U.S. to roll out major broadband policy

By John Poirier and Sinead Carew
Reuters

Sun Mar 14, 2010 10:05am EDT

http://www.reuters.com/article/idUSTRE62D0ZX20100314


WASHINGTON (Reuters) - U.S. regulators will announce a major Internet 
policy this week to revolutionize how Americans communicate and play, 
proposing a dramatic increase in broadband speeds that could let people 
download a high-definition film in minutes instead of hours.

Dramatically increasing Internet speeds to 25 times the current average 
is one of the myriad goals to be unveiled in the National Broadband Plan 
by the the Federal Communications Commission on Tuesday.

The highly anticipated plan will make a series of recommendations to 
Congress and is aimed at spurring the ever-changing communications 
industry to bring more and faster online services to Americans as they 
increasingly turn to the Internet to communicate, pay monthly bills, 
make travel plans and be entertained by movies and music.

"This is a fairly unique event," said Paul Gallant, an analyst with 
Concept Capital. "The FCC really has never been asked to design a broad 
regulatory shift like this. Broadband is important and difficult because 
it threatens every established communications sector."

Some details of the plan have trickled out in the last few weeks 
including how to find spectrum to meet an anticipated explosion of 
handset devices capable of playing movies and music in addition to 
handling emails and voice calls.

But some carriers like AT&T Inc and Qwest Communications International 
Inc were irked last month when the agency's chief, Julius Genachowski, 
announced that the FCC would propose in the plan a goal of 100 Mbps 
speeds to be in place at 100 million American homes in 10 years. The 
current average is less than 4 Mbps.

In a sign of tension between the FCC and carriers, Qwest called it "a 
dream" and AT&T reacted by saying the FCC should resist calls for 
"extreme forms of regulation."

Since the FCC announcement, Cisco Systems Inc announced it would 
introduce a router that can handle Internet traffic up to 12 times 
faster than rival products. Google Inc has also gotten in on the hype, 
saying it plans to build a super-fast Internet network to show that it 
can be done. The FCC has praised both announcements.

The plans could also touch off tensions with television broadcasters, 
who will be asked to give up spectrum to wireless carriers who 
desperately need it for their mobile devices, such as the iPhone and 
Blackberry.

The FCC plans to let them share in the profits of auctions structured to 
redistribute the spectrum.

"We've developed a plan that is a real win-win for everyone involved and 
we have every expectation that it will work," Genachowski said in an 
interview with Reuters.

"We've certainly heard from a number of broadcasters who told us they 
think this is a promising direction and are getting ready to roll up 
their sleeves with us," he said.

The FCC also wants to make sure that anchor institutions -- government 
buildings, schools, libraries and healthcare facilities -- get speeds of 
about 1 gigabit per second by 2020.

The full broadband plan is expected to be released at a Tuesday meeting 
among the FCC's five members who are expected to discuss the results and 
recommendations of the roadmap, which was mandated by Congress. Congress 
may have to pass legislation to enact some portions of the plan.

FCC officials have said some of the goals are aspirational and should be 
viewed as a "living, breathing" document for the next decade in hopes of 
helping 93 million Americans without broadband get connected.

ACHIEVABLE

"It is both aspiration and achievable," Genachowski said.

The Obama administration has touted the plan as a way to create jobs and 
make energy use more efficient.

"It will be a call to action," said Blair Levin, who heads the FCC's 
broadband task force which has collected data and comments from the 
industry, academics and the public as well as from three dozen public 
workshops.

The FCC has placed most of its attention on broadband policy which 
Darrell West, director of governance studies at the Brookings 
Institution, called "the signature issue" since Genachowski took over 
the helm in late June.

"It means that broadband is going to drive other types of policy 
decisions and it really sets the parameters for telecommunications and 
new applications," West said.

FCC officials have said that the plan will not take sides on technology 
or applications, but they want to lay the groundwork to spur innovation 
and job creation.

Officials have said the plan will ask Congress to fund up to $16 billion 
to build an emergency public safety system.

It would also tell lawmakers that a one-time injection of $9 billion 
could accelerate broadband reach to the 4 percent of Americans who do 
have access. Otherwise they could let the FCC carry out a 10-year plan 
to realign an $8 billion U.S. subsidy program for universal broadband 
access instead of universal phone access.

Experts call the plan ambitious but question if the FCC, which plans to 
spin off a series of rule-making proposals linked to the plan, can 
realistically make good on its recommendations.

"There's so little progress on this stuff in Washington," said Rob 
Atkinson, who heads the Information Technology and Innovation Foundation.

"I think Chairman Genachowski has a real opportunity to bring different 
warring interests under 50-75 percent of the plan."

(Reporting by John Poirier and Sinead Carew, editing by Matthew Lewis)

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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