America's Internet Disconnect 
By Michael J. Copps
Wednesday, November 8, 2006; A27 
America's record in expanding broadband communication is so poor that it should 
be viewed as an outrage by every consumer and businessperson in the country. 
Too few of us have broadband connections, and those who do pay too much for 
service that is too slow. It's hurting our economy, and things are only going 
to get worse if we don't do something about it.

The United States is 15th in the world in broadband penetration, according to 
the International Telecommunication Union (ITU). When the ITU measured a 
broader "digital opportunity" index (considering price and other factors) we 
were 21st -- right after Estonia. Asian and European customers get home 
connections of 25 to 100 megabits per second (fast enough to stream 
high-definition video). Here, we pay almost twice as much for connections that 
are one-twentieth the speed.

How have we fallen so far behind? Through lack of competition. As the 
Congressional Research Service puts it, U.S. consumers face a "cable and 
telephone broadband duopoly." And that's more like a best-case scenario: Many 
households are hostage to a single broadband provider, and nearly one-tenth 
have no broadband provider at all.

For businesses, it's just as bad. The telecom merger spree has left many office 
buildings with a single provider -- leading to annual estimated overcharges of 
$8 billion. Our broadband infrastructure should be a reason companies want to 
do business in the United States, not just another reason to go offshore.

The stakes for our economy could not be higher. Our broadband failure places a 
ceiling over the productivity of far too much of the country. Should we expect 
small-town businesses to enter the digital economy, and students to enter the 
digital classroom, via a dial-up connection? The Internet can bring 
life-changing opportunities to those who don't live in large cities, but only 
if it is available and affordable.

Even in cities and suburbs, the fact that broadband is too slow, too expensive 
and too poorly subscribed is a significant drag on our economy. Some experts 
estimate that universal broadband adoption would add $500 billion to the U.S. 
economy and create 1.2 million jobs.

Future generations will ultimately pay for our missteps. Albert Einstein 
reportedly quipped that compound interest is the most powerful force in the 
universe. Investment in infrastructure is how a nation harnesses this awesome 
multiplier. Consider that 80 percent of the growth in fiber-to-the-home 
(super-high-speed) subscribers last year was not in the United States but in 
Japan. One does not need Einstein's grasp of mathematics to understand that we 
cannot keep pace on our current trajectory.

I don't claim to have all the answers. But there are concrete steps government 
must take now to reverse our slide into communications mediocrity.

To begin with, the Federal Communications Commission -- of which I am a member 
-- must face up to the problem. Today the agency's reports seem designed mostly 
to obscure the fact that we are falling behind the rest of the world. The FCC 
still defines broadband as 200 kilobits per second, assumes that if one person 
in a Zip code area has access to broadband then everyone does and fails to 
gather any data on pricing.

The FCC needs to start working to lower prices and introduce competition. We 
must start meeting our legislative mandate to get advanced telecommunications 
out to all Americans at reasonable prices; make new licensed and unlicensed 
spectrum available; authorize "smart radios" that use spectrum more 
efficiently; and do a better job of encouraging "third pipe" technologies such 
as wireless and broadband over power lines. And we should recommend steps to 
Congress to ensure the FCC's ability to implement long-term solutions.

We need a broadband strategy for America. Other industrialized countries have 
developed national broadband strategies. In the United States we have a 
campaign promise of universal broadband access by 2007, but no strategy for 
getting there. With less than two months to go, we aren't even within shouting 
distance.

The solution to our broadband crisis must ultimately involve public-private 
initiatives like those that built the railroad, highway and telephone systems. 
Combined with an overhaul of our universal service system to make sure it is 
focusing on the needs of broadband, this represents our best chance at 
recapturing our leadership position.

It seems plain enough that our present policies aren't working. Inattention and 
muddling through may be the path of least resistance, but they should not and 
must not represent our national policy on this critical issue.

The writer is a Democratic member of the Federal Communications Commission. 



-----
Mike Hammett
Intelligent Computing Solutions
http://www.ics-il.com

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