On the evening of July 13th, IIA hosted, “Cocktails & Virtual Reality: Breaking Innovation Boundaries with Broadband,” an event focused on how policymakers can support innovation and investment in high-speed internet infrastructure to help unlock the opportunities of a virtual reality ecosystem.
The event was held at Upload Collective, a hybrid co-working and incubation space in San Francisco where virtual reality demonstrations had been set up in three “holo-deck” rooms. Featured speakers for the panel included:
Evan Helda, Director of Sales and Partnerships, Meta Co.
Tony Parisi, Co-Creator of the VRML and X3D ISO standards for networked 3D graphics, Upload Collective
Alisha Seam, Product Developer and Solutions Engineer, AT&T Foundry
Adam Thierer, Senior Research Fellow, Technology Policy Program at the Mercatus Center at George Mason University
Among the questions asked by moderator Jamal Simmons and the audience were:
• What products do you see on the horizon?
• What is the biggest obstacle to a robust VR marketplace?
• When you began in this field what was the craziest idea you had and has it come true or are we still waiting on it?
• What is the most frightening or perilous thing about VR?
• What is the biggest network challenge to bringing these ideas to life?
• What is the role of regulation? Has it helped or hurt?
• What can policymakers in Washington do to support all of this innovation?
• if]What about using augmented and virtual reality in driving?
• What about building for 5G?
Many attendees at the event expressed that they had not thought about the network requirements for virtual reality technology or the role of federal regulators in developing new products in the virtual reality sphere. You can watch the full discussion, along with some clips of attendees trying out the virtual reality experience for themselves, below.
Virtual reality will transform entertainment, education, business, healthcare and more. Behind these breakthrough innovations sits a broadband infrastructure that must evolve with it. To help unlock the opportunities of a virtual reality ecosystem, how should policymakers support innovation and investment in high-speed internet infrastructure?
The Internet Innovation Alliance invites you to explore these questions with us over cocktails:
• What opportunities will virtual reality technology unlock over the next decade?
• How should the broadband network evolve to support the growth of virtual reality?
• How can policymakers best support innovation and virtual reality?
In a new article for Forbes, Fred Campbell, director of Tech Knowledge and former head of the Wireless Telecommunications Bureau at the Federal Communications Commission (FCC), brings to light yet another example of regulatory overreach, compliments of the FCC. The Commission intends to marry broadband with…batteries? In short, broadband providers would be required to redesign cable and DSL modems to have bigger backup batteries that would allow web surfing for up to 8 hours during a power outage – IF you also have backup power for your computer and/or other devices that you use to access the web.
As Campbell points out, the Commission’s thought process might as well have been born in the 20th century and doesn’t make sense for a number of reasons. Here are the top three:
First, this directive would take choice out of the hands of consumers. Forget having a say about whether or how you want to implement a backup power solution.
Second, it’s unnecessary. A power outage doesn’t prevent mobile devices from being used to connect during an emergency, from calling 911 to texting friends and family. In real-world testing, a mobile phone can run for at least 35 hours with low and mixed usage. And, as Campbell describes, if you use your broadband modem to make phone calls, the FCC’s rules already require your broadband provider to offer you a backup power battery for voice calls – that 97% of Comcast XFINITY voice service customers decline, by the way.
Third, consumers – despite demonstrating (through an extremely low take-rate) little interest in backup power for broadband – will be forced to foot the bill for this extravagance in the end…for your “protection.” Big Brother knows best?
Head on over to Forbes and read Campbell’s full piece for more details about why the FCC’s reasoning on backup battery power for broadband doesn’t add up.
U.S. Broadband and ICT Sector Adds More than $1 Trillion in Annual Value for the American Economy under Light-Touch Regulation
Report authors Hassett and Shapiro argue that the broadband/ICT sector has grown dramatically under light regulation, and increased regulation could slow Internet ecosystem investment and impair other sectors that depend on broadband/ICT technologies
For the past decade, the broadband and information and communications technologies (ICT) sector has fueled enormous growth and development in the American economy, according to a new 20-page report from the Internet Innovation Alliance (IIA) that analyzes broad trends in the economic value, output, and employment in this key sector. The study concludes that the Federal Communications Commission’s (FCC) effort to impose Title II regulation on broadband providers could “adversely affect broadband/ICT sector investment, with potentially significant secondary costs for the other industries that depend on it and the overall American economy,” the study states.
