January 2015

Study Highlights Silicon Valley’s Powerful Economic Mix

Silicon Valley, for all its costs and social woes, is still a technology industry paradise, according to a report by a group called the Silicon Valley Competitiveness and Innovation Project.

The report looked at a total of 23 indicators of economic strength and compared Silicon Valley with five other regions across the United States. The group said it was looking for a strategy to enhance innovation, and to ensure that residents had access to the jobs in key industries. Based on the strength of the findings, the strategy should mostly amount to “don’t stop.” The study, which was supported largely by local corporations, did call for some changes, though: more government spending on education, less restriction on immigration and fewer regulations on business. It did not say what local regulations were particularly burdensome. By this group’s reckoning, the valley had 26 percent of the nation’s innovation employment, well ahead of Boston, which came in second with 18 percent of the total. The other areas were Seattle (16.5 percent), Austin (16.4 percent), Southern California, (15 percent) and New York (14 percent.)

Senate Commerce Committee
Wednesday, January 21, 2015
02:30 p.m.
http://www.commerce.senate.gov/public/index.cfm?p=PressReleases&ContentR...

The hearing will feature non-government expert witnesses testifying about current authorities of the Federal Communications Commission (FCC) and Congress’ options to update outdated laws for the Internet Age.

Eleven principles for bipartisan rules in the Internet Age:

  1. Prohibit blocking
  2. Prohibit throttling
  3. Prohibit paid prioritization
  4. Require transparency
  5. Apply rules to both wireline and wireless
  6. Allow for reasonable network management
  7. Allow for specialized services
  8. Protect consumer choice
  9. Classify broadband Internet access as an information service under the Communications Act
  10. Clarify that Section 706 of the Telecommunications Act may not be used as a grant of regulatory authority
  11. Direct the FCC to enforce and abide by these principles


Remarks by President Obama on Promoting Community Broadband

I’m in Cedar Falls (IA) to talk about how we can give more communities access to faster, cheaper broadband so they can succeed in the digital economy. Right now, about 45 million Americans cannot purchase next-generation broadband. And that next generation of broadband creates connections that are six or seven times faster than today’s basic speeds. And by the way, only about half of rural Americans can log on at that super-fast rate. But here’s the catch: In too many place across America, some big companies are doing everything they can to keep out competitors.

So today, I’m saying we're going to change that. If there are state laws in place that prohibit or restrict these community-based efforts, all of us -- including the Federal Communications Commission, which is responsible for regulating this area -- should do everything we can to push back on those old laws. I’m absolutely confident that if we just give Americans the tools they need, if we just help lay the foundation and allow them to access the amazing opportunities and technologies at this moment in world history, we’re not just going to continue recovering from a bad recession, we’re going to ignite the next generation of American innovation.

President Obama broadband moves stoke tension with GOP

President Barack Obama is delving more deeply into broadband issues as he tries to put his stamp on the nation’s Internet policy -- setting up more conflict with Congressional Republicans and telecommunications giants that dominate the industry.

President Obama's speech backing efforts to spur city-run broadband networks as an alternative to private-sector providers like Comcast and Verizon incensed Republicans who see it as just another attempt to over-regulate the industry with a Washington power-grab. “Each day we see more policies coming out of this White House that attempt to wield greater power and control for the federal government,” said Sen Deb Fischer (R-NE). “We don’t need unelected bureaucrats like Federal Communications Commission Chairman Tom Wheeler dictating to our states what they can and can’t do with respect to protecting their limited taxpayer dollars and private enterprises,” Rep Marsha Blackburn (R-TN) said.

Sen Markey to FCC: Preempt Laws Limiting Municipal Broadband

Sen Ed Markey (D-MA) saluted the White House for President Barack Obama's announced initiatives to boost high-speed broadband deployment and adoption, including "echoing" Sen Markey's call back in June that the Federal Communications Commission "eliminate barriers to communities building out their own broadband infrastructure."

“Local communities should have the opportunity to decide for themselves how best to promote competitive broadband service,” said Sen Markey. “What the broadband market needs today are more options and greater local choice, not barriers that prevent cities and towns from participating fully in the global economy," Sen Markey said. "Broadband communications networks are key to economic growth and competitiveness, both at the local and national levels. I once again urge the FCC to use its authority to lift restrictions and ensure municipalities have the power to make decisions about their broadband infrastructure.”

Commissioner Michael O'Reilly on Municipal Broadband

It is clear that the Obama Administration doesn’t believe in the independent nature of the FCC. It is disappointing that the FCC’s leadership is without a sufficient backbone to do what is right and reject this blatant and unnecessary interference designed to further a political goal. Substantively, this missive is completely without statutory authority and would be a good candidate for court review, if adopted. In reality, this debate is about preempting a state’s right to prevent taxpayer rip-offs. Municipal broadband has never proven to be the panacea that supporters claim and the Administration now boasts. Instead, we have seen a long track record of projects costing more than expected and delivering less than promised.

FCC Commissioner Ajit Pai Reacts to Calls for the FCC to Preempt State Laws Governing Municipalities

As an independent agency, the FCC must make its decisions based on the law, not political convenience. And US Supreme Court precedent makes clear that the FCC has no authority to preempt state restrictions on municipal broadband projects. The FCC instead should focus on removing regulatory barriers to broadband deployment by the private sector.

ITIF Disagrees with Broadband Direction Laid Out by President Obama

ITIF disagrees with the direction that will be laid out by President Obama. While municipal networks can be a feasible mechanism to bring broadband to unserved areas, they are generally not how policymakers should go about enabling competition in areas already served by broadband....The notion that American businesses are at a competitive disadvantage because of our broadband speeds is totally inaccurate...This announcement, combined with the President’s push towards Title II to regulate broadband providers as public utilities, represents a dramatic reversal in policy that is totally unwarranted by the facts. No doubt there is a sizable populist push for these changes, making the President’s initiative good politics, but bad policy.

FCC To Vote on Municipal Broadband Petitions on Feb 26

Federal Communications Commission Chairman Tom Wheeler plans to put an order resolving two petitions to preempt state laws limiting municipal broadband on the Feb 26 meeting agenda. He is likely to have three votes for granting the petitions and preempting the laws. Chairman Wheeler has already signaled that he thinks the FCC should use its preemption authority to clear away state laws he sees as incumbent ISP-backed efforts to prevent competition.