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Both Congress and the President have indicated that access to broadband for all Americans is critically important. Broadband is seen as a critical economic engine, a vehicle for enhanced learning and medicine, and a central component of 21st century news and entertainment. As part of our response to a mandate included in the Internet Tax Nondiscrimination Act of 2004, this report examines the factors that affect the deployment and the adoption of broadband services. In particular, this report provides information on (1) the current status of broadband deployment and adoption; (2) the factors that influence the deployment of broadband networks; (3) the factors that influence the adoption, or purchase, of broadband service by households; and (4) the options that have been suggested to spur greater broadband deployment and adoption.

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Recommendations for Executive Action

Agency Affected Recommendation Status
Federal Communications Commission In a draft of this report provided to FCC for review and comment, GAO recommended that FCC identify and evaluate strategies for improving the 477 data such that the data provide a more accurate depiction of residential broadband deployment throughout the country. In oral comments regarding this recommendation, FCC staff acknowledged that the 477 data have some limitations in detailing broadband deployment, but also noted that there had recently been a proceeding examining its broadband data collection efforts and that some changes to the data collection had been implemented. In that proceeding, the commission also determined that it would be costly and could impose large burdens on filers--particularly small entities--to require any more detailed filings on broadband deployment. Although FCC staff told us that analysis of potential costs had been conducted, exact estimates of these costs and burdens have not yet been determined. Moreover, many have expressed concern about ensuring that all Americans--especially those in rural areas--have access to broadband technologies. Policymakers concerned about full deployment of broadband throughout the country will have difficulty targeting any assistance to that end without accurate and reliable data on localized deployment. As such, FCC should develop information regarding the degree of cost and burden that would be associated with various options for improving the information available on broadband deployment and should provide that information to the Senate Committee on Commerce, Science, and Transportation and the House Energy and Commerce Committee in order to help them determine what actions, if any, are necessary to employ going forward.
Closed - Implemented
On April 16, 2007, the Federal Communications Commission (FCC) released a Notice of Proposed Rulemaking (FCC 07-17) wherein FCC sought comment about how it could acquire information it needs to develop and maintain appropriate broadband policies. In the NPRM, FCC noted that broadband data collected pursuant to the Form 477 data collection program have significantly helped FCC and the public understand the extent of broadband deployment nationwide. FCC also said that the proposals discussed in the NPRM would allow FCC to deepen and refine its understanding of broadband availability and deployment. Finally, FCC said that additional data collection could impose an increased burden on reporting entities, and FCC solicited public comment about the balance between the burden of additional data collection and the benefits such information provides. On March 19, 2008, FCC adopted a Report and Order (FCC 08-89) that will increase the precision and quality of its broadband data. In particular, FCC will require broadband providers to report the number of subscribers by Census Tract, broken down by speed tier and technology type. In the Order, FCC noted our findings that assessing broadband deployment is difficult, especially in rural areas. As a result, decision makers should be better able to assess the impact of federal support mechanisms, since as we noted, one of the difficulties of assessing where to target any federal support is that it is hard to know exactly where broadband infrastructure has not been deployed.

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