Authored by Kevin A. Hassett and Robert J. Shapiro, “The Impact of Broadband and Related Information and Communications Technologies on the American Economy” highlights how steady demand for the broadband/ICT sector’s goods and services has helped spur U.S. employment and GDP growth over the past decade. Principal findings of the research include:
• In 2014, the U.S. broadband/ICT sector produced $1,019.2 billion in value added for the American economy, equal to 5.9 percent of U.S. GDP of $17,420.7 billion in 2014. “This substantial share of all U.S. economic value added has been roughly stable for the past decade and likely understates the sector’s full contribution by undervaluing technological improvements,” the paper explains.
• The use of U.S. broadband/ICT goods and services by U.S. private industries, and the information sector (and government), contributed an additional $692.0 billion in output in 2014, equal to 2.7 percent of their combined output and 4.0 percent of GDP. Including the government sector, the use of U.S. broadband/ICT goods and services by other industries and sectors contributed $843.3 billion in output in 2014, equal to 2.9 percent of their combined output and 4.8 percent of GDP.
• The companies that comprise the broadband/ICT sector employed 4,933,000 workers (full-time equivalents or FTE) in 2014, or 4.2 percent of all U.S. private employment and 3.5 percent of all non-farm employment. Demand by the broadband/ICT sector for goods and services produced by other industries was responsible for an additional 2,784,683 jobs (FTE) in 2014. All told, the broadband/ICT sector was responsible for 7,717,683 jobs (FTE) in 2014, or 6.4 percent of all U.S. private employment and 5.5 percent of all non-farm employment.
• The average compensation of broadband/ICT sector workers in 2014 was $104,390, 59.3 percent greater than the average compensation earned by other U.S. workers ($65,517).
“The large economic gains associated with the broadband and ICT sector have flourished in an environment of light federal regulation,” commented Hassett and Shapiro. “The FCC’s proposed regulation of broadband ISPs and their service offerings would stifle broadband/ICT sector investment, growth and employment, negatively impacting the American economy.”
“Today, high-speed Internet is the backbone for 21st century economic growth in the digital economy,” said Rick Boucher, a former Democratic congressman who chaired the Energy and Commerce Subcommittee on Communications and the Internet and now serves as honorary chairman of the IIA. “Unnecessary price regulation in competitive broadband markets will have far-reaching negative impacts on U.S. economic growth and development. Without ample investment in modern networks, consumers and the entire broadband ecosystem – from Internet Service Providers (ISPs) to edge providers – will suffer from reduced innovation and fewer cutting edge broadband services, as well as reduced jobs and economic growth in the nation’s Internet economy.”
Early this week, we released an updated version of our 10 Ways Broadband Saves You Money research. In it, we found the average household can save an average of $11,944 per year on spending by using the Internet. You can find an infographic with our findings, along with the methodology used, here.
A new paper from Anna-Maria Kovacs, Ph.D., CFA published by the Georgetown Center for Business and Public Policy makes a convincing case that the FCC can save hundreds of millions of taxpayer dollars as it reboots Lifeline for the broadband age.
The full paper, “Regulation in Financial Translation: Rebooting Lifeline for Broadband,” is available for download, but here are some highlights:
The FCC’s FNPRM states that the FCC seeks to make the program more efficient by “targeting support to those low-income consumers who really need it while at the same time shifting the burden of determining consumer eligibility for Lifeline support from the provider. We further see to leverage efficiencies from other existing federal programs and expand our outreach efforts.” An effective way to accomplish this goal is to link Lifeline to SNAP [Supplemental Nutrition Assistance Program] for eligibility verification and enrollment.
As Kovacs points out in the paper, reducing waste, fraud and abuse of the Lifeline program is important. But just as important is ensuring those reduction efforts aren’t duplicative. Again, from the report:
As the FCC’s FNPRM indicates, the job of verifying that households have low-income is already being verified by other federal agencies. Most notably, the USDA verifies the eligibility of those households that quality for SNAP. SNAP not only enrolls those households whose low income qualifies them, but de-enrolls them if their income rises. In other words, SNAP already does the job the FCC duplicates at a cost of roughly $600 million. Thus, the first argument for relying on SNAP for eligibility verification is that doing so would save roughly $600 million in wasted administrative efforts.
$600 million is obviously a lot of savings. But as Kovacs goes on to note, the benefits of linking Lifeline to SNAP go beyond the monetary because:
It would provide automatic enrollment for low-income households that need Lifeline, and make it easier for them to apply the discount to the technology and provider of their choice. By making it easier for both providers and low-income households to participate in Lifeline, the FCC would also enhance competition.
