By IIA
We commend the FCC for responding to the recommendations of expert analysts, economists, civil rights organizations, industry groups and members of Congress by continuing to seek consensus rather than pursue burdensome and unnecessary regulations.
The Commission deserves credit for seeking additional input from interested parties, including actual market participants who are innovating, investing and deploying networks. As a bipartisan majority of Congress has urged, on such an important issue we should take the time necessary to get this right and to base policy on facts and reality rather than fear and political rhetoric.
— David Sutphen
Over the past decade, minimal regulation has led to extraordinary investment and adoption of broadband by more than two-thirds of American citizens. The shared goal of an open Internet is best served by a thoughtful, fact-based, targeted and bipartisan approach to new policy directions.
It is critical that processes to find consensus continue. With a well-planned strategy based on input from industry players across the spectrum, we can get every American online and build a world-class Internet ecosystem that makes our country a better, more prosperous and fairer society.
— Bruce Mehlman
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By IIA
IIA Co-Chairman David Sutphen has an article on RollingOut on the high cost the African American community — and other communities currently languishing across the digital divide — are paying:
Unfortunately, too many African Americans are at a competitive disadvantage because they don’t have an important asset in today’s digitally driven society — a broadband Internet connection. At a time when the Internet has become our society’s economic, political and cultural glue, the lack of high-speed broadband access means you’re not competing on a level playing field.
Read David’s full piece at RollingOut.
By Brad
IIA Co-Chairman David Sutphen has an op-ed for theGrio examining two recent reports from Pew that show suggest when it comes to closing the digital divide America is making progress:
A closer look at the Pew studies reveals that real progress is being made, through home broadband and wireless internet-connected devices, toward closing the digital divide for African-Americans. For example, from 2009 to 2010, the home broadband year-over-year usage rate of African-Americans increased by 22 percent from 46 percent to 56 percent, while the rate for white Americans and Hispanics remained largely steady. As a result, what was a 19 percent gap (whites 65 percent/African-Americans 46 percent) between white and African American home broadband rates in 2009, has dropped to an 11 percent gap (whites 67 percent/ African-Americans 56 percent) in one year. Moreover, Pew found that African Americans “lead the way” over whites and Hispanics in connecting to the internet through mobile handheld devices, and rank #1 when it comes to wireless data application usage.
Check out David’s full piece at theGrio.
By IIA
IIA Co-Chairman David Sutphen has penned a column for EbonyJet covering the digital divide, the National Broadband Plan, and the effect the FCC’s move to impose Title II regulations on the Internet will have on both. Here’s a taste:
The Obama Administration’s support of a national broadband plan that would grant access to the 100 million Americans that remain disconnected is a clear sign that they understand the challenges that communities like ours are facing in the current digital era. However, the Federal Communications Commission’s (FCC) recent moves to regulate the Internet with rules that have been used to regulate the phone system for the past 70 years are clear signs that the implementation of the national broadband plan is getting bumped down on list of priorities. Plainly said, the promise of materializing a national broadband plan to empower our communities is taking a back seat to a discussion about who can regulate the process and how.
What does this mean for all of us? It means that the FCC’s authority could very well lead to policies that will force the private sector to spend more money on regulatory process and ultimately pay for it by billing it consumers. It also means they won’t be in a hurry to invest money where it needs to be concentrated – in building broadband infrastructure which would create jobs and offer online resources that we need.
Read the entire column at EbonyJet.
By IIA
Our response to the FCC’s Notice of Inquiry on reclassifying broadband under Title II:
July 15, 2010
Dear Chairman Genachowski and Commissioners Baker, Clyburn, Copps and McDowell:
Thank you for the opportunity to offer comments on the proposal to bring broadband information services under Title II of the 1934 Act. While we share your goals of preserving an open Internet and enabling universal broadband deployment and adoption, we fear the proposed “third way” approach will undermine these objectives, reducing investment, stalling economic recovery and inhibiting the pace of broadband progress in America.
This proposal seems intended to fit changed legal circumstances rather than evolving market realities. It could disserve consumers by threatening the continued growth of the industry at a time when increased innovation, investment and job creation are critical to the economy. Recognizing this reality, a bipartisan majority in Congress has urged the Commission to shelve this proposal and let the elected lawmakers lead. Instead of re-defining new technologies to fit old regulatory categories, the FCC should allow Congress to craft clear and narrowly tailored authority that enables the Commission to accomplish specific, focused objectives.
The Internet Innovation Alliance believes the biggest challenges to universal broadband adoption in America right now include:
• The need for ongoing investment in network capacity (up to $350 billion according to FCC estimates) despite significant economic headwinds and uncertainty for investors, to support the bandwidth required by 50,000,000 new customers and ever-more-robust applications;
• The need for digital literacy programs that target the 37 percent of Americans who have access to broadband but have not signed up for service, either because they do not know how to use the services or do not appreciate how it would benefit their lives;
• The need to expand the amount of wireless spectrum available while enhancing effective network management strategies;
• The need to improve enforcement efforts in the face of exponentially-increasing cyber attacks and fraud.
