Agenda Items for the Next FCC Chairman

By Jamal Simmons

It’s official: current Federal Communications Commission (FCC) Chairman Julius Genachowski will be handing over the gavel on May 17th. While Commissioner Mignon Clyburn will lead the agency until Obama nominee Tom Wheeler gets confirmed and sworn in, it’s worth taking a look at the top two pressing issues Wheeler will face once he takes the helm of the Commission.

Agenda Item: IP Transition

The trend is undeniable. Americans are leaving their traditional phone service, dropping their standard connection in favor of wireless and IP-based phone connections. You’re probably one of them. If you have your home phone service bundled with cable, you might not even realize you no longer rely on the plain old telephone service (POTS) network.

With scores of people changing the way they communicate (some estimates peg the number at 500,000 people each month), network providers want to gradually sunset their old networks so they can concentrate billions in investment dollars to new, Internet-based services. In other words, they want to put their money where consumers want to go … and are going.

This transition to all-IP (Internet Protocol) networks won’t be as easy as flipping a switch. Ensuring everyone still has a reliable connection, especially seniors and those living in rural areas, is critical. That’s why AT&T submitted a proposal to the FCC for “beta trials” in select markets to identify potential pitfalls, an idea FCC Commission Ajit Pai strongly endorsed in a speech sponsored by the Hudson Institute back in March. As Pai said in his speech:

Right now, the most critical choice we face is whether to move forward with an All-IP Pilot Program. This program would allow forward-looking companies to choose a discrete set of wire centers where they could turn off their old TDM electronics and migrate consumers to an all-IP platform. Now, you may have noticed that when it comes to the IP transition, everyone has a prediction about what will or will not happen if carriers are allowed to provide services exclusively through an all-IP platform. But as we found out during yesterday’s “snowstorm”—what we Kansans call “weather”—predictions are no substitute for hard facts. Albert Einstein had it right: A “pretty experiment is in itself often more valuable than twenty formulae extracted from our minds.”

Fortunately, we don’t need to rely on formulae any longer. The FCC has sought and received comments on a proposal to create an All-IP Pilot Program. I’ve reviewed the record carefully. And having done so, I am proposing today that the FCC move forward with this program.

Going forward with beta trials is just part of the greater IP transition discussion Wheeler will no doubt be having as head of the FCC. Also on the burner will be regulations — specifically, what will be the regulatory framework in an all-IP world? The 1996 Telecommunications Act is by all accounts painfully outdated. Modernizing rules to keep pace with today’s technology in ways that encourage continued investment in network infrastructure and protect consumers will be critical for the IP transition to succeed. And Wheeler, from the driver’s seat of the FCC, will need to lead the discussion.

Agenda Item: Spectrum

Outgoing Chairman Julius Genachowski deserves a ton of credit for recognizing the coming “spectrum crunch” (as he’s coined it), but the FCC’s proposed solution to the problem — incentive spectrum auctions — is barely past the 50-yard line. The auctions are still being shaped, the details still being argued over. Some are pushing for limited involvement in the auctions by certain wireless providers. Others question whether enough broadcasters will participate to make a difference.

Meanwhile, thousands of Americans are adopting mobile broadband every day. They are firing up smartphones and tablets for the first time and pushing data into the ether. And all that data is joining the bits and bytes being pushed out from tens of millions of other people who are already relying on a wireless connection to the Internet for their daily activities.

To keep up with this flood of data traveling on their networks, wireless providers have been trying to make deals for spectrum left and right. But it’s still not enough, which means a lot will be riding on the FCC’s spectrum auctions. Will Wheeler and the other Commissioners successfully put together proceedings that are open to all qualified bidders? Auctions that maximize much-needed revenue for the Federal government? As my colleague Rick Boucher succinctly put it:

Only through truly competitive, open spectrum auctions will America’s wireless industry continue to thrive. After all, the best way to ensure competition is to encourage everyone to compete.

