December 22, 2008 12:55 PM PST

Chamber backs broadband deployment--without Net neutrality laws

by Stephanie Condon
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Broadband development should not be stifled by federal regulation that intends to make networks more "neutral," the U.S. Chamber of Commerce is arguing through two papers released Monday.

The papers, the first in a series of five that will examine the impact of broadband on certain user groups and for certain purposes, argue that the federal government's current loose regulatory structure has enabled broadband to become a "life-altering tool" both for the general population and for senior citizens specifically.

"An estimated $60 billion has been invested in broadband infrastructure by the communications industry this year," William Kovacs, the U.S. Chamber's vice president for environment, technology, and regulatory affairs, said in a statement. "Given these turbulent economic times, federal policy must continue to support this high-level of investment. This will spur job growth, innovation, and consumer choice."

The lack of Net neutrality laws or other federally-mandated regulations has spurred telecommunications companies to heavily invest in broadband infrastructure, according to the first paper, "Network Effects: An Introduction to Broadband Technology & Regulation." (PDF)

"Moving away from a pro-investment model would halt this organic progress and would have a devastating effect on the U.S. economy, investment, and innovation," it says. "Moreover, policies aimed at management practices are unnecessary and would serve only to chill innovation at the network level and at its edges, resulting in net consumer welfare losses."

Network owners need to be able to manage content flow in order to prioritize important data like 911 voice over IP calls, according to the paper, authored by Charles Davidson and Michael Santorelli of the Advanced Communications Law & Policy Institute at New York Law School. The need to manage networks will only grow as the amount of services offered online grows, it says.

"A variety of proposals have been put forward to regulate the broadband sector under the guise of making the physical infrastructure more 'neutral' to the data flowing over it," the paper says, but such regulations would lessen incentives for investment in broadband and slow the development of content and applications.

The paper recommends legislators focus on targeting broadband funding in regions where it is most needed, reforming the Universal Service Fund, and embracing public-private partnerships to promote broadband deployment.

The second paper, "The Impact of Broadband on Senior Citizens," (PDF) recommends similar support for broadband deployment as well as educating seniors on the usefulness of broadband and expanding their options for getting online. If obstacles for adoption are removed, the paper says, broadband could transform senior life and senior care, just as the senior population is set to expand significantly.

The chamber will later release papers examining the impact of broadband deployment on telemedicine, education, and people with disabilities.

Stephanie Condon is a staff writer for CNET News focused on the intersection of technology and politics. She is based in Washington, D.C. E-mail Stephanie.
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by randydmyers December 22, 2008 2:07 PM PST
This article is well written and touches almost all thing us seniors need broadband for. I use it for all the reason specified as well as home network so that my grandchildren have access to the net for homework. The price needs to be reduced for us seniors. Thanks.
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by Michael Del Camp December 22, 2008 3:06 PM PST
This is so typical of corporate hubris and money focused lack of understanding. The Internet is already here, we are already enjoying it, it is already massive and everywhere. The idea that we need their "investment" to keep it going, is a sublimely ridiculous assertion. How dumb do they think us Netizens are? What they want is control: control of content, control of switches, control of high speed pipelines, control of your desktop - (that is what "Software As A Service - SOAP" is all about) and they want you to pay them more to do it to you. Unbelievable. I thought the Chambers of Congress were for "Main Street" but as it turns out here, they have apparently sold out Middle America and the Middle Class in favor of their flim flam fast buck flak artist friends in high places - or should we say choke points? - in corporate America. Have these people ever known how to make an honest dollar in their entire business careers, I have to wonder? Leave the Internet as it is -- Net Neutrality is the standard, not something drummed up creatively by Hollywood moguls, Telco or Cable monopolies, or Microsoft.
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by rashinal December 22, 2008 5:05 PM PST
yes, and deregulation sure has been good for the banking industry, the mortgage industry, the environment, the housing market, mining, safety standards, the FDA, the credit companies, credit card holders, the FAA, meat packing, lettuce, spinach, peppers, tomatoes, toothpaste, milk, and the auto companies.

Doesn't ANYONE pay attention in this government ?