With bipartisan support in Congress, the FCC now has a unique opportunity to completely overhaul and reshape the program for the 21st century. The central challenge is to add broadband as a Lifeline benefit without a significant increase in program costs. Tinkering with the existing program or making minor modifications to program administration at the edges will likely fail to deliver the promise of ubiquitous and modern high-speed broadband access for low-income consumers.
I am always encouraged by the ways in which technology is improving the classroom experience for students around the country. Through network-enabled devices and high-speed broadband, students and their teachers are able to harness all the Internet has to offer, including apps and content sources that can improve educational outcomes and open doors of opportunity throughout the country.
Both in school and out, students are using mobile devices and the digital economy to explore new ideas and prepare for successful futures. Innovation in the technology industry has jump-started this introduction of technology into the educational experience for millions of students, and it is always worth pointing out some exciting examples of how technology is being put to use for educational innovation.
Just last week, Discovery Education and DirecTV joined the Environmental Protection Agency (EPA) to celebrate National Energy Awareness Month and ENERGY STAR® Day. This event was great. In addition to bringing students in to meet with EPA Administrator Gina McCarthy in person, the three organizations teamed up to provide a “virtual field trip” to schools around the country, which allowed them to tune in to watch the event remotely. By infusing technology into the event, more students not only watched the conversation, but joined it, bringing unique perspectives and questions from around the country.
Events like this show how important innovation in the technology sector is and why we need to continue to make the right kinds of regulatory and legislative choices that allow all players in this innovative industry to provide critical solutions and new offerings. Working together we can avoid false choices between arbitrary winners and losers. Just recently, the Progressive Policy Institute (PPI) released their annual “Investment Heroes” report that showed that the technology industry was leading the pack when it comes to investments in America. As the EPA’s “virtual field trip” shows, this innovation is already changing educational models for the better, which has ripple effects throughout the economy.
While the PPI report illustrates the dollars being invested in the economy, the underlying story may be more important. These dollars are also investments in America’s students, schools and education system. When we deliver new tools and services to schools to open students’ eyes to the world around them, we are able to better prepare them for tomorrow’s workforce, giving them the skills they need to compete on a global scale.
Last week’s “virtual field trip” event sought to engage students in a conversation about being good stewards of the global environment. It is another great example of how technology solutions can be deployed to expose students to new ways of thinking about the world around them. The more we can innovate and deploy these kinds of solutions and ideas, the better off America’s students will be.
Today, IIA delivered a filing to the FCC urging the Commission to embrace fundamental and sweeping reform as the agency moves forward in its effort to modernize the existing federal Lifeline Program.
It is our strong belief that only a “sea change” in the program’s current design will advance the goal of creating a 21st Century program capable of efficiently and effectively delivering broadband Internet technologies and meaningful opportunities to America’s low-income consumers.
“The time for bold action is now. As Commissioner Clyburn aptly noted, Lifeline reform gives us a unique opportunity to ‘rid us of antiquated constructs’ and ‘design a future-proof program that enables low-income consumers to have access to broadband services comparable to everyone else.” — IIA Honorary Chairman Rick Boucher.
Beyond making broadband an eligible Lifeline service, we urge the FCC to squarely address existing structural flaws that today hamstring the program and the Lifeline marketplace. We propose that the Commission move swiftly to adopt the following essential reforms:
1. Safeguard the Lifeline Program by taking eligibility determinations away from self-interested service providers.
In its comments, IIA enthusiastically supports the FCC’s proposal to remove the responsibility of consumer eligibility determination from Lifeline providers. IIA points out that determining eligibility for receiving benefits from a government program is an inherently governmental function; as such, eligibility determinations should not be left to service providers that may have improper economic incentives to increase enrollment.
2. Simplify and protect the Lifeline Program by vesting administration in a state agency using a “coordinated enrollment” and de-enrollment process.
IIA supports relying on state governmental agencies as the neutral entities charged with using a coordinated enrollment process to verify consumer eligibility and administer the enrollment and de-enrollment processes. Under this process, consumers determined eligible to receive Supplemental Nutrition Assistance (SNAP) by the State would automatically be deemed eligible to receive Lifeline assistance. IIA believes that a reformed federal Lifeline program should link eligibility determination to a single, mature assistance program – SNAP – which would increase administrative efficiency, promote participation by both consumers and service providers, and reduce the potential for waste, fraud, and abuse.
