Earlier this week, Broadband Breakfast hosted their September installment of their event series, with this month’s topic being, “Title I, Title II: What Direction for Broadband Reclassification.” The event featured key industry voices from the private sector and academia. Included on the panel were Link Howeing of Verizon, John Mayo form the Georgetown Center for Business & Pubic Policy, Cathy Sloan of CCIA, Larry Spiwak from the Phoenix Center, Harold Feld of Public Knowledge, and Gerald Duffy of the Western Telecommunications Alliance. The panel was moderated by Politico’s very own Kim Hart.

The premise of the discussion was the recent D.C. Court of Appeals decision in Comcast vs. FCC that brought into question the FCC’s authority to regulate broadband, and has subsequently sparked debate throughout Washington concerning the proper regulatory structure for broadband services. Among the key questions posed to the panelists – Are Title I safeguards sufficient for consumers and government? Who has the authority to develop a regulatory structure for broadband, Congress or the FCC? What does Representative Waxman’s proposed bill say about the way the debate has shifted?

Professor John Mayo was quick to point out that the modern Internet economy looks much different than the public utility world, and regulations need to reflect that difference. He warned that shifting broadband to under a Title II regulatory structure would lead to market uncertainty, potentially harming the constant revenue stream of private investment into infrastructure deployment.

Click below to watch an interview with Jon Mayo following the event.

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Day 1 of the Pennsylvania Broadband Summit concluded with a keynote presentation by NextGenWeb contributor and America’s broadband mayor, Graham Richard, followed by a roundtable discussion on the National Broadband Plan, featuring the FCC’s John Horrigan, Verizon Pennsylvania’s Gale Given, and others.

Mayor Richard focused his remarks on the role the broadband can play in local communities in order to “retain and gain jobs.” At NextGenWeb, we make a point of highlighting the role that broadband plays in the economy, from increased competitiveness to job creation. Mayor Richard brought the story close to home by describing how he used broadband in his role as a two-term mayor of Fort Wayne, Indiana to make the second largest city in the state a global competitor, and a place where companies want to conduct business.

The following panel focused on specific areas of the recently released National Broadband Plan. Gale Given of Verizon Pennsylvania discussed how broadband can be used to address what the Broadband Plan calls “national purposes,” including healthcare, education, energy, and public safety. Given highlighted specific programs in the state of Pennsylvania, and how Verizon is enabling those programs through grants and other means. Finally, Given touched on the policy implications of the National Broadband Plan, stating that policies need to remain in place continue to incent private investment, rather than hinder it.

After the keynote and the round-table discussion, we caught up with Mayor Richard and Given to get more of their thoughts. Click below to watch the interviews.

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In a room full of broadband providers and vendors, a conversation about the effects that Washington policy discussions could have on their business was timely and relevant.

On the third and final day of the Fiber to the Home Conference and Expo, Tom Cohen, the Washington DC Counsel and Advocate for the FTTH Council North America, led a discussion on current topics in telecom regulation and legislation. The session provided an excellent overview of various discussions and debates in Washington, including Net neutrality, broadband classification, Universal Service reform, and more.

Cohen opened up his comments by giving a very recent history lesson that included the release of the National Broadband Plan, the Comcast ruling by the Supreme Court, and subsequent comment periods opened up by the FCC. Cohen described the Supreme Court ruling as the single biggest event to affect current moves by the FCC towards more regulation. Following the ruling, the FCC’s authority was called into question, which led the FCC to explore other avenues for regulation of broadband services.

So what does the currently proposed “Third Way” for broadband classification really mean for broadband providers and vendors, and what effect could it have on their business? The answer was overwhelming. As Cohen explained, classifying broadband under Title II would create uncertainty for investors, which would in turn lead to less capital for investment and inhabit continued broadband deployment.

Cohen continually pointed to a filing by the Fiber to the Home Council in response to a recent Notice of Inquiry by the FCC, which states, “Reclassifying broadband Internet service as a Title II service offering would measurably increase the risk associated with investing in newly-regulated markets where regulatory requirements are uncertain and where proposed regulations are certain to be subject to many years of litigation.” The filing can be read here. The bottom line – increased regulation leads to increased risk for investment, which then leads to uncertainty. Why mess with a good thing.

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In a conference all about looking ahead at our broadband future, it was fitting to have a session dedicated to the National Broadband Plan and the impact it will have on the growth of our nation’s broadband services at the FTTH Conference and Expo.  Randall Frantz, Telecommunications and LBS Manager for ESRI, updated attendees about The Influence of National Broadband Plans on Telecommunications Projects.