These are the two most critical issues Wheeler will face once he’s in charge of the FCC (and underlying both of those issues is the most important part of his job — increasing access for all Americans to participate in the technological revolution we are experiencing. High-speed access to the Internet only increases in importance as job searches, entrepreneurial opportunities, education and health care are all enhanced by being online). While some have criticized his selection given his past life running both the NCTA and the CTIA, such experience offers encouragement that he has the ability to successfully get the job done. As President Obama remarked during the announcement of his selection:

”If anybody is wondering about Tom’s qualifications… [He] is the only member of both the cable television and the wireless industry hall of fame.”

Here’s hoping Wheeler will one day be inducted into the FCC hall of fame as well.

Boucher on Updating Regs

By Brad

Our Honorary Chairman Rick Boucher has an op-ed in The Hill on the need to modernize regs to keep up with today’s technology. Here’s a taste:

the development of the Internet has brought us to another critical juncture in communications policy as we consider how to complete the transition from the bygone era of plain old telephone service to the digital bonanza of the 21st century. It’s a critical transition, given the Internet’s increasingly dominant role in every part of our economy, as well as its ability to improve lives and help achieve important national goals. It’s also something that just about every stakeholder, including the Federal Communications Commission, regards as inevitable. As we move forward, the guiding principle must be to put consumers first.

You can read the full op-ed at The Hill.

FCC Commissioner Pai on the Need to Move to All-IP

By Brad

In a must-read opinion piece for the National Journal, FCC Commissioner Ajit Pai makes the case that America should be making a big push to transition to all IP-based networks:

America is in the midst of a technological revolution, what some call the IP Transition (“IP” stands for the Internet Protocol, which is the technical foundation for all these changes). IP-based networks are different from the copper-based networks of yesteryear in a fundamental way: They were not designed for voice service alone. Instead, IP-based technologies break down every kind of communication (voice, video, e-mail and more) into digital bits and transport those bits more efficiently and cheaply than ever before.

Despite these vast changes in the communications marketplace, the Federal Communications Commission hasn’t caught up. We still view the world as if consumers were at Ma Bell’s mercy, relying on copper lines to get basic voice service. As a result, we have a lot of obsolete rules on our books. (Just two months ago, the FCC finally repealed a rule first adopted by its Telegraph Division during the Great Depression!) These old rules aren’t just harmlessly yellowing with age. They are affirmatively discouraging companies from investing in next-generation networks.

You really should read the whole thing at the National Journal.

Everything Connected

By Brad

Increasingly, the appliances and devices we use every day are finding their way online. And as Natasha Baker of Reuters reports, we’re only at the beginning of what will eventually be a “machine-to-machine” boom:

From Internet-connected washing machines and smart refrigerators to bathroom scales, gadgets that connect to the Internet are on the rise in homes, and apps are the means to monitor and control them.

By 2022, the average household with two teenage children will own roughly 50 Internet-connected devices, up from approximately 10 today, according to estimates by the Organisation for Economic Co-operation and Development. This trend has been dubbed the “Internet of Things”.

Of course, the more things are connected to the Internet, the more robust networks need to be in order to handle the constant flow of data. Transitioning to all IP networks will be a big part of that.

Voice in the Land of All-IP

By Brad

Analysys Mason has released a new paper entitled “Voice traffic exchange in an IP world.” In it, author Michael Kende takes a deep dive into the current regulatory landscape in order to examine its effectiveness in the fast-changing telecommunications industry—specifically, the traditional public switched telephone network (PSTN) agreements, which are receiving heavy scrutiny as providers transition to all-IP networks.

Surveying the lay of the land, Kende makes a strong case that PTSN interconnection regulations are, as he puts it, “neither needed, practical, nor efficient” in an all-IP world. As he writes:

[T]he Internet serves as a compelling model for the interconnection framework governing voice services, not just because voice is migrating away from the PSTN to the Internet, but also because of the example of how unregulated networks can interconnect and evolve in response to competitive market forces. In this environment, commercial negotiations govern interconnection instead of regulation, and multi-stakeholder organizations are responsible for managing critical resources and technical standards.