3. Empower consumers and promote dignity with a “Lifeline Benefit Card” – a direct-to-consumer benefit.
To preserve and advance the personal dignity of Lifeline beneficiaries, IIA believes that Lifeline Program benefits should be transferred directly to the consumer using a “Lifeline Benefit Card” or similar approach (e.g., coordinated enrollment taking advantage of existing SNAP EBT cards and adding the Lifeline benefit to that EBT card). Eligible consumers could use the “Lifeline Benefit Card” as a voucher to buy whichever communications service meets their needs from authorized and registered providers, whether broadband, wireline, or wireless voice service (on a stand-alone or bundled basis).
4. Incentivize voluntary participation in the Lifeline Program by cutting red tape.
IIA recommends delinking the ETC designation from the Lifeline Program so subsidy recipients receive the complete benefits of robust competition that full service provider participation could offer. Removing existing regulatory roadblocks will make it easier for service providers to participate in Lifeline and incentivize them to compete for the purchasing power of Lifeline consumers.
Earlier today, the Media Institute released its “Net Vitality Index In Detail” report, which is a data-heavy companion to its report from April this year called “Net Vitality: Identifying the Top-Tier Global Broadband Internet Ecosystem Leaders.” For those who like to wonk out on broadband stats — which we definitely do — both reports are worth digging into. From the press release accompanying the new report:
Harvard Law School faculty member and Media Institute Global Internet Freedom Advisory Council member Stuart N. Brotman authored both reports. He compiled the detailed data released today for the benefit of scholars, researchers, and policymakers who desire an in-depth look at the metrics used in assessing the broadband Internet ecosystem capabilities of countries around the world.
Based on five years of research, the Net Vitality Index is the first holistic analysis of the global broadband Internet ecosystem, identifying the United States, South Korea, Japan, United Kingdom, and France as the top-tier leaders. Unlike the one-dimensional rankings that serve as the basis of most broadband comparative studies, Brotman’s composite analysis takes into account 52 indices developed independently to evaluate countries on an apples-to-apples basis. Overarching categories assessed encompass applications and content, devices, networks, and macroeconomic factors.
The new detailed report is a treasure trove of data. Some highlights:
• While Windows 7 still dominates when it comes to personal computer operating systems, both Android and Apple’s iOS rank in the top 5 — which is pretty incredible given both operating systems are less than a decade old.
• Surprisingly, at 56.4%, the United States ranks 13th when it comes to smartphone penetration. The leader? The United Arab Emirates at 73.8% penetration.
• The United States continues to domination when it comes to investment in telecommunications, more than doubling the dollars invested by China over the same time period.
• When it comes to mobile app development, the United States is the leader of the world, with the vast majority of apps dominating the charts globally having been developed by U.S. companies.
• Nine of the top 10 digital startups globally are based in the United States.
The Media Institute’s April report “Net Vitality: Identifying the Top-Tier Global Broadband Internet Ecosystem Leaders” is available here. The “Net Vitality Index In Detail” report is available here. Happy reading!
The Multicultural Media, Telecom and Internet Council (MMTC) has assembled an impressive list of co-signers for a letter to the FCC encouraging the Commission to rapidly and comprehensively reform the Lifeline universal service program for the digital age. An excerpt from the letter:
Success in upgrading this 30 year-old program will require policy makers to embrace a new approach. Commissioner Clyburn outlined her thoughts on the subject in a 2012 speech at the American Enterprise Institute referencing immediate Lifeline reform where she stated that reform must occur in a manner that, “…increases the value of other federal investment, reduces administrative burdens, reduces incentives for waste, fraud and abuse, addresses privacy concerns of consumers, streamlines the program to encourage participation and leverages efficiencies from other programs.”
On behalf of the constituents that entrust our organizations to ensuring parity in telecommunications services and other public benefits, we believe that the Commission has the tools necessary to create a new twenty-first century model for the Lifeline program that would serve the needs of low income consumers in an efficient, secure and respectful fashion.
Bret Swanson of Entropy Economics (and one of our Broadband Ambassadors) has put together a new study for the American Enterprise Institute showing that despite claims from those who wish for the government to heavily regulate broadband providers, the U.S. broadband market is actually quite healthy. The full study is definitely worth digging into, but below are some of Swanson’s key points:
• Internet traffic volume is an important indicator of broadband health, as it encapsulates and distills the most important broadband factors, such as access, coverage, speed, price, and content availability.
• US Internet traffic is two to three times higher than that of most advanced nations, and the United States generates more Internet traffic per capita and per Internet user than any major nation except for South Korea.
