According to Christopher Guttman-McCabe, CTIA’s Vice President of Regulatory Affairs, the wireless industry directly employs 268,000 people with jobs that pay 50 percent higher than the national average of wages in similar categories. Carriers are on track to continue to invest this year and next with their average capital investments reaching $22.8 billion a year.
Cecilia Kang, “Wireless Lobbyists Step Up Defensive Against Net Neutrality,” Washington Post. September 28, 2009.
At the Huffington Post, Digital Society Fellow (and IIA Broadband Ambassador) Bret Swanson writes about the negative effect proposed net neutrality regulations would have on jobs and the economy:
Supporters might argue Net Neutrality will protect consumer access to the Internet and promote long-term innovation. These are crucially important goals. But I think they are wrong on these policy virtues as well. I’ve made the case elsewhere that Net Neutrality could have prohibited important business and technical innovations, from the exclusive handset arrangement that spawned the iPhone to the content delivery networks (CDNs) that enabled YouTube.
Regardless of one?s view of long-term effects, however, there is little chance Net Neutrality regulations could improve the near-term jobs picture. There is, on the other hand, a substantial possibility for harm. Net Neutrality could substantially reduce the willingness of service providers to invest in new wired and wireless networks. And it could do so immediately. Any capital expenditure reductions would directly affect tens of thousands of workers who build and maintain these networks. Capex reductions would also ripple through the whole network equipment and software value chain, starting with large companies like Cisco, Juniper, Corning, and Qualcomm; then damaging the prospects of hundreds of smaller suppliers in the high-end semiconductor and software sectors.
The Democratic Leadership Council has released a new report on job growth in America. Entitled “Where Jobs Come From: The Role of Innovation, Investment, and Infrastructure in Economic and Job Growth,” it helps shed light on the important role broadband expansion plays in creating new jobs. From page 11 of the report:
Job creation was also strongest in the industries that utilized information technology and had the most to gain from faster Internet connectivity. Industries such as Information; Finance and Insurance; Professional, Scientific, and Technical Services; and Utilities saw employment growth ranging from 12 to 16 percent. Given this evidence, there is enormous potential for job creation if we expand broadband deployment and upgrade existing infrastructure. A Brookings study found that for every 3 million new lines deployed, nearly 300,000 economy-wide jobs are created. Separate research has shown small businesses, the drivers of job creation and biggest beneficiaries of faster networks, hire 40 percent of the high tech workforce of scientists, engineers, and computer programmers.
Last week, Entropy Economics released a detailed report on the effects net neutrality would have on jobs. After examining the official comments submitted to the FCC, Entropy found that those who could be counted as “Net Neutrality Skeptics” directly employ 1,440,021 people. “Net Neutrality Supporters,” meanwhile, only employ 148,936 — a difference of 10 to 1.
The Entropy report also looked at the amount of Capital Expenditures for skeptics and supporters, and the result was even more startling. From an article at Digital Society by the report’s author, Bret Swanson (who is also an IIA Broadband Ambassador):
We have often noted the communications sector’s important capital investment role in the U.S. economy. In 2008, U.S. info-tech capital investment totaled $455 billion, or 43% of all U.S. non-structure investment. The communications service providers alone invest $65 billion or more annually. Among companies filing FCC comments, the Net Neutrality Skeptics invested $189 billion over the last three years, compared to $18 billion for the Net Neutrality Supporters. Two of the nation’s largest infrastructure investors, AT&T and Verizon, each have more employees than all the Net Neutrality Supporting companies combined.
Net neutrality supporters often dismiss the effect new regulations will have on private investment. But as the Entropy report makes clear, discouraging private investment from net neutrality skeptics would have a chilling effect on the U.S. economy. And with the FCC’s own estimates for the cost of a national broadband plan reaching as high as $350 billion, a reduction in private investment could put the goal of bringing broadband to everyone out of reach.
Entropy Economics has published a new report examining the effect proposed net neutrality regulations would have on the U.S. job market. From the report (PDF):
Regardless of one’s view of long-term effects… there is little chance Net Neutrality regulations could improve the near-term jobs picture.
There is, on the other hand, a substantial possibility for harm. Net Neutrality could substantially reduce the willingness of service providers to invest in new wired and wireless networks. And it could do so immediately. Any capital expenditure reductions would directly affect tens of thousands of workers who build and maintain these networks. Capex reductions would also ripple through the whole network equipment and software value chain, starting with large companies like Cisco, Juniper, Alcatel-Lucent, and Qualcomm; then damaging the prospects of hundreds of smaller suppliers in the high-end semiconductor and software sectors.
Entropy also looked at the number of employees of both net neutrality skeptics and supporters, and finds that skeptics directly employ 1,440,021 people, while supporters employ just a fraction of that — 148,836.
