October 2009

Information Technology and Innovation Foundation
1101 K Street, NW, Suite 610A
Washington, DC 20005
Tuesday, November 5, 2009
9:00 AM - 10:30 AM
http://www.itif.org/rsvp/event.php?id=1

If the United States is to achieve the promise of the broadband revolution it will need to ensure that a much larger share of Americans are subscribers. And while policies to spur the deployment of broadband networks are important in achieving that goal, policies to spur adoption are even more important. Please join ITIF to discuss the findings of a new study "Demand-Side Programs to Stimulate Adoption of Broadband: What Works?" by Professors Janice Hauge and James E. Prieger. In addition, ITIF will be releasing a report "Policies to Increase Broadband Adoption at Home" that details a number of policy proposals that could significantly spur an increase in broadband adoption.

Moderator:
Robert Atkinson
President, The Information Technology and Innovation Foundation

Presenter:
James Prieger
Associate Professor of Public Policy, University of California, Berkeley

Respondent:

John Horrigan
Broadband Task Force, Federal Communications Commission

See Policies to Increase Broadband Adoption at Home



Network Neutrality could lead to inexpensive, high-quality broadband services for businesses

Federal Communication Commission Network Neutrality rules have the potential to save businesses money in ways that range from heading off potential new Internet access charges to opening up low-cost, high-bandwidth services distinguished by superior quality of service. While the FCC won't make final decisions until next spring at the earliest, its rule-making agenda that was approved Thursday prompts speculation on what the outcome might yield, and that includes the possibility of high-quality access at a low price. The agenda includes examination of managed or specialized services such as IP TV that run over the same networks as general broadband Internet services. If the FCC decides to formally classify these specialized services as information services, existing communications law would allow for a rule requiring providers to wholesale the component parts of the service to competitors, says Tom Nolle, president and CEO of tech consultancy CIMI Corp. This was formerly the practice with information services, but the FCC changed its mind several years ago. But language in the proposed rule suggests the commission might revisit the old regulation. "It could be the start of a regulatory reversal," Nolle says.

Fighting net neutrality, telecom companies, outside lobbyists, cluster contributions to members of Congress

While the Federal Communications Commission considers the first steps toward ensuring net neutrality -- ­making certain that broadband providers do not discriminate against high traffic sites -- ­the telecom firms that would be affected by the rules and their trade groups have been swamping Congress with a one-two punch of campaign contributions from the companies and their registered lobbyists. Some 244 members of Congress were the beneficiaries of these contribution clusters­totaling more than $9.4 million­from January 2007 to June 2009, an investigative collaboration of the Sunlight Foundation and the Center for Responsive Politics has found. Telecom interests and their lobbyists engaged in more clustered giving than any industry save pharmaceuticals. Overall, the top recipient of the largess was Sen. John McCain (R-AZ), who took in $894,379 (many of those contributions were directed to his 2008 presidential campaign). The telecom interests also targeted House and Senate leaders: Senate Majority Leader Harry Reid (D-NV) was next with $341,089, followed by House Majority Leader Steny Hoyer (D-MD) ($275,275), Senate Finance Committee chair Max Baucus (D-MT) ($248,999) and Senate Minority Leader Mitch McConnell (R-Kentucky) ($198,972).

Net Neutrality -- The Morning After

[Commentary] It's The Morning After for Big Telecom, and it ain't pretty. For the past dozen years or so, under deregulatory Democrats and compliant corporate Republicans, Big Telecom has written telecommunications policy, starting with the Telecom Act in 1996 and continuing in a pretty much unbroken streak, until very recently. They are used to winning, and winning big. And Thursday, they lost as the Federal Communications Commission approved a proceeding to write Network Neutrality rules. This morning, they are sitting around at the teleconferences and meeting rooms saying, "I can't believe that Genachowski actually did it. He actually did it." Meaning that FCC Chairman Julius Genachowski, barely four months in office, carried out a campaign pledge that he helped write to secure for us and our posterity an open, non-discriminatory Internet. Of course, all of their legions of lawyers are going over the Net Neutrality notice with a fine-tooth comb, telling their bosses how this language really is a win, and how that loophole can be exploited. They may even be right. There is some language in the proposed rules that Big Telecom should like.