Frantz began by noting that there are many perspectives when it comes to the impact of broadband – from consumers, to government, to communities, to the world at large.  But the real impetus for a national broadband plan?  Frantz believes that with the top countries in broadband all having a national broadband plans, the U.S. was not to be left behind.  He asked, “It’s the amazing race, but where is the finish line?”

For the U.S., the race will take us to 4mbps universally and 100mbps to 100 million households by 2020.  Other goals of the national broadband plan that Frantz discussed include:

• World leadership in innovation
• Affordable access
• Anchor institutions with 1gps access
• Broadband public safety network
• Basis for a clean energy economy

Frantz ranks the National Broadband Plan of 2010 among other pivotal communications legislative marks, like the Communications Act of 1934 and the Telecommunications Act of 1996.  Implementing programs like the Connect America Fund and National Digital Literacy Corps, in addition to recognizing the societal benefits of the national purposes, made him optimistic that the plan will be a driver of economic development in the information age.

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While the U.S., in general, has seen a good deal of economic downturn, one industry is playing a critical role in financial recovery while also creating new jobs – the communications industry. In a CNN online editorial, Michael Mandel, founder of Visible Economy LLC, called for “countercyclical regulatory policy” in order to ensure that this positive economic development continues. Mandel writes:

“The communications sector is one of the few bright lights in an otherwise dismal economic picture. Facebook just reported its 500 millionth member; Droids are flying out of stores; and the iPad is the latest “must have” in technology. To enjoy the new toys, Americans are paying for more powerful mobile connections, too…

This strength signals that the broad communications sector can help drive recovery, because businesses that hire during a recession usually carry that strength into the subsequent upswing. If history is any guide, these job leaders may grow at least twice as fast as the rest of the economy during the next expansion.”

Because of this positive trend, Mandel argues, government should do everything it can to maintain a regulatory environment that promotes investment and innovation. He calls on Washington policymakers to “hitch a ride on the communications sector and find ways to stoke the jobs and spending engine a little bit.” But, Mandel states, “Proposals to regulate Internet activity now before the Federal Communications Commission would do the opposite.” So what do we need in order to continue this unprecedented growth?

“What’s needed from regulators now is some creativity and humility — in the form of “countercyclical regulatory policy.” This gives innovators a bit of breathing space at the start of an economic recovery, but sets the stage to tighten regulations later on if excesses develop…

This approach does not mean regulators can go to sleep nor does it mean they can raise the flag of laissez-faire. What’s needed is the nuanced judgment of sentries posted at a tense border spot. With watchful eyes, regulators must practice thoughtful restraint that allows space for job leaders to innovate and hire, while remaining ready to aggressively confront violations of law or abuses of consumer rights if they take place.”

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So what does all the current chatter about Net neutrality and the future of the Internet really mean? According to a recent piece in CNET, and cross posted on CNN Tech, it’s much ado about nothing. Most of the ongoing debates about Net neutrality are theoretical, about a potential threat that could possibly appear in the future. But if that’s the case, then why haven’t these threats appeared yet? The answer, according to the article by Marguerite Reardon titled, “Debunking the Internet apocalypse,” is market forces. Reardon writes:

“The truth is that if Verizon and AT&T wanted to cannibalize their broadband business with premium broadband services, they’d already be doing it. But they aren’t, because there hasn’t been a market for it.

The reality is that consumers are in control of what type of services are offered. If the public Internet can adequately deliver a service for free, then there’s no need to pay for it…”

Reardon also focuses on the fact that a vast majority of Americans not only have access to multiple broadband provides, but 91% of customers are “very satisfied” or “somewhat satisfied” with their broadband service. She continues:

“While it’s true some consumers have access to only one broadband provider, nearly 70 percent of Americans have access to at least two broadband providers, according to the Pew Internet and American Life Project.

In short, Verizon [or any other of America’s over 1,400 broadband providers] would be cutting off its nose to spite its face if it skimped on broadband capacity to feed its managed service business.”

To read the entire piece, click here.

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Even though its August, a historically slow month in Washington, DC, that hasn’t stopped the FCC from engaging in meetings with key stakeholders regarding Net neutrality and broadband classification discussions.

With those conversations taking place, NextGenWeb wanted to track down leading thinkers and important voices that have recently published opinion pieces on the issue of broadband governance and classification. Our search brought us to Hance Haney of the Discovery Institute.

Haney recently had a special opinion piece published in the Sacramento Bee where he laid out the negative consequences that increased broadband regulation would have on jobs. Referring to the FCC’s apparent inclinations to regulate broadband, Haney stated, “It’s an aggressive play that will almost certainly land in court, and the results will have serious long-term impacts to consumers and small businesses throughout the country, including future job growth.”

