More than 20 CEOs and founders of major Internet and technology companies wrote to FCC Chairman Julius Genachowski on Monday in support of his controversial plan to begin considering new rules aimed at preserving and promoting consumers' unfettered access to Web content. The letter from executives for Google, Facebook, Sony, Amazon, eBay, Twitter and other tech titans comes as the FCC prepares to vote Thursday on a proposal to expand and fortify its so-called neutrality regulations.
"An open Internet fuels a competitive and efficient marketplace, where consumers make the ultimate choices about which products succeed and which fail. This allows businesses of all sizes, from the smallest startup to larger corporations, to compete, yielding maximum economic growth and opportunity," they wrote. Lobbying on the topic reached a fevered pitch last week with Senate Commerce ranking member Kay Bailey Hutchison signaling she might pursue legislation to block new rules if Genachowski doesn't modify his proposal to reflect her concerns.
Also last week, 18 GOP senators -- including John McCain of Arizona, a former chairman of the Commerce Committee -- insisted in a separate document that the FCC's proposed revisions "will be counterproductive and risk harming the great advancements in broadband speed and deployment that we have witnessed." Yet another letter from 70 House Democrats urged Genachowski to "carefully consider the full range of potential consequences that government action may have on network investment."
Tuesday is mid-term review time for the FCC's broadband team and Blair Levin and his colleagues will provide the Commission with a major status report on their plan. They have 141 days left before their deadline to send a national broadband report to Congress and there's still a lot of work to do, Levin said in a blog post. Among his deliverables are specifics on broadband speeds; spectrum and fiber resources; the increasing cost of digital exclusion; and the adequacy of tools available to promote universal broadband.
Meanwhile, National Telecommunications and Information Administration chief Larry Strickling offered an update Monday on the work his agency is doing to facilitate broadband deployment through the disbursement of billions of economic stimulus dollars. He told a crowd in Charleston, W.Va., that NTIA last month received 2,200 applications requesting $28 billion in funding (seven times the amount that officials allocated for the first round of solicitations).
The first NTIA broadband grants will be announced in November and he hopes to complete the first round of awards by the end of the year. Strickling also said his team is contemplating whether to combine the projected second and third rounds of funding into one mega-round. If the rounds are combined, NTIA will release a second notice of funds available by December, with an application deadline of early 2010. The timetable should give all interested parties ample time to file, he said.
Nearly 100 Internet service providers, backbone providers, content providers, consumer groups, commercial groups, and end-user organizations have joined forces to form the Broadband for America coalition with the goal of getting broadband access to every household and business in the nation. The major thrust of the effort will be to find ways for the private, non-profit, and government sectors to work as a coordinated team leading the development and implementation of a national broadband strategy.
The coalition's launch comes as the FCC prepares a national broadband plan to be presented to Congress in February and the National Telecommunications and Information Administration is on the hook to help distribute $7.2 billion in broadband stimulus funds. The group's first order of business is an ad campaign -- a pair of 30-second spots that will run in the D.C. area. The coalition's diverse membership includes tech and telecom giants as well as groups not typically associated with Internet issues like the Jewish Energy Project and Livestock Marketing Association. For more on BfA click here.
House Energy and Commerce Communications Subcommittee member Doris Matsui, D-Calif., has introduced a bill that would expand the Universal Service Fund's lifeline assistance program for broadband adoption. The bill directs the FCC to establish a broadband program that provides low-income Americans living in rural and urban areas with assistance in subscribing to affordable broadband internet service. Matsui said her measure would help "fully close the digital divide."
In California, an estimated 96 percent of residences have access to broadband but just over half have signed up for a high-speed connection at home. In most cases, adoption rates are associated with income as seen in recent data from the Public Policy Institute of California, which show that only 58 percent of the state's residents earning under $40,000 a year subscribed to dial-up or broadband at home, according to Matsui's release. In contrast, 97 percent of those earning $80,000 or more subscribed to one of the services.
"It is clear that millions of Americans cannot afford broadband services," Matsui said in a press release, pointing out that in the current economic climate, many cannot afford to pay up to $60 a month for broadband. The legislation models the assistance provided for basic telephone service under the FCC's current lifeline assistance program, which is designed to ensure that quality telecommunications services are available to low-income customers at reasonable rates.
Warning that a free and open Internet "faces emerging and substantial challenges," FCC Chairman Julius Genachowski on Monday outlined ambitious plans for rules designed to prevent telecommunications and cable broadband providers from blocking or degrading competing content and services. "I believe the FCC must be a smart cop on the beat preserving a free and open Internet," he told a packed audience at the Brookings Institution.
