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Broadband in California and the Digital Infrastructure Video Competition Act of 2006

Broadband in California and the Digital Infrastructure Video Competition Act of 2006. Michael Morris Program Supervisor Video Franchising and Broadband Deployment February 16, 2010. State Issued Video Franchises. The CPUC has issued a total of 102 Video Franchises to 23 companies.

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Broadband in California and the Digital Infrastructure Video Competition Act of 2006

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  1. Broadband in California and theDigital Infrastructure Video Competition Act of 2006 Michael MorrisProgram SupervisorVideo Franchising and Broadband DeploymentFebruary 16, 2010

  2. State Issued Video Franchises • The CPUC has issued a total of 102 Video Franchises to 23 companies. • The transition from locally issued video franchises to state issued franchises is well under way. • Nearly 2/3 of all video customers in the state are now served by state video franchise holders

  3. Video Subscribers • At year-end 2008, 7.1 million Households subscribed to video from state-issued video franchise holders and their locally-franchised affiliates • This is an increase of 13% over the previous year

  4. Video Competition • Under DIVCA, video competition has increased quickly • AT&T and Verizon more than tripled the number of HHs to which they offer video between 2007 and 2008

  5. DIVCA’s Requirementsfor Companies with over 1,000,000 Telephone Customers • Verizon satisfied its second-year requirement to offer video to 25% of the households in its telephone service area • AT&T’s third-year test requires it to offer video to 35% of its telephone households by April 1, 2010 • AT&T and Verizon provide service at no cost to one community center for every 10,000 customers • Fifth-year build out requirement • Verizon – 40% • AT&T – 50%

  6. More Upcoming Deadlinesfor AT&T and Verizon • Within three years of commencing service, 25% of homes offered video service must be low income households • Within five years of commencing service and thereafter, at least 30% of homes offered video service must be low income households

  7. Broadband Availability and Subscribership • Under DIVCA, the CPUC gathers data on broadband availability and subscribership • The approaches to data sources has evolved • Voluntary data from broadband industry to the Governor’s Broadband Task Force (availability) • CPUC has updated that data with information from CASF and CETF • DIVCA data by Census Tract (availability and subscription) • FCC data by Census Tract (subscription)

  8. Broadband DataNTIA State Data & Development Program • The Recovery Act (ARRA) allocated $350 million for broadband mapping • CPUC designated by the governor as the entity eligible for a Mapping Grant in California • CPUC received $2.3 million dollar grant

  9. Broadband DataNTIA State Data & Development Program • Collecting broadband availability data from all broadband providers in the state • Data at census block level for small blocks and “street segment” level for large blocks • Much more granular than census tracts • 10,000 blocks in each tract • Creating a web-based broadband availability map, searchable by address

  10. All Broadband Connections in CA (68% of CA HH)

  11. Broadband Penetration Growth (DIVCA Franchisees) • Residential Wireline Broadband Penetration Increased by 12.7% during 2008 in California (DIVCA Data) [1] Penetration = Number of Subscribers / 12,733,414 households [2]In some cases, wireless broadband is purchased by many of the same households that also purchase wireline broadband. However, the DIVCA data do not allow this to be quantified.

  12. Technologies Used to Deliver Broadbandby DIVCA Video Franchise Holders

  13. Technologies Used to Deliver Broadbandby State Video Franchise Holders • DSL 49% • Cable Modems 47% • Fiber to the Home 4%

  14. Residential Broadband Download Speed

  15. Residential Broadband Download Speed • 58% of residential broadband connections (provided by DIVCA franchise holders) are more than 3 Mbps • 30% of residential broadband connections (provided by DIVCA franchise holders) are more than 6 Mbps

  16. Video Franchise Employment DataPercent Change by Category

  17. Video Franchise Employment DataPercent Change by Company

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