January 2014

[Commentary] Innovation, the elixir of progress, has always cost people their jobs.

In the Industrial Revolution artisan weavers were swept aside by the mechanical loom. Over the past 30 years the digital revolution has displaced many of the mid-skill jobs that underpinned 20th-century middle-class life. Typists, ticket agents, bank tellers and many production-line jobs have been dispensed with, just as the weavers were. For those, including this newspaper, who believe that technological progress has made the world a better place, such churn is a natural part of rising prosperity. Although innovation kills some jobs, it creates new and better ones, as a more productive society becomes richer and its wealthier inhabitants demand more goods and services. Optimism remains the right starting-point, but for workers the dislocating effects of technology may make themselves evident faster than its benefits (see article). Even if new jobs and wonderful products emerge, in the short term income gaps will widen, causing huge social dislocation and perhaps even changing politics.

Technology’s impact will feel like a tornado, hitting the rich world first, but eventually sweeping through poorer countries too. No government is prepared for it. If this analysis is halfway correct, the social effects will be huge. Many of the jobs most at risk are lower down the ladder (logistics, haulage), whereas the skills that are least vulnerable to automation (creativity, managerial expertise) tend to be higher up, so median wages are likely to remain stagnant for some time and income gaps are likely to widen.

[Jan 18]

The SHLB Coalition is very pleased that the Obama Administration has pledged to invest in high-speed broadband for schools and libraries. The SHLB Coalition was formed almost five years ago to promote investments in open, affordable high-speed broadband connectivity to community anchor institutions. The Internet is fast becoming the primary distribution medium for education, for research, for health services, for job training, for free expression and the free flow of information. Many residential consumers still do not have access to broadband or the skills to use the Internet, and they rely on community anchor institutions to provide computers, Internet access, training, and services that will improve their quality of life. Unfortunately, many anchor institutions are finding it difficult to obtain the affordable, high-capacity broadband connections they need to help their students and patrons obtain Internet access and develop the high-technology skills that are needed to be full participants in the modern work-force. Anchor institutions are equivalent to the “third leg of the stool” for a healthy and economically vibrant community. Schools, libraries, health care providers, community colleges, community centers, and public media all across America, especially in rural areas, need super-fast broadband connections so that ALL members of the general public can participate in the 21st century economy. We especially appreciate FCC Chairman Wheeler’s recognition that the E-rate program includes libraries as well as schools, and we look forward to continuing to work with the Obama Administration as it moves forward to modernize the E-rate program.

President Obama’s State of the Union speech focused on many themes that form the basis of library services in communities across the country.

These include:

• The need to create and bolster ladders of opportunity;
• Early learning is one of the best investments we can make in our future; and
• Connecting students to high-capacity broadband is an immediate priority for supporting 21st Century education.

All of these are core to the library mission of ensuring equitable access to information, technology, and learning in the Digital Age. It is vital for policy makers at all levels to recognize libraries are part of the solution in achieving our shared vision. Libraries are a critical partner in opening the door to equality in opportunity.
Libraries provide the vital “wrap-around” support that allows learning to happen within and beyond the school day, especially for non-traditional students. Public libraries are the leading providers of public internet access; 77 million people use public library internet access every year. Unfortunately, residential broadband remains out of reach for many people in communities across the country. Libraries are a digital lifeline for millions of people -- providing essential access to online job applications and skills training, medical and health information, and e-government services. School, public and higher education libraries ensure that people of all ages have access to the technology, the digital educational resources, and the skills necessary to participate in the collaborative and networked economy of the future. Providing all libraries and schools with high-capacity broadband internet connections is a wise investment in the nation’s future; broadband is the essential ingredient that brings all these innovations and applications to life. Senator Jay Rockefeller captured a critical concept when he talked about creating opportunity for students and their communities by providing access to the “transformative power of next-generation broadband and wireless technology.” Libraries are also committed to “expanding the success of the E-rate program. We agree with Federal Communications Commission Chairman Tom Wheeler that 'harnessing the power of digital technology is central to improving our education system and our global competitiveness.' The American Library Association and our nation’s librarians look forward to continuing our work with the Commission in its reforms to the E-rate program to ensure everyone is able to succeed and thrive online.

The Federal Communications Commission will hold its January Open Meeting, setting off the usual buzz in Telecom Policy Land and prompting everyone else to ask “what is an FCC Open Meeting and why does anyone care?” The upcoming meeting has two items of interest to Public Knowledge: an Order on the transition of the phone system to new Internet-based technologies, and an update on the 600 MHz “Incentive Auction.”

The Transition Of The Phone System Item -- Leading the agenda, the FCC will issue its first real full Commission action on the transition of the phone system. The FCC will adopt a set of principles to provide a framework for the transition – something we’ve pushed the FCC to do for almost exactly a full year. Also as part of the item, the FCC will outline the process for AT&T (or any other carrier) to apply to conduct technical trials that will inform the transition. They contentious issue that may split the FCC along party lines is whether participation in a technical trial should be mandatory for all consumers and businesses in the selected geographic area, or whether participation in technical trials will require consumers and businesses to consent to participate. PK has pushed very hard that “consumers are not guinea pigs” and participation should be voluntary. At last report, Republican Commissioners disagree and want to require all businesses and consumers in the test area to participate. The item was written before the network neutrality decision. So even though the network neutrality decision will have a big impact on the transition overall, I don’t expect any of the Commissioners to talk about it at this meeting. But they might.

The 600 MHz Incentive Auction -- The FCC will hear an update on the insanely complicated first-time-ever-in-the-world effort to construct an “Incentive Auction” where broadcasters sell back their broadcast licenses so we can sell the reclaimed wireless capacity (“spectrum”) back to cell phone companies like Verizon. The FCC won’t make any decisions, but it will hopefully enlighten everyone about the staff recommendations on critical issues. For us at PK, that means: Do we have enough space left for a robust, unlicensed TV white spaces. Will the FCC adopt a “No Piggies Rule” that ensures that all carriers, not just Verizon and AT&T, get enough spectrum to meet their future need? The update will signal the invitation to all interested parties to lobby the FCC intensely over the next few months on the critical points. So while not an official Commission decision, it will attract a lot of attention.