NAACP and HTTP Call for Public Knowledge to Repudiate Offensive Statements Regarding Minority Organizations

Hilary Shelton, Director, Washington Bureau & Vice President for Advocacy, of the National Association for the Advancement of Colored People (NAACP) and Sylvia Aguilera, Executive Director of the Hispanic Technology and Telecommunications Partnership (HTTP), delivered a letter to Gigi Sohn, President and Co-founder of Public Knowledge. The minority advocacy organizations issued the joint letter to express their indignation at offensive statements made in a recent blog by Art Brodsky, PK's Director of Communications, regarding minority organizations that have weighed in opposition to Public Knowledge in the current debate regarding network neutrality. Brodsky wrote: "Perhaps the saddest part of the whole affair to date is the role of groups representing minority populations. For whatever reason ­ whether they believe what the Big Telecom companies tell them or not ­ many organizations seem to land on policies that hurt their constituencies and fall into ludicrous traps one suspects are not of their making." The NAACP and HTTP countered saying, "To make the blanket assertion that minority groups "fall into ludicrous traps" when taking positions on policy is to claim that minorities, and the groups they form to advocate on their behalf, are incapable of intelligently participating in sophisticated debates. Such statements are irresponsible, prejudiced and lack qualification. To further suggest that the concerns of minority civil rights organizations are being directed to influence the only minority sitting on the FCC is indeed ludicrous. It is categorically unacceptable to claim that minority advocacy groups are colluding with certain interests to exploit the ethnic self-identification of government officials who happen to be minorities in leadership positions at the FCC." Public Knowledge President Gigi Sohn acknowledges the rhetoric got overheated in the run-up to the FCC vote Thursday to launch a network neutrality rulemaking, and wants a more "civil dialogue" on both sides.

Hutchison Takes Wait and See Approach on Network Neutrality Rules

Sen Kay Bailey Hutchison (R-TX), ranking member of the Senate Commerce Committee and candidate for governor of Texas, is taking a trust but verify approach to proposed new Network Neutrality rules. Soon after Federal Communications Commission Chairman Julius Genachowski announced his plan to expand and codify the rules, Sen Bailey threatened to introduce a bill to block funding for them, but held off after the chairman's office reached out to her. She suggested Friday that the bill is still an option. But she also said she would first need to closely review the text of the FCC's proposed rules. Sen Hutchison plans to leave the Senate in the next month to focus on challenging Texas's incumbent Republican governor, Rick Perry.

Google chief favors Network Neutrality but is wary of regulation

In Washington for the President's Council of Advisors on Science and Technology meeting, Google chief executive Eric Schmidt said favors Network Neutrality, but only to a point: While the tech player wants to make sure that telecommunications giants don't steer Internet traffic in a way that would favor some devices or services over others, he also believes that it would be a terrible idea for the government to involve itself as a regulator of the broader Internet. "It is possible for the government to screw the Internet up, big-time," he said. Google is strong enough as a company to weather any possible outcome on the issue, he said. But what he worries about "is the next start-up." Schmidt doesn't come across as Capitol Hill's biggest fan. Google is a tech company that loves facts, metrics and algorithms, after all. Schmidt might prefer a political system that dealt in such quantities.

Why You Should Care About Net Neutrality

[Commentary] Now it's time to pay attention, because this week the Federal Communications Commission turned up the heat on a long-simmering debate known as "Internet neutrality." So why should you care? If you use the Web or instant messaging -- or Google or Facebook or Twitter or use VoIP to make a call, to take just several popular examples -- you are enjoying the fruits of the Internet's history as an open and "neutral" network. Individuals or small start-ups launched each of these applications and services on a level playing field. That's what makes the Internet different from other media. Broadband companies provide consumers with "on ramps" to the Internet. But unlike other media, they do not try to control what gets carried across their networks. They are, for the most part, agnostic as to which online applications or service their subscribers' access.

USTA, NCTA Question Data from Broadband Stimulus Applicants

In a letter to National Telecommunications and Information Administration head Larry Strickling and Rural Utilities Service Administrator Jonathan Adelstein, the trade associations claim it is difficult, and in some cases impossible, for their members to examine and respond fully and completely to broadband stimulus applications within the 30-day deadline set by the agencies. Ultimately, they are concerned that the data before the agencies may inadvertently provide an inaccurate or incomplete picture and potentially compromise the integrity of the process. They ask that action be taken quickly to address their issues, and that service providers be given a reasonable period of time to review the new information once the changes have been made.

Economists Visit FCC to Discuss National Broadband Plan

On October 9, 2009, several academic and government economists met with members of the Federal Communications Commission to discuss platform competition, network management disclosure policies, theoretical and practical implications of various pricing structures for broadband access, and consumer demand for broadband both now and in the future. Economists in attendance included Judith Chevalier (Yale), Joseph Farrell (Federal Trade Commission and UC Berkeley), Shane Greenstein (Northwestern), Gregory Rosston (Stanford), Marius Schwartz (Georgetown), and Carl Shapiro (Justice Dept. and UC Berkeley).