Such rules could potentially insulate the FCC from a lawsuit challenging its authority to enforce its network neutrality principles, which were introduced as voluntary. But the announcement could trigger a reaction from Republicans on Capitol Hill and at the agency, as well as major communications companies, which have argued that heavy-handed government intervention could stifle broadband investment. Industry players generally coupled their criticism with praise for areas where they have common ground, though privately, they are said to be nervous.
"I think they're reluctant to get in his face this early in his tenure," an industry source said, adding it appears that major carriers -- recognizing Genachowski has the votes to move forward -- will seek to shape regulations they can live with. The FCC will vote on the proposed changes at its October meeting, but the new rules are not expected to be in place until the spring, well after it issues a national broadband plan to Congress in February.
Read David Hatch's CongressDaily PM Edition story here and a follow-up piece in Tuesday's AM Edition here (subscription required).
The FTC urged the FCC on Friday to take into consideration the consumer protection agency's primary missions of promoting competition and safeguarding consumers in the marketplace as the FCC develops its national broadband plan. "The FCC deserves tremendous credit for its leadership in creating a national broadband policy that will help bring high-speed Internet access and services to Americans across the nation," FTC Chairman Jon Leibowitz said in a press release. "As the agency that shares jurisdiction over broadband and the Internet, we look forward to working with the FCC in fulfilling this historic mission."
The FTC's response to an FCC notice of inquiry points out that competition and consumer protection work together to benefit individuals. Competition pressures producers and service providers to offer customers the most attractive array of choices with respect to price, quality, and other options, the agency said. At the same time, consumer protection policy promotes informed decision-making by customers and requires sellers to provide meaningful, timely information. The FTC's comments also question whether there is significant broadband competition and recommends using analytical tools embraced by the FTC and Justice Department in antitrust cases.
Consumer protections also are essential to help foster greater adoption of broadband, the FTC said. Those include meaningful and timely disclosures of service terms by broadband providers and strong data security policies that will safeguard consumer information and ease potential consumer concerns about online privacy. Privacy protections are particularly important, given new technologies that allow broadband providers to track consumers' online activities, to identify the source and content of much of the data they handle, and to manage that data in increasingly sophisticated ways, such as delivering targeted advertising online, officials said.
The House Energy and Commerce Committee will get an update by Obama administration officials next Thursday on implementation of the $7.2 billion broadband stimulus program, Tech Daily Dose has learned. While the panel has not noticed the hearing on finalized a witness list, one might expect officials from the Commerce Department's National Telecommunications and Information Administration and Agriculture Department's Rural Utilities Service to testify. One might also expect those representatives to declare the program's early days a success, given the preliminary figures that have been floated.
The NTIA and RUS said last week that they received almost 2,200 applications requesting nearly $28 billion in funding for proposed broadband projects across 50 states and the District of Columbia. The initial $4 billion round of grants and loans are aimed at expanding broadband access and adoption to help bridge the technological divide and create jobs building Internet infrastructure. NTIA will utilize $4.7 billion to deploy broadband infrastructure in unserved and underserved areas and other projects while RUS will invest $2.5 billion to facilitate broadband deployment in primarily rural communities.
"Applicants requested nearly seven times the amount of funding available, which demonstrates the substantial interest in expanding broadband across the nation," NTIA Administrator Lawrence Strickling said in a press release. "We will move quickly but carefully to fund the best projects to bring broadband and jobs to more Americans." RUS Administrator Jonathan Adelstein added that the overwhelming response "underscores the extensive interest in expanding broadband across the country."
The FCC's staff workshops on the national broadband plan continue this week with a Tuesday afternoon discussion about state and local government issues; benchmarks for evaluating dimensions of broadband across geographic areas and across time on Wednesday; and a Thursday focus on "big ideas" that have the potential to change the Internet, according to a notice released Monday. The Commission is holding a series of sessions throughout August and September to promote an open dialogue between the FCC and its constituents. The agency has a Feb. 17, 2010 deadline to submit its broadband plan to Congress.
Here's the speaker line up for this week:
State & Local Government
- Oregon Public Utilities Commissioner Ray Baum
- Colorado Deputy Chief Information Officer John Conley
- Florida Division of Telecommunications Director Charles Ghini
- Virginia Deputy Secretary of Technology Karen Jackson
- Mississippi Information Technology Director Craig Orgeron
- Jane Patterson, Executive Director, e-NC Authority, State of North Carolina
- Chicago Chief Information Officer Hardik Bhatt
- New York City IT Commissioner Paul Cosgrave
- Lafayette, La. City-Parish President Joey Durel
- El Paso, Texas Chief Information Officer Gary Gordier
- Howard County, Md., Cable Administrator Lori Sherwood
- San Francisco Chief Information Officer Chris Vein
The National Telecommunications and Information Administration transmitted its second quarterly status report to Congress this week highlighting steps being taken to effectively advance the Broadband Technology Opportunities Program that was created as part of the economic stimulus package. The paper, which is dated Aug. 17 but was released publicly Wednesday, focuses on the release of the first notice of funds available; public outreach initiatives; preparations to accept and evaluate applications; and other steps to improve NTIA's organizational readiness.