• The US model of broadband investment and innovation—which operates in an environment that is largely free from government interference—has been a dramatic success.
• Overturning this successful policy by imposing heavy regulation on the Internet puts one of America’s most vital industries at risk.
Expanding consumer options and preferences has forever broken down traditional standalone wire line, wireless, cable and broadcast services. According to Kovacs, 89% of households subscribed to wireless voice by the end of 2013, either by itself or in combination with some supplemental type of wired voice service.
Additionally, 29% of consumers prefer the blend of wireless service with plain old telephone service (with voice capabilities) and 22% with voice over internet protocol. Those figures are corroborated by a recent Pew Research Center study, which shows that as of 2013, 70% of adults had fixed-broadband access from home, a number that rises to 80% when access via smartphone is included. And most notable, are the 38% of consumers who rely solely on wireless.
Given this data it is clear many households are combining some form of fixed broadband (including some forms of fixed wireless) with mobile wireless broadband. All of this underscores the need for a new regulatory network framework based on the recognition of the diversity of consumers and the various choices they have today in a 21st century broadband world.
Check out Ramos’s full piece over at The Huffington Post.
84%, which is how much Internet traffic Cisco expects to be video in four years. As Marina Lopes of Reuters reports:
Video consumption of the World Cup alone will generate nearly as much Internet traffic as occurred in all of Australia in 2013, according to a new Cisco Systems Inc report that shows growth in Internet traffic is fueled by video.
The report, which says video is expected to grow to 84 percent of Internet traffic in the United States by 2018 from 78 percent currently, raises questions about whether Internet service providers should prioritize traffic, which has become a controversial issue.
“In the future at some point every month is going to look like the world cup month because the consumption just keeps getting bigger and bigger,” said Robert Pepper, Cisco’s vice president of global technology policy.
Often forgotten in the great net neutrality debate is the fact that bandwidth-intensive video is the future of the Internet. And that presents some very real engineering challenges.
Next week, one of the biggest video games of the year, Titanfall, will be released. Except, as it turns out, in South America. As Kyle Orland of Ars Technica reports:
When Titanfall finally sees its worldwide release next week, South Africa will not be among the countries to get a version of the game. Early this morning, EA South Africa announced via Facebook that it has decided to hold off on a local release after poor Internet performance during the game’s recent beta test. South Africa’s Gamezone reports that local preorders are being canceled both by Origin and area brick-and-mortar retailers.
“After conducting recent online tests for Titanfall, we found that the performance rates in South Africa were not as high as we need to guarantee a great experience, so we have decided not to release Titanfall in South Africa at this time,” the post reads. “We understand this is a disappointment for local fans and will keep fans posted on any future plans regarding the release of Titanfall in South Africa.”
Interestingly, the video game’s online servers are powered by Microsoft’s cloud service, Azure, and the closest data center to South Africa is in Brazil. While missing out on a video game is no big deal in the grand scheme of things (unless you were excited to play it), Titanfall‘s absence in South Africa highlights the challenges involved in building an international product that is dependent on a robust Internet infrastructure.
There’s nothing like a little international competition to motivate action. Take Sputnik. Or JKF’s “missile gap.” Or Finland’s recent schooling of the time-to-watch-from-the-sidelines Olympic hockey team.
The battle over global broadband offers a prime example, Washington-style. Many broadband boosters here in our nation’s capital lament a Bandwidth Gap with other nations, including many in the European Union. Some have even suggested that Europe offers the best model for future American broadband policy.
It is worth observing, however, that many European experts disagree. For example, in September European Commissioner for the Digital Agenda Neelie Kroes lamented:
The world envied Europe as we pioneered the global mobile industry in the early 1990s (GSM), but our industry often has no home market to sell to (for example, 4G). Consumers miss out on latest improvements or their devices lack the networks needed to be enjoyed fully. These problems hurt all sectors and rob Europe of jobs it badly needs. EU companies are not global internet players… 4G/LTE reaches only 26% of the European population. In the US one company alone (Verizon) reaches 90%!”
This Battle of the Bandwidth is nicely highlighted in a new report from AEI’s Roslyn Layton that focuses on the important contrasts between European and American broadband policy. Those differences are profound, focusing on incentives for private investment. Only 2% of European households subscribe to Internet services offering connections faster than 100Mbps, according to the EU’s 2013 Digital Agenda Scoreboard. While Europe’s share of broadband investment is less than 20%, the U.S. attracts 25% with a smaller population — per capita investment here is double that in Europe. The EU estimates that it faces a shortfall of €110–170 billion ($150–230 billion) by 2020 if it is to reach its connectivity goals.
