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Broadband - Jeff Campbell, Senior Telecom Policy Counsel

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Issues:
TechNet Broadband Principles (January 15, 2002)
Cisco Broadband Primer: What is Broadband? (January 15, 2002)

The deployment of broadband digital networks is the key to enabling new, advanced Internet applications for consumers and businesses globally. High-speed Internet access will change the way we work, live, play, and learn. Greater bandwidth permits exciting new information services for education, e-commerce, government and communications by increasing the amount of information that can be transmitted and greatly reducing download times.

Deployment of broadband has been slowed by lack of competition among traditional telecom companies and new entrants. The need for broadband deployment raises several important policy issues including:

  • Regulated Open Access vs. Free Market Access -- Content providers want guaranteed access to high-speed data networks at wholesale prices. Others counter that mandatory open access requirements reduce investment incentives and delay broadband deployment.
  • Universal Service / Digital Divide - Diverse groups want to ensure broadband networks are available to all Americans regardless of economic status or geographic location.
  • Regulatory Parity - Incumbent network providers want regulators to treat all broadband technologies equally, regardless of whether delivered via telephone, cable, wireless or satellite. Non-incumbent network providers urge regulatory forbearance on new entrants to promote competition and speed broadband deployment.

Impact:
Decisions made by courts and regulators at the local, state and federal levels will determine:

  • The speed of new service deployment
  • competitive choices available to consumers, and
  • levels of investments made in new technologies.

Precedents established in this debate may determine whether future Internet policy is decided by the marketplace or by government.

Position:
Broadband policies should promote competition, investment and innovation through deregulation of existing technology and non-regulation of new technologies.

  • Competitive markets benefit consumers and stimulate investment, leading to lower prices, higher quality and greater choices for consumers. Broadband policies should promote competition.
  • Investment sparks rapid innovation, improvement and economic efficiency in products and services. Broadband policies should encourage investment.
  • Regulations stifle competition and investment, so regulatory tools should be used sparingly. Old World rules to govern monopolies (e.g. local phone providers) should not be reflexively imposed on competitive New World industries (e.g. data access providers).

Background:
Broadband refers to the capacity to deliver high speed Internet access. "Broader" lines carry more information faster. Broadband Internet access is possible over a variety of platforms (networks) including:

  • Cable modems
  • Digital Subscriber telephone lines (DSL)
  • Wireless
  • Satellite
  • Fiber optics to the home
  • Long Reach Ethernet (LRE)

Companies have invested billions in new fiber optics, wireless equipment, hardware and software to increase their capacity to deliver broadband. The resulting high-speed networks will radically expand the possibilities for using the Internet for education, telemedicine, entertainment and e-commerce. New features allowed by broadband networks include:

  • Real time video and audio
  • Voice over IP
  • Video conferencing
  • Rapid data downloads - no waiting

Broadband Internet connections can remain on at all times (always on) - permitting instantaneous access to information. And increased bandwidth reduces time for data downloads from minutes to seconds (high speed) - eliminating consumers' greatest frustration with the Internet.

Status:
STATE OF DEPLOYMENT: Presently, cable, telephone, wireless and satellite companies are working to deploy broadband-capable networks throughout the U.S. and globally. Network providers are investing billions to upgrade their infrastructures and increase their bandwidth capacity. Similarly, Internet Service Providers across the country are offering high-speed access over cable, DSL and wireless.

CALLS FOR GOVERNMENT INVOLVEMENT: Even as cable, DSL and wireless companies roll out competing broadband products and networks, many are calling for the government to step in to speed or manage deployment. Some business and civic leaders have called for mandatory open access - forcing all broadband providers to share their facilities with competitors at rates approved or reviewed by government-- while others urge the government to let the competitive markets work and remove mandatory open access requirements from currently-regulated companies.

Likewise, many have called for government intervention to prevent uneven rollout of broadband networks. Rural representatives want to encourage or require companies to rapidly deploy broadband networks to rural areas, while other leaders demand rules to ensure poorer areas receive the same access to broadband networks as more affluent neighborhoods.

FEDERAL COMMUNICATIONS COMMISSION ACTIONS: The FCC continues to consider questions relating to the deployment of advanced services and high speed networks. To date, the Commission has steadfastly refused to increase regulations on advanced services.

Useful Links:

FCC CHAIRMAN MICHAEL K. POWELL OUTLINES BROADBAND AGENDA (October 2001)

REMARKS OF MICHAEL K. POWELL, CHAIRMAN, FCC, AT THE NATIONAL SUMMIT ON BROADBAND DEPLOYMENT (October 2001)

FCC COMMISSIONER KEVIN MARTIN SPEECH ON BROADBAND (October 2001)

NTIA CHIEF NANCY VICTORY SPEECH ON BROADBAND DEPLOYMENT (October 2001)

BRUCE P. MEHLMAN, ASSISTANT SECRETARY FOR TECHNOLOGY POLICY, UNITED STATES DEPARTMENT OF COMMERCE - "BUILDING OUR BROADBAND FUTURE " (October 2001)

MCKINSEY STUDY: WHAT DO BROADBAND CONSUMERS WANT? (October 2001)

WASHTECH.COM SPECIAL REPORT: THE BROADBAND DEBATE (2001)

FCC STUDY: HIGH-SPEED INTERNET USE UP (August 2001)

FCC Broadband Internet Access Resource Guide

" Broadband Today ," FCC Staff Report (Oct. 1999)

"The FCC and the Unregulation of the Internet ," FCC Office of Plans & Policy Working Paper (July 1999)

OpenNet Coalition

iAdvance Coalition

Competitive Broadband Coalition

 


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