Up to $1.6 billion in BTOP funds will be available in the first grant round and NTIA is authorized to spend up to $141 million for administrative expenses through Sept. 30, 2010. The agency has hired approximately 80 percent of the federal staff planned for the program, the report stated. To assist with acquisition support, NTIA also entered into an interagency agreement with a division of the Interior Department and on Aug. 3 issued a contract to Booz Allen Hamilton for program development and administrative services. NTIA will provide its next quarterly report to Congress no later than Nov. 16.
Read more about BTOP here.
Telecom analyst Jessica Zufolo has left Medley Global Advisors to join the Obama administration as deputy administrator for the Agriculture Department's Rural Utilities Service, which will be run by Jonathan Adelstein, a Democratic member of the FCC for seven years. Under Obama's economic recovery plan, the service will distribute $2.5 billion in loans and grants to spur the deployment of broadband to mostly rural areas. Adelstein, a South Dakota native and former senior aide to former Senate Majority Leader Tom Daschle, D-S.D., was warmly received by the Senate Agriculture Committee during his nomination hearing last Tuesday. Read more in CongressDaily here (subscription required).
Before Medley, Zufolo was legislative director for the National Association of Regulatory Utility Commissioners where she was responsible for developing and executing national legislative strategy and policy on Capitol Hill. Earlier, she worked for the late Sen. Daniel Patrick Moynihan, D-N.Y.; then-Rep. Charles Schumer of New York and Rep. Peter Defazio, D-Ore. In a Sunday e-mail, Zufolo said her first day at USDA is Monday and noted that Medley would fill her position soon to maintain its presence in the telecom sector.
Qwest Communications is rejoining the U.S. Telecom Association as high-speed Internet issues take on a higher profile in Washington. The Denver-based telecommunications firm, which provides local service in 14 western states, left the association eight years ago "because we believed it to be in our best interests to do so at that time," a company spokesman said Friday. He declined to elaborate on the circumstances of the split but a 2001 Washington Post story shed some light on the rift: "Depending on whom you talk to, USTA either suspended [Qwest] for not paying its rather hefty dues or the company quit the group after growing apart." At the time, Qwest's annual dues were nearly $800,000, but the company had negotiated a 25 percent reduction, the article said.
Regardless of their checkered past, Qwest and U.S. Telecom have formally reunited and Friday marked "a big day for the broadband community," the association's chairman, Ron McCue said in a press release. "Our member companies - large and small, urban and rural - are united by a shared commitment to delivering the broadband future across America," he said. McCue noted that his organization and its member companies have been working closely with Qwest on key industry issues for a number of years and "at this critical time for our nation, its economy and American innovation, it is very meaningful that this industry is joining together in a common bond." The Obama administration recently released guidelines for its $7.2 billion broadband stimulus program, which has a number of corporations licking their chops.
Blair Levin, the FCC official in charge of coordinating the development of the Obama administration's new national broadband plan, said Monday that a new Web site -- Broadband.gov -- will launch in a matter of days. His remarks came at the Personal Democracy Forum's annual conference where he spoke about the future of the Internet. Levin recently returned to the Commission where he served in the 1990s as chief of staff to former Chairman Reed Hundt. Before rejoining the FCC, Levin was managing director of Stifel Nicholaus and worked on President Obama's transition team. His speech was followed by a policy panel featuring Free Press Executive Director Josh Silver; National Cable and Telecommunications Association Executive Vice President James Assey; AT&T Vice President Hank Hultquist; and PDF co-founder Andrew Rasiej.
Meanwhile, Monday was FCC Chairman Julius Genachowski's first official day on the job and he announced a handful of new hires. His chief of staff will be Edward Lazarus who hails from the law firm Akin, Gump, Strauss, Hauer & Feld. Genachowski also appointed two senior advisors and two legal advisors to assist him on a range of policy issues. Colin Crowell, longtime telecom adviser to Rep. Ed Markey, D-Mass., will serve as senior counselor and Bruce Liang Gottlieb, who was legal advisor to Commissioner Michael Copps, will become chief counsel. Priya Aiyar, Sherrese Smith, Sherry Gelfand, Daniel Ornstein, Mary Beth Richards, and Ruth Milkman will round out his team. (Hat tip, NextGenWeb.org)
West Virginia Gov. Joe Manchin thinks the Mountain State can make a good case for getting some of the $7 billion broadband money that was included in the economic stimulus package that passed Congress earlier this year. The National Telecommunications and Information Administration is responsible for doling out more than $4 billion in grants and the Agriculture Department's Rural Utilities Service has the job of distributing $2.5 billion. Both have to act fast with Manchin and other state officials eager to put the money to use. Manchin, a pioneer in the broadband space, delivered a keynote address at an Internet Innovation Alliance symposium Wednesday and spoke with reporters afterward. He also received IIA's Broadband Innovator of the Year award for his efforts to advance deployment and adoption in West Virginia.