In America that money is being put to work, most aggressively by those facing the least legacy regulation, such as IP networks, cable networks and wireless. Such light-touch regulation has fueled robust intermodal competition in the development and deployment of next-generation broadband networks to satisfy a seemingly bottomless consumer appetite.
Those who criticize the state of broadband in our nation typically focus only on one technology, fiber to the home, and choose to ignore the vibrant intermodal competition — such as cable, wireless — that has delivered cutting edge broadband services that are available to millions of Americans, yet largely unavailable to Europeans.
Some criticize America’s delivery broadband service in comparison to the Nordic countries in Europe. Yet, a closer look reveals that the successes in these countries may actually be a result of having policies that look similar to the policies here at home. As Layton notes, Denmark, a country with high broadband penetration, has demonstrated two keys for success:
1. Technological agnosticism. No one broadband technology is favored over another.
2. Market-led broadband development. The government does not decide which technology citizens should have, nor does it give government subsidies for broadband deployment.
Layton’s right. It’s time to put the “Europe is better” argument to rest. Ultra-fast broadband for everyone sustained and serious levels of investment, enabled by policies that promote investment and competition.
Hmmm… not much happening out there today — WAITASECOND!
Comcast Corporation (Nasdaq: CMCSA, CMCSK) and Time Warner Cable (NYSE: TWC) today announced that their Boards of Directors have approved a definitive agreement for Time Warner Cable to merge with Comcast. The agreement is a friendly, stock-for-stock transaction in which Comcast will acquire 100 percent of Time Warner Cable’s 284.9 million shares outstanding for shares of CMCSA amounting to approximately $45.2 billion in equity value. Each Time Warner Cable share will be exchanged for 2.875 shares of CMCSA, equal to Time Warner Cable shareholders owning approximately 23 percent of Comcast’s common stock, with a value to Time Warner Cable shareholders of approximately $158.82 per share based on the last closing price of Comcast shares. The transaction will generate approximately $1.5 billion in operating efficiencies and will be accretive to Comcast’s free cash flow per share while preserving balance sheet strength. The merger will also be tax free to Time Warner Cable shareholders.
This transaction will create a leading technology and innovation company, differentiated by its ability to deliver ground-breaking products on a superior network while leveraging a national platform to create operating efficiencies and economies of scale.
Comcast and Time Warner Cable are the two biggest cable providers in America, so of course this proposed deal is going to receive heavy scrutiny. As The Hill‘s Kate Tummarello writes:
The deal would bring Comcast’s total number of subscribers to 30 million, with the company gaining 8 million subscribers from Time Warner. But as a part of the deal, Comcast also agreed to sell off systems that serve 3 million subscribers.
Top antitrust lawmakers vowed to examine the acquisition closely.
In a statement, Sens. Amy Klobuchar (D-Minn.) and Mike Lee (R-Utah) — chairwoman and ranking member of the Senate Commerce’s Subcommittee on Antitrust — said they will hold a hearing on the proposed merger.
“This proposed merger could have a significant impact on the cable industry and affect consumers across the country,” Klobuchar said, adding that she will “carefully scrutinize the details of this merger and its potential consequences for both consumers and competition.”
This is going to be a long regulatory battle, so buckle up. The full Comcast statement about the deal is here.
Last night, President Obama delivered his sixth State of the Union Address. One highlight from his speech was a renewed pledge to connect every school in America with high-speed Internet. As Kevin Fitchard of GigaOm reports:
Last year, Obama announced a program to extend broadband access to 99 percent of schools over four years, and on Tuesday he said the administration is working with the Federal Communications Commission, Verizon, Sprint, Apple and Microsoft to fund such a project. According to the White House, details of these “philanthropic partnerships” will be released in coming weeks and will help connect 15,000 schools and 20 million students with wireless and wireline broadband in the next two years.
FCC Chairman Tom Wheeler said that the commission has made a point to make the program as efficient as possible.
“By applying business-like management practices to E-Rate, we can take steps this year that will make existing funds go farther to significantly increase our investment in high-speed broadband connectivity for schools and libraries for the benefit of our students and teachers,” he said in a statement after Obama’s remarks.
“In the Internet age, every student in America should have access to state-of-the-art educational tools, which are increasingly interactive, individualized and bandwidth-intensive,” Wheeler added.