A new study from Larry F. Darby, Joseph P. Fuhr, and Stephen B. Pociask of the American Consumer Institute helps shed light on the effect the FCC’s proposed net neutrality regulations could have on investment and job creation. The study, titled “The Internet Ecosystem: Employment Impacts of National Broadband Policy,” calls for “regulatory forbearance toward broadband networks” in order to stimulate investment and the creation of new jobs. From the executive summary:
• By eliminating business options successfully practiced by proponents of more regulation, the Commission’s proposal would dramatically increase market risk, lower expected growth, suppress network investment, and dampen opportunities for network providers to maintain and create jobs.
• The proposed change from Ex Post to Ex Ante regulation would create lengthy regulatory delays and increase regulatory risk for investors, while dampening prospects for new job creation in the Internet sector and in others it supports.
• These and other threats to investment incentives and job creation opportunities are out of line with both the emerging national broadband policy and the growing imperative to create more good, permanent jobs.
The study also warns that the proposed regulations would “shift risk, returns, growth and opportunity away from ‘core’ network providers and in favor of ‘edge’ applications and content providers.” Given that core companies (such as providers) historically invest more and create more jobs compared to “edge” companies (such as content providers), new regulation would have a chilling effect on both a national broadband plan and the creation of much-needed jobs.
The full study is available in a PDF on the American Consumer Institute website. It ends with an important message recently delivered from the Communications Workers of America to the FCC:
Put network investment and associated job creation at the center of the discussion, acknowledging that the telecommunications sector is essential to recovery in the current downturn and to our nation’s long-term economic competitiveness.
GigaOm highlights a survey from Microsoft that finds when it comes to interviewing for a job, your Facebook page might pose a problem:
As part of Data Privacy Day on Thursday, Microsoft says it conducted a survey of 2,500 people that included, consumers, HR managers and recruitment professionals in the US, the UK, Germany and France, with the goal of learning more about attitudes toward online reputation and how this information can have real life consequences. The survey found that the top online factors for rejecting a job applicant are unsuitable photos/videos, concerns about a candidate’s lifestyle and inappropriate comments written by the candidate.
Social media has made our society more open, which is a good thing. But it’s always wise to remember that once something is on the Internet, it’s there to stay.
Discouragement has been cited by the Bureau of Labor Statistics as a reason for an expected increase in the jobless rate this year. As of December, a large number of workers have quit looking for work because they think no jobs are available.
“Our study also shows the enormous potential benefit of community broadband centers for those who are not connected at home,” said Lawrence Spiwak, president of the Phoenix Center. “While broadband use at home delivers significant benefits, shared facilities can be a valuable solution to connectivity gaps in unserved and underserved communities.”
The [Obama] administration says the broadband stimulus program will create 260,000 new jobs and will stimulate the economy by increasing business’ productivity.
David Goldman, “Broadband stimulus bids ‘overwhelming’,” CNNMoney.com. August 18, 2009.
Updated research from both the Information Technology and Innovation Alliance and former FCC Commissioner Harold Furchtgott-Roth helps shed new light on just how important investment in the broadband industry is for America’s economy.
Despite differences in methodology, both ITIF and Furchtgott-Roth find that a reduction in investment of just 2 percent by the broadband service industry would mean the loss over over 24,000 jobs. Make that reduction 5 percent, and the loss in jobs leaps to between 47,000 and 78,000 jobs. And a 10 percent drop would mean over 100,000 jobs.
Each year the broadband services sector invest roughly $60-$80 billion — or 80 percent of the Information, Communications and Technology sector investment. With unemployment in America hovering around 10 percent, job losses would be disastrous for our economy. Which is why broadband policies need to ensure that investment in America’s broadband infrastructure is strongly encouraged to continue.
Interactive advertising is responsible for $300 billion of economic activity in the U.S., according to a new study released today by the Interactive Advertising Bureau (IAB). The advertising-supported Internet represents 2.1% of the total U.S. gross domestic product (GDP). It directly employs more than 1.2 million Americans with above-average wages in jobs that did not exist two decades ago, and another 1.9 million people work to support those with directly Internet-related jobs. A total of 3.1 million Americans are employed thanks to the interactive ecosystem.
• A stimulus package that spurs or supports $10 billion in investment in 1 year in broadband networks will support an estimated 498,000 new or retained U.S. jobs for a year.
Robert D. Atkinson, Daniel Castro and Stephen J. Ezell “The Digital Road to Recovery: A Stimulus Plan to Create Jobs, Boost Productivity and Revitalize America.” ITIF Study. January, 2009.
$30 billion in government investments in expanding broadband access, computerizing health care records, and improving the electrical grid could create more than 900,000 U.S. jobs.
$10 billion invested in bringing broadband to areas that lack it would create 498,000 news jobs in a year.
“Working at Play, Playing at Work: The Rise of the Prosumer,” IDCLink, January 15, 2009.
AGREEMENT BETWEEN USER AND Internet Innovation Alliance
The Internet Innovation Alliance Web Site is comprised of various Web pages operated by Internet Innovation Alliance.
The Internet Innovation Alliance Web Site is offered to you conditioned on your acceptance without modification of the terms, conditions, and notices contained herein. Your use of the Internet Innovation Alliance Web Site constitutes your agreement to all such terms, conditions, and notices.
