Jobs & Innovation on the Line in FCC ‘Open Internet’ Proceeding October 22nd, 2009

Proponents of Regulation Face ‘High Bar’ Demonstrating Public Interest in U.S. Policy Reversal

Today, the Federal Communications Commission held its monthly public meeting in which it voted to proceed with a notice of proposed rulemaking “to preserve the free and open Internet.” The following statement can be attributed to USTelecom President and CEO Walter B. McCormick, Jr.:

“The nation’s broadband service providers fully support the notion of a free and open Internet. While we look forward to constructively participating in what the chairman promises to be a data-driven process, we simply point out the irrefutable fact that all Americans enjoy today a free and open Internet in the absence of more regulation. It is equally true that no industry invests more in the U.S. economy than broadband service providers.  And, no segment of our economy created more jobs last year than the broadband-fueled information, communications and technology sector.

“All sides support an open Internet.  All sides want to see continued investment, job creation and innovation in this vital sector of our economy.  Where we differ is when it comes to whether a greater government role in the day-to-day operations of the Internet will help or hurt this important progress.

“We agree with several Commissioner’s comments that this rulemaking must look carefully across the entire Internet ecosystem, encompassing not only broadband providers, but also applications and content providers.  At the end of the day, ‘neutrality’ must, in fact, be neutral.

“Innovation—both within the network and on the edge—can and does coexist today with a free and open Internet.  Those calling for greater government intervention face a high bar in demonstrating the public interest in reversing a course that has been so successful for consumers, our economy and our national security.  We believe it would be a mistake to replace today’s open and dynamic environment with a government-managed  ‘mother may I’ approach to innovation.”

SureWest Communications President and CEO Steve Oldham Elected USTelecom Chair October 21st, 2009

Windstream’s Gardner Becomes Association Vice Chair

Chicago, IL – Steve Oldham, president and chief executive officer of SureWest Communications, has been elected to serve as Chair of USTelecom’s Board of Directors.  Representing the nation’s premier broadband providers, USTelecom’s board is comprised of top executives from the leading communications companies who help chart the direction for the industry and the association.

“Today – in the face of important regulatory and legislative decisions that will have a defining impact on our industry – our nation’s visionary broadband service providers are uniting through USTelecom to advance policies that promote the infrastructure investment and rapid-paced technological evolution customers rightfully count on,” Oldham stated.  “At this critical time in the communications industry, USTelecom members benefit from the shared knowledge and practices of new and emerging business models, and cutting-edge opportunities.  I am honored to serve as the Chair of USTelecom’s Board, and look forward to collaborating with my communications colleagues during this pivotal juncture for our industry.”

At SureWest, Oldham leads one of the nation’s most innovative communications providers, delivering superior triple-play bundles of residential and commercial services over Internet Protocol and fiber-to-the-home technologies. Under Oldham’s guidance, SureWest has transformed over the last several years from an incumbent traditional landline telephone services provider to one of the nation’s leading broadband over builders and a bandwidth leader in the markets it serves. Revenues from SureWest’s Broadband segment have surpassed traditional Telecom segment revenues for the first time in the company’s history. In the second quarter 2009, Broadband segment revenues grew 14 percent from the previous year and accounted for 66% of the company’s total revenues.

“With his transformative leadership of SureWest and extensive background on regulatory issues, Steve Oldham brings both in-depth industry insight and policy knowledge to his role as Chair of USTelecom’s Board of Directors – an outstanding combination of expertise that will benefit our organization and its members,” said USTelecom President and CEO Walter B. McCormick, Jr.

Oldham succeeds Ron McCue, Vice President and COO of Silver Star Communications.  Jeff Gardner, President and CEO of Windstream, was elected to serve as Vice Chair of the Board. Tom Gerke, Executive Vice Chairman of the Board, Regulatory and Human Resources of CenturyLink, will serve as Secretary, and Tom Tauke, Executive Vice President – Public Affairs, Policy and Communications of Verizon, will serve as Treasurer.

USTelecom Makes Top 10 Social Media List October 15th, 2009

President Barack Obama’s campaign and time in office make clear that social media tools have a dynamic and persuasive place in today’s digital democracy.  But how do top Washington, D.C.-based trade associations and advocacy groups measure up on the social media spectrum?  A new report finds that while most organizations inside the beltway are reluctant adopters of social media, organizations like USTelecom  and our online broadband community NextGenWeb are embracing broadband-driven new media tools – a fact that earned USTelecom a spot on the report’s top-ten list for social media use.