To back up his analysis, Kende highlights a major difference between the past and present:

A key difference between the PSTN and the Internet is that the PSTN began as a regulated monopoly in which competitive entry was managed through interconnection obligations and other related regulations, while the Internet was characterized by competition from the beginning and never required, or was subject to, interconnection mandates. Indeed, the interconnection obligations that introduced competition into the monopoly PSTN, along with far-seeing decisions to refrain from regulating emerging data services, indirectly helped initiate the competitive environment in which the Internet emerged and thrived.

Kende also succinctly breaks the seismic shift in how people communicate in recent years:

Traditional communications – involving a call between two parties – have undergone significant shifts in the past decade. While there are a number of new forms of voice communications, described below, the Internet has fostered a whole new range of innovative communications, ranging from text-based email to video chats. The shifts can be broadly represented by three different, and overlapping, phases, which together have put significant pressure on traditional fixed-line providers.

• Change in technology. First, the technology underlying calls has been migrating to the Internet protocol, enabling cable providers among others to provide VoIP services over their broadband networks. This shift may not even be recognized by consumers, who may continue to use the same CPE, including cordless phones and faxes.

• Change in access. At the same time, consumers have new forms of access available, including mobile phones and software-based VoIP services such as Skype, which consumers can install on their computers, and more recently on their smartphones and tablets. These new access means provide consumers with increased mobility, lower prices, and/or new services such as video calls.

• Change in form. Finally, consumers have a variety of new means of communication. Some, such as email and instant messaging services, still involve one-to-one communications between users, while others, such as Facebook, Twitter, and YouTube, are one-to-many communications enabling users to ‘broadcast’ news and information to their friends, family, and/or colleagues.

The end result of these three different phases is significantly increased choice for consumers, and not only new forms of competition for providers of PSTN services, but ultimately its replacement.

Kende’s full white paper is definitely worth digging into. It’s available here as a free download, although you’ll need to register first to access it. Check it out.

The Promise of Digital Health Care

By Brad

In an op-ed for Politic365, National Coalition on Black Civic Participation President and CEO Melanie Campbell (who is also on of our Members) writes about the promise of healthcare powered by broadband for minority communities:

In 20 or 30 years, when we look back on today, we may realize that the most important medical enabler of the last generation is, ironically, high-speed broadband networks.  After all, the doctor monitoring your heart and asking you questions during an online evaluation can’t do that using an old voice-centric telephone line.  The broadband connection has to be robust and dynamic, capable of carrying the data-intensive traffic to and from patients and their doctors or healthcare specialists.

As FCC Commissioner Mignon Clyburn said to a civil rights conference in Memphis, TN, “Access to broadband means access to better education, healthcare, job opportunities, news and information.”  Policies affecting access to America’s communications revolution will have an immense role in the future of affordable healthcare.

That’s why telemedicine, including the potential for more accessible and affordable care, depends on the nationwide build out of high-speed broadband networks.

Read the full piece at Politic365.

IP and Rural America

By Brad

In an op-ed for the Daily Yonder, Jess Peterson of the US Cattlemen’s Association (which is one of our Members) argues that bringing better broadband to rural areas will take upgraded regulations:

The US Cattlemen’s Association (USCA) policy on broadband is simple: USCA wants to encourage policymakers to make policy that provides the regulatory certainty that will encourage the substantial private sector investment that will bring more, better, and faster broadband to rural America. Right now, that means encouraging a rapid and smooth transition from the old voice-centric networks to robust IP-based networks and services.

Until regulations are updated to account for the IP transition, certain incumbent telephone network operators will continue to have to support two networks — the slow, legacy copper-based telephone network and the new, faster and more capable IP-based network. The legacy network is not only antiquated but is expensive to maintain and becoming even more expensive as more consumers leave their traditional wireline phone service and switch to IP-based solutions, such as VoIP or LTE mobile phone service.

Read the whole thing at Daily Yonder.

The Big Stream

By Brad

Streaming video is already big and it’s getting bigger. Case in point: The Huffington Post highlights new numbers from BTIG Research:

BTIG Research’s Richard Greenfield crunched the numbers using facts from previous statements from Hastings and came to the conclusion that subscribers are spending more than 87 minutes a day on Netflix streaming. “Netflix is now likely the most watched cable network, essentially in-line with the Disney Channel,” Greenfield said.

