March 2010

MAP Gives FCC an A+

The Federal Communications Commission gets an A+ for delivering a vision that could bring low-cost, world-class high-speed Internet access to all communities, fostering competition and consumer choice in broadband services. But the real test begins now, and the final grade will depend on the Commission's execution of future proceedings that will be required to transform the National Broadband Plan into reality.

MAP highlights the following recommendations:

  • The creation of the Connect America Fund, which will move federal support dollars towards broadband networks rather than legacy, voice-grade telephone infrastructure.
  • The collection and analysis of more comprehensive and reliable information on broadband pricing, performance, and competition in specific market segments. Better data will lead to more efficient policymaking that will promote competition and lower prices, especially in underserved regions.
  • The support of new wireless technologies for more efficient use of spectrum, especially through allocation of spectrum for unlicensed use and opportunistic access. Policies that support the development of innovative spectrum access become increasingly critical with the growing use of mobile technologies.
  • The development of programs to support broadband for civic engagement by, for example, increasing government transparency and creating federal support to allow state and local governments to own and operate telecommunications services.
  • The promotion of innovation in broadband and online video services, by ensuring competition in the market for cable set-top boxes and other devices that may be used to access broadband applications and services including video content.

National Broadband Plan Signals Progress But Hard Choices Ahead

Free Press Executive Director Josh Silver made the following statement:

The FCC's National Broadband Plan represents a decisive break from the policies of the Bush administration. The Plan makes clear that high-speed Internet access has become a 'must have' critical public service like water, electricity and telephone service. Closing the digital divide is now a national priority. The agency staff should be commended for pouring countless hours of hard work into preparing this blueprint for America's broadband future.

We strongly support the FCC's goals of bringing world-class speeds and affordable prices to American broadband consumers. The commitment to universal access and near-universal adoption in the next decade is the most important infrastructure challenge of this era. Ambitious benchmarks to put the United States back among the world's leading broadband nations are exactly what we need at a time of economic uncertainty. We are especially pleased to see policies focused on the digital have-nots and a clear commitment to erasing the digital divide.

But there are no easy paths to reach these goals. To put the market to work for American consumers, the FCC will need to foster competition to drive down prices and drive up speeds. This will require confronting the market power of the cable and telephone giants that control the broadband market. The problems caused by the lack of competition are what led the Congress to order up a National Broadband Plan. While the FCC does take some important steps toward a new framework for competition policy, many of the critical questions are deferred for further review. We hope the plan will confront the competition problems directly, and will include specific policies to put consumers first. Implementing the policies needed to bring every American affordable, robust broadband will require courageous leadership and a willingness to stand up to narrow corporate interests.

Media & Democracy Coalition Pleased with Broadband Plan

Beth McConnell, Executive Director of the Media & Democracy Coalition, issued the following statement:

Federal Communications Commission took the first of many important steps in bringing the promise of broadband to all U.S. consumers by releasing a summary of the National Broadband Plan. The Commission set ambitious goals in the Plan to spur deployment of broadband infrastructure, as well as empower consumers with information, training and tools to make use of the Internet.

We are particularly pleased to see the Commission recommend changes to the Universal Service Fund that will re-allocate its resources to broadband deployment and adoption. We also look forward to hearing more on how the Commission will free up additional spectrum for unlicensed use, an idea MDC members have long pushed.

Given the important role local government has played in spurring broadband deployment, the Commission's affirmation in support of the deployment of municipal networks in encouraging.

The Media and Democracy Coalition also applauds the Commission for recommending connecting anchor institutions such as schools, libraries and hospitals to high-capacity broadband, which provide critical community access points.

Wireless Industry Pleased with Broadband Plan'

CTIA President Steve Largent issued the following statement:

CTIA and our member companies are extremely pleased that spectrum is recognized as being pivotal to the National Broadband Plan. We appreciate the FCC's and the Broadband team's focus on making '500 MHz of spectrum for broadband within 10 years, of which 300 MHz should be made available for mobile use within five years.' Based on the executive summary, it is clear the Broadband team recognized the importance of the mobile Internet to the economy and to meeting many national priorities. We applaud their commitment to providing everyone equal access to the most advanced wireless communications.

We look forward to working with the Chairman and Commissioners, the Broadband Team, Congress and other policymakers to ensure Americans have continued access to and benefit from the most competitive and innovative wireless industry in the world.

USTelecom Responds to Broadband Plan

Walter B. McCormick Jr., President and CEO of USTelecom, said:

We welcome this plan, and commend Chairman Genachowski, Blair Levin, and the FCC staff for undertaking this important initiative. We applaud the comprehensive process that they have employed, the outreach that they have made, and the dedication that they have shown. The goals of expanded broadband deployment, increased adoption, improved quality-of-life and American leadership in the information age are the right goals for our nation. We are pleased by the Commission's recognition of the importance of intercarrier compensation and universal service support to the financial fundamentals of the broadband industry, and by its recognition that it will be through private sector investment and innovation that America's broadband deployment goals will be met, that consumers will be benefited by meaningful competition and choice, that jobs will be created, and that our national objectives will be achieved. We look forward to reviewing the plan in detail, to commenting on the specifics after we have had an opportunity to analyze and digest them, and to continuing to work with the Commission.