While 75 of the organizations reviewed use four or fewer of the leading 14 social media tools and platforms, USTelecom garnered the top-ten spot for its use of seven tools.  From blogging on broadband trends and policy issues to communicating with followers and fans on Twitter and Facebook, and much more, USTelecom has established a social media presence that utilizes the cutting-edge broadband tools of our day.  USTelecom is honored to be ranked among the top-ten social media users in the Washington, D.C. association and advocacy arena, and we’ll keep the tweets and other innovative communications coming.

Frontier Communications Joins USTelecom October 7th, 2009

Frontier Communications, one of the nation’s largest incumbent local exchange carriers, has joined USTelecom.

The following statement is from Ron B. McCue, Chief Operating Officer of Silver Star Communications, and Chairman of the Board of Directors of the United States Telecom Association:

“USTelecom is pleased to welcome Frontier Communications – a key industry leader that will be an important voice as our member companies work together to advance U.S. broadband policy.  As one of the nation’s largest communications company providing services to rural areas and small and medium-sized towns and cities, Frontier offers an array of services – both wired and wireless – that help communities grow and prosper and bring home the vast benefits of broadband.  Today, U.S. broadband policy is drawing national focus, and Frontier joining USTelecom underscores our industry’s commitment to unleashing the brightest broadband future for our nation.  Broadband has the power to galvanize the U.S. economy and offer unprecedented economic, health care and educational opportunities for America, especially its unserved and underserved areas, from telecommuting to telehealth to distance learning.  Frontier currently serves markets in 24 states and is critical to – and committed to — connecting consumers with these opportunities.  We look forward to working together to speed broadband’s benefits to all corners of America.”

Broadband for America September 28th, 2009

Our nation is entering a critical period that will likely shape the broadband future for many years to come.  As I write this, we are 142 days away from the Federal Communications Commission’s deadline to deliver to Congress a National Broadband Plan “to ensure that all people of the United States have access to broadband capability.”

From network investors to applications innovators to community organizations to health care, education and other stakeholder groups, diverse Americans are engaging in an unprecedented dialogue about how to make the most of the high-speed Internet’s vast potential for our economy and our lives.

We have a strong foundation to build on today.  Broadband has achieved mass-adoption more rapidly than any other technological breakthrough from color television to radio to personal computers and even cell phones.  Two out of three Americans have active broadband subscriptions in their homes, and more than 4 out of 5 U.S. consumers have multiple choices for their broadband service.

Encouragingly for the future, the U.S. also leads the world today in broadband infrastructure investment, with the nation’s nearly 1,400 high-speed Internet providers investing between $50 billion and $60 billion annually to continually expand and upgrade these essential modern networks.

Where do we go from here?  We find innovative solutions that help us finish the job of connecting the final digital frontier—remote pockets of our geographically vast nation.  And, we come together as a country—the public and private sector, community groups and individual citizens—to find collaborative strategies that help more Americans cross the digital divide—not only having access to this vital infrastructure, but the ability to utilize its vast potential to improve their lives.

For these reasons, USTelecom is proud to stand with 100 companies and organizations—innovators, investors and diverse stakeholders in the connected future—in the Broadband for America coalition.  Together, we are “working to bring the Internet to everyone.”  It’s a straightforward mission, and an all-important goal for our nation—and it’s time we came together to achieve it.

You can learn more about our efforts at BroadbandforAmerica.com and even join the discussion here.  This is a critical moment for U.S. broadband—and the extraordinary potential it holds for our nation’s economy and people.  It is my hope—and my belief—that history will show that when it mattered most, we united as a country, worked constructively together and delivered on our ambitious, collective goal of truly delivering broadband for America.

USTelecom’s McCormick Makes “GTB Power 100” September 28th, 2009

Internationally, who are the most influential people in the telecommunications industry?
According to the 2009 “Global Telecoms Business Power 100,” USTelecom’s President and CEO Walter B. McCormick Jr. ranks number 57 on the list.

McCormick was lauded for his work on behalf of U.S. telecommunications companies, as well as for his leadership of USTelecom, “the broadband association,” which was noted for staying in step with the times. McCormick joins other industry luminaries on the “Power 100” list, including USTelecom members, such as AT&T’s Chairman, CEO, and President Randall Stephenson (#2), and Verizon’s Chairman and CEO Ivan Seidenberg (#3).