According to BTIG, Hasting’s 4 billion number is a global comment, but the majority of streaming subscribers are in the US. Greenfield guessed there were 28 million Netflix Instant stream users in the first quarter of 2014.

According to Netflix, customers have streamed over 4 billion hours worth of content so far. Which just goes to show that consumer habits are shifting dramatically. All the more reason to get the transition to all-IP networks underway.

Video on the Go

By Brad

Via Sue Marek of Fierce Wireless comes a staggering number from Verizon:

Video accounts for 50 percent of Verizon Wireless’  network traffic today and by 2017 the carrier estimates video will make up two-thirds of all traffic over the network. Speaking at the National Association of Broadcasters conference here yesterday, Verizon Communications CEO Lowell McAdam said that the company’s investment in its LTE network is what is making the delivery of that video possible. “With 3G you have video clips but there is buffering. With 4G you can stream video,” he said.

50% of wireless traffic and counting. Wow.

The Future FCC

By Brad

At the Washington Post, Cecilia Kang sat down with Phil Weiser, President Obama’s former senior advisor on technology and innovation. The topic: Challenges facing the FCC moving forward. The entire interview is worth checking out, but here’s an exchange on the IP Transition:

What is the role of the FCC in the phone-to-broadband transition?

All current policy is built on the use of legacy technology and thus the transition away from it is major challenge for the FCC. Rather than necessarily attempt to simply transfer all legacy policy into the IP work, the FCC will need to ask ‘What policy regimes and policy goals are important?’ Consider, for example, the issue of access to video programming by the hearing impaired: what approach closed captioning should apply to Internet-delivered TV programs? Similarly, there are questions about how to provide next generation 911 access in an IP world. Another big issue will be whether and how to oversee interconnection arrangements. In short, there are big opportunities and challenges because we don’t have to do things in the way we have done them so far.

The Health Care Revolution Has Only Just Begun

By IIA

This is a guest post from Neal Neuberger, President of Health Tech Strategies, LLC, a Virginia-based consulting firm focused on the public and private sector policy environment with regard to research, development and implementation of emerging health care technologies. — IIA

Health care has been in the news a lot lately and rightly so. We are in the midst of a health care revolution, and actions taken during this period of transformation will have tremendous impact in the years and decades to come.

Three years ago in March, the Affordable Care Act (ACA) was signed into law. This revolutionary legislation overhauled the U.S. health care system and has already had far-reaching effects. However, the ACA is only one part of the transformation of health care in our country. In recent years, the intersection of health care and technology, particularly mobile technologies, has resulted in myriad new health care tools, which are already making a difference in how quality health care is accessed and delivered. Now, rural residents can receive a remote consultation from a specialist located across the country; patients with chronic conditions can receive care at home or while on the go with a wireless device; and people at any level of health can use mobile apps to monitor nutrition, wellness, or fitness. 

Advancements in mHealth and telemedicine have transformed health care into a more accessible, patient-centered, convenient model that benefits individuals and families. And these advancements have also affected the entire health care community.  Medical personnel—including doctors, nurses, and first responders—increasingly use these innovations to access and transmit health records, images, and information at incredible speeds, resulting in quicker diagnoses, effective and new treatments, and better outcomes.  More and more, hospitals and clinics are turning to innovative technologies and methods to expand access to care and to deliver that care in convenient, cost-effective ways.  These innovations are already saving lives and improving health care, and tomorrow’s technologies will no doubt build on this progress. 

Or maybe not.  Just a few weeks ago, members of the House Subcommittee on Communications and Technology discussed a growing segment of the mobile technology market—mobile health care apps—and the possibility of taxing these apps and devices. Doing so could slow or stymie the incredible growth of this mobile health care technology (5% of smartphone users downloading an app to track or manage their health, according to a September 2012 Pew study). Don’t get me wrong: Government action is indeed needed to extend the progress that has been made in mobile health technologies; however, modern technologies require modern regulations that encourage both private sector investment and continued innovations. 

