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March 13, 2008 8:10 AM PDT

Gates, Mundie: Congress must make trade-offs to propel tech's future

by Anne Broache

Northern Virginia Technology Council chairman John Lee greets Microsoft Chairman Bill Gates after he talked up the future of software before about 1,100 members and guests of the business group.

(Credit: Anne Broache/CNET News.com)

Editor's note: This story was updated at 3:40 p.m. PDT to add more on Gates' and Mundies' policy talk.

WASHINGTON--It's not always easy persuading politicians on Capitol Hill to take up items on Silicon Valley's wish list, even if you're Bill Gates and his posse.

That was one message that the Microsoft chairman and Chief Research and Strategy Officer Craig Mundie had on Thursday for the some 1,100 local business and government representatives gathered at a breakfast here sponsored by the Northern Virginia Technology Council. (NVTC's board includes companies like IBM, Micron, Unisys, AOL, Sprint Nextel, and, of course, Microsoft.)

Gates spent most of his hourlong appearance at the event behind a podium in a cavernous hotel ballroom, waxing optimistic about the future of software and hardware. He gave what has become a familiar set of predictions about the increasing digitization of analog things ("smart" white boards in offices, physical desktops that are touch-sensitive computers in themselves, a la Microsoft's Surface tabletop PC) and the rising importance of software in everything from health care to three-dimensional simulations to education.

It was during a question-and-answer session with the audience (in which, for the record, no members of the media were allowed to participate) that Gates and Mundie, seated side by side on the stage, opened up a bit about the dynamics of trying to get their wide-ranging priorities noticed by policy setters.

"Historically, the United States has done a great job of doing the right investments," Gates said. The concern going forward, he said, is whether politicians will be willing to make the "trade-offs" necessary to keep the nation ahead of other countries in the high-tech realm.

For example, it may be more attractive in the short term for politicians to hand out income tax rebates, but they mustn't neglect choices that could support long-term economic growth, such as upping federal grants for research and development and increasing the number of visas for skilled foreign workers, Gates said.

But Mundie, for one, said he sometimes finds that action on Silicon Valley priorities can be a tough sell, as politicians have a tendency to respond, "The polls won't let us do that."

Congress: 'Skewed to the short term'
Members of representative democracy are supposed to know how to balance those competing goals, but Congress's decisions are "too skewed to the short term right now," Mundie said.

Both executives were responding to a question from Rep. Jim Moran (D-Va.), who was present in the event's audience, about the "political context" the Microsoft co-founder and his cohorts have been finding during their in-person meetings with congressional leaders this week.

Gates was on Capitol Hill Wednesday morning speaking to a House of Representatives committee about the need for three major areas of action: increasing the number of H-1B temporary visas and green-card permanent visas that are allotted to high-tech workers; increasing investments in federal research programs; and focusing on ways to improve the educational system, particularly in the math and science fields.

Afterward, he spoke to the Democratic caucus. He also dined with congressional leaders on Tuesday night. All in all, the experience has been what Moran called a "barnstorming tour" of both chambers of Congress.

Gates, echoing his public remarks in Congress Wednesday, said that raising visa caps is the "hot issue of the moment" for his company. Microsoft and others argue that there aren't enough qualified workers to fill highly technical engineering roles at their companies and that a shortage of work visas could stymie their ability to compete with foreign companies. The request, however, is controversial--groups representing American computer programmers argue that a larger number of visas will depress wages and displace American workers.

"I'm still optimistic about the U.S. doing the right thing," Gates said.

White spaces for wireless broadband
In response to an audience member's question, Gates and Mundie also touched briefly on another policy issue that's dear to Microsoft's business: freeing up vacant TV channels--known as "white spaces" in FCC speak--for use as a wireless broadband pipe. Companies like his hope that delivery method could eventually compete with cable and DSL offerings and lead to lower prices and more choices for consumers.

The white spaces are considered ideal for deploying wireless broadband services because its signals can travel long distances and through obstacles--or, as Mundie put it, "the last hope to get some good spectrum." (Microsoft isn't the only company with that view--Google, Dell, Intel, and HP are also interested.)

