1. The FCC and the Internet Robert Cannon Senior Counsel for Internet Issues FCC Office of Plans and Policy

2. Where we are…

3. Internet Subscribers 16% increase since last year, down from 41% growth previous year. 10 hrs, 19 min per month on average online, up 7%. X 100,000 Source: Nielson-Netrating Residential Internet Use

4. Top 25 Web Properties Unique Hits X 100,000 Source: Nielsen/NetRatings July 2001

5. Top ISPs Percent Market Source: Cyberatlas June 2001 AOL MSN Earthlink @ Home SBC AT&T Bell South Verizon All Other ISPs

6. Consumer Access 2000 Source: Cahners In-Stat Group

7. High Speed Lines (Over 200 kbps in at least one direction) Source: FCC

8. Race To Deployment Source: ebrain.org Years Percent House Holds

9. DSL by Type of Provider as of Dec 31, 2000 Source: FCC

11. Broadband Access 2000 Source: Cahners In-State Group

12. Preferred Method of Broadband Access (Given a choice, what would you choose) Source: Cahners In-State Group CMP Net Mag Aug 2001 Percent

13. Which Broadband Providers Do You Use? Business Respondents Source: Cahners In-State Group

14. Where are we going?

15. 3rd Sec. 706 Notice of Inquiry 3rd Sec. 706 Notice of Inquiry Comments Due 30 days after Fed Reg Pub Docket 98-146 Is advanced telecommunications capability being deployed to all Americans? Is overall deployment reasonable and timely? If deployment is not reasonable and timely, what actions will accelerate deployment?

16. Open Access NOI Open Access NOI GN Docket No. 00-185 Ex Parte Period Classification of Cable Modem Service? Issues Surrounding Open Access –What is Open Access? –Is It a Desirable Policy Goal? –Uniform Policy to all High Speed Providers? –Technical Issues? FCC Options

17. Computer III FNPRM Ex Parte Period Enhanced Services (Internet) unregulated Establish –Rights of ESPs to Basic Telecom –Safeguards of ESPs from anticompetitive telephone behavior –Open Telecom Platform Computer III created non-structural safeguards –Comparably Efficient Interconnection –Open Network Architecture Public Notice –Post Telecom Act of 1996 Market? –Enforceable? –Is CEI and ONA Used?

18. Other FCC Proceedings Interactive TV Improved Telecom Relay Service Using IP Universal Service Reform Spectrum Reform - 3G E-rate Network Reliability CALEA Intercarrier Compensation International: IP Telephony, ICAIS, ENUM

19. Potential Policy Solutions Texas Ability to Pay Population Density Low High Technology, Demand Aggregation Competition Loan and Tax Incentive Programs, Community Networking, Social Contracts Grant Development, Economic and Community Development Initiatives Source: Brett Perlman, Texas Public Utility Commission

20. Satellite and Wireless Technology Market- Driven Programs Community Technology Access and Training Competition Ability to Pay Population Density Potential Policy Solutions Hig h Low High Accelerating Broadband Deployment Requires Multiple Solutions

21. Thank You... Robert Cannon Senior Counsel for Internet Issues FCC Office of Plans and Policy rcannon@fcc.gov Standard Disclaimer: Views expressed are my own and do not necessarily represent those of the FCC, the Commissioners, its staff, or my dog.