Modern regulations are necessary for all modern technologies, not just health care-related apps and devices. That’s because it isn’t just wireless technology tools that are evolving: Americans are increasingly adopting wireline IP-enabled services, which deliver faster speeds and allow seamless communication between a variety of wireless and wired devices and platforms. And the infrastructure to support this array of wired and wireline services is transforming too. Old copper networks are being replaced by high-speed Internet Protocol (IP) networks that support a wider array of devices and data, with virtually limitless applications for improving our lives. These networks, combined with wireline and wireless IP-enabled services, offer greater capabilities and can also spur high-tech developments.  This modern, robust infrastructure will enable continued advancements in health care technology, in addition to more possibilities and opportunities for every aspect of modern life. 

However, like innovative health care technologies, the changeover to all IP networks is, to a certain extent, at the mercy of regulators. Smart, light-touch regulation will hasten this needed transition, but the application of outdated regulations designed for 20th century telephonic technologies could stall progress. This transition has the potential to improve and enrich our lives and our communities. It can expand and enhance the resources available to people, from education and health care resources to social and professional opportunities. I, for one, hope the government is smart about it. Smart action will help us and our communications networks to stay hale and healthy.

Brave New IP World

By Jamal Simmons

Tossing the TV is more evidence in favor of phone companies transitioning to all-IP.

As Ryan Nakashima from the Associated Press recently reported, there’s a dramatic shift afoot in how people are consuming entertainment:

Some people have had it with TV. They’ve had enough of the 100-plus-channel universe. They don’t like timing their lives around network show schedules. They’re tired of $100-plus monthly bills.

A growing number of them have stopped paying for cable and satellite TV service and don’t even use an antenna to get free signals over the air. These people are watching shows and movies on the Internet, sometimes via cellphone connections.

According to Nakashima, these TV tossers have been given a name by the Nielsen group—“Zero TV” households—and their numbers are increasing. In 2007, there were just 2 million homes. Today? 5 million and counting.

While those numbers aren’t yet big enough for broadcasters and cable providers to hit the panic button, they show an undeniable trend. Things are changing fast, and consumers increasingly want more freedom in when and where they watch their favorite shows. The season premiere of Game of Thrones set a record for piracy, which tells you two things: HBO’s business model probably needs an overhaul, and more and more people are unwilling to wait to be entertained.

It’s easy to label millions of people illegally downloading a hit show as entitled, but they’re just the scouts in what will eventually be an all-out assault from consumers on traditional business models. And once the armada lands, we’ll need networks powerful enough to meet their demands.

Those networks will be all IP, or all Internet Protocol.

The transition to all IP networks will mean everything is done via the Internet — not just web surfing and streaming video, but home phone service as well. IP networks will also make viewing TV over the net more reliable and consistent, since it will give companies the ability to invest in upgrades without maintaining legacy networks people are increasingly abandoning.

This transition won’t happen overnight, nor should it. Millions of Americans still rely on traditional landlines, just as millions still happily pay for cable and watch broadcast TV over the air. Ensuring people can still depend on their home phones and watch their favorite shows is critical. The transition beta trials AT&T has proposed and the formation of the FCC’s Technology Transitions Policy Task Force to oversee regulatory concerns are good ways to step forward carefully.

The tide is definitely sweeping up toward an all IP future. The recent bump in TV viewers going online is just latest evidence. One day, we might all live in “Zero TV” households, and if everything goes smoothly — if government and industry work together — we won’t even notice how radically things have changed. The home phone will still be the home phone and TV will still be TV; the only difference will be how they’re delivered.

What Will Make the IP Transition Successful?

By Brad

Our Co-Chairman Jamal Simmons recently talked with Marc Strassman of Etopia News about our look at the evolution of March Madness online, the IP transition, the need for spectrum dedicated to wireless, and more. Here’s one of a number of clips we’ll be posting over the next few days.

The full interview is available at Etopia News.

Families Without Wires

By Brad

More and more Americans are “cutting the cord” and turning to wireless for their communication needs, which has prompted CTIA to put together this great infographic on today’s “Wireless Family.”

