US Broadband Policy: Reality Bytes

My take on this - in government and business, there are POLICIES and policies, and I suspect that the federal government's broadband policy that Gallagher references is the latter variety - bare-bones, minimalist approach; something on the order of the "double secret probation" that Dean Wormer doled out in National Lampoon's Animal House - it's there, but nobody knows what it is. There is a signficant gap between having the president say "We will have broadband everywhere by 2007," and having the FCC sell more spectrum for millions/billions of dollars and on the other end, being able to get on-line to download a video in Dimebox, TX. The US is a huge country and 2007 begins in about 16 months. Let's just say that I can extend a curve on a graph as well as the next guy, and unless there's a hockey stick curve in there somewhere soon, I'll remain more than a little skeptical. And it appears, I'm not alone.

So a US citizen in-the-know working for a Canadian company takes the US government to task for not providing more details and effort to address the growing gap between the US and world leaders in broadband provisioning, and the government official in charge defends himself with a vision statement by the President and planned spectrum auctions...next summer. IF we have a policy, where is it clearly laid out and how is it being used by industry for guidance?

Another way to assess a policy if any, is by results and comparisons to benchmarks. If we define broadband as > 10 Mbs and measure value in bits/$, the US looks even worse than when we use other measurements like household penetration (16th and falling with a bullet). And its not only the lack of real results that belies the confidence Gallager places in the country's broadband policy, but also the lack of transparency and clarity - if experts like this Nortel executive are not clear on the country's vision and policy, then there is definitely something lacking in whatever policy and vision we have as a country. OK, so we have a policy, but its weak.

No, wait, as consumer groups weigh in. They don't think we have one either. So Big Business and Consumer Groups are aligned??

The authors of a new report Broadband Reality Check: The FCC Ignores America's Digital Divide, highlight the status of the US (dramatically falling behind the rest of the world in broadband deployment) and urge Congress to enact laws that would encourage public and private entities to accelerate high-speed Internet deployment.

"The FCC and Congress never have seriously addressed the lack of competition in the broadband market; they have not moved to reallocate spectrum to promote new technologies and lower prices; and they have blithely applauded the incumbent industries that have kept the market narrow and the digital divide wide," the report states. OUCH! No pulled punches here. Broadband reality really does bite.

The report has loads of good arguments and graphics that back up its case. It would be interesting to see an FCC rebuttal, but I wouldn't hold my breath if I were you. Here are a few highlights from the report.

Broadband costs are high in the United States (consumers pay 10 to 25 times more per megabit than broadband users in Japan).

Broadband statistics paint a rosy picture over a not so rosy reality. If at least one broadband subscriber is listed in a ZIP code, then the FCC counts the code as being covered by broadband.

Internationally, the United States' ranking in broadband penetration dropped from 13th to 16th place.

There is little to no competition among broadband platforms, dominated (98%) by cable and DSL.

The FCC seeks to eliminate open-access policies.

Many municipalities have recently undertaken or are considering deploying wireless networks by themselves or through a public/private partnership. (a Ray of Hope?) However...

Industry is trying to quash local governments from undertaking such projects that would offer their residents affordable high-speed Internet service.

Public private partnerships hold promise, as witnessed by Intel's recent initiative to accelerate the deployment of various wireless networks in 13 cities (and that number could grow to 100 in a year or so).

The report's authors urge Congress to enact legislation to free the "duopoly domination" of cable and DSL providers.

"Congress should authorize any entity, public or private, that seeks to offer broadband services to American consumers, [to] open up more spectrum for wireless broadband and ensure open access to all high-speed communications networks," according to the report. "Advances such as these will promote a strong American economy, one able to effectively compete in the global marketplace."

I'll let the authors finish out this blog for me, they spoke so eloquently and do a much better job than I could in making concluding remarks on this important topic. It really is a great report and you should download it here.

Congress should take notice of these alarming trends. Wireless technologies can offer incredibly fast connections at a fraction of the cost of cable or DSL. But these technologies are being crippled by the wasteful allocation of the public airwaves and by incumbent-backed legislative efforts to stifle competition and innovation at the local level.

Congress must enact clear statutes that will free the broadband market from duopoly domination and promote new market entrants. Congress should authorize any entity, public or private, that seeks to offer broadband services to American consumers, open up more spectrum for wireless broadband, and ensure open access to all high-speed communications networks. Advances such as these will promote a strong American economy, one able to effectively compete in the global marketplace.