Since taking office in 2004, Manchin has emphasized that high-speed Internet is as important a commodity as water and electricity, he told Tech Daily Dose. The economic success and global competitiveness of the United States depends on it, he said. Last year, Manchin advanced a bill in the state legislature that would set up a fund to pay those who successfully apply to expand Internet access in underserved areas of the state. He also proposed that the entire state have high-speed Internet access by 2010. Several years ago, Manchin set up a broadband deployment council to track access throughout the state. "It was the first of its kind in the nation and it pulled everyone under one tent to make sure we were using all the resources available," he said.
The U.S. Telecom Association on Monday formally unveiled its new and improved NextGenWeb.org -- a Web site meant to facilitate engagement in a range of issues surrounding broadband deployment and educate those interested in the societal benefits of broadband. The trade group beefed up the site with enhanced social media applications and added Shana Glickfield as its official blogger and online community director. "The innovative new site reinforces key themes that help to drive broadband deployment and adoption: connect, innovate and collaborate." said Glickfield, who also founded DCConcierge.com, a service that helps Internet users find goods and services in Washington. "As we blog, livestream, podcast and tweet from policy and industry events taking place in Washington and across the country, NextGenWeb will serve as a central resource for the latest news on how broadband is transforming lives and be a place for honest debate," she said in a press release.
Stifel Nicolaus managing director Blair Levin will return to familiar territory at the FCC, Acting Chairman Michael Copps announced Friday. Levin, who served as chief of staff to FCC Chairman Reed Hundt from 1993 until 1997, will join the agency to coordinate development of the new national broadband plan starting Monday. During his tenure at the commission, Levin oversaw the implementation of the 1996 Telecommunications Reform Act, the first spectrum auctions, the development of digital television standards, and the FCC's Internet initiative. More recently, he worked on President Obama's transition team where he oversaw a technology, innovation and government reform work group and was a rumored contender for FCC chairman. That job will go to Julius Genachowski, a close friend of Obama's, if he wins Senate confirmation.
Levin's encore performance at the FCC won early praise from tech policy watchers. Computer and Communications Industry Association President Ed Black issued a statement saying he is glad the administration recognized the depth of Levin's experience. "The quality of our new national broadband plan will benefit greatly from his direct involvement," Black said. He also praised the promotion of Mary Beth Richards, currently deputy general counsel, to acting managing director. Black said she is "a superb addition to the 8th floor team with stellar public service credentials in telecommunications and consumer protection."
President Obama reaffirmed his commitment to preventing communications giants from dominating the Internet by blocking or degrading broadband service during a major speech on Friday where he unveiled a report summarizing a 60-day assessment of how the government responds to cyber attacks. During a White House event, Obama said: "I remain firmly committed to net neutrality so we can keep the Internet as it should be -- open and free." Craig Aaron, senior program director of Free Press, cheered the mention, saying it made clear Obama considers net neutrality "an essential component of his administration's sweeping Internet agenda." "The president's words send a strong message to Congress and the Federal Communications Commission -- as well as the phone and cable companies -- that now is the time to end the stalemate on this crucial issue and secure the open Internet for future generations," he said.
Earlier this month, FCC Acting Chairman Michael Copps said telecommunications and cable providers of broadband service that block or degrade Internet content for anti-competitive reasons could soon be hit with tough penalties, including fines. Speaking after a speech at a daylong policy summit sponsored by Free Press, he said the strict enforcement would be part of a fifth principle his agency plans to add to net neutrality guidelines governing an accessible Internet. The Democratic commissioner said the plank would be modeled on requirements the commission imposed on the 2006 merger of AT&T and BellSouth. Industry players consider an anti-discriminatory requirement unnecessary and warn it could dissuade future investments in high-speed Internet technology. Read more in CongressDaily here (subscription required).