NextGenWeb caught up with Haney to further discuss his position. Click below to watch the interview.

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The Supernova conference isn’t just about broadband technology and tech policy, but also about the fields that they enable, like innovation and entrepreneurship.  In a panel dedicated to exploring the new, networked business operation, the following experts weighed in on the latest in corporate strategy, collaborative platforms, and who is winning in today’s start-up world.

• Josh Kopelman, First Round Capital
• David Hsu, Wharton School
• Marc Berejka, Department of Commerce
• Andrew Weissman, Betaworks

Hsu was first to present and attributed the importance of networks for innovation to the following three areas -

1)  Knowledge specialization (low hanging fruit already covered)

2)  No single organization or individual has a monopoly on the inputs to innovation

3)  Increased competitive pressure

Kopelman believes that today’s networks are key platforms, going beyond summits and meet-ups, to sharing ratings and reviews.  As these networks become more robust, there is increased access to information from hires, to PR, to pitches.  Kopelman cited a situation when Mint.com first launched at the Techcrunch 50 conference and the response was so abundant that the system crashed.  It was tapping into the network of fellow venture capitalists (VC’s) that helped him to rapidly identify an expert and get the problem resolved within an hour.

Betaworks’ Weissman agrees that there is a radical shift in the way people interact with media and social media.  Weissman, co-founder of the New York based incubator, is thinking about API’s, apps, and the ways that users experience the Internet to create organizations that reflect the way businesses interact today.

Department of Commerce’s Berejka applauded the US for leadership in the Internet entrepreneurship space.  He believes the role of policymakers has to be light touch, do no harm, but protect the free flow of information.

A member of the audience asked if the trend of transparency in funding and VCs is leading to an increase in deals.  The panel was unanimous that the networks are definitely helping as the technology has lowered the costs of entry, for both sides, and has eliminated middlemen.  However, the flip side of that is now your network is part of your value, so you will also be judged by the worth of your community.

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Dialogue on Diversity is a non-profit organization dedicated to facilitating creative conversations among men and women of diverse cultural and ethnic backgrounds. As part of this mission, the organization often hosts conferences and symposia around entrepreneurial advancement, and the skills and policy policies that will facilitate that advancement. Today, the Dialogue on Diversity gathered leaders on IT, business productivity, marketing, and supply chains, to share their expertise on Capitol Hill. AT&T and Verizon were among the sponsors of the event, which both inspired and informed.

Rep. Raul Grijalva (D-AZ) delivered the Congressional Overview for the conference. The Congressman urged for ensuring that government contracting opportunities reach women and minority owned businesses in order to help the digital divide and avoid a green divide. “Let’s not look at diversity as something we have to do, but change our thoughts philosophically, and look at diversity as an integral part of rebuilding our economy.”

Link Hoewing, Vice President of Internet Technology and Policy for Verizon Communications, spoke about the role of broadband in the economy, jobs, and small businesses. Hoewing echoed the sentiments of both Rep. Grijalva and fellow panelist Ana Harvey, Assistant Administrator of the Women’s Business Owner of U.S. Small Business Administration, on the growing importance of technology globally. He added that continued investment in broadband networks can help power the economic recovery and that addressing challenges to broadband adoption, like digital literacy and computer ownership, will help to bridge the digital divide. Hoewing is extremely optimistic about tapping even further into the power of broadband. Currently broadband is primarily powering communication. But in the future, broadband will be vital to our health, education, and so much more.

You can watch Hoewing’s speech in its entirety below.

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What is the relationship between jobs, innovation, and regulatory policy? According to a recent memo released by Michael Mandel of the Progressive Policy Institute (PPI) titled, “The Coming Communications Boom? Jobs, Innovation and Countercyclical Regulatory Policy”, they are integrally connected.

With America attempting to pull itself out of the greatest economic downturn since the Great Depression, and with the national unemployment rate currently hovering just below 10%, one industry is stepping up to the plate and creating new American jobs – the communications industry. This memo released by PPI states, “Internet companies, along with firms engaged in wireless telecom and computer systems design, seem to be emerging as ‘job leaders’ in the next economic expansion.”

But what role will regulatory policy play in continuing this “job awakening” that we have seen in the communications industry? The answer depends on what types of regulatory policies are adopted moving forward. This memo by PPI calls for “countercyclical regulatory policy” to be applied to the telecommunications industry. Traditionally, this type of policy has been reserved for the financial industry. But Mandel argues that, “Countercyclical regulatory policy could bring enormous benefits. Investments would pour into the communications sector, and hiring would step up, as companies try to take advantage of the permissive regulatory period to build out their businesses.”

Read more of Mandel’s case here.

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