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VZ sez everything's peachy-keen in US broadband


From: Dave Farber <dave () farber net>
Date: Fri, 9 Apr 2010 10:37:56 -0400





Begin forwarded message:

From: Randall <rvh40 () insightbb com>
Date: April 9, 2010 10:28:06 AM EDT
To: Dewayne Hendricks <dewayne () warpspeed com>, David Farber <dave () farber net >, Telecom Regulation & the Internet <CYBERTELECOM-L () LISTSERV AOL COM>
Subject: VZ sez everything's peachy-keen in US broadband


[[Seen on Telecom Digest]]


Verizon CEO Ivan Seidenberg sat down for an on-the-record
conversation yesterday at the Council for Foreign Relations,
and he pulled no punches: the US is number one in the world
when it comes to broadband. We're so far ahead of everyone else,
it's "not even close."

Given that a central piece of the National Broadband Plan was
concerned with America's poor showing on broadband metrics,
this was an intriguing claim to make. In essence, Seidenberg
hauled out one of the NBP's main reasons for existence and just
kicked it in the groin. Perhaps we don't even need a national
plan?

   Seidenberg: Anytime government -- whether it's the FCC or
   any agency -- decides it knows what the market wants and
   makes that a static requirement, you always lose. So this
   FCC decided that speed of the network was the most important
   issue. So that's all they measured.

   So they will say, if you go to Korea or you go to France,
   you can get a faster Internet connection. Okay? That could be
   true in some companies -- in some countries. The facts are
   that, in the US, there is greater household penetration of
   access to the Internet than any country in Europe.

   In Japan, where everybody looks at Japan as being so far
   ahead, they may have faster speeds, but we have higher
   utilization of people using the Internet. So our view is,
   whenever you look at these issues, you have to be very
   careful to look at what the market wants, not what
   government says is the most important issue.

   Let's take wireless, for example. Everybody says the
   European system was kind of better. Well, that's very
   interesting. If you look at minutes of use, the average
   American uses their cell phone four times as much -- four
   times as much -- as the average European. If you look at
   Europe, they publish penetration rates of 150 (percent),
   160 (percent), 170 percent meaning that people have more
   than one phone, two phones, three phones.

   You know why? Roaming rates are so high. My guess is you
   probably have two or three different phones to carry to
   use in different countries because your roaming rates are
   so high. And you say, yes.

   So my point is it's a fallacy to allow a regulatory
   authority to sit there and decide what's right for the
   marketplace when it's not even close.

Article continues here:

<http://arstechnica.com/tech-policy/news/2010/04/verizon-ceo-studies-be-damned-us-is-tops-in-broadband.ars >

The transcript of his talk at the CFR meeting is at the following
URL along with a link to audio and video versions of it:

<http://www.cfr.org/publication/21840/conversation_with_ivan_seidenberg.html >




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