CongressDaily's David Hatch writes in TechCentral's latest Issue Of The Week that officials have released an historic government plan to spend tens of billions of dollars constructing a nationwide, state-of-the-art broadband network featuring speeds 100 times faster than today's technology. The new infrastructure would reach every citizen, delivering affordable connections at taxpayer-subsidized rates, boosting access to education and telemedicine. Proponents promise myriad opportunities for online businesses and enhancements to energy efficiency, media distribution and public safety. Haven't heard about this yet? That's because the announcement was made last month in Australia.
Before you dismiss the approach as a radical idea that could never be implemented here, consider this: it's being touted by a high-level White House official who reports directly to President Obama. Susan Crawford, special assistant to the president for science, technology and innovation policy and a member of the National Economic Council, recently said she is "personally intrigued" by Australian Prime Minister Kevin Rudd's ambitious goal. Even with this year's $7.2 billion cash infusion from Congress to stimulate domestic broadband investment, experts acknowledge that gaps in availability and bandwidth will remain, with pockets of the United States left with no service or antiquated technology.
Read the full story here.
Larry Strickling, President Obama's pick to head the National Telecommunications and Information Administration, said his agency should develop metrics "to accurately and demonstrably" show whether the $7.2 billion in broadband funds contained in the economic stimulus package are being used appropriately and whether the program is achieving the goals established under the statute. His comments on the program were part of written responses to questions asked by Senate Commerce ranking member Kay Bailey Hutchison after his confirmation hearing Tuesday. The committee approved his nomination and that of Aneesh Chopra, Obama's choice to become the government's first chief technology officer, on Wednesday afternoon.
"There are a number of outcomes that could be used to show that unserved communities benefit from this program, including households passed with broadband service, speed of Internet service, jobs created, affordability of broadband offerings, and adoption of broadband service," Strickling wrote, noting NTIA will require grant recipients to regularly report their progress. In addition to transferring $10 million to the inspector general for oversight, NTIA has pursued transparency through public meetings and by soliciting public comment, he said. If confirmed, Strickling said he would ensure a "robust program of inspection and audits" is implemented and as the program expands, will provide information about applicants and recipients as well as quarterly reports.
Strickling also pledged to work with the committee to "find the most appropriate way to prevent copyright piracy and other illegal activities" in connection with the stimulus mandate that funded networks adhere to yet-to-be-determined "openness" requirements. "Although the Internet has, of course, fundamentally altered our lives for the better, as you know, every year billions of dollars in stolen copyrighted works are exchanged over the Internet," Hutchison warned.
Surf on over to CongressDaily's TechCentral for a new "Issue of the Week." Here's a taste:
Imagine trying to hand out cartons of cash to passersby on a busy street corner -- yet attracting no takers. That's the paradox the federal government faces as it crafts guidelines for $7.2 billion in incentives for telecommunications companies to extend high-speed Internet service to rural areas with limited or no access. The reason for the apprehension, particularly among dominant telecom and cable firms, is that the money comes with regulatory strings attached. One is a requirement that recipients adhere to the FCC's voluntary guidelines governing "network neutrality" -- the concept of maintaining an open and accessible Internet. Another is that network interconnection rights must be guaranteed to competing broadband providers.
Congress didn't define those terms in President Obama's economic stimulus package, punting instead to the two agencies tasked with distributing the funds -- the National Telecommunications and Information Administration within the Commerce Department, and the Rural Utilities Service within the Agriculture Department. NTIA, which will dole out $4.7 billion in grants and loans, and the RUS, set to distribute $2.5 billion, are hashing out the details now, with an announcement to come in the next month or two. Some of the corporate rhetoric might be brinksmanship aimed at spurring regulators to craft conditions with the lightest possible touch. But experts acknowledge there's a real possibility key players could sit the program out, or not participate as heavily as expected.
Read the full story here.
Rep. Anna Eshoo, D-Calif., wants to know for sure whether AT&T is engaged in any activity that involves tracking its broadband Internet subscribers' online activities to target advertising and on Friday asked the telecom giant's top executive to clarify. In a letter to AT&T CEO Randall Stephenson, Eshoo asked whether AT&T has used AudienceScience.com or any other behavioral advertiser to place ads on the Web, and if so, whether those firms notify consumers when data is collected. She also asked whether consumers are allowed to control what data is collected by advertising vendors and how it is used. Eshoo asked Stephenson when AT&T began advertising to consumers using behavioral targeting and whether it continues to engage in that activity. If AT&T has stopped, she wants to know when.
Her letter came on the heels of what she believed to be contradictory testimony from AT&T Chief Privacy Officer Dorothy Attwood on Thursday. During a hearing of the House Energy and Commerce Communications, Technology and the Internet Subcommittee, Attwood said AT&T does not use "deep packet inspection," a controversial type of network filtering that could be used to build extensive customer profiles and offer specialized content and advertising without consent. Attwood said AT&T would not use consumer information for that purpose "without an affirmative, advance action by the consumer." In August 2008, Attwood told the House Energy and Commerce Committee that AT&T does not engage in behavioral advertising but the company is listed as a client of AudienceScience, which offers that service.