Getting Started: Reducing Digital Exclusion, Promoting Digital Evolution

Over the course of the past year the Consumer Federation of America has urged the Federal Communications Commission to take a pragmatic, real world approach to the urgent national problem of making a world-class broadband network truly universal in America. With one-third of U.S. households now three generations behind in technology adoption and the U.S. lagging other advanced industrial nations, achieving universal service would not only be an immense benefit to those households, it would provide a powerful boost to the economy.

We see today's National Broadband Plan report to congress as a significant first step in the right direction. It strikes a good balance between what needs to be done in the long-term and what can be done in the immediate future. Given the complete absence of policies to address the digital divide and promote competition in broadband in the past decade, this is an ambitious agenda and a good starting point for responding to the challenge confronting the U.S. communications network.

The fact that the Federal Communications Commission intends to quickly launch dozens of proceedings to implement these first steps is good news. In a democracy of 300 million people we must live by the rule of law. To change society, we must change the rules. To change the rules, we must have rulemakings that comply with the Administrative Procedures Act. Above all, that means the public should have the chance to comment on the actual rules that will be implemented. It would have been inappropriate for the FCC to present detailed policy prescriptions without a full hearing record developed in individual proceedings. There will certainly be lots of devils in the details, but the more rulemakings and the sooner they get started, the better.

FCC's National Broadband Plan: 'The Second Wave of Electricity'

In what some say is akin to "the second wave of electricity" in America, the Federal Communications Commission wants to expand and increase high-speed Internet access nationwide while encouraging competition among service providers.

"This is a breath of fresh air from the last eight years, when [the FCC] was chasing after porn," said Public Technology Institute Executive Director Alan Shark. "Finally we're looking at the most important thing for the success of the economy going forward."

The U.S. needs to bring its broadband capabilities up to speed to retain a level of competitiveness. In doing so, "broadband gaps" need to be filled so that all populations, most notably the disabled, Native Americans, students and the unemployed, are connected, the FCC said. Also lacking is the nation's ability to harness "broadband's power to transform delivery of government services, health care, education, public safety, energy conservation, economic development and other national priorities," the FCC press release said.

Just how the recommendations will play out on the state and local levels remains unclear. FCC spokesman Mark Wigfield said the plan's recommendations are directed at the federal level, and best practices would eventually trickle down to the state and local levels.

New Zealand Government outlines rural telecommunications plan

The New Zealand cabinet has signed off on proposals for the roll out of high speed broadband in rural areas and the reform of the Telecommunications Service Obligations (TSO). Communications and Information Technology Minister Steven Joyce says in a statement that the plans will lead to a major step-change in rural broadband.

Joyce confirms that 97 percent of rural households will have access to broadband services of at least 5Mbit/s; with the remainder reaching at least 1Mbit/s. A big part of the plan will be connecting fibre directly to rural schools, one of the most concentrated areas of broadband demand, Joyce says. "The government's rural broadband initiative will help deliver fibre connections to 97 percent of schools across the country and 99.7 percent of students. The remaining most remote schools will achieve speeds of at least 10Mbit/s. Joyce says that the only significant change to the rural broadband initiative was to up-weight the importance of the community connection objectives, relative to the schools part of the initiative.

Charter's Stimulus Plan: Free Broadband to Low-Income St. Louisians

A Q&A with Charter Communications chief marketing officer Ted Schremp. The cable company is opening a second front in the battle to boost broadband adoption. Last week, the company said it is launching a two-year program, in tandem with One Economy, to provide free broadband service, training and equipment to 1,000 low-income residents of its hometown of St. Louis, Mo. It is already a partner in the cable industry's Adoption-Plus initiative to provide half-price service to homes with middle-school kids, but that initiative is contingent on government-funded education programs, while Charter's free service will be ready to roll in weeks.

British Internet Legislation Causes Rising Tension

A package of legislation designed to combat copyright infringement in Britain is stirring more controversy as it moves through Parliament. The Digital Economy Bill came about in part after the entertainment industry in the U.K. charged it has been damaged by the illegal downloading of content on peer-to-peer file-sharing networks. The U.K. government said last year that file sharing cost its music industry £180 million (US$270 million), citing figures from the British Recorded Music Industry. The Digital Economy Bill received its third reading in the House of Lords on Monday, the last chance in which the members of the unelected upper house of Parliament can change parts of the bill before it moves to the House of Commons.