We already HAVE an unregulated industry and it's led to all out monopolies in BB services. As a country, we are behind other countries in BB penetration. We pay MORE and we get LESS. Our choices are slim and getting slimmer and while the cost of technology gets cheaper, the services offered get more expensive (to the consumer). And the final insult is the level of service is pitiful.
And somehow, we think allowing these greedy comanies to continue to rape the consumer, squeeze out competition, and excersice complete control over the government agencies that are supposed to protect the consumer is a good idea ??
Somehow, allowing the same practices that got us here are going to get us out ??
what ? .. companies that spend billions to maintain monopolies, lobby for laws that benefit them and NOT the consumer and work to influence politics and the democratic process in the interest of profits..
Somehow it's a good idea to give them unfettered control over the flow of information in the most powerful information system in human history ?
one question :
does the RNC run the US CoC ?
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by funchords December 22, 2008 5:32 PM PST
I came here to vent my spleen but it's clear I don't have to -- nobody is buying this crap.

Prioritize 911 calls? Which one of our ISPs do that? None that I know of. Dial-a-Joke and 9-1-1 -- neither one needs prioritization. How did the Internet ever grow and survive 20 years with out all this helpful "management?" And now it's NN's fault that it's stagnant? Nice reverse logic!

Someone at the CoC has an active imagination (and a lack of facts).
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by unknown unknown December 22, 2008 5:55 PM PST
The lack of regulation has also lead to monopolies and duopolies in may places, meaning customers pay more for less. Now there is a rush to introduce bandwidth caps by the telecoms and some cable companies, which will make people reluctant to use streaming video services like those offered by Netflix and Hulu. Time Warner's highest tier appear to be 40GB per month, that's about 1.3 GB per day.
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by Lerianis December 22, 2008 6:13 PM PST
That is why I lodged a complaint against Comcast for their bandwidth caps. These caps are a backdoor attempt to protect the companies DVD and cable markets, and it should not be allowed. Unlimited at full speed every month, or nothing! Shut the companies DOWN!
by Lerianis December 22, 2008 6:12 PM PST
Yes, they do need to prioritize certain things.... but that list should be VERY short and only encompass those things that can lead to death or injury for someone if they are not prioritized, such as the 911 calls on digital voice that they mentioned in the article.
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by Earl Benzar December 22, 2008 6:51 PM PST
It's interesting how large corporations, who don't vote except with money, get more and more freedom. Meanwhile, the citizens, who do vote but don't have money, get more and more regulation thrust upon them by their representatives. There's a model developing in this government that is smelling more and more like corporatism. It stinks.
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by Imalittleteapot December 22, 2008 10:20 PM PST
Stupid government. Every time they have a chance to do the right thing they screw it up. Why do we even need them? Can't we just get rid of the government? It doesn't do anything anymore. Our infrastructure is crumbling. Nobody can afford health care. They've forgotten how to win wars. Somehow they think walking around and waiting to get shot at first is a winning strategy. Every time they do something to improve education our kids get even dumber and it costs even more. Our economy has crashed. We're losing jobs by the millions. We all know how well our criminal justice system puts an end to crime too right? Seriously, what it is it that the government actually does? Seriously, name one thing they don't screw up? Explain to me why we need them? Couldn't we save a lot of money of getting rid of every state government and everybody in federal government except for two guys. One Republican and one Democrat and we'll let them argue about what they're going to do until one dies and then we'll replace him with another member of his respective party. In the rare chance that they both actually come to a unanimous decision the people can then simply do the exact opposite of what our leaders tell us to do. That should work fine should it not? The people are basically running the country by themselves anyway.

Oh well, let them prioritize. If the government has this much lack of foresight then I have to say I agree with them. No, they should not be involved with the internet market. Nor any market. So, I guess they should take all that bailout money back and all the government subsidizes back from the ISPs too. Oh never mind. It's not that they don't want to get involved, it's just they always want to get involved at the wrong friggin time.

Anyway, let them turn the net into cable TV with only 100 channels. I'll do the same thing to the Internet that I did my cable service. I canceled it because there was nothing on.
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by sythara December 23, 2008 12:16 PM PST
Regulat, regulate, regulate. Thats what you get when you put democrats in office.

To be on the reverse side, you get the same when you put corrupt republicans in office too. Don't get rid of the Government, get rid of those who represent us and are currupt or incompitent. But of course no one will actually do that because Americans like to talk but when it comes time for action they would rather get drunk watching sunday football and forget all the problems with the next reality show.

Sorry to say but regulation is here to stay, and it will be worse and worse.
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