"As an ISP, we do not track our customer's data across unrelated Web sites to create a profile for behavioral advertising, or hire other firms to do so on our behalf," an AT&T spokesman told Tech Daily Dose. He said his company's relationship with AudienceScience is as an advertiser of AT&T products and services. Suggestions that AT&T is engaging in behavioral advertising by selling customer information are "flat wrong," he said. The spokesman added that AT&T has consistently told Congress it uses ad networks. In related news, a testimonial listed on AudienceScience's Web site from MEC Interaction, which had AT&T as a client, has been removed. The message read: "AudienceScience rocks and I recommend using them for all of your BT campaigns."
Rep. Eric Massa, D-N.Y., last week announced he is drafting legislation designed to prevent what he called "job killing broadband Internet downloading caps." The proposal would prohibit unfair tiered pricing structures and would address the importance of helping broadband providers create jobs and increase their bandwidth while increasing competition in areas currently served by only one provider, according to a press release. "I am taking a leadership position on this issue because of all the phone calls, emails and faxes I've received from my district and all over the country," Massa said, citing a plan by Time Warner to charge residential and business broadband fees based on the amount of data they download. [Read more coverage on this issue here].
The freshman lawmaker, who serves on the House Agriculture, Armed Services and Homeland Security Committees, called Time Warner's announcement to test market the initiative in several regions "ill conceived" and said it had the potential to more than triple customers' current rates. Time Warner said it wanted to roll out the project in Rochester N.Y., Greensboro, N.C., Austin, Texas, and San Antonio, Texas. "It's almost certainly just a matter of time before they attempt to overcharge all of their customers," Massa said. "While I favor a business's right to maximize their profit potential, I believe safeguards must be put in place when a business has a monopoly on a specific region."
Read Massa's press release here and a recent memo from Landel Hobbs, Time Warner's chief operating officer here.
The heads of several telecommunications trade associations wrote to Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell on Thursday night urging them to preserve the economic stimulus package's broadband deployment incentives as Democrats and Republicans continued to spar over what should stay and what should be slashed from the increasingly expensive measure. More than $9 billion in the proposal would fund Internet grants and tax credits.
"Broadband provisions in the stimulus bill should give the president the flexibility to put funds to use in ways that will most quickly and effectively create jobs, stimulate economic growth, and bring broadband to the greatest number of Americans in the shortest possible time -- not attempt to settle broad policy arguments that need and deserve more deliberate and thoughtful consideration," wrote executives from CTIA: The Wireless Association; U.S. Telecom; the Western Telecommunications Alliance; the Independent Telephone and Telecommunications Alliance; and OPASTCO, the Organization for the Promotion and Advancement of Small Telecommunications Companies.
The House may have already passed its $819 billion economic stimulus package, which includes substantial funding for U.S. broadband deployment in underserved areas, but the Senate still has to act and there are similar provisions in that chamber's bill. In anticipation of a vote next week, a handful of experts will come to Capitol Hill Friday to offer advice for how best to include high-speed Internet incentives in such a package -- a proposition that hinges on understanding two critical issues: how broadband affects economic growth, and how the credit crisis has affected broadband investment. For event details, click here.
The Technology Policy Institute briefing will feature the latest research on the links between broadband and economic growth as well as analyst and industry perspectives. Speakers include: TPI Senior Fellow Scott Wallsten; National Cable and Telecommunications Association Executive Vice President James Assey; Brookings Institution Senior Fellow Robert Crandall; Stifel Nicolaus telecom analyst Chris King; and Northwestern University professor Shane Greenstein. A new report by Greenstein estimates that broadband adds about $10 billion per year in new GDP and another $5 billion in unmeasured consumer surplus.
In related news, NCTA posted a six-minute video on its Cable Tech Talk blog featuring the trade group's president, Kyle McSlarrow, discussing broadband stimulus language. Click here to go to the NCTA blog or follow the jump to watch the clip on Tech Daily Dose.
As lawmakers consider giving U.S. broadband deployment a boost in the economic stimulus package, the Internet Innovation Alliance has unveiled a new online resource that features hundreds of facts and statistics from more than 60 studies published in the past two years. Separated into areas of interest, the site allows for a range of searches on topics like broadband adoption, the economy, education, energy, network infrastructure, telework, and other fields. The bottom line, according to IIA co-chair Bruce Mehlman: "Informed policymakers make the best policy."