The IIA shares the belief that competition among ISPs and the free and open nature of the Internet have been essential to broadband’s success and remain critical to its future. However, the free and open Internet is not at risk. We are unaware of any current examples of ISPs “blocking or degrading” web sites or broadband traffic. And the few allegedly “bad actions” by ISPs over the past five years have quickly resulted in prompt reversals. The FCC should not expand regulatory risk, even with promises of forbearance, to protect against hypothetical harm.
Of great concern, this proposal threatens to undermine investment by adding significant uncertainty and depressing returns. Analysts and expert observers have overwhelmingly identified this proposal as a negative blow to America’s economic recovery and investment in broadband. For example:
• “Reclassifying broadband to bring it under FCC jurisdiction is the ‘the nuclear option’...This would call into question virtually every assumption about the terminal value of networks…Markets abhor uncertainty. Today (day of FCC’s announcement that it will push forward with Title II reclassification of broadband) we got uncertainty in spades…this development is an unequivocal negative.” (Sanford Bernstein Senior Analyst Craig Moffett)
• “...Decreased investments by broadband service providers will hinder capital expenditures by others in the ecosystem, particularly those at the edge…the imposition of network neutrality rules could have devastating impacts across the ecosystem between 2010 and 2015. A 10 percent decrease in investment by wireline and wireless broadband service providers, coupled with likely spillover effects, could result in the loss of 502,000 jobs across the entire ecosystem and would have a negative impact on U.S. GDP on the order of approximately $62 billion per year.” (Study: Davidson, Charles and Bret Swanson. “Net Neutrality, Investment & Jobs: Assessing the Potential Impacts of the FCC’s Proposed Net Neutrality Rules on the Broadband Ecosystem.” New York Law School. June 2010.)
• “Net neutrality acts like a tax on the Internet. It imposes overheads on network operators, which, in turn, decrease network investments, providing less opportunity, not only for the operators, but also for those that use the operators’ networks as well.” (Study: Jude, Michael. “Net Neutrality: Impact on the Consumer and Economic Growth.” Frost & Sullivan. May 2010.)
• “[The “third-way” regulation angle] creates potential long-term negative investment (and competitive) implications for major cable broadband providers.” (Standard & Poor’s Analyst Tuna Amobi)
IIA also fears the proposed new regulations are more likely to widen the digital divide than close it. By deterring new investment where and when it is needed most, this regulatory approach could add to the cost of service and price broadband beyond the reach of many low and moderate-income Americans. Experts on the digital divide have not cited “lack of common carrier regulations” as either a cause or a cure for race or income-based differences in broadband adoption. Nor did former Pew researcher John Horrigan find any non-users of broadband citing concerns over the future of the free and open Internet as the basis for their failure to buy broadband.
A groundbreaking December 2009 poll of 700 African Americans and 200 Latinos conducted by former Obama Campaign pollster Cornell Belcher found that the main reasons that non-Internet users in communities of color remain offline are (1) they do not see the need/value, (2) they lack computers or smart phones and (3) they lack the digital literacy and online confidence. We understand how to remedy all of these challenges, none of which would be solved or even addressed by this proposal.
We believe that minimal regulation and consistent bipartisanship will lead to maximum investment and innovation. Regrettably, the “third way” expanding Title II would maximize regulation and ignore the bipartisan majority. The Commission should shelve this proposal and await focused and narrowly-tailored legislation from Congress that authorizes core elements of the National Broadband Plan, including initiatives to promote digital literacy, universal service reform and expand spectrum availability.
Thank you for your careful consideration of our views.
Sincerely,
Bruce Mehlman & David Sutphen
Co-Chairmen, Internet Innovation Alliance
By IIA
In his latest column for Fierce Telecom, IIA Co-Chairman David Sutphen encourages everyone to make their voice heard about the FCC’s proposal to regulate the Internet under Title II:
At the Internet Innovation Alliance (IIA), we believe applying old regulations to new technologies merely because it seems legally viable will not solve current market realities, no matter how well they are implemented or how much the Commission promises to forbear.
Comments to the FCC on this latest flavor of net neutrality are due this Thursday, July 15. In our response to the NOI, the IIA will urge the Commission to show regulatory restraint. If you have an interest in the future of the Internet, we encourage you to weigh in and submit your own response here.
Read the full column at Fierce Telecom.
By David
Today’s proposal to impose new and potentially sweeping regulations on broadband services under Title II of the Telecom Act represents an unnecessary and troubling distraction from the Obama Administration’s goal of universal broadband for all Americans. Such an unexpected sea change to established policy could deter new investment where it is needed most, potentially even exacerbating the persistent digital divide by pricing broadband beyond the reach of many low and moderate-income Americans.
A majority of Wall Street analysts have warned that the FCC’s regulatory changes will result in market uncertainty and undermine investment at a time when the FCC and the nation should instead be focused on creating jobs, closing the digital divide, and implementing the consensus components of the National Broadband Plan.
