Court Delivers Win for Video Competition July 1st, 2008

We were asked to share our thoughts in a post at The Hill’s Congress Blog about last Friday’s decision by the Court of Appeals for the 6th Circuit, which upheld the FCC’s 2007 Order streamlining the local franchising process for telecom companies trying to compete with cable companies.

The FCC Chairman has long recognized that competition with cable offerings provides the best solution to rising cable prices, and that lowering hurdles for telecom companies to invest in video helps increase the availability and capacity of broadband networks. The court’s decision provides invaluable support for this vital objective and USTelecom and our member companies will continue the work to achieve the goals of increased investment in broadband networks and a level regulatory playing field.

You can read the whole post, which excerpts from USTelecom’s press statement about the benefits to consumers this decision will bring, here.

We’ll have a vidcast about this coming soon, as well.

USTelecom Files Testimony on RUS Broadband Programs March 24th, 2008

Last week Congress began soliciting the views of folks interested in how much money is going to be provided to the Rural Utilities Service (RUS), a relatively small agency in the U.S. Dept. of Agriculture. USTelecom President and CEO Walter McCormick submitted testimony to both the House and Senate supporting the RUS telecom programs and offering suggestions as to how to make RUS more effective.

RUS can be a key contributor to America’s broadband future, and USTelecom would like Congress to ensure that the funding provided for the build out of telecom facilities, especially including broadband, is sufficient and well spent. Years ago there were those who contended that the job of RUS was done, that everyone had single party phone service (for those of you who can remember party lines), and that the agency should fade quietly into oblivion. Well, thank goodness that it did not, since policy makers have now rightfully decided that it would be a good idea for everyone, including rural Americans, to have modern communications facilities and service, including broadband Internet access.

Broadband communications vastly reduces the handicap of distance in rural areas, enabling services such as distance learning and telemedicine, and even just helping rural school kids access the same resources as city kids to do their homework. But for many high cost rural areas with low population density, it is just too darn expensive to build out the facilities needed to provide broadband service. That is where RUS comes in. It provides low interest loans and (a small amount of) grants to providers to construct those needed facilities. So USTelecom supports providing sufficient funding for those facilities to be built as an investment in the infrastructure, economic growth and people of rural America.

But there has been a big problem with the broadband portion of the RUS telecom program… (more…)

FCC Open Meeting Focuses on Telecom Issues March 20th, 2008

Yesterday’s Open Meeting at the FCC touched on a number of issues related to broadband and telecom.   The big news from the meeting was the release of the Commission’s newest report on broadband deployment and adoption in the U.S.  As USTelecom President Walter McCormick said in a statement after the meeting:

The data released today illustrates the vibrant competition in today’s broadband market and underscores the tremendous efforts and investment that communications companies are making to deploy broadband in the U.S. The numbers also clearly show that millions of Americans are increasingly taking advantage of all that broadband has to offer. Whether for distance learning, health monitoring, protecting the environment or simply for entertainment, consumers are signing up for high-speed services at a record pace so they can reap the countless benefits that broadband delivers.

Also covered at the meeting was the adoption of an order that would bar telecom companies from entering into exclusive service contracts with the owners of multiple dwelling structures; the Commission approved a similar measure for cable video providers last year.  Look for an upcoming USTelecom Vidcast with more information on yesterday’s meeting.

And save the date! The FCC has also announced a second en banc meeting to discuss network management.  The meeting will take place at Stanford University in Palo Alto, CA on April 17.

Markey Bill “Antithetical” to Congress’ Innovation Agenda February 14th, 2008

On Tuesday, Reps. Ed Markey (D – Mass.) and Chip Pickering (R – Miss.) introduced H.R. 5353, Chairman Markey’s latest attempt to codify the nebulous concept of network neutrality. Although the bill looks different than its 2006 predecessor, it still holds significant potential to erode innovation and investment in broadband networks, which will in turn hamper efforts to bring broadband’s benefits to more Americans. USTelecom’s Walter McCormick issued a statement on the bill, calling it “antithetical to the Congressional innovation agenda.”

The Markey bill is clearly written to the foregone conclusion that regulation of the Internet is necessary today—despite the absence of real-world “problems” for the government to “fix.” This approach would needlessly inject substantial uncertainty into our economy and dampen the investment climate for continued broadband deployment in our communities. With nearly 1,400 broadband service providers in the U.S. today, consumers should be driving broadband’s evolution, not Congress. If the national objective is bringing broadband’s promise to all Americans, then we have far better options than government regulation. From innovative, public-private partnerships like Connect Kentucky to progress in the Farm Bill to target rural broadband loans to unserved areas, we are finding constructive ways for the government, local communities and private companies to work together. A return to the policies of the past would be a real setback to the broadband future. It’s our hope that Congress will maintain its focus on encouraging continued progress in our efforts to bring broadband to all Americans.