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The Broadband Problem
by Phil Windley
A few years ago, Charles Ferguson, of the Brookings Institute published a paper (PDF) entitled “The United States Broadband Problem: Analysis and Policy Recommendations.” The paper makes four key points:
“First, the pace of deployment and technological progress in broadband services remains seriously inadequate.” Note that when this paper was published in 2002, the U.S. was 7th in the world in broadband deployment. We’re now 11th. The industry will tell you that that’s because people don’t want broadband. I’d clarify it even further—-people don’t want the broadband that they’re offered by the likes of Qwest and Comcast who determine, as monopoly players, what you get. There’s no room for the market to offer other choices.
“Second, the principal source of this problem is the monopolistic structure, entrenched management, and political power of the incumbent local exchange carrier (ILEC) and cable television (CATV) sectors, worsened by major deficiencies in the policy and regulatory systems covering these industries.” SB66 is a perfect example of this. Qwest’s CEO has declared that they will be a facilities-based carrier, which is industry speak for “we’ll lock in the customers by owning the wires.” Qwest complains that UTOPIA would compete with them. In fact, its not UTOPIA that would compete with them but the businesses that UTOPIA will enable.
“Third, this is a truly important issue. Failure to improve broadband performance could reduce U.S productivity growth by 1% per year or more, as well as reducing public safety, military preparedness, and energy security.” I talked to my mayor and some members of my city council about this and they told me they’re always getting asked about broadband. Its top of mind for them. Qwest is trying to use the legislature is trying to stop the multi-year deliberations of 18 city councils with one quick action.
“And finally, structural reforms in industry, policy, and the U.S. regulatory system are required. Appropriate policy measures include structural separation of switching, enhanced services, and data transport in the telephone industry; divestiture of content from transmission in the CATV sector; mandatory open interfaces for interconnection; increased financial transparency and disclosure; and reforms in regulatory systems to increase their efficiency, high technology expertise and political independence.” UTOPIA is one of the most constructive ways I can imagine for this to happen. If the legislature wants to truly provide for Utah’s future, instead of running Qwest’s bill, they ought to be working to ensure that UTOPIA will be as open and transparent as possible.
I talked to my Senator last week about this and was somewhat reassured that Senate leadership is at least taking a look at these issues. However, the Senate advanced SB66 from its second to its third reading yesterday and that means it very close to passing. Its vital that we speak up now. I know that legislators listen to their constiuents. If you’d like to contact your Senator and Representative about SB66, Utahns for Telecom Choices has made this handy contact system available. Just click here to send an email. You don’t even have to know who you’re Senator is—-just your Zip code. Its better if the email looks personal, so you may want to change the words. Its even better if you call. Here’s a list of Senators by district with phone numbers and email. Note that you need to click on their name to get to a bio page before you can get their email address.
Posted by windley on February 17, 2004 08:41 AM