The problem is, the article failed to do justice to the success of U.S. broadband providers in serving customers. It was also misleading in its use of Riga and Seoul as the standard for broadband measurement; the article could as easily have cited Kansas City, with its 1 gigabit speeds, and found the rest of the world to be inadequate in comparison.
Here’s a better gauge of broadband deployment: The National Telecommunications and Information Administration reports that the U.S., despite its vast geography and dispersed cities, has higher average speeds and lower prices than Europe generally. In fact, entry-level broadband pricing in the U.S. is the second lowest globally, behind Israel, according to the International Telecommunications Union.
I wasn’t the only one baffled by the Times’ approach. At this morning’s AEI Tech Policy Summit, Roslyn Layton, Ph.D. of the Center for Communications, Media and Information Technologies — who also lives in Denmark — tackled the Times’ article directly, telling attendees, “I always hear that everything is better in Europe… there are pockets of next-generation service, but it’s hardly a ‘utopia.’”
Layton also highlighted the fact that U.S. broadband investment is two times greater than investment in the European Union, and that, as she put it, “The U.S. is getting one quarter of all the money being invested in broadband networks across the world.”
That’s a lot of investment, and as a result of all that private money flowing into networks, America now has both fixed and wireless broadband systems that are fast, robust, and affordable – all thanks to a light-touch regulatory framework that encouraged some $1.2 trillion in investment since 1996, with billions more expected as more spectrum is made available for wireless broadband. In contrast, Europe’s highly-regulatory, leased access regime has limited broadband infrastructure investment and slowed deployment of next-generation networks.
Riga and Seoul may have faster speeds, but when it comes to deployment of broadband, they’re anomalies rather than benchmarks. Contrary to the inference in the Times’ article, the U.S., with its pro-investment regulatory policy, has eclipsed all of Europe in both network speed and affordability. That’s not a struggle, it’s a success.
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Harvest or otherwise collect information about others, including e-mail addresses, without their consent.
Violate any applicable laws or regulations.
Internet Innovation Alliance has no obligation to monitor the Communication Services. However, Internet Innovation Alliance reserves the right to review materials posted to a Communication Service and to remove any materials in its sole discretion. Internet Innovation Alliance reserves the right to terminate your access to any or all of the Communication Services at any time without notice for any reason whatsoever.
Internet Innovation Alliance reserves the right at all times to disclose any information as necessary to satisfy any applicable law, regulation, legal process or governmental request, or to edit, refuse to post or to remove any information or materials, in whole or in part, in Internet Innovation Alliance’s sole discretion.
Always use caution when giving out any personally identifying information about yourself or your children in any Communication Service. Internet Innovation Alliance does not control or endorse the content, messages or information found in any Communication Service and, therefore, Internet Innovation Alliance specifically disclaims any liability with regard to the Communication Services and any actions resulting from your participation in any Communication Service. Managers and hosts are not authorized Internet Innovation Alliance spokespersons, and their views do not necessarily reflect those of Internet Innovation Alliance.
Materials uploaded to a Communication Service may be subject to posted limitations on usage, reproduction and/or dissemination. You are responsible for adhering to such limitations if you download the materials.
MATERIALS PROVIDED TO Internet Innovation Alliance OR POSTED AT ANY Internet Innovation Alliance WEB SITE
Internet Innovation Alliance does not claim ownership of the materials you provide to Internet Innovation Alliance (including feedback and suggestions) or post, upload, input or submit to any Internet Innovation Alliance Web Site or its associated services (collectively “Submissions”). However, by posting, uploading, inputting, providing or submitting your Submission you are granting Internet Innovation Alliance, its affiliated companies and necessary sublicensees permission to use your Submission in connection with the operation of their Internet businesses including, without limitation, the rights to: copy, distribute, transmit, publicly display, publicly perform, reproduce, edit, translate and reformat your Submission; and to publish your name in connection with your Submission.
No compensation will be paid with respect to the use of your Submission, as provided herein. Internet Innovation Alliance is under no obligation to post or use any Submission you may provide and may remove any Submission at any time in Internet Innovation Alliance’s sole discretion.
By posting, uploading, inputting, providing or submitting your Submission you warrant and represent that you own or otherwise control all of the rights to your Submission as described in this section including, without limitation, all the rights necessary for you to provide, post, upload, input or submit the Submissions.
