percent of households making $75,000 to $100,000 are mobile-only now, compared with 8 percent two years ago. And 15 percent of households earning more than $100,000 are mobile-only, vs. 6 percent in 2013.

As Randolph May and I wrote in a January 2016 blog, the number of “smartphone-only” adults has been increasing over the past several years. This NTIA study shows that consumers who substitute mobile broadband for fixed broadband are not only low-income individuals but those further up the income scale too.

It is time for the FCC to recognize this shift in consumer preferences and take into account the actual realities and competitiveness of the broadband marketplace when it considers imposing regulations on Internet service providers.

More FCC Rules with Flawed Analyses Likely on the Way

In August 2015, I wrote a blog entitled “FCC’s ‘Gatekeeper’ Theory Is a Flawed Market Failure Analysis,” explaining how the FCC’s 2015 Open Internet Order fails a basic cost/benefit analysis and how it misuses data in order to support its claim that competition in the broadband market is lacking. Then, in January 2016, FSF President Randolph May and I wrote a blog entitled “Mobile Broadband Is a Substitute for Fixed Broadband,” where we state that the FCC continues to misrepresent competition in the broadband market by refusing to acknowledge the extent to which mobile broadband, for an increasing segment of the U.S. population, is a substitute for various fixed broadband services.

In a Hill article on January 20, 2016, Mario Trujillo reported that advocacy groups have been pressing the FCC to adopt Internet privacy rules. In a letter to the FCC, the advocacy groups say: “[Internet service providers’] position as Internet gatekeepers gives them a comprehensive view of consumer behavior and until now privacy protections for consumers using those services have been unclear.” The letter urges the FCC to “move forward as quickly as possible on a Notice of Proposed Rulemaking proposing strong rules to protect consumers from having their personal data collected and shared by their broadband provider without affirmative consent.”

The longer the Open Internet Order is in effect, the more people will realize that the regulatory costs imposed by the Order are stifling innovation and investment from both Internet service providers and edge providers. (See my October 2015 blog and Randolph May’s December 2015 blog for more on this.) However, there is reason to worry that if the FCC continues to misuse data to claim that “gatekeepers” eliminate choices for consumers, that switching costs create monopolies, and that mobile broadband should not be included in an analysis of broadband marketplace competition, then the FCC will be able to use these claims to justify adopting more Internet regulations.

Regardless of how Internet privacy rules would positively or negatively impact consumers, it should be concerning that the Commission could (and likely will) use misguided analysis to adopt such rules. In evaluating whether Internet privacy rules (and other regulations) benefit competition, consumers, and economic growth, it is imperative that they be supported by accurate data and valid cost/benefit analyses. But if the data and analysis used to inaccurately describe the broadband market during the Open Internet proceeding is used to draft Internet privacy rules, then the proceeding will start off on the wrong foot.