FCC AND NTIA TRYING TO CLARIFY ICT REGULATORY FRAMEWORK
Despite WorldCom debacle and weakness in information and communication technology (ICT) market, FCC isn’t ready to give up on idea that competition is best way to drive innovation and consumer services, FCC Comr. Martin said Thurs. Some business models have survived, and FCC still is trying to work out how market will shake out, he said in panel discussion on ICT at U.S.-Ireland Business Summit in Washington. Telecom Act of 1996 wasn’t massive failure, said Deputy Secy. of Commerce Sam Bodman. U.S. “isn’t perfect, for sure,” he said, but over time its system has proved “pretty resilient.” He predicted increasing efforts by FCC and NTIA to “clarify” regulatory framework in which ICT industry operated and to brush aside impediments in order to give investors more certainty. While he’s not pleased with current state of industry, Bodman said, he thinks it will recover.
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Broadband deployment is particularly important now given problems in the telecom sector, Martin said. “Good news,” he said, is that there are some positive signs in U.S. on broadband rollout, such as increases of 36% in cable modem service and 47% in DSL service. However, he said, “important but delicate balance” must be maintained between ensuring that incumbent networks remain open to competition while new technologies are allowed to develop. It’s also necessary, Martin said, to remove financial disincentives to deployment. If broadband services are seen as additional source of revenue, he said, they may be taxed -- something that should be avoided at all costs. Govt. also can make sure there are no regulatory roadblocks to discourage carriers from rolling out new infrastructure, he said. On other hand, Martin said, it’s “critical” that incumbents not be allowed to withhold parts of their networks that aren’t easily duplicated or to charge high prices for use of those parts.
On whether to treat broadband as telecom or information service, Martin said FCC had “tentatively concluded” it should have lighter (information service) regime and was trying to balance competition goals in that context. Govt. alone can’t get U.S. to ubiquitous broadband deployment, he said -- it ultimately will be private sector that ensures that goal is achieved.
Representatives of several ICT companies said broadband wouldn’t happen in Ireland until several things occurred: (1) Local loop was unbundled. (2) Public-private partnership was established. (3) Fixed Internet access was available. Lack of such access has caused PC penetration to stall out at 38%, one participant said. (4) There was comprehensive govt. policy in place. One Microsoft official urged Irish govt. to launch e-govt. initiative that could jump-start broadband takeup.