This morning, Verizon CEO Ivan Seidenberg made it clear – Verizon and companies like Google and Amazon don’t live in different parts of the Internet ecosystem and it would be a mistake for the FCC to give into network neutrality advocates who want a “binary world” of dumb pipes and applications.
You can read his entire speech here.
Video available at and crossposted to NextGenWeb
Today USTelecom President and CEO Walter B. McCormick Jr. testified before the House Agriculture Subcommittee on Rural Development, Biotechnology, Specialty Crops, and Foreign Agriculture during a hearing to review rural broadband programs.
McCormick focused on the importance of bringing broadband to rural America, and said USTelecom and its members are “united by our shared determination to deliver the broadband future to all Americans, no matter where they live.” Other panelists included representatives from the USDA and the Rural Utilities Service, the National Telecommunications and Information Administration, and other industry representatives.
I spoke at the Pike & Fischer Broadband Policy Summt yesterday on a panel focused on broadband buildout. There was general agreement among providers – both fixed and mobile – that private investment is the key driver to more and better broadband. For instance, Tim Regan of Corning traced the ramp-up of fiber deployment to the FCC’s decision not to require unbundling of fiber lines. Fiber provides the most capacity and highest broadband speeds.
At yesterday’s keynote luncheon, Acting FCC Chairman Michael Copps spoke on the importance of developing a broadband plan and the need for that plan to be pragmatic and not to get enmeshed in and sidetracked by longstanding issues that don’t contribute to more broadband deployment and adoption. Carriers alone are investing about $60 billion a year in broadband. Given that the Stimulus Act funding for broadband deployment is on the order of $3 billion a year, keeping broadband providers investing at the current rate, or, better yet, increasing that investment has to be a key focus of our broadband policy.
As our leaders in Washington get down to the business of revitalizing our economy, the conversation today turned once again to the important role that broadband networks play in that effort and the race to deliver new connected opportunities to communities across the country.
Our host today was the Media Access Project, which held the first in its four-part series called “Mapping Change,” taking on “the future of access and innovation.” The keynote was delivered by Susan Crawford, a member of the National Economic Council and special assistant to President Obama. And the panel featured an all-star line-up from across the spectrum of the broadband policy debate: Verizon’s Kathy Brown, AT&T’s Bob Quinn, Google’s Rick Whitt, Skype’s Chris Libertelli and MAP’s Parul Desai.
Encouragingly, the first point Crawford made about broadband is the importance of investment in networks. The magnitude of U.S. broadband investment was laid out in compelling detail during the panel. According to Brown, the industry has invested over $210 billion in broadband networks over the past several years. (Leading the charge? Verizon and AT&T.)
There was broad acknowledgement that there remain small pockets of our country that do not have access to broadband, and we need to work together as a nation to close that gap. AT&T’s Quinn was also quick to point out that the vast majority of Americans have multiple choices for their broadband service, and the last thing government should do is take actions that discourage the $60 billion in annual investment that broadband companies make each year in infrastructure.
Everyone on the panel was incredibly optimistic about the Obama Administration’s depth and breadth of talent and its laser-like focus on the importance of technology and broadband as key drivers not only of our economy, but also health care reform, energy and many other vital areas where our nation needs to see real, timely progress. It’s our view—and hopefully one that is shared with everyone making these decisions—that government and private industry can and must work together to connect all Americans to broadband’s opportunities.
What did I hear today? The conversation is moving beyond general statements that all Americans should be connected. We’re now getting to where the rubber meets the proverbial road: How we best achieve this ambitious national goal. No doubt we’ll have some differences along the way. But here’s hoping these kinds of constructive and inclusive dialogues continue, and the government and the private sector find constructive, collaborative and innovative solutions to move our broadband nation forward.
In Las Vegas this week, industry luminaries gathered to discuss “Big Bandwidth Content and Big Broadband Speed,” as well as showcase visionary efforts already underway to unleash broadband-driven advances. USTelecom President and CEO Walter B. McCormick Jr. captured the overarching themes of the panel discussion when he said, “Broadband is creating jobs, bringing new opportunities to communities and people across the country, and driving American innovation. U.S. broadband providers have put $120 billion into infrastructure in the past two years. That’s more than the federal government invested in all U.S. transportation infrastructure during that same period.”
Industry-leading broadband providers from SureWest, Silver Star Communications, and Verizon echoed the importance of investment and innovation to enhancing broadband capabilities for consumers nationwide. SureWest Communications President and CEO Steve Oldham discussed his company’s expansion efforts to meet consumer demand for interactive television, as well as the $70 million to $80 million annual investment in its broadband network. Ron McCue, Chief Operating Officer of Silver Star Communications made clear his company’s commitment to overcoming the challenges of serving rural communities in Wyoming and Idaho, and aligned with this objective, Silver Star is also actively engaged in delivering telemedicine and distance learning advances to communities. And Link Hoewing, Verizon’s Vice President of Internet & Technology Policy, said thanks to the ongoing innovation and investment by broadband providers, network capacity doubles every 20 months. Hoewing also stressed that unplugged big bandwith is on the way, noting that Verizon’s 4G wireless network will go online next year with speeds 20 to 40 times faster than today’s mobile data speeds.
But, even in the face of significant investment, innovation, and expanded consumer choices, the panel acknowledged there is a digital divide that keeps many Americans from adopting broadband. As a recent Pew Internet & American Life Project study made clear many Americans who have multiple choices of broadband providers choose not to utilize the service, citing lack of interest or time or simply saying it was too “difficult.” In fact, 19 percent of dial-up users said “nothing” – not even lower prices – would encourage them to upgrade. Addressing these challenges, the panelists agreed, is critical to extending the vast opportunities broadband brings.
