“Significant change is the only way to fulfill the mission called for in the National Broadband Plan,” Gardner said. Windstream, a USTelecom member,  is one of the nation’s largest providers of broadband in rural areas with operations in 23 states. Ninety percent of its voice customers have access to broadband, with speeds from 3 to 12 megabits (Mbps) per second. Customers pay about $30 a month for entry level service.  “We want to reach the remaining 10 percent of our voice customers that do not have access to broadband service,” Gardner told senators.

But the economics are challenging. It would cost Windstream $1.5 to $2 billion to reach the last 10 percent of its service area at the 4 Mbps speeds set as a goal in the National Broadband Plan. The company can’t earn an adequate return on investment to achieve that level of service without government help, Gardner said.  It’s a problem the Federal Communications Commission confronted in the National Broadband Plan, which concluded most projects in unserved areas would be money losers. A reformed universal service program could overcome financial barriers, he said.

Gardner suggested the following principles be considered in reform efforts:

• Make funding technology neutral so one business model isn’t favored over another.
• Match support level to mandates. If there are mandates for building out at certain speed levels, policymakers must ensure that there it is economically feasible for a company to incur the investment costs.
• Do not put undue burdens on providers that are investing in high-cost areas. For example, the net neutrality rules attached to economic stimulus grants put some companies at a disadvantage, creating an unfair playing field.
• Be willing to accept some resdistribution of universal support.
• Fund rural broadband adoption initiatives.

USTelecom President and CEO Walter B. McCormick Jr. gave the keynote address, outlining ideas for increasing adoption.  Here are a few highlights from his speech that provide insight on the state of broadband adoption today:

• U.S. Leads the World.  From inventing the Internet and many of its significant innovations, the U.S. has always been a broadband leader.  Today, our country has the most broadband households of an OECD nation, with 81 million and counting.  The U.S. also is the world leader in investment in next-generation networks.  And according to the FCC’s own data, broadband growth has been explosive – growing from 8 million ten years ago to 300 million, or 95% of our nation today.
• Adoption Challenges.  While consumers continue to embrace broadband at a faster rate than any technology in the history of our nation, for the relatively small percentage of non-adopters, adoption challenges exist.  For example, only 80% of homes have a personal computer, and digital literacy comes into play too, particularly with older generations.   Additionally, while some point to price as an obstacle, a Pew Internet and American Life Project study reveals only 5% of adult Americans cite price as the reason they don’t have broadband – which is indicative of the fact that the U.S. has among the lowest entry level broadband prices in the world.
• Approaches to Digital Inclusion.  USTelecom supports collaborative approaches to expand broadband adoption and digital inclusion.  One example is One Economy’s “Beehive,” which has brought broadband to more than 300,000 low-income Americans, not only providing access, but also demonstrating the power of broadband through practical tools.  USTelecom is also partnering with the Coalition of Organizations for Accessible Technology to update our laws to ensure that Americans with disabilities have access to the full panoply of broadband services, applications, and products.
• Positive Role for Government.  In the face of new regulatory threats, we urge policymakers to consider the positive effects a bipartisan, pro-investment regulatory environment has had on broadband deployment.  Adopting new regulations and red tape holds the potential to negatively impact investment and the free Internet we enjoy today.  There is a positive role for government to play with regard to broadband deployment and adoption.

Ultimately, we all want the same thing; now we must work together to steer a sound course that brings broadband’s vast benefits to more consumers.

The bill reflects 15 months of detailed consultations between industry and the disability community, McCormick said. The proposed bill addresses the industry’s shift to IP-based communications. Among its highlights are enforcement procedures that would put remedies for noncompliance on a fast track; Lifeline and Linkup support for Internet access services for those who meet those programs’ eligibility requirements; and establishment of a committee to provide advice to the Federal Communications Commission and Congress on steps needed to ensure interoperable real time text communications in a national IP-enabled network for public safety.

“What our industry has found in the course of the last 25 years is that both we and the disabled community benefit from the certainty and focus that a sound and sensible legal roadmap for achieving accessibility provides,” McCormick said. “We believe that with such a roadmap, talented engineers and business people across the Internet landscape will respond in good faith to the challenge.” With Americans becoming increasingly reliant on communications devices and networks in their daily lives, it is essential that people with disabilities have access to the latest technologies.

McCormick was a guest along with Cathy Sloan, Vice President of the Computer & Communications Industry Association. Sloan said her member companies support open systems, open markets, open networks, and competition. “We want to see protection for consumers, small businesses and non-profits so that they have non-discriminatory access to the Internet.” McCormick and Sloan support Congress undertaking a rewrite of the Communications Act. Sloan wants the FCC to move forward with its regulatory proposal. McCormick disagrees.

“We have a variety of interests saying that the FCC is pursuing the wrong approach,” McCormick said. “A majority of Congress, and the weight of opinion on Wall Street has said ‘don’t do this.’” The Communicators is scheduled to be telecast at 6:30 p.m. on Saturday, June 12, on the main C-SPAN channel and on C-SPAN 2 Monday, June 14, at 8 a.m. and 8 p.m.

You can read his entire speech here.

Video available at and crossposted to NextGenWeb

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.

Read McCormick’s oral and written testimony.

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.

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.

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.”

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.