A Transparent Transition

By Brad

Our Honorary Chairman Rick Boucher talked with Ted Gotsch for (subscription only) TR Daily about the coming IP Transition. From Gotsch’s story:

Rick Boucher, now a partner and head of the government strategies group at law firm Sidley Austin as well as honorary chairman of the Internet Innovation Alliance (IIA), told TRDaily in an interview that the FCC is largely on the right track when it comes to proceeding with the public switched telephone network-to-IP transition, but that the agency needs to help figure out how to facilitate the transition.
“Having a single, transparent proceeding where these various policy questions are involved provides a more meaningful way to participate than having many to follow,” the former Democratic House member said.

IIA Says FCC “Measuring Broadband America” Report Supports Case for IP Transition

By IIA

FCC findings reinforce that broadband marketplace is extremely competitive and consumers want higher speeds

WASHINGTON, D.C. — February 15, 2013 — Commenting on findings in the newly-released Federal Communications Commission (FCC) “Measuring Broadband America” report that 1) “most broadband providers continue to closely meet or exceed the speeds they advertise” and 2) “consumers of broadband providers covered by the report are continuing to migrate to faster speed tiers and receiving faster speedsthan ever before,” the Internet Innovation Alliance (IIA), a broad-based coalition supporting broadband access and adoption for all Americans, today released the following statement:

“Today’s FCC report reinforces two very important realities about the broadband marketplace: it is highly competitive with natural market forces driving private investment that is rapidly upgrading America’s network infrastructure, and consumers want higher speeds that unlock opportunities within education, health care, entertainment, entrepreneurship and more.

“Consumers across the nation — all ages, races and socioeconomic statuses — are abandoning outdated technologies. Florida, for example, has the largest proportional share of Americans over the age of 65, but only 19 percent of all (IIA member) AT&T customers there still subscribe to legacy, copper wire service. And the FCC-reported fact that nearly half of consumers who subscribed to speeds of less than 1 Mbps six months ago have adopted higher speeds makes clear that slower, outdated networks no longer suffice for the technology-driven world of today.

“A nationwide transition to all-IP networks will allow telecom providers to concentrate their investment dollars in building out technology of the future, rather than maintaining technology of the past. This move will alleviate the cost burden for consumers footing the bill to maintain outdated networks without the benefit of access to new services provided bynext-generation networks being built at the same time.

“The FCC data makes crystal clear: this is not your father’s telecom market. Times have changed. Luckily, the FCC has the capacity to change with the times, forbearing from imposing yesterday’s regulations on tomorrow’s technologies and networks. The Commission has prudently exercised such restraint previously, declining to regulate investment in fiber-based facilities. Future growth demands additional forbearance, and market conditions warrant such humility and restraint. The FCC now has the data to prove it.”

Rick Boucher in Roll Call

By Brad

To mark the 17th anniversary of the 1996 Telecommunications Act, our Honorary Chairman Rick Boucher — who was chair of the Energy and Commerce Subcommittee on Communications, Technology and the Internet at the time — has penned an op-ed for Roll Call. In it, he reflects on the importance of the Act, and makes the case that regulations are in dire need of modernization in order to keep up with today’s technology. Here’s a taste:

Seventeen years after the 1996 Telecommunications Act was signed into law, we find ourselves at another major inflection point. The IP transition is already under way, driven by technological advances and consumer preferences. FCC Chairman Genachowski has taken farsighted steps to create a process for addressing the policy questions that transition brings, and one of the giants of the industry has made helpful suggestions for a national dialogue through a single, focused proceeding for clarity and meaningful participation by all interested parties.

It is my hope that regulators can, once again, come to a consensus on how best to regulate fairly. Only with a level playing field will competition thrive and more investment in America’s broadband infrastructure increase. Let the conversation begin.

You can check out Boucher’s full op-ed at Roll Call.

App Crazy

By Brad

According to Fierce Wireless’ Sue Marek, this year’s CES is all about app developers. As she writes:

If you are an innovative application developer, you are definitely in the driver’s seat at the 2013 Consumer Electronics Show. Everywhere I turn at CES, I encounter companies that are talking about the work they were doing to attract app developers to their platforms.

