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IP: Tech goes to bat for broadband


From: David Farber <dave () farber net>
Date: Tue, 15 Jan 2002 20:02:50 -0500


From: Dewayne Hendricks <dewayne () warpspeed com>


Tech goes to bat for broadband
David R. Baker, Chronicle Staff Writer
Tuesday, January 15, 2002
©2002 San Francisco Chronicle

URL: <http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/01/15/BU166864.DTL&type=business>

The federal government needs to make expansion of high-speed, broadband Internet service a national priority and should push for wiring most American homes and small businesses by 2010, a group representing some of Silicon Valley's largest companies will recommend today.

Without a concerted effort, the United States could see its position as a worldwide leader in new technology erode as other countries move forward with creating broadband networks, the TechNet public policy group will argue.

"Ubiquitous broadband is quite simply the key to the next generation of the Internet, to unparalleled opportunities for economic growth and to immeasurable improvements in our quality of life," a draft of the group's recommendations reads. "It is critical that the United States adopt a national broadband policy."

The group -- a bipartisan lobbying group that includes executives from such tech heavyweights as Cisco Systems, Intel Corp. and Microsoft Corp. -- wants the government to trim regulations and fees that stand in the way of extending broadband networks. TechNet also will call for making more of the electromagnetic spectrum available for wireless broadband systems and giving tax breaks to companies that bridge the "digital divide" by wiring lower- income communities.

That doesn't mean TechNet's members want a government handout to extend services that would, in the end, make them money, said Connie Correll, executive vice president for the group.

"We're not really asking the government for anything," she said. "You need the government to set a goal. We need to be here by a certain date. We need to create an environment that will get us there."

The group's members would benefit greatly from extending broadband service. While the Internet has made tremendous inroads into American homes, acceptance of the more expensive broadband service has lagged, despite the higher speeds broadband brings. More subscribers could drive up the demand for many of the products and services the companies in TechNet offer.

"For all the companies, it's going to benefit everyone across the board," said Chris Sessing, an equity research analyst at Crowell, Weedon & Co. in Los Angeles. "Cisco is going to have to put in more switches. The modem guys will have to make more modems. It's a trickle-down effect."

TechNet argues that expanding broadband service would benefit the country as a whole, from workers who would be able to telecommute more easily to doctors who could work with patients located far away.

The group wants federal authorities to set a goal of making affordable broadband connections available to 100 million American homes and small businesses by the decade's end. To get there, the group proposes several policies:

-- Avoid regulating new technologies that rely on broadband, such as carrying phone calls over Internet connections.

-- Trim fees that local governments impose on broadband providers for using public rights of way to link their networks to individual homes.

-- Reallocate a portion of the broadcast spectrum to help extend wireless broadband services to rural communities.

E-mail David R. Baker at dbaker () sfchronicle com.


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