With Billions In Investments and Hundreds of Thousands of Jobs At Stake, Coalition Looks For Wheeler To Reaffirm Importance of Competition During Confirmation Hearing
(Washington, DC)—The nation’s telecommunications sector is at a critical juncture. A recent economic study found that telecommunications companies will invest up to $184 billion in private funds and create up to 650,000 jobs over the next five years if the Federal Communications Commission (FCC) reaffirms the pro-competitive principles of the 1996 Telecommunications Act and promptly takes the steps necessary to update current competition policies, some of which allow legacy incumbent providers to perpetuate dominant positions and actually hinder competition. With so much at stake, all eyes will be on Tom Wheeler this week as he addresses the Senate Commerce Committee hearing on his nomination to the chairmanship of the FCC.
“Tom Wheeler has built a career on a foundation of respecting the importance of competition. He knows that competition is responsible for so many of the innovations we see today in the broadband marketplace. So we look forward to hearing him articulate how he will continue to support those principles of competition as our technology evolves,” said Chip Pickering, former member of Congress and spokesman for the Broadband Coalition.
The Broadband Coalition today filed with the FCC the recent economic study, prepared by respected telecommunications research expert Susan Gately, called, “The Benefits of a Competitive Business Broadband Market.” Ms. Gately found that hundreds of thousands of American jobs would be lost and billions of dollars in telecom industry investments will remain on the sidelines unless the FCC updates competition policy in the business broadband marketplace to support a level playing field for all providers.
The Coalition is looking to Mr. Wheeler to address what he would do to as Chairman to foster competition specifically in the business broadband marketplace.
“We have the research that shows what will happen if we support real competition in this marketplace. We have the historic evidence around the innovations that occur when competition is robust. And now we just need the leadership at the FCC to make it a priority,” Pickering said.
For more information on the issues of importance to the coalition, go to www.thebroadbandcoalition.com and follow us on Twitter: @bbandcoalition.
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Broadband Coalition Statement On Technology Transitions Policy Task Force Announcement Today
(Washington, DC)—The following is a media statement by The Broadband Coalition (www.thebroadbandcoalition.com) on today’s FCC announcement:
“The FCC’s Public Notice represents the considered judgment of the FCC’s Technology Transitions Policy Task Force staff, which has been studying the issues that are suitable for technology transition trials. While we maintain that trials are not necessary, we believe the Task Force has appropriately focused its attention on identifying obstacles to the interconnection of networks for the exchange of voice in IP format, challenges associated with deploying next generation 911 and threats to consumer welfare associated with telephone company proposals to abandon their wireline networks in certain areas.
The focus on interconnection is especially important to competition and to the competitive carrier members of the Broadband Coalition. Competitors cannot compete unless they can interconnect and exchange voice traffic with other providers—including the big legacy telephone companies. But to date, the legacy telephone companies have refused to establish IP interconnection with competitors. The Public Notice correctly observes that carriers around the world are interconnecting in IP for the exchange of voice traffic, but that IP interconnection in the United States has been “delayed.” It is time for the legacy telephone companies to stop delaying. The Broadband Coalition members look forward to working with the FCC on IP voice interconnection trials to establish a framework for compelling the legacy telephone companies to join the rest of the interconnected IP voice world.”
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]]>Statement on Nomination of Tom Wheeler to FCC Chairmanship and FCC Interim Chairwoman Mignon Clyburn
(Washington, DC)—The following is a media statement by The Broadband Coalition (www.thebroadbandcoalition.com), on the nomination of Tom Wheeler to be the next Chairman of the FCC, and the announcement of Mignon Clyburn as the Interim Chairwoman:
“We applaud the President for selecting Tom Wheeler to be the next Chairman of the FCC. Tom brings real world experience that will be a tremendous asset to the agency and the American public. He led the wireless industry in the 1990s, when the industry was experiencing an explosion of innovation and competition, so he understands the benefits of a healthy competitive market.
Mr. Wheeler’s experience and commitment to competition is critical now given the challenges facing the communications industry. The next FCC Chairman’s agenda must ensure that as we continue the transition to new technologies like IP-based networks, the agency cannot allow further consolidation of market power, or the elimination of important consumer protections.
The Broadband Coalition is committed to partnering with the FCC Chairman to ensure the public enjoys the innovation, lower prices, and job growth that competition brings. A recent study released by the coalition and authored by telecom economist Susan Gately, entitled, “The Benefits of a Competitive Business Broadband Market,” showed that if the FCC addressed issues impeding competition in the marketplace, we could see the addition of 650,000 new jobs and $184 billion in investment over the next five years. We look forward to working with Tom Wheeler once he is confirmed to help support a robust, competitive broadband market to the benefit of businesses, consumers and the nation.
