Wednesday, March 23, 2011

Additional notes from CTIA 2011 keynote by Federal Communications Chairman Julius Genachowski

These notes augment a published article on the topic, which can be found at http://www.streamingmedia.com/Articles/Editorial/Featured-Articles/CTIA-NAB-and-the-FCC-Battle-Over-Wireless-Spectrum-Reallocation-74523.aspx

Quotes from Federal Communications Chairman Julius Genachowski's keynote the CTIA 2011 trade event, held at the Orange County Convention Center in Orlando, Florida.

"We've made progress on a few points on the FCC's broadband plan, including open internet and transparency in roaming, specifically data roaming."

Open internet. Progress has been made, although we recognize the difference between mobile and fixed-wired broadband.

Data roaming. "We also understand the need for a competitive marketplace so we are pushing forward with, and continue to address, broadband roaming charges. Consumers should be able to roam anywhere in the country without roaming fees. We understand that many providers need roaming fees to remain competitive but we need to move forward with a roaming-free broadband details."

Spectrum re-allocation. "We see an estimated $30 billion in revenues for the government. We also see estimates that say broad consumer benefits may be ten-fold. While the number is not perfect, that could yield benefits up to $300 billion."


"While our appetite for innovation and mobile are insatiable, available spectrum is not. With three-fold spectrum inventory in place now, some analysts project a 35x increase in five years, meaning we will run out of spectrum within the next two years." [Other analysts contradict this statement, saying better spectrum management would resolve the issue.]

Wired, interconnected world. "When I visited CES, virtually every product on the CES floor was connected, primarily through wireless access.  It shows that broadband is no longer a luxury, it is a necessity. As demand increases, unleashing spectrum is important to American competitiveness and opportunity. [Gave iPad example of moving beyond befuddling to highly coveted]

Demographic and geographic disparities. Adoption rate for broadband is 67% overall, compared to Singapore's 90% adoption rate [fails to address compact size of Singapore vs USA]. Adoption is much lower for low-income and minority and rural areas [service providers don't make it available in many rural areas].

Innovation and Leadership. "Broadband is not only what you get when you plug into the wall, but also increasingly what you get on a mobile device. We see economic growth and global competitiveness through wireless broadband growth. Other than Japan, we have more subscribers for 3G mobile broadband, and we are the leader in 4G.

Yet by 2014 there will be more 4G devices in Europe than in US. We need to be innovating here and exporting to the rest of the world."

Legacy conundrum. "Broadband is a disruptive innovation that creates an innovator's dilemma in the US market, as the market leader. We have no choice but to develop a 21st century solution that accommodates 20th century legacy technologies, while other countries have an easier task as they have limited legacy technologies to integrate."

Jobs, Jobs, Jobs. "There is an enormous costs of delay. 205,000 jobs could be created over the next five years, if spectrum is available. For instance, deploying towers will create 53,000 jobs, meeting the President's goal of bringing 4G to 90% of the US market. Making new applications will also generate jobs."

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