GAO Reports FCC Broadband Penetration Numbers To Be Bunk.

Back in August of 2005 many of us were already decrying the FCC's Broadband penetration rate figures -- Free Press had issued this report, which, in my own words, offered "a devastating critique of the FCC's findings." Now the Congressional General Accounting Office (GAO) has weighed in with its own 70-page report, coming to much the same conclusion, but soft-pedaling its significance.

Tucked into the end of the report are some pretty damning statistics regarding broadband deployment characteristics in the United States. The GAO found that income (especially), race, and education levels all had significant correlations with broadband adoption rates -- adding credence to the many red-lining concerns raised from countless quarters over the years. Meanwhile, Internet taxation was found to have no significant effect on broadband deployment.

From the Baller Herbst List:

GAO says FCC's method of reporting broadband deployment is questionable and significant rural gaps exist: "For its zip-code level data, the FCC collects data based on where subscribers are served, not where providers have deployed broadband infrastructure. Although it is clear that the deployment of broadband networks is extensive, the data may not provide a highly accurate depiction of local broadband infrastructures for residential service, especially in rural areas"

To me, here's the most telling problem:

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In the draft, 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 noted that the commission had recently 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. As such, we recommend that FCC 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 going forward. FCC did not comment on our final recommendation.