On Monday, the FCC held a hearing on “Broadband and the Digital Future” at Carnegie Mellon University. Perhaps a more appropriate title for the FCC’s next hearing would be “Broadband is the Future.”
During these times of economic uncertainty, all American families are struggling to fill the gas tank, make the tuition payment and afford health care.
There is hope. This year alone, nearly 1,400 American broadband providers will invest an estimated $60 billion to expand the capacity and reach of the nation’s communications infrastructure. This investment far outweighs what the U.S. government spent to put Neil Armstrong on the moon. Even when combining what we spent to build out the interstate highway system, you still don’t achieve the level of investment we’re seeing in broadband networks today.
We’re just beginning to understand the “Broadband Economy” of the future. But here’s what we do know.
- Broadband-based remote monitoring for all chronically ill patients could reduce U.S. health care expenses by 25% €”a $350 billion annual savings.
- Telecommuting takes cars off the road and could deliver $3.9 billion in time and fuel cost savings annually.
- Using electronics to telecommute saves the equivalent of 9 to 14 billion kilowatt hours of electricity per year, the same amount of energy used by roughly 1 million U.S. households every year.
- Over 70% of low-income individuals reported an improvement in schoolwork when given access to broadband.
- Just a 7% increase in broadband adoption could create 2.4 million U.S. jobs.
America can and is doing more to make this future a reality. Here’s hoping our nation’s future broadband policies encourage this progress €”and the substantive, diverse private investment that is making it possible.
According to a new white paper released this week by Cisco, video currently accounts for one quarter of all consumer Internet traffic and will make up 50% of such traffic within the next 4 years. The demand for online video is a major reason why the U.S. broadband industry invested $70 billion in broadband infrastructure in 2007. By way of comparison, when President Kennedy committed the United States to landing a man on the moon in ten years, the government spent approximately $10 billion per year — in today’s dollars — on the Apollo program. When President Eisenhower committed the nation to building an Interstate Highway System, the government spent approximately $25 billion per year — in today’s dollars.
While the entire white paper is a great read for anyone interested in the dramatic growth of bandwidth demand in general, there are several points that are especially noteworthy:
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Devices that deliver high-quality video over broadband networks are a hit with consumers. For example, Netflix, the pioneering online DVD rental service, recently rolled out its Netflix Player device which allows Netflix subscribers to access Netflix’s library of movies and TV shows instantly over their broadband connections.
Response to the new service has been enthusiastic, to say the least:
Less than one month after introducing a set-top box that allows “instant” viewing over a broadband connection, Netflix says that the current supply of devices has sold out. CEO Reed Hastings did not disclose any sales figures, but he told Bloomberg News that the company is pressing their supplier, Roku Inc., to step up production. The backlog of orders will reportedly take six to eight weeks to fulfill.
Devices such as the Netflix Player are increasingly finding their way into the nation’s living rooms. Without broadband, this kind of on-demand access to high-bandwidth content would not be possible.
With the economy emerging as a major issue in the upcoming presidential elections, progressive think tank Center for American Progress has released a timely and thought-provoking National Innovation Agenda: Progressive Policies for Economic Growth and Opportunity Through Science and Technology.
Key elements of CAP’s tech policy prescription:
• Tax incentives to spur investment in next-generation broadband networks and provide access to underserved urban and rural communities.
• A permanent ban on Internet access taxes to encourage consumer adoption.
• Additional spectrum to promote wireless broadband.
• Support for public-private state partnerships to accelerate broadband deployment.
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Hollywood film makers are taking a strong stand against Internet regulation proposals that would add new layers of government involvement to the management of the Internet.
Dan Glickman, chairman and chief executive officer of the Motion Picture Association of America was in Las Vegas this week addressing the movie industry and members of the National Association of Theater Owners. He warned industry leaders that Hollywood was facing a growing threat of “lawlessness.”
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I listened to yesterday’s Webinar that looked at the tremendous strides Ft. Wayne, Ind., has made in improving economic development, public safety, health care and education through a comprehensive program to provide high-speed broadband to a metropolitan area of 250,000 people. It was a fascinating look at how one city is successfully using broadband to leverage existing resources to improve city operations.
Former Mayor Graham Richard explained how, when taking office in 2000, he formed a team dedicated to incorporating technology into the community’s public safety programs. Early on, Graham recalled, the mandate for broadband was clear. “What can we do with technology to make sure that we’re using every available hour of every police officer in a particular and in an effective way?” he said
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At a time when many interest groups are focused on unnecessary Internet regulation, Connected Nation — with support from groups like the Alliance for Public Technology and the Communications Workers of America — has gotten it right. After reading its new study The Economic Impact of Stimulating Broadband Nationally, it’s clear that ubiquitous broadband deployment must be considered one of the nation’s top public policy priorities. How many things can you think of that have the ability to improve health care, education, the environment and our economy all at the same time? Just to name a few!
The new Connected Nation report puts the focus on broadband policy where it should be — promoting innovative approaches that unleash the power of public-private partnerships which then lead to the rapid expansion of access to broadband. The report details the state-by-state impact of legislation aimed at accelerating broadband access and use. Its findings suggest that the United States could realize an impact of $134 billion annually from a modest increase in broadband adoption.
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To See Highlights from the Connected Nation Hill Briefing, Click Here
The FCC and the US Department of Agriculture have jointly created a terrific new resource to help rural residents bring the benefits of broadband to their communities. The “Broadband Opportunities for Rural America” web site combines much of the information and expertise from both the FCC and the USDA in one user-friendly location.
The site provides a profile of different technology platforms that can be used to provide broadband services. The link under Digital Subscriber Line (DSL) services, for example, leads to resources that explain FCC policy for this technology. Other sections offer guidance on broadband funding opportunities, instructions on how to locate wireless services in rural communities and helpful links to other FCC, USDA, and private resources related to encouraging broadband opportunities in rural America.
The Broadband Opportunities for Rural America site is a useful place to start when updating information on everything from the FCC’s Rural Health Care Pilot Program to USDA proceeding on broadband to the new slate of Rural Broadband Educational Workshops slated for various sites around the United States in 2008. Check it out today.
A new report from the National Telecommunications and Information Administration shows that the benefits of head-to-head competition, tax relief and the clearing of regulatory roadblocks has expanded broadband access in America.
The Networked Nation: Broadband in America 2007 report also proves the wisdom of government policies that allow consumers, not regulators, to pick winners among competing technologies in the marketplace.
Here are few highlights from the report:
• According to the FCC’s 2006 data, broadband service was available in 99 percent of the nation’s zip codes, encompassing 99 percent of the nation’s population;
• Since 2000, the total number of broadband lines in the United States has grown by more than 1,100 percent; from not quite 6.8 million lines in December 2000, to 82.5 million in December 2006, according to the most recent FCC data.
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