By Brad
IIA Co-chairman David Sutphen has penned an op-ed for Fierce Telecom on net neutrality and its effect on the digital divide. Here’s a snippet:
Those who have been slow to adopt are also those for whom broadband can make the most difference. Too many minorities, non-English speaking populations, and members of low income and rural communities remain disconnected. Policies proposed in the National Broadband Plan such as digital literacy programs and making technology more affordable address the challenges facing these demographics and could have a powerful and positive impact, provided it is not accompanied by new regulations that would depress investment. Net neutrality did not cause—nor will it close—the Digital Divide.
Read David’s full op-ed at Fierce Telecom.
By IIA
At this decisive moment in the American broadband revolution, we should strive to give greater certainty to telecom investors and innovators and rally support to the collective push for universal access and adoption, rather than advancing divisive regulations that increase investors’ uncertainty. Because marketplace realities do not necessitate new Internet rules at this time, we urge the FCC to shelve such regulations and devote all of its energies toward advancing the National Broadband Plan.
The two greatest risks to a free and open Internet in the future come from escalating cyber-security-related attacks and insufficient bandwidth to support 50 million new customers and ever-more-robust applications. Not only would the regulations envisioned in this NRPM leave ISPs with their hands tied, potentially unable to adequately manage networks to address these challenges, but they are precisely the sort of investment-killers that could undermine the National Broadband Plan and limit its success.
Broadband offers great potential to increase domestic employment, according to multiple experts across the political spectrum. Recent studies, by contrast, suggest good new jobs could be lost in the face of greater uncertainty caused by heavier regulation.
The White House recently hosted a Forum on Workplace Flexibility, where President Obama stressed the importance of bringing telecommuting opportunities to communities that need new jobs and advocated expanding teleworking opportunities for federal employees, underscoring the necessity of increased broadband connectivity. The IIA strongly believes this important goal can be achieved with the help of the National Broadband Plan, which has potential to make a positive and powerful impact, provided it is not accompanied by heavy new regulations that threaten to chill investment when we need it most.
Read IIA’s full Reply Comment to the FCC.
By Brad
At the Daily Caller, IIA Co-Chairman Bruce Mehlman and David Sutphen have a joint op-ed on the National Broadband Plan and what happens now:
The National Broadband Plan highlights a decade of success and innovation in Internet technology. Relatively minimal regulation has helped achieve great advances in Internet technology and has brought broadband access to 95% of all Americans. Over the past decade, the cable and telecommunications industry has invested more than $165 billion in infrastructure and upgrades. The NTIA reports that broadband adoption has expanded to 63.5 percent of U.S. households as of October 2009, up from just 4.4 percent in 2000.
There is more to be done. Thirty-five percent of Americans still have not adopted broadband due to digital illiteracy, lack of resources or failure to appreciate the value and benefits. Too often, the slow adopters are those for whom broadband can make the biggest difference.
Read the full op-ed at the Daily Caller.
By David
The Internet is the great equalizer and enabler in today’s global, digital economy – those not online have the most to lose. We are thrilled to see many months of collaboration between the public and private sectors come to bear in a historic National Broadband Plan.
We’ve come a long way in the development of high-speed Internet, and going forward, the people who can benefit most from broadband connectivity should be the focus of every discussion on Internet policy. The plan provides a great opportunity to extend the power of connectivity to all Americans, consistent with the President’s goals and vision.
By Brad
On Wednesday, the Joint Center for Political and Economic Studies held a panel discussion called “Open Internet, Innovation and Economic Development.” A a re-cap of the event is now widely available, and highlights some of IIA Co-chairman David Sutphen’s remarks:
Panelists like David Sutphen, co-chair of the Internet Innovation Alliance, asked that government focus on adoption first, especially among minorities and lower-income groups. “The National Broadband Plan is most important,” said Sutphen. “If we could get everyone who has been worried about open Internet principles focused on the digital literacy and value proposition gap, we’d go a long way towards solving the problem.”
Read Capital Wire’s full re-cap. Video is also available of the event.
By IIA
IIA Co-Chairmen Bruce Mehlman and David Sutphen respond to the FCC’s new study “Broadband Adoption and Use in America.”
I commend the FCC for its leadership on broadband adoption and for recognizing the role the Internet plays in the American job market. We no longer operate in a brick-and-mortar economy. Broadband increases opportunities for American businesses large and small to succeed and advance and enables new job creation as well.Investing in Internet technology and infrastructure benefits all business sectors, and at a time when economic recovery is at the top of our national agenda, broadband advancement has never been more critical.
— Bruce Mehlman
The new FCC study underscores the need to remain focused on closing the digital divide by addressing the American public’s attitudes about broadband and reinforces the IIA’s belief that digital literacy must be a key component of the National Broadband Strategy, due to Congress next month. In a 2009 survey of 900 African Americans and Hispanics by Obama pollster Cornell Belcher, 43 percent of respondents cited not knowing how to use the Internet or not seeing the need for the Internet as the reason why they are not online, and 44 percent of those same minorities polled said they would be more likely to subscribe to Internet services if they were provided free lessons on how to use the technology. Bridging the digital divide and getting every American online should be our top priority—broadband Internet is the great enabler and the great equalizer.
— David Sutphen
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