I tend to agree with Atkinson - we have not seen much incentive for
additional competition and in rural regions, the customer base may
not support much competition. This does NOT mean, however, that the
incumbents can be the only players. It only means that any particular
area probably does not support more than one supplier or two
competitors.
Vint
Vint Cerf
Google
1818 Library Street, Suite 400
Reston, VA 20190
202-370-5637
[email protected]
On Jan 10, 2009, at 11:22 AM, Lauren Weinstein wrote:
Date: Sat, 10 Jan 2009 06:45:09 -0500
From: David Farber <[email protected]>
Subject: [IP] Obama's Broadband Plan ---
Reply-To: [email protected]
To: ip <[email protected]>
Begin forwarded message:
From: "Bruce Kushnick" <[email protected]>
Date: January 9, 2009 2:29:36 AM EST
To: <[email protected]>
Subject: [OIA] Obama's Broadband Plan ---
Placing bets on just how little change will occur, or more to the
point
about how much of our change ends up in the pockets of AT&T and
Verizon…
http://www.businessweek.com/print/magazine/content/09_03/
b4116027365196.htm
Obama's Broadband Plan
Tax breaks for companies that increase Internet speed or create new
networks are likely to go to existing large players
By Arik Hesseldahl
The Obama Administration has pledged support for universal
broadband, or
making speedy Internet service available to all Americans. But the
ideas
under consideration by the President-elect's transition team are
likely to
fall short of the radical changes some activists have sought.
At the core of the $20 billion to $30 billion effort under
discussion by
Obama's advisers are tax breaks for companies that extend the
availability
of broadband or, in regions where it already exists, boost the
speed of
service, several people involved in the discussions tell BusinessWeek.
Companies that build broadband networks in areas with no service could
receive as much as 60% of their investment back in tax credits.
Companies
that increase the speed of existing networks could get tax credits
of as
much as 40%. The tax incentives also could be structured to promote
high
broadband speeds, according to Jeffrey Campbell, director of
technology and
communications policy for network equipment maker Cisco Systems
(CSCO). For
example, some analysts say the government could give 20% tax
credits for
20-megabit-per-second service and 40% credits for 100-megabit service.
As currently conceived, the incentives would be available to any
company.
However, those most likely to benefit would be existing broadband
providers
such as AT&T (T), Verizon Communications (VZ), and Comcast (CMCSA),
because
they have the capital to make investments, and it costs less to extend
their networks than it does to build new ones. The new Administration
appears unlikely to push forcefully for more competition in
broadband, an
idea that activist groups such as Free Press and Public Knowledge
say is
essential if the U.S. wants to catch up to broadband leaders such
as Korea.
"Broadband is a natural duopoly," counters Robert D. Atkinson,
president of
the Information Technology & Innovation Foundation, a nonpartisan
think
tank. Proposals to create a third competitor to take on the telecom
and
cable companies in most markets, he says, are "misguided."
...
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----- End forwarded message -----
