Marketplace evidence demonstrates that cable is a meaningful competitor for most business broadband customers, USTelecom said in reply comments filed with the Federal Communications Commission (FCC). Independent analysts have estimated that cable broadband networks currently pass more than three-quarters of small and medium business customers in the U.S. Furthermore, there is evidence many customers are signing up with these higher-capacity services instead of slower, dedicated services.
USTelcom’s reply comments respond to an ongoing FCC proceeding dealing with regulation in the business broadband marketplace. A subset of providers is seeking favorable regulatory treatment to help it compete. In a first round of comments, this group urged the FCC to ignore information about cable modem and other “best efforts” broadband services in assessing overall business broadband competition.
USTelecom disagrees with this approach, given that many businesses, small and large, consider cable modem services to be a competitive option. Basing a regulatory decision on a narrow product market definition would distort the market for millions of business customers who today have a competitive choice of service providers. The FCC should instead focus on further encouraging continued investment and innovation in delivering broadband services to businesses.