The plan, however, faces serious resistance from TV broadcasters, who argue that allowing unlicensed devices to roam on that spectrum will cause serious interference to their signals. So far, the FCC hasn't made a decision on what to do about the small swath of unused channels, although it is currently testing prototype devices for interference concerns.

Gates, for his part, said he's "hopeful" that regulators will decide in the tech industry's favor.

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I'd be more impressed
by CompEng March 13, 2008 1:51 PM PDT
I'd be more impressed with what Gates had to say here if he could come up with an idea that didn't have a corporate welfare angle.
Reply to this comment
American Jobs For Americans
by n1pfl March 13, 2008 4:35 PM PDT
There are plenty of High Tech prospects here in America and many more to be developed from among our young citizens. Promote and reinforce the educational system that is in place. And make it promising to enter: Science, Mathematics and Engineering schools.That will pay realistic remuneration for Educational expenses and exspected job performance.
Reply to this comment
American Products for Americans
by Meerkat71 March 13, 2008 5:14 PM PDT
What would happen if the whole world decide: From now on we will just buy Chinese, cos the Americans THINK (ever wondered why most "foreign people" dislike Americans?) they are better than the rest of us?

Where will all the Americans will get jobs then, if no one wants American products?

If each country looks out just for themselves, why the hell do you need global trade?

America was founded by foreigners and now you want to act high and mighty, c'mon get real. America needs the rest of the world, just as much as the rest of the world needs America, plain and simple.
View all 2 replies
Nice in theory
by CompEng March 13, 2008 6:23 PM PDT
But I really question the governments ability to make significant and positive change in this area. It's a tough problem, and politics won't help.
older i get
by Darryl Snortberry March 13, 2008 6:58 PM PDT
the more i question why government is needed. it only caters to extremes -- the extremely rich, the extremely egalitarian, and the extremely religious. if you don't fall into the category life sucks. you're talked down to buy the leading extremist groups and all want to use government to take a portion of your income and also use government to decide what is best for you.

microsoft has billions, they invest in companies. how about investing in people also instead of forcing everyone else by way of government to pick up the tab.
Reply to this comment
gates, mundie
by josephmorton March 14, 2008 8:12 AM PDT
More silly stuff from one ot the stupidist people on earth. We do
not need more people "propeling" 'tech" future. The internet has
become nothing but a junk, brain deadening place for the most
mediocro of people to use, and Gates has done more than
anyuone to make this happen. When millions of people access
the web to see a ***** sing, you know we have reached the
bottom of the intellectual barrel. We do not need more of this
junk being dispensed by new "techs"; what we need is an
internet for serious people who do not lower the already dismal
junk on the net, and we are never going to get that from the
likes of Gates. We do not need to import more people to fuel the
coffers of the net, while giving us more junk. I could care less
whether the salaries for existing or unemployed "tech" people
are reduced; I want them all to be pushed into oblivion.
Reply to this comment
WOW you guys are dumb
by f.d.r.. March 14, 2008 1:33 PM PDT
Yea my school just won a 10 million dollar grant form the Microsoft corporation to advance the AP department at our school. I call that investing in people. Next, if all products were made in the USA, then you would end up like china (If you are smart you will quickly see how that works(Minimum wage and all that good stuff))! And third, don't complain about the internet being dumb or full of crap when you can't even spell or if you use short hand in a thread when writing a reply about others being stupid, because that is really, very, dumb!!
Reply to this comment
Yeah, just like Germany and Japan
by CompEng March 16, 2008 10:06 PM PDT
They have trade surpluses and they pay their workers pennies too... oh, wait. No they don't. Don't drink the kool-aid, man.
Talk is Cheap
by bbsemail March 14, 2008 2:46 PM PDT
Gates might talk a good line, but actions speak louder than words. Anyone called MS tech support? I hope you speak "Indian". I have had to call MS support; it is all in India until you get up a few levels.

MS appears to just shoot for whatever is cheapest, perhaps that has something to do with why their OS is so reliable. Yes, I am an MCSE and a CCNA so I have a bit if knowledge. Perhaps I'm wrong, but I have not heard of working conditions at MS being all that great either. Maybe that gives a clue of why they want more visas granted.

But, we all keep buying the stuff, so who is really to blame? Enough of my rant, I?ll go buy more Google stock.
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