Section 43.82 of the Commission's rules requires U.S.-international facilities-based common carriers to file an international circuit status report by March 31 each year for circuits used to provide international services as of December 31 of the preceding year. (Non-common carriers are not required by section 43.82 to report their circuits.) The detailed filing requirements are set forth in the Manual for Filing Section 43.82 Circuit Status Data, which is available on the Commission's Web site at http://www.fcc.gov/ib/pd/pf/csmanual.html.
This report summarizes the Commission staff review and analysis of the information provided to the Commission by carriers pursuant to Section 43.82. Some carriers request confidential treatment of information submitted. The information in this report is presented in aggregated form for public use. This information filed by each carrier also serves as a database for determining and monitoring the payments that the Commission is required to collect (i.e., annual regulatory fees on active 64 Kbps-equivalent international circuits).
All U.S.-international facilities-based common carriers are required to file circuit status information showing both activated (in-service) and idle (available but not in-service) capacity. Although carriers measure units of circuit capacity at E-16 and STM-17 levels, all services are reported in 64 Kbps-equivalent circuits, the minimum measurable unit to accommodate carriers that have low traffic volumes and therefore cannot report by large capacity units with respect to any particular country. Carriers also measure bandwidth of international transmission capacity at substantially higher levels (i.e., gigabits per second (Gbps) and terabits (Tbps)). In Table 7 (a supplemental table which shows capacity data for trans-oceanic fiber optic cables that is not filed by cable operators for purposes of section 43.82, but is included in this report for reference purposes) we have stated the cable capacity in 2007-2010 in Gbps as well as 64 Kbps circuit units to reflect industry convention. We used the following standard conversion ratio: 1 Gbps = 12,096 64 Kbps circuits.
Data Presentation
The services covered by this report include International Message Telephone Service (IMTS) (switched voice), International Private Line Service (IPLS) (including voice and data) and Miscellaneous or Other International Services (including data services other than private line service) provided on a common carrier basis. The aggregated data listed in this report reflects all of the submitted information, including information from carriers requesting confidential treatment.
Supplementary Data
Table 7 lists all operational and planned new trans-oceanic fiber optic cables, both common carrier and non-common carrier cables, in 64 Kbps units from 1995 to 2010 (and in Gbps from 2007 to 2010), as derived from cable landing license applications and updated capacity information from cable operators. In 2007, U.S. carriers reported active and idle circuits for the trans-Atlantic region (regions 1, 2, 3, and 9) that was a 6.8 percent decrease from the circuits reported in 2006. The reported trans-Atlantic region circuits for 2007 accounted for 9.4 percent of the total available cable capacity. In the Americas region (regions 4, 5, and 6), the reported active and idle cable capacity accounted for 18.8 percent of the total available cable capacity. In the trans-Pacific region (regions 7 and 8), the reported active and idle cable capacity accounted for 7.1 percent of the total available cable capacity. The reported activated circuits as a percentage of total available circuits for the three regions (i.e., trans-Atlantic, Americas, and trans-Pacific regions) are also included in Table 7. Overall, the total reported active circuits accounted for 5.4 percent of total available U.S.-bounded capacity in all three Ocean regions.
1. Section 623 (k) of the Communications Act, as amended by the Cable Television Consumer Protection and Competition Act of 1992 ("Cable Act"), requires the Commission to publish a statistical report on average rates charged for the basic cable service and cable programming service tiers, and cable equipment. The Cable Act also requires the Commission to compare the average rates of cable operators subject to "effective competition," as identified through specific adjudications, with those of cable operators that have not been found subject to effective competition. The key findings are presented below.
2. Averages for all communities. The average monthly price of expanded basic service (the combined price of basic cable service and cable programming service) increased by 3.9 percent over the 12 months ending January 1, 2006; by 4.6 percent over the 12 months ending January 1, 2007; and by 5.0 percent over the 12 months ending January 1, 2008. Chart 1 below shows the trend in cable prices from 1995 to 2008. Over this 13-year period, the price of expanded basic service has grown from $22.35 to $49.65, an increase of 122.1 percent, compared with an increase in the Consumer Price Index of 38.4 percent over the same period.
3. Cable prices decrease substantially when a second wireline cable operator enters the market. It does not appear from these results that DBS effectively constrains cable prices. Thus, in the large number of communities in which there has been a finding that the statutory test for effective competition has been met due to the presence of DBS service, competition does not appear to be restraining price as it does in the small number of communities with a second cable operator as reflected in Chart 1-a below. Prices were 15.5 percent lower as of January 1, 2006; 10.3 percent lower as of January 1, 2007; and 10.1 percent lower as of January 1, 2008 in communities served by a second cable operator than they were in noncompetitive communities.
4. Competition from DBS does not appear to constrain expanded basic cable prices -- average prices were slightly higher as of January 1, 2006; about the same as of January 1, 2007; and about 2.2 percent lower as of January 1, 2008, in communities where competition from DBS was the basis for relieving a cable operator from rate regulation than they were in noncompetitive communities.
5. Recent experience in Hong Kong provides further evidence that wireline competition constrains cable bills. Between 1995 and 2002, cable bills for subscribers of the leading cable service provider, "i-Cable", grew at a rate 6.5 times faster than prices for other goods. Cable prices began falling, however, when competitor "now TV" entered the market in 2003. Between 2004 and 2007, i-Cable's average revenue per user declined 32.9 percent. Hong Kong's wireline competition has also furthered a la carte offerings. When now TV entered the MVPD market in 2003, it offered a la carte channels and currently offers 29 free channels and 17 a la carte channels. In response, in 2005, i-Cable began offering theme packages. In Singapore, wireline competition had a similar effect on a la carte offerings. In 2007, SingTel entered the MVPD market in competition with incumbent StarHub. SingTel's entry into the market included a la carte pay TV options. In response, StarHub began offering more varied bundled options including a Flexiwatch plan which allows customers that don't watch much television to purchase individual channels for as little as three days a month.