The Broadband Coalition also looks forward to working with Interim Chairwoman Mignon Clyburn as she leads the Commission through this transitional period. As a commissioner, Mignon has been an advocate for competition and an experienced voice for businesses at the commission. She understands what small businesses need to thrive and create jobs.”
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April 9, 2013
Contact Debra DeShong Reed - media@thebroadbandcoalition.com
Independent Research Shows Competition Creates Jobs and Drives Investment in Business Broadband Marketplace
New study details impact on sector if FCC fails to act
(Washington, DC)— Hundreds of thousands of American jobs would be lost and billions of dollars in telecom industry investments will remain on the sidelines unless the Federal Communications Commission (FCC) updates competitive policy in the business broadband marketplace. This is one of the key findings of a new study by respected telecommunications research expert Susan Gately, called, “The Benefits of a Competitive Business Broadband Market,” released by The Broadband Coalition today.
“The findings in this report confirm in stark terms the true impact we will see in this country if the FCC does not take action to update competitive policy in the wireline broadband market for businesses,” said former Congressman Chip Pickering, spokesman for the Broadband Coalition. “We know competitive providers drive innovation and this report details the incredible job growth and investments that are spurred as well. It is not only businesses who will suffer without competition in the market, it’s the economy as a whole.”
Job Impacts
According to Gately’s research, if the FCC were to address competitive policy issues, we could expect to see “the hiring of as many as 650,000 new employees into the ranks of the telecom sector over the next five years.” However, if the FCC does not act, instead of adding new jobs, the wireline sector could be expected to lose as many as 300,000 of its current jobs.
Gately found that in the period of robust competition (1996-2000), the wireline telecom sector saw a 30 percent increase in employment. During a period when wireline competitors were weakened, employment in that same sector dropped by 24.7 percent.
“Competitors build networks, buy equipment, and employ workers that would not be needed in a telecom market that included only the incumbent wireline providers,” Gately writes. “In response to the enhanced offerings of their competitors, to protect their existing customer base and meet the challenge of new competitive technology and services, incumbents invest substantially in networks and equipment upgrades and in the growth and quality of their workforce. The result is a greater level of investment and jobs in this sector than would exist if the legacy providers were the only operators in the market.”
Investment Dollars
Competitive business broadband providers continue to drive innovation in this sector. They offer services which are on the cutting edge and beyond in technology. Voice over Internet Protocol (VoIP), dedicated Ethernet access and “’cloud’- based services were all developed and introduced to the business market by competitors striving to differentiate their products and meet customer needs that remained unfilled by the incumbents.”
In order to achieve these innovations, competitors invest in the industry and in the telecom sector. According to Gately’s research, with support for robust competition, over five years the industry will invest an additional $184 billion in private funds into US telecommunications networks. Failure to act could result in a reduction of investment by an additional $30 billion per year.
Gately writes, competitive providers “have become a driving force in the delivery of innovative and efficient services to all segments of the enterprise market, and have invested heavily in their own facilities- including intelligent switches, metropolitan fiber rings, intercity fiber transport, and of course, human capital- in order to produce these competitive offerings.”
Effective Ways to Bolster Competition
Supporting competition doesn’t require a heavy lift by the FCC. “Simply by restoring and updating policy frameworks originally adopted by the FCC to implement the pro-competitive mandates of the 1996 Act,” Gately writes, broadband competition would thrive. Those issues include ensuring competitors have access to last mile facilities and addressing IP interconnection issues.
Dangers of Inaction
“Not only are we in danger of losing all of the benefits of a competitive business marketplace, but the legacy providers are advocating policies that would take us completely in the wrong direction,” said Pickering. “The impacts on employment, on investment and on the health of the sector are consequences we cannot afford. The FCC needs to seriously look at this data and take swift action to strengthen broadband competition.”
Biography, Susan Gately
Susan M. Gately is an economic and policy expert specializing in the telecom arena with more than thirty years of consulting experience in the areas of telecom industry and market structure, regulatory regimes, cost accounting, cost development, access charges, pricing and rate structure, competitive conditions and telecom service and network management practices. Susan founded SMGately Consulting, LLC (SMGC) in January, 2011. Prior to founding SMGC Susan was an equity partner in and the Senior Vice President at Economics and Technology, Inc (ETI) providing strategic advising, litigation support, expert testimony, white papers, and in-house training and education to ETI’s myriad carrier, governmental agency and large business clients Susan is among the nation's foremost experts in access charge rate structure, cost development, and policy. Much of Ms. Gately’s work over the last several years has involved research and analysis of conditions extent in the wireline and wireless telecommunications markets in the US, conditions that have led to the current market structures and implications for users of those networks.