Some sample statistics from the IIA fact book:
▪ E-commerce generates 36 percent less conventional air pollutants than conventional shopping. - American Consumer Institute 2007
▪ A 7 percent increase in broadband adoption could result in $92 billion through 2.4 million jobs created or saved annually. - Connected Nation 2008
▪ Broadband-based remote monitoring for all chronically ill patients could reduce hospital, outpatient, and drug expenses by 30 percent. - Robert E. Litan
"Broadband can positively impact everything from employment to the environment to healthcare. It will be a key driver in the revival of the economy," Mehlman said in a press release. "The IIA Web site is an important educational tool, but we also hope it's an interactive one, allowing researchers and experts to add additional facts to a growing body of knowledge."
On Monday, the New America Foundation will unveil its communications policy agenda for the new administration. Speakers include: FCC Commissioner Jonathan Adelstein; the Consumers Union's Gene Kimmelman; and a number of academics from American University, Carnegie Mellon University, Pennsylvania State University, Rutgers School of Law, the University of San Francisco, and the University of Texas. The Information Technology and Innovation Forum will host a same-day discussion on incentives for broadband deployment in President Barack Obama's economic stimulus package.
The Senate Judiciary Committee on Tuesday will hear perspectives on privacy of personal health records in the digital age. Chairman Patrick Leahy played a key role in the evolution of health IT legislation in the 111th Congress, insisting that safeguards be included in legislation sponsored by Senate Health, Education, Labor and Pensions Committee leaders. The economic stimulus packages making their ways through Congress have health IT components.
Hearing witnesses include James Hester, director of the Vermont State Legislature Health Care Reform Commission; Consumers Union health policy program manager Adrienne Hahn; the Center for Democracy and Technology's Deven McGraw; Michael Stokes, program manager for Microsoft's HealthVault; University of Pittsburgh Medical Center vice president John Houston; and David Merritt of the Center for Health Transformation and the Gingrich Group, which is headed by former House Speaker Newt Gingrich, R-Ga.
On Wednesday, Robert McDowell, temporarily the lone Republican regulator at the FCC, addresses the Media Institute at a luncheon event. Meanwhile, the Information Technology Association of America, which merged recently with the American Electronics Association will recognize Data Privacy Day with a discussion and reception on Capitol Hill.
The House Energy and Commerce and Ways and Means Committees approved their sections of the chamber's economic stimulus package after marathon mark up sessions on Thursday. CongressDaily has two extensive reports that can be accessed here and here (subscription required).
Energy and Commerce Highlights:
• Accepted an amendment by Rep. Bart Stupak, D-Mich, to set a strict timetable for FCC implementation of a formula for distributing broadband money to "unserved" and "underserved" areas.
• Rejected an amendment by Rep. Roy Blunt, R-Mo., that called for areas with no service at all to be helped first, then "underserved" areas.
• Rejected an amendment by Rep. Mike Rogers, R-Mich., to prevent states attorneys from filing suits under federal privacy laws.
• Rejected an amendment by Rep. Michael Burgess, R-Texas, to allow hospitals and doctors to share IT and staff.
• Accepted an amendment from Rep. Ed Markey, D-Mass., to add additional security requirements to protect patients' personal health information.
The U.S. Conference of Mayors and the Knight Center of Digital Excellence will host a Sunday discussion about how making investments in broadband technology can connect, enable, and transform communities. The event takes place in conjunction with the mayors' annual winter meeting in Washington. Panelists include USCM President Manny Diaz, mayor of Miami; Akron, Ohio Mayor Donald Plusquellic; Knight Foundation President Alberto Ibarguen and others.
At the organization's June meeting, members voted in favor of a resolution calling on the president, Congress and the FCC to develop a comprehensive national broadband strategy that includes high-speed deployment to cities as an imperative and preserves the ability of local governments to provide broadband capability and services within their communities. The resolution also urged the FCC to begin immediately collecting detailed information on broadband coverage and use and share said data with local governments.
The event precedes the inauguration of President-elect Barack Obama, who has spoken frequently about the need for America to lead the world in broadband penetration. "As a country, we have ensured that every American has access to telephone service and electricity, regardless of economic status, and Obama will do likewise for broadband," the transition team's Web site states. He believes that can be accomplished by overhauling the universal service fund; improving the use of U.S. wireless spectrum; promoting next-generation technologies; and tax and loan incentives.
The House Appropriations Committee Thursday unveiled an $825 billion economic stimulus package that includes $550 billion in spending and $275 billion in tax cuts to individuals and businesses over two years. The proposal would provide $20 billion for health IT; $6 billion for broadband; $32 billion for smart energy grid investments; and $15 billion for new K-12 school, classroom and laboratory renovation and technology. High-tech and telecom stakeholders cheered the news.