6. Differences between noncompetitive communities and communities relieved from basic-tier rate regulation. Over the year ending January 1, 2006, prices increased at the same rate -- 3.9 percent -- for both groups of cable operators, those relieved from rate regulation of their basic tier (i.e., those whom the Commission has found face "effective competition" in their service areas) and those serving noncompetitive communities (i.e., those for whom no effective competition finding exists). For the years ending January 1, 2007 and January 1, 2008, prices increased by 6.1 percent and 4.1 percent, respectively, for the group relieved from rate regulation and by 4.3 percent and 5.2 percent for the noncompetitive group.
7. As of January 1, 2006; January 1, 2007; and January 1, 2008, cable operators on average charged $45.26, $47.27, and $49.65, respectively, per month for expanded basic programming service. As of the same three dates, cable operators granted relief from rate regulation charged an average of $43.70, $46.28, and $48.19, respectively, per month for those services, and operators serving noncompetitive communities charged on average $45.48, $47.49, and $49.97 per month. Thus, cable operators granted relief from rate regulation continue to exhibit lower expanded basic prices -- on average, 3.9 percent lower as of January 1, 2006; 2.6 percent lower as of January 1, 2007; and 3.6 percent lower as of January 1, 2008 -- than cable operators that serve noncompetitive communities.
This report tracks the top subject areas for consumer inquiries and complaints received during the 1st quarter of calendar year 2009 and processed by the Consumer & Governmental Affairs Bureau (CGB). Inquiries are defined as correspondence or communications received at the Commission from individuals seeking information on matters under the FCC's jurisdiction. An informal consumer complaint is defined as a communication received at CGB's Consumer Centers either via postal mail, fax, electronic mail (e-mail), internet, or telephone from or on behalf of an individual that: (i) identifies a particular entity under the FCC's jurisdiction; (ii) alleges harm or injury; and (iii) seeks relief.
2009 First Quarter Inquiries. During this quarter, the total number of inquiries for all four reported categories increased more than 10%, from 221,419 in the 4th quarter of 2008 to 245,505 in the 1st quarter of 2009. Notably, the number of Radio and Television Broadcasting inquiries increased more than 19%, from 180,949 in the 4th quarter of 2008 to 215,928 in the 1st quarter of 2009. The bulk of the Radio and Television Broadcasting inquiries, i.e., more than 55%, pertained to Digital Television Issues. Wireline inquiries decreased 41% from 21,355 in the 4th quarter of 2008 to 12,568 in the 1st quarter of 2009. Telephone Consumer Protection Act (TCPA) inquiries constituted 66% of the inquiries in this category. The number of Cable and Satellite Services inquiries decreased more than 16%, as compared to the 4th quarter from 15,594 to 13,017. Inquiries regarding Digital Television Issues constituted 53% of the inquiries in this category. Wireless inquiries increased 13% from 3,521 in the 4th quarter of 2008 to 3,992 in the 1st quarter of 2009.
2009 First Quarter Complaints. During this quarter, complaints in the reported categories increased over 246%, from 70,836 in the 4th quarter of 2008 to 245,241 in the 1st quarter of 2009. Most of the increase occurred between the Radio and Television Broadcasting category where complaints increased from 29,108 in the 4th quarter of 2008 to 188,558 in the 1st quarter of 2009, and the Wireline Telecommunications category, where complaints increased from 27,160 in the 4th quarter to 36,427 in the 1st quarter. Cable & Satellite Services complaints increased 96% from 2,097 in the 4th quarter of 2008 to 4,114 in the 1st quarter of 2009. Wireless complaints increased over 29% from 12,464 in the 4th quarter of 2008 to 16,142 in the 1st quarter of 2009. TCPA issues comprised 73% of the complaints in this category. Wireline complaints increased by 34% in the 1st quarter of 2009 to 36,427 from 27,160 in the 4th quarter of 2008. Telephone Consumer Protection Act -- Other Issues, Telephone Consumer Protection Act -- Do Not Call List and Telephone Consumer Protection Act -- Unsolicited Fax ranked as the top categories of wireline complaints and when combined, totaled nearly 87% of the wireline-related complaints in the reported sub-categories.
The Commission receives many inquiries and complaints that do not involve violations of the Communications Act, or a rule or order of the Commission. The existence of a complaint does not necessarily indicate wrongdoing by the company at issue. The quarterly report on informal consumer inquiries and complaints release can be viewed at:
CABLE & SATELLITE SERVICES
Billing & Rates Issues: Complaints/inquiries concerning billing matters and the rates charged for cable programming service (or expanded basic) tier on a cable system or satellite services
Carrier Marketing & Advertising: Complaints/inquiries regarding advertising and marketing practices of carriers including alleged misrepresentations
Digial Television Issues: Complaints/inquiries concerning digital TV service or the transition to digital TV
Programming Issues: Complaints/inquiries regarding program content or the choice of channels or programs available to subscribers
Satellite Home Viewer Improvement Act (SHVIA) Issues: Complaints/inquiries regarding SHVIA issues
Service Related Issues: Complaints/inquiries about the quality of service provided by cable operators or satellite programming distributors