From Ford Motor Company launching its new developer program aimed at getting more apps for its Sync connected car system, to Verizon Communications announcing its “Powerful Answers” application contest, it seems nearly every company appears to be courting developers.

The heavy focus on mobile apps — which is only going to increase — highlights the importance of the other big topic at this year’s CES, which is the need to transition to all IP-based networks. Since data-intensive apps depend on fast, next-generation networks, you can’t really separate one from the other.

The Economic Boost of Internet Everywhere

By Joe Fuhr

America’s communications industry is evolving.

It is an evolution that goes by many names. Smart networks. Internet Protocol Networks. All-IP.

At its core, is a dramatic shift for America’s communications infrastructure. A major leap forward from the copper networks of the past to the digital communication of today and tomorrow.

This transition from copper to IP has been happening for a while, led by a society that is increasingly “cutting the cord” — dropping traditional landlines in favor of wireless, be it phone service or broadband.

Now things are speeding up. Recently, AT&T announced it will be investing more than $60 billion over three years to accelerate its transition to all-IP networks. This substantial investment is not without its hurdles. While more and more Americans are abandoning a reliance on the copper network, there are still millions of people — many of them in rural areas — who still depend on it for their communication needs.

It is important that the industry work hand-in-hand with the government to ensure no one is left behind as the transition happens. This is a message regulators need to listen to — not only because they share in the responsibility to keep Americans connected, but because of what the shift to all-IP will mean for the economy.

According to broadband association US Telecom, America’s telecommunications companies have invested close to $1.2 trillion since 1996. As recent announcements show, the transition to all-IP promises to unleash even more investment from the highly competitive telecommunications industry — investment that will translate into a substantial increase in jobs and overall economic growth.

Obviously, the government should continue to encourage this high level of investment from private industry. One way they can do so is through modernizing regulations.

As copper networks are increasingly losing relevance, so are the rules governing their operations. Today, companies must continue to invest heavily in their legacy networks even as customers are embracing newer technologies. Not only is this increasingly a waste of investment dollars, it also maintains an uneven playing field, one where certain companies are forced to divert investment dollars necessary to keep them competitive. It is not just the industry that is being held back. The same outdated regulations are also slowing the government’s own goal of connecting everyone in America to high-speed Internet.

The way we communicate changes quickly. Just five years ago, there was no iPhone. Mobile broadband was in its infancy. Tablet computing was almost non-existent. In order to keep up with innovation, the transition to all-IP networks needs to happen now. There is a path to make this transition go as smoothly as possible, one that ensures everyone remains both connected and able to participate in the digital revolution. However, it will take substantial cooperation from private industry and the government to make it happen.

The age of the Internet everywhere is at hand. We just need to ensure regulations from 1930s do not hold it back.

Joe Fuhr is a Professor of Economics at Widener University, a Senior Fellow at the American Consumer Institute, and one of our Broadband Ambassadors.

A Boon to the American Economy

By IIA

$14 Billion Investment in U.S. Broadband Infrastructure via Project Velocity IP (VIP) Is Boon to American Economy, Say IIA

Transition to next-generation networks will create jobs, benefit consumers and businesses nationwide

WASHINGTON, D.C. – November 7, 2012 – The Internet Innovation Alliance (IIA), a broad-based coalition supporting broadband access and adoption for all Americans, released the following statement in response to IIA member AT&T announcing plans to invest $14 billion to accelerate the Internet Protocol (IP) transition and bring high-speed, next generation wireless and wireline broadband to millions more consumers and businesses nationwide via Project Velocity IP (VIP):

“With the election now behind us, it is time for America to get back to work.  The broadband economy has powered America’s recovery for the past four years and offers the brightest opportunities for future jobs, innovation and growth.  In the right policy environment, we can expect to see remarkable efforts by entrepreneurs and employers to expand the reach and power of next-generation networks.

“Today’s exciting announcement by AT&T is one striking example of what our innovators are capable of doing.  There are others across the nation, from garage start-ups to Fortune 50 companies.

“The Internet Innovation Alliance is eager to work with policy makers around the country, highlighting what works and how the right investment environment can re-ignite our national energies and spur continued innovation across the nation.”