Read Full Report - The Benefits of a Competitive Business Broadband Market - April 2013
For more information on the issues of importance to the coalition, go to www.thebroadbandcoalition.com and follow us on Twitter: @bbandcoalition.
]]>Contact: Debra Reed
Media@thebroadbandcoalition.com
Broadband Coalition Members Call on FCC To Act Now To Keep Competition Thriving in Business Broadband Market
(Washington, DC)— Several Broadband Coalition members today filed comments as part of the special access reform rulemaking proceeding. They called on the FCC to take action immediately to stop the big, legacy telephone companies’ anticompetitive practices that are depriving American businesses and consumers the benefits of investment, innovation and job creation. Former U.S. Congressman Chip Pickering, spokesman for the coalition issued the following statement on the comments:
“The FCC needs to act immediately to stop the big, legacy telephone companies from engaging in exclusionary conduct that is preventing competition from developing in the business broadband market. The agency must also act as quickly as possible to complete the other aspects of its process of reforming special access policies. Every month that the FCC delays the decisions that need to be made, more Americans incur losses in the form of higher prices for broadband services and less access to new and innovative technologies. This effort to look at the special access rules has been going on for far too long. The comments filed today make the very clear argument that the special access rules no longer do what they are meant to do, which is foster competition. Without action, competition suffers, hurting American jobs and American businesses.”
For more information on the issues of importance to the coalition, go to www.thebroadbandcoalition.com and follow us on Twitter: @bbandcoalition.
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]]>Contact: Debra Reed, 202-528-4214
Debra@PointBlankpa.com
The Broadband Coalition Statement on FCC Task Force Announcement
(Washington DC)— The Broadband Coalition today called the FCC’s new Technology Transitions Policy Task Force a “good development and a comprehensive effort by the FCC.”
Coalition spokesman former U.S. Congressman Chip Pickering went on to say, “We’re encouraged that the FCC is putting the resources needed to examine the issues around the transition to next generation networks – regardless of the technologies used. In doing so, we sincerely hope that this task force will maintain its focus on the crucial task of updating the Commission’s competition policies for the twenty first century. In particular, any transition must be accompanied by interconnection policies to ensure that users continue to seamlessly communicate, regardless of their service provider. And new technologies should not mean allowing companies with market power over last mile facilities, the ability to abuse that power at the expense of American businesses and competitive innovations. We look forward to working with the task force as they consider these and other vitally important areas of competitive policy.”
For more information on the issues of importance to the coalition, go to www.thebroadbandcoalition.com.
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]]>November 13, 2012
Contact:
Debra DeShong Reed, Debra@Pointblankpa.com
Amy Weiss, Amy@Pointblankpa.com
Broadband Coalition Responds to AT&T's Cicconi
(Washington, DC)—The following statement was issued today by former U.S. Congressman Chip Pickering, spokesman for The Broadband Coalition (www.thebroadbandcoalition.com) in response to comments made today by AT&T Jim Cicconi, Senior Executive Vice President-External and Legislative Affairs at the NARUC annual meeting.
“Members of the Broadband Coalition want to welcome AT&T to the IP revolution. Albeit a bit late, we’re sure they’ll find significant benefits in deploying this new and innovative technology throughout their existing network. But as the companies that have pioneered IP innovations, we know what is necessary to achieve widespread deployment and competitive options. Now, more than ever, the FCC needs to act to reaffirm requirements under the ’96 Act that enable last mile access and interconnection, regardless of the underlying technology.”
For more information on the issues of importance to the coalition, go to www.thebroadbandcoalition.com.
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]]>November 7, 2012
Contact:
Debra DeShong Reed, Debra@Pointblankpa.com
Amy Weiss, Amy@Pointblankpa.com
AT&T’s IP Smokescreen
(Washington, DC)—AT&T’s announcement today that it needs regulatory intervention from the FCC in order to invest in IP technology is a re-run of a tired ploy to leverage the company’s dominance. AT&T only invests in order to respond to competition, and competition is made possible by the very pro-competitive policies that AT&T seeks to eliminate. The Broadband Coalition members have invested billions of dollars to bring the benefits of IP to American consumers from coast to coast. But if AT&T gets its way, competition will largely disappear, investments will dry up and consumers will suffer.
Former Congressman Chip Pickering, coalition spokesman, stated, “AT&T is simply trying to use its belated roll out of IP technology as an excuse to rewrite the telecom rules to its advantage. We already know that AT&T’s claim that IP will somehow alter the laws of economics and lessen its dominance is patently false. Clearly, AT&T’s proposed changes are not necessary to achieve widespread IP deployment, but the retention of competition policy is.”
For more information on the issues of importance to the coalition, go to www.thebroadbandcoalition.com.
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