Finding effective stimulus for mass broadband deployment will req...

discussion Mon., he said creation of “compelling content” and development of technology-neutral govt. policy was needed to “re-energize broadband.” He said more than $100 billion in U.S. fiber deployment investments and “sufficient advances” optical equipment development made it possible to strive for eventual offering of 100 Mbps interactive broadband services. Although he also warned against creation of “artificial competition” as primary policy goal, he said govt. subsidies were required to ensure “sufficient penetration and coverage” throughout country. He acknowledged sympathy for concerns of CLECs, whom he described as “dying breed.” However, he said both CLECs and ILECs had legitimate complaints about impediments to broadband deployment. He said ILECs had “done a good job of stalling” competitors who sought lawfully required access to ILEC facilities in order to provide services. However, he said ILEC argument against investing billions of dollars for infrastructure that would have to be provided below cost to CLECs wasn’t without merit: “There’s not enough incentive to adopt the behavior we would like them to adopt.” NCTA spokesman said in response to Benhamou’s comments on need for govt. subsidies that cable industry was “example of marketplace success” in broadband deployment and delivery: “We share Mr. Benhamou’s enthusiasm, that’s why the cable industry has invested more than $52 billion in private risk capital to bring broadband to more than 60 million households in a few short years. The cable industry has found that private market solutions are not only preferable but are effective.” As for role of spectrum auctions in hastening 3rd generation wireless broadband deployment, Benhamou suggested that U.S. regulators learn from “mistiming of the auctions” in Europe. He said one of drawbacks to “open and democratic” auction process was “incredible levels” of spectrum prices often paid by entities that had significant cash flow but lacked responsible business plans. He said if and when such companies suffered financial problems because of lack of swift return on their investments, European govts. would have to subsidize them to keep them afloat. That will result in “huge loss of credibility of government,” Benhamou said. He also said current economic downturn predated Sept. 11 terrorist attacks: “Frankly speaking, the ‘New Economy’ has been flat on its ass, and has been for months.”