http://news.myway.com/top/article/id/393783|top|03-26-2004::16:49|reuters.html


President Bush on Friday proposed 2007 as the goal for universal
availability of high-speed Internet access to keep America competitive
and innovative.
Speaking at length on the subject for the first time since August
2002, Bush discussed broadband while highlighting home ownership in
the critical state of New Mexico -- a state he narrowly lost in the
2000 presidential election.

"We ought to have universal, affordable access to broadband technology
by the year 2007," Bush said. "And then we ought to make sure as soon
as possible thereafter consumers have plenty of choices."

"It's important that we stay on the cutting edge of technological
change, and one way to do so is to have a bold plan for broadband," he
said. Bush did not elaborate on how he would accomplish the 2007 goal.

Policymakers in Washington have been debating how to accelerate the
rollout of high-speed Internet service. Some 20.6 million homes and
small businesses already subscribe to it either from a telephone or
cable television company.

Federal Communications Commission Chairman Michael Powell has pushed
an agenda to reduce the regulations on telephone companies, which in
the past have had to share their networks with rivals because of their
dominance in serving homes.

"I look forward to working with my commission colleagues, Congress and
the administration to deliver on this vision for the American people,"
Powell said in a statement.

Last year the agency decided that the dominant local telephone
companies like BellSouth Corp. (BLS.N) did not have to offer rivals
access to new fiber optic lines -- key for full broadband
deployment -- at low, government-mandated rates.

Cable companies do not have to share their networks with rivals but
some permit subscribers to have an alternative Internet service
provider.

Minutes after the president spoke, Democratic presidential contender
John Kerry mentioned broadband as a key growth area during a campaign
speech laying out his economic policy.

"I will focus on raising American competitiveness. By spurring the
growth of new industries like the broadband technology that will
dominate the future," Kerry said during his speech in Detroit.

Bush also urged that broadband access be tax free. "The Congress must
not tax access to broadband technology if we want to spread it
around," he said.

Congress has so far been unable to renew a ban on taxing the monthly
fees that Internet providers like EarthLink Inc. (ELNK.O) charge
customers. The ban lapsed in November, but states have not moved to
impose new taxes.

More consumers have signed up for the broadband from cable companies,
with about 13.7 million lines compared to roughly 7.7 million using
telephone companies' digital subscriber line (DSL) services.

"I think it's certainly consistent with the idea of where tomorrow's
jobs will be and he's obviously showing a commitment to technological
advancements," said Paul Glenchur, an analyst at Schwab Soundview
Capital Markets in Washington.

"Given that you haven't seen this issue talked a lot about on the
campaign trail, it's interesting that it's creeping in now," he said.
"I don't know whether you can read much into it based on what you
heard."




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