THE INFORMATION, SOFTWARE, PRODUCTS, AND SERVICES INCLUDED IN OR AVAILABLE THROUGH THE Internet Innovation Alliance WEB SITE MAY INCLUDE INACCURACIES OR TYPOGRAPHICAL ERRORS. CHANGES ARE PERIODICALLY ADDED TO THE INFORMATION HEREIN. Internet Innovation Alliance AND/OR ITS SUPPLIERS MAY MAKE IMPROVEMENTS AND/OR CHANGES IN THE Internet Innovation Alliance WEB SITE AT ANY TIME. ADVICE RECEIVED VIA THE Internet Innovation Alliance WEB SITE SHOULD NOT BE RELIED UPON FOR PERSONAL, MEDICAL, LEGAL OR FINANCIAL DECISIONS AND YOU SHOULD CONSULT AN APPROPRIATE PROFESSIONAL FOR SPECIFIC ADVICE TAILORED TO YOUR SITUATION.
Internet Innovation Alliance AND/OR ITS SUPPLIERS MAKE NO REPRESENTATIONS ABOUT THE SUITABILITY, RELIABILITY, AVAILABILITY, TIMELINESS, AND ACCURACY OF THE INFORMATION, SOFTWARE, PRODUCTS, SERVICES AND RELATED GRAPHICS CONTAINED ON THE Internet Innovation Alliance WEB SITE FOR ANY PURPOSE. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, ALL SUCH INFORMATION, SOFTWARE, PRODUCTS, SERVICES AND RELATED GRAPHICS ARE PROVIDED “AS IS” WITHOUT WARRANTY OR CONDITION OF ANY KIND. Internet Innovation Alliance AND/OR ITS SUPPLIERS HEREBY DISCLAIM ALL WARRANTIES AND CONDITIONS WITH REGARD TO THIS INFORMATION, SOFTWARE, PRODUCTS, SERVICES AND RELATED GRAPHICS, INCLUDING ALL IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT.
Internet Innovation Alliance reserves the right, in its sole discretion, to terminate your access to the Internet Innovation Alliance Web Site and the related services or any portion thereof at any time, without notice. GENERAL To the maximum extent permitted by law, this agreement is governed by the laws of the State of Washington, U.S.A. and you hereby consent to the exclusive jurisdiction and venue of courts in King County, Washington, U.S.A. in all disputes arising out of or relating to the use of the Internet Innovation Alliance Web Site. Use of the Internet Innovation Alliance Web Site is unauthorized in any jurisdiction that does not give effect to all provisions of these terms and conditions, including without limitation this paragraph. You agree that no joint venture, partnership, employment, or agency relationship exists between you and Internet Innovation Alliance as a result of this agreement or use of the Internet Innovation Alliance Web Site. Internet Innovation Alliance’s performance of this agreement is subject to existing laws and legal process, and nothing contained in this agreement is in derogation of Internet Innovation Alliance’s right to comply with governmental, court and law enforcement requests or requirements relating to your use of the Internet Innovation Alliance Web Site or information provided to or gathered by Internet Innovation Alliance with respect to such use. If any part of this agreement is determined to be invalid or unenforceable pursuant to applicable law including, but not limited to, the warranty disclaimers and liability limitations set forth above, then the invalid or unenforceable provision will be deemed superseded by a valid, enforceable provision that most closely matches the intent of the original provision and the remainder of the agreement shall continue in effect. Unless otherwise specified herein, this agreement constitutes the entire agreement between the user and Internet Innovation Alliance with respect to the Internet Innovation Alliance Web Site and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral or written, between the user and Internet Innovation Alliance with respect to the Internet Innovation Alliance Web Site. A printed version of this agreement and of any notice given in electronic form shall be admissible in judicial or administrative proceedings based upon or relating to this agreement to the same extent an d subject to the same conditions as other business documents and records originally generated and maintained in printed form. It is the express wish to the parties that this agreement and all related documents be drawn up in English.
COPYRIGHT AND TRADEMARK NOTICES:
All contents of the Internet Innovation Alliance Web Site are: and/or its suppliers. All rights reserved.
The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
The example companies, organizations, products, people and events depicted herein are fictitious. No association with any real company, organization, product, person, or event is intended or should be inferred.
Any rights not expressly granted herein are reserved.
NOTICES AND PROCEDURE FOR MAKING CLAIMS OF COPYRIGHT INFRINGEMENT
Pursuant to Title 17, United States Code, Section 512(c)(2), notifications of claimed copyright infringement under United States copyright law should be sent to Service Provider’s Designated Agent. ALL INQUIRIES NOT RELEVANT TO THE FOLLOWING PROCEDURE WILL RECEIVE NO RESPONSE. See Notice and Procedure for Making Claims of Copyright Infringement.