June 2015

[Commentary] The Internet is the greatest free-market innovation in history. And if we want it to thrive, our government needs to refocus its efforts on what really benefits consumers — namely, more broadband investment, deployment and competition.

• We need policies that will make it easier to deploy high-speed broadband. The building blocks of an Internet network (things like laying optical fiber in the ground) are high-cost projects, often requiring extensive planning and years of waiting for government approval. Long waits can deter some companies from acting at all, especially in less populous states. We need to streamline the permitting process.
• Next, the federal government needs to modernize its rules to unleash high-tech connectivity. One example is the Universal Service Fund, an $8.7 billion fund that is supposed to support companies that promise to deploy broadband in rural America. But the current program is still rooted in the telephone era, and gives companies funding for broadband based only on the telephone lines they serve. This effectively penalizes any rural company that offers customers broadband as a stand-alone service. We need to fix the Universal Service Fund and give rural consumers the same options for broadband as every other American.
• Finally, we need policies to encourage private investment. After all, broadband providers invested $75 billion in their networks last year, nearly $66 billion more than the federal government. That means we need a framework that reduces regulatory uncertainty so that private companies can invest with confidence.

[Commentary] Remember how President Barack Obama failed to enforce his “red line” in Syria? Well, it’s happening again -- this time in cyberspace. On April 1, President Obama drew a cyber “red line” in the sand when he signed an executive order authorizing sanctions against individuals or entities who carry out cyberattacks or cyberespionage against the United States. “Starting today,” President Obama declared, “we’re giving notice to those who pose significant threats to our security or economy by damaging our critical infrastructure, disrupting or hijacking our computer networks, or stealing the trade secrets of American companies or the personal information of American citizens for profit.” “As of today, the United States has a new tool to protect our nation, our companies, and our citizens ,” President Obama declared, “and in the days and years ahead, we will use it.” Except he’s not using it.

In the days after he spoke those words, the United States discovered that Chinese government hackers had broken into the computer networks of the Office of Personnel Management -- stealing the personnel records of as many as 18 million Americans. The failure to protect this information is appalling. But the failure to respond to an attack of this magnitude is inexcusable. In April, President Obama warned that “from now on” his Administration would “go after bad actors” who carry out cyberattacks on the United States. China responded by launching the most audacious attack in history. So, Mr. President, what are you going to do about it?

Google has been given until mid-August to head off European Union charges of abusing its market power in a dozen EU countries and stave off a possible billion-euro fine. The European Commission in April accused Google of distorting search results to favour its shopping service, hurting both rivals and consumers. "We have asked the European Commission for additional time to review the documents they've provided us. The Commission has extended our response deadline to Aug. 17," Google spokesman Al Verney said. Apparently, the company was earlier told to respond by July 7. Neither the company or the EU competition authority had given the first deadline, but Commission spokesman Ricardo Cardoso confirmed the extra time given to Google. "Google asked for additional time to review the documents in the case file," he said.

Apparently, in its charge sheet to the company, the Commission said it would "set the fine at a level sufficient to ensure deterrence" if Google was found guilty. It said the penalty would be based on Google's Adwords revenue generated from European users, gross turnover from its comparison shopping service in the 12 EU countries and gross revenue from queries on Google search.

What is happening today is a great example of local communities and their leaders taking control of their broadband future. Westminster (MD) has chosen to engage in a private-public partnership with Ting, which will be providing the city with what they call "crazy fast fiber Internet." It's hard to believe that what you have built is the first community constructed fiber network in the Mid-Atlantic region...

Please be assured that the Federal Communications Commission is an ally to Westminster and all communities looking to offer their citizens more competitive choices for true high-speed Internet. We are committed to cutting through bureaucratic red tape to accelerate and lower the costs of broadband deployment. For example, our recent Open Internet Order eased access to utility poles and other conduits necessary to broadband deployment. We also approved petitions from the leaders of Chattanooga (TN) and Wilson (NC) to pre-empt the restrictive state laws hampering investment and deployment in their areas. I want to congratulate you again for being a leader in community broadband and a model for other communities to emulate.