I will be the first to admit, I love technology, especially the internet. I am amazed everyday how much easier and streamlined the internet can make our lives. So I was delighted to hear that as part of the American Recovery and Reinvestment Act the Obama administration had set aside billions of dollars for broadband internet investments to connect the millions of Americans that currently do not have access or cannot afford access to the internet, particularly broadband internet. However, since the announcement over a year ago the Federal Communications Commission (FCC) has detailed a plan that may harm the flourishing broadband internet industry instead of help its further expansion.
First, what exactly is broadband anyway? Broadband is a term used to refer to a high-speed connection that is always on, unlike dial-up connection that requires the user to log into the system each time. Broadband essentially is just a click away. Broadband allows users much more capacity at faster speeds then its predecessor dial-up.
Within the thousands of pages of The American Recovery and Reinvestment Act of 2009, there is approximately $4.7 billion in funding for the Broadband Technology Opportunities Program (BTOP). The purposes of BTOP is to provide access to broadband internet service in unserved areas, improve broadband access for both underserved areas and public safety agencies, and provide broadband education, training and support.
The Recovery Act also provided an additional $2.5 billion in funding for the Broadband Initiatives Program administered by the Rural Utilities Service (RUS) of the USDA. This program is designed to support the expansion of broadband service in rural areas through financing and grants to projects that provide access to high-speed service and facilitate economic development in locations without sufficient access to such service.
However, the entire plan as outlined by the Federal Communications Commission (FCC) will cost approximately $350 billion to implement over the next ten years. The bulk of that expense will likely be paid for by private industry, which will be encouraged to upgrade networks and expand coverage.
Private investment in broadband infrastructure has been significant the U.S. In fact, over the past several years the providers of broadband have contributed $120 billion in equipment and structures. This investment could be the reason internet technology is spreading to the general population far faster than did automobiles, telephones, radios, electricity, television or microwave ovens did in years past.
A recent announcement from the FCC detailing their plan for “open internet” or “net neutrality” has many broadband providers worried. The plan has called for the FCC to enforce new network management regulations on the industry.
But, just as the FCC made their announcement to regulate the internet, a federal appeals court said not so fast. According to the court the FCC lacks the authority to regulate the internet, because the internet is classified as an “information service,” not a “telecommunication service” like our traditional telephones.
In response to the court ruling with the recommendations from the FCC the Obama administration chose to “reclassify” the internet so it can regulate the internet anyway.
So what is the problem with regulating the internet? If the phone companies have been regulated since Ma Bell in the 1930s why would the Internet Service Providers (ISPs) have a problem with regulation now? First, this means the internet will be under the thumb of the federal government, as well as 50 state public utility commissions, which has been speculated to make private investment companies more cautious about spending any more money on new infrastructure when the cost to do business within this new government controlled framework is virtually an unknown.
On the other hand, shouldn’t the government have some control over how these Internet Service providers deliver their product to the consumer? The reason for the regulation provisions are believed to be centered around a few incidents where ISPs have restricted the applications their customers can use over their internet connection. Regulators believe there is a lack of transparency on the part of ISPs and how providers manage congestion on their networks.
Broadband expansion is expected to create thousands of jobs throughout the nation, at a time when jobs are scarce. Some have compared broadband expansion to the railroad development initiatives of the 19th century: connecting people and goods while creating needed well paying jobs. As always, the Grange’s involvement will work to create a balance between a healthy competitive market and the regulators. Without such a balance, I fear the growth we have experienced in the past several years may end. |