Just how expansive are consumer choices, and what potential does broadband hold? As McCormick put it, “When we have conversations about broadband, we tend to think in terms of Verizon, AT&T, Comcast. But the truth is: There are nearly 1,400 broadband providers in the United States today. We’ve been investing on the premise that ‘if you build it, they will come.’ Now that vision is becoming a reality. We’re starting to see today the true potential of broadband not only to advance our economy, but so many aspects of our modern lives from health care to education to the environment.”
How can we speed the arrival of innovative, broadband-driven advances that bring job and economic growth, enhanced education, health care advances, and more to our communities? What exciting innovations are already underway, thanks to today’s visionary communications providers? These questions and others defining our broadband future will be the focus of a Telecom2009 panel discussion led by USTelecom’s President and CEO Walter B. McCormick Jr. at Telecom2009 in Las Vegas on Tuesday, April 21.
The session, “A Marriage Made in Broadband Heaven: Big Bandwith Content and Big Broadband Speed,” features a lively panel discussion showcasing the views of industry-leading providers, including: USTelecom Chair and Silver Star Communications COO Ron McCue; USTelecom Vice Chair and SureWest Communications President and CEO Steve Oldham; and Verizon’s Vice President of Internet & Technology Policy Link Hoewing. Learn what these industry luminaries and others think about the future of broadband and all that it makes possible for our economy and quality of life.
To participate in this exciting forum, join USTelecom at Telecom2009 on Tuesday, April 21 from 11:55 a.m. to 12:55 p.m. Learn more and register today.
I recently had the opportunity to speak at the Emerging Issues Policy Forum (EIPF) that is an annual event held in Amelia Island Florida that attracts leaders in industry, government, and public interest organizations. This year, the event focused on Competition, Investment, and Broadband and my presentation relied heavily on the industry analysis work that USTelecom has developed over the past year. The audience seemed interested in the factual presentation which supported the telecom industry’s assertions that market forces have achieved substantial results with respect to competitive offerings, lower prices, increased investment, and consumer broadband adoption.
I explained the converging nature of the industry and how the traditional silo oriented views of the market failed to explain the intense competition and dynamic associated with technology, media, and telecommunications products and services. Traditional regulatory constructs were not designed to respond to an environment where many different entities from different segments — such as cable, wireline, and wireless – are now competing for the same customers with similar product bundles. I also showed that *real* private fixed investment in communications equipment had been restored to 2000 levels. I suggested that while it is difficult to prove causality, it’s notable that the increases in investment came in conjunction with significant policy and regulatory decisions that promoted market-based competition. The group seemed to agree that broadband deployment thrives when regulatory costs and burdens are minimized.
This week, I participated on a panel sponsored by the Practicing Law Institute in New York City on Communications Law in the Digital Age 2008. My panel was titled “Electronic Media Regulation” and covered an extensive array of telecom issues, ranging from the impact of the new Administration, to the DTV transition. I was joined by Robert D. Joffe, Cravath, Swaine & Moore LLP, Marsha J. MacBride, Executive Vice President, Legal and Regulatory Affairs, National Association of Broadcasters, and Gigi B. Sohn, President and Co-Founder, Public Knowledge.
Among other topics covered, I told the audience that it was still too early to read the tea leaves with respect to leadership at the FCC. However, I said that we expected the reformed Commission to continue on a path consistent with the 1996 Telecommunications Act that encourages pro-competition and pro-investment policy. I also noted that the FCC would likely avoid any policies that operated as disincentives for investment in broadband infrastructure. I expressed a view that the primary focus in Congress was likely to be on further broadband deployment, especially in more rural areas of the country. Finally, I indicated that reasonable network management was a foundation principle of the FCC which USTelecom supports and that enforcement of any abuses by the FCC was best accomplished via a case-by-case assessment.
Our second annual Executive Business Forum–this year focusing on “Disruptive Technology, Demanding Consumers and Your Broadband Future“—kicks off today in San Jose. The schedule starts this afternoon with a special tour of Google’s Silicon Valley campus, offered as an exclusive benefit to telecom carriers and service providers attending the Forum. Over the rest of the week, attendees will hear from a number of distinguished speakers on the agenda, representing many companies and covering a range of topics, including lessons learned from non-US IPTV deployments, IPTV content acquisition and delivery, management and operations in a changing industry, leveraging IPTV services to generate new sources of revenue through advertising, and much more. With featured speeches from representatives of some of the industry’s leaders—including Windstream President and CEO Jeff Gardner, as well as AT&T’s Chris Boyer and Verizon’s Link Hoewing—attendees are sure to leave the Executive Business Forum with a new understanding of the potential of broadband and new technologies to meet evolving customer needs and to expand your business.
Tomorrow, I’m going to be taking part in the FCC’s Summit on Pandemic Preparedness here in Washington. According to the FCC, the summit will “focus on communications and coordination between the health care sector, first responders, government and the communications industry in preparation for a pandemic” and “highlight ways that communications may be expanded and enhance in response to a pandemic.”
I’ll be speaking on the second panel, which is at 11:30. We’ll be discussing ways the industry can remain operational during a pandemic in order to support response efforts from first responders, the health care industry, and government.
You can watch the entire summit online here, beginning at 9am.