Congratulations to Walter McCormick on this well-deserved recognition for his contributions to USTelecom and the telecommunications industry as a whole.

USTelecom Statement on Google Voice Call Blocking September 25th, 2009

Today, AT&T filed a letter with the Federal Communications Commission pointing out that Google Voice is blocking calls to certain numbers that would incur access charges to Google.  Traditional telecom and wireless companies are required by law to connect these calls, despite the exorbitant access charges often associated with them.  The AT&T letter points out the need for a level and pro-investment playing field for all competitors in today’s broadband world.

The following statement is from Walter B. McCormick Jr., President and CEO of USTelecom:

“The hubris of Google’s ‘do as I say, not as I do’ approach to public policy would be laughable if it were not so serious.  In offering voice service, and then engaging in call blocking – effectively assuming the power to decide who its customer can call and what content they can access – the nation’s number one promoter of increased broadband regulation has arrogated to itself freedom from existing telecommunications regulation, a personal exemption from the FCC’s internet principles, and a pass on the public interest in competitive parity. If the FCC’s rules, principles and precedent are to have any meaning, it is imperative that they be applied equally.”

USTelecom Statement on Open Internet NPRM September 21st, 2009

Today, FCC Chairman Julius Genachowski announced his intent to issue a Notice of Proposed Rulemaking at the Commission’s October meeting that could significantly expand the role of the federal government in the day-to-day operations of the Internet.

USTelecom President and CEO Walter B. McCormick Jr. released the following statement:

“We were encouraged to hear the Chairman’s support of case-by-case enforcement and, more generally, by his assurances that we will have an open, inclusive and data-driven proceeding and that the details haven’t been pre-determined.  We do, however, remain concerned about the law of unintended consequences and a rulemaking that potentially goes too far.  All Americans enjoy an open and free Internet today.  And, I believe we all share the goal of ensuring our nation has a robust and innovative Internet in the future.  The broadband industry is a bright spot for deployment, employment and economic growth, and we are committed to doing business in ways that are consistent with reasonable network management and transparency.  We will engage in this process, and we appreciate the Chairman’s remarks today that he welcomes this participation.  We will proceed with an open mind, but we also believe the bar needs to be set very high when it comes to additional government interventions that could potentially disrupt the tremendous innovation and investment that have defined U.S. broadband for the past several years under the FCC’s existing open Internet principles.”

Competition Thriving in High-Capacity Services Market, Report Reveals July 16th, 2009

For the array of providers offering high-capacity services that connect businesses, web sites, cell towers and companies, a new USTelecom report makes clear that competition, investment and innovation is alive and well in the marketplace.  The analysis,  “High-Capacity Services: Abundant, Affordable and Evolving,” which compares data from telecom, cable, wireless and other broadband providers, shows a robust competitive landscape that affirms the pro-investment and innovation policies currently in place.  The facts also demonstrate that adopting policies that impose drastic price controls, as some suggest, is unwarranted and counter-productive to our national agenda of fostering economic growth and fueling American innovation.

Key findings of the report include:

The high capacity service marketplace continues to attract new growth and investment.  In fact, the report demonstrates a 15 to 20% annual growth rate with fiber-based, cable, and fixed wireless competitors alike expanding high-capacity services for business customers.

In the top 10 metropolitan areas, there is an average of more than 9 fiber competitors.  And, in the top 50 metropolitan areas, there are an average of six fiber competitors.  Despite the challenging economy, competing carriers are answering consumer demand and extending their networks.

Increased wireless usage is fueling competitive growth in the wireless backhaul market, which is projected to triple in the next two to four years.  However, this growth will rely on substantial new investment, which pro-growth policies will help stimulate.

Special access prices have continued to fall since pricing flexibility was granted in competitive markets.  Numerous independent studies (including GAO, 2006 and NRRI, 2009) confirm that prices for special access declined from 2001 to 2007.  New data in this report confirms that pricing trend, as prices have continued to drop.

High capacity deployment and innovative offerings continue to proliferate. The fact that diverse competitors continue to increase their offerings despite declining prices illustrates the growth and intensity of competition in the high-capacity services marketplace.

The bottom line: this report offers compelling evidence that an extraordinary level of competition and choice is the hallmark of the current high-capacity services marketplace. It also suggests that, with further data, which competing firms have refused to disclose, the FCC could determine once and for all that competition is thriving among high-capacity service providers.

McCormick Testifies Before House Subcommittee on Broadband July 9th, 2009

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.

Read McCormick’s oral and written testimony.