Information Technology Industry Council President Dean Garfield said the package "uses technology to put Americans back to work, creating jobs and new spending at a time when the country needs it most." New investments in electronic medical records, increased spending on science and technology in our nation's classrooms, new and faster reach for broadband and energy efficiency are "sound and sensible ways to jumpstart the economy," he said. He urged the House and Senate to move quickly to pass the legislation.
Stimulus investments in broadband are a valuable first step toward a comprehensive national broadband effort, the Internet Innovation Alliance said. President-elect Barack Obama has shown "tremendous foresight" in recognizing the need for increased deployment and his belief that America should lead the world in broadband penetration, the group said. "Investing in broadband expansion is good for our economy and key to our future competitiveness."
The head of President-elect Barack Obama's technology, innovation and government reform team today said recent estimates from "very reliable sources" about the size, scope, and structure of the proposed broadband portion of the forthcoming economic stimulus package that Obama wants to send to Congress are "off target." In his first public speech since joining the transition team, Blair Levin would did not elaborate on the plan, only to say that the team wants to work collaboratively with Capitol Hill leaders and is driven by "letting the best ideas win."
"People are confusing national broadband goals generally with the very specific goals of broadband in the economic recovery package," he told the Congressional Internet Caucus's State of the Net conference. "It misses the different problem sets we're solving for." Levin, who refused to take questions from reporters after his speech, is on leave from his position as managing director of the investment firm Stifel Nicolaus and he previously served as chief of staff for former FCC Chairman Reed Hundt. Hundt is another key Obama backer.
A trade group representing American songwriters told President-elect Barack Obama's transition team last week that network neutrality as defined in recent debates on Capitol Hill "is a principle with surface appeal" that proposes that Internet service providers should not interfere with or regulate traffic on their own networks. But the practical result of such a barrier would be more piracy -- a problem that has been devastating for musicians, the Songwriters Guild of America said in a briefing document.
The solution lies not with net neutrality proposals but in an emerging common ground between creators and some ISPs, SGA said. The group believes ISPs must be allowed the flexibility to manage traffic on their networks in a manner that: (1) permits, protects and encourages legitimate online commerce; (2) does not discriminate among providers of legitimate content; (3) deters illegitimate conduct such as music piracy; and (4) provides the ISPs with sufficient incentive to continue to build and expand their networks.
Net neutrality proposals as now structured could prevent forward-looking ISPs from taking such actions, SGA said. Recent debates over the topic have positioned ISPs in opposition to the consumer and have completely ignored creators' rights, the group said. SGA President Rick Carnes has testified repeatedly before Congress and the FCC against "an absolute policy of net neutrality that would simply enshrine the current mass looting of the works ofsongwriters and music copyright owners."
Congress and President-elect Barack Obama's administration should include broadband-related investment in forthcoming legislation designed to promote economic stimulus, and the federal government needs to begin with better data about broadband availability, Massachusetts Secretary of Housing and Economic Development Daniel O'Connell urged the chairs of Obama's transition team in a letter last week. In particular, Congress should supplement the Broadband Data Improvement Act, which passed last October without appropriated or authorized funding levels. An earlier version had included $40 million for the Commerce Department to allocate to state-led initiatives.
O'Connell also urged flexibility in the way that states structure their individual broadband programs, extending stimulus funds to spur broadband demand among the poor, and recognizing that some forms of communication, like satellite service, are inferior methods of delivering broadband, according to BroadbandCensus.com. His letter included a five-page memo on the role of broadband investment in the economic recovery and laid out approaches states are taking with regard to broadband infrastructure. Read the story here.
A pilot initiative announced Thursday by the foundation run by Microsoft founder Bill Gates and his wife will help public libraries in seven states secure faster Internet connections so more people can access a full range of online applications and opportunities. The foundation awarded $6.9 million in combined grant funding to Connected Nation, a non-profit Internet advocacy group, and the American Library Association to support improved Web access for libraries in Arkansas, California, Kansas, Massachusetts, New York, Texas, and Virginia.
"Public libraries across the country have played an integral role in closing the digital divide for millions of Americans, but local governments, communities, and library supporters must do more to ensure libraries can continue to provide fast, reliable Internet service for communities," Gates Foundation deputy director of U.S. libraries Jill Nishi said in a press release. As the economic crisis in the U.S. deepens, visits to public libraries are up across the country, the foundation pointed out. Many libraries are reporting that online services are in high demand, especially for job seekers and those who lack Internet access elsewhere.
If the pilot broadband program yields positive results, the foundation may expand its support to a limited number of additional states. To date, the foundation has invested $325 million in grants and other support to install and sustain computers in libraries and train thousands of library staff in all 50 states and U.S. territories.
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