MODIFICATION OF THESE TERMS OF USE
Internet Innovation Alliance reserves the right to change the terms, conditions, and notices under which the Internet Innovation Alliance Web Site is offered, including but not limited to the charges associated with the use of the Internet Innovation Alliance Web Site.
LINKS TO THIRD PARTY SITES
The Internet Innovation Alliance Web Site may contain links to other Web Sites (“Linked Sites”). The Linked Sites are not under the control of Internet Innovation Alliance and Internet Innovation Alliance is not responsible for the contents of any Linked Site, including without limitation any link contained in a Linked Site, or any changes or updates to a Linked Site. Internet Innovation Alliance is not responsible for webcasting or any other form of transmission received from any Linked Site. Internet Innovation Alliance is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement by Internet Innovation Alliance of the site or any association with its operators.
NO UNLAWFUL OR PROHIBITED USE
As a condition of your use of the Internet Innovation Alliance Web Site, you warrant to Internet Innovation Alliance that you will not use the Internet Innovation Alliance Web Site for any purpose that is unlawful or prohibited by these terms, conditions, and notices. You may not use the Internet Innovation Alliance Web Site in any manner which could damage, disable, overburden, or impair the Internet Innovation Alliance Web Site or interfere with any other party’s use and enjoyment of the Internet Innovation Alliance Web Site. You may not obtain or attempt to obtain any materials or information through any means not intentionally made available or provided for through the Internet Innovation Alliance Web Sites.
USE OF COMMUNICATION SERVICES
The Internet Innovation Alliance Web Site may contain bulletin board services, chat areas, news groups, forums, communities, personal web pages, calendars, and/or other message or communication facilities designed to enable you to communicate with the public at large or with a group (collectively, “Communication Services”), you agree to use the Communication Services only to post, send and receive messages and material that are proper and related to the particular Communication Service. By way of example, and not as a limitation, you agree that when using a Communication Service, you will not:
Defame, abuse, harass, stalk, threaten or otherwise violate the legal rights (such as rights of privacy and publicity) of others.
Publish, post, upload, distribute or disseminate any inappropriate, profane, defamatory, infringing, obscene, indecent or unlawful topic, name, material or information.
Upload files that contain software or other material protected by intellectual property laws (or by rights of privacy of publicity) unless you own or control the rights thereto or have received all necessary consents.
Upload files that contain viruses, corrupted files, or any other similar software or programs that may damage the operation of another’s computer.
Advertise or offer to sell or buy any goods or services for any business purpose, unless such Communication Service specifically allows such messages.
Conduct or forward surveys, contests, pyramid schemes or chain letters.
Download any file posted by another user of a Communication Service that you know, or reasonably should know, cannot be legally distributed in such manner.
Falsify or delete any author attributions, legal or other proper notices or proprietary designations or labels of the origin or source of software or other material contained in a file that is uploaded.
Restrict or inhibit any other user from using and enjoying the Communication Services.
Violate any code of conduct or other guidelines which may be applicable for any particular Communication Service.
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.
LIABILITY DISCLAIMER
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.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL Internet Innovation Alliance AND/OR ITS SUPPLIERS BE LIABLE FOR ANY DIRECT, INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, CONSEQUENTIAL DAMAGES OR ANY DAMAGES WHATSOEVER INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF USE, DATA OR PROFITS, ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE USE OR PERFORMANCE OF THE Internet Innovation Alliance WEB SITE, WITH THE DELAY OR INABILITY TO USE THE Internet Innovation Alliance WEB SITE OR RELATED SERVICES, THE PROVISION OF OR FAILURE TO PROVIDE SERVICES, OR FOR ANY INFORMATION, SOFTWARE, PRODUCTS, SERVICES AND RELATED GRAPHICS OBTAINED THROUGH THE Internet Innovation Alliance WEB SITE, OR OTHERWISE ARISING OUT OF THE USE OF THE Internet Innovation Alliance WEB SITE, WHETHER BASED ON CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, EVEN IF Internet Innovation Alliance OR ANY OF ITS SUPPLIERS HAS BEEN ADVISED OF THE POSSIBILITY OF DAMAGES. BECAUSE SOME STATES/JURISDICTIONS DO NOT ALLOW THE EXCLUSION OR LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES, THE ABOVE LIMITATION MAY NOT APPLY TO YOU. IF YOU ARE DISSATISFIED WITH ANY PORTION OF THE Internet Innovation Alliance WEB SITE, OR WITH ANY OF THESE TERMS OF USE, YOUR SOLE AND EXCLUSIVE REMEDY IS TO DISCONTINUE USING THE Internet Innovation Alliance WEB SITE.
SERVICE CONTACT : .(JavaScript must be enabled to view this email address)
TERMINATION/ACCESS RESTRICTION
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.
TRADEMARKS
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.
Bruce P. Mehlman
David Sutphen
Larry Irving
Broadband Fact Book
Special Reports
The Digital Divide
Jobs and Investment
Data Calculator
Sign the Petition
IIA Broadband Symposium - Universal Broadband: Access for All Americans
IIA Internet Academy
Press Releases
Most Recent Posts
Leave a Comment