TPRC Panelists Discuss Backhaul Issues' Impact on Broadband Expansion

Mobile broadband is the fastest growing segment of the broadband market. According to Jonathan Banks, who directs policy development for the telecommunications industry association US Telecom, the number of wireless broadband users is expected to grow 130% between 2008 and 2012. These wireless networks rely on special access networks to connect cell towers to the network. This market also consists of financial institutions sending customer information from branches to main offices, as well as businesses processing credit card transactions. The majority of these networks are run by incumbent local exchange carriers, which are often the sole provider of "special access" services, and which allows them to charge high rates for a relative low level of speed. The average connection speed is around 1.5 Megabits per second (Mbps) with a monthly cost of $390. Panelists and participants in the event gravitated toward the position that the solution to this problem seems to be increased regulation by the Federal Communications Commission.