Mandel Finds Information Technology Sector to be Leader in Job Creation

July 28th, 2010

In a recent study entitled, “The Coming Communications Boom? Jobs, Innovation and Countercyclical Regulatory Policy,” Economist Michael Mandel from the Progressive Policy Institute discusses the impact of regulation on the communications sector.  Mandel observed that during previous economic recessions, the recovery phases have all been characterized by one “job leader,” that begins adding jobs before the rest of the private sector has recovered.   Based on current employment statistics, Mandel indicates that the communications sector is this recession’s job leader. 

Mandel’s memo observes that while millions of jobs that have been lost across the country in the last three years, employment at Internet companies has increased by 13 percent and wireless telecom carriers and the computer systems design industry have also been adding jobs at a steady pace.  In order for these industries to continue to flourish, however, there must be an appropriate regulatory environment both at the national level and here in the states.  Mandel does not blindly advocate for either stringent or lax regulations on the communications sector, but instead, proposes that the communications industry must be allowed to develop unfettered, and to only revisit the idea of regulations when it is fully established as an economic force.  Mandel has gleaned this lesson from the success that the Internet has had in the past few decades.  Mandel’s findings suggest the importance of having a regulatory environment that will allow the communications industry to grow.  Not only does the communications industry have a potential to be a jobs leader, as Mandel asserts, but growth among the communications sector means more innovation and investment in broadband and other digital technologies and that is a win for consumers.

To read Mandel’s policy memo in full, please click here.

The Goal of Universal Broadband

July 26th, 2010

In a recent op-ed in The Miami Herald, Former Mayor of Miami and current Vice Chairman of the Alliance for Digital Equality Manny Diaz used the World Cup as an opportunity to reflect on the importance of providing affordable Internet access for American households nationwide and the challenges that proposed FCC regulations pose to this effort. 

“From Johannesburg to Miami,” Diaz explained, “new technologies allow us to connect in ways never thought possible and provide us with new opportunities to interact with other countries and cultures.”  

To ensure that more communities can be connected, Diaz suggests both private sector investment and smarter government policies.  Diaz fears, however, of heavy-handed federal regulations, which threaten to stymie job creation, stall much-needed investment and raise prices for consumers will thwart opportunities for states at a local level to update legislation of yesterday to support to growing Internet today.   With all the opportunities that broadband presents to consumers, it is important to foster an environment that recruits investment and supports total connectivity.  

This holds true not only from a federal perspective, but also a state and local perspective.  In order to allow broadband to thrive and connectivity to increase in the states, there needs to be a regulatory environment that  encourages broadband investment and deployment.  Just this year, Georgia updated its regulatory structure as it applies to broadband and telecommunications, and as a result, has opened up an environment where broadband will continue to grow.  Other states looking to increase their broadband capabilities could certainly learn from Georgia’s example.

To read Diaz’s full piece, please click here.

Study Finds Increase in Mobile Broadband Use

July 16th, 2010

Not too long ago, the idea that wires could eventually become obsolete might have seemed like science fiction.  Today, wireless is the broadband du jour.  According to a study on mobile access that the Pew Internet & American Life Project released last week, there has been a significant increase in mobile use in 2010.  The report found that 59 percent of all American adults go online wirelessly, an 8 percent increase from last year’s report.

An article posted on PC World suggested that the increase that the study observed in wireless Internet access for leisure and entertainment purposes is likely attributed to the explosive popularity of smartphones.  The study also highlights an increasing trend in minority wireless broadband users:  “Nearly two-thirds of African-Americans (64%) and Latinos (63%) are wireless internet users, and minority Americans are significantly more likely to own a cell phone than their white counterparts.”  CDF’s Ray O’Connell recently wrote a letter to the editor that ran in the Ocala Star Banner applauding states with updated policies that allow new technologies such as wireless broadband to expand.  O’Connell’s letter commends the government’s plans to increase spectrum, noting “the additional spectrum should go a long way toward assuring that all wireless broadband providers will be able to meet the exploding demands of their customers.”  With the ability to connect literally in the palm of our hands, it is no wonder that more and more people are joining the world of Wi-Fi. 

To read the full Pew report, please click here.

First Step: Spectrum

July 14th, 2010

More and more Americans are increasing their wireless bandwidth usage with the explosion in use of iPhones, Blackberries and other hand-held devices.  With more people using more spectrum, there’s bound to be a shortage.  The FCC addressed the shrinking airspace in the National Broadband Plan released in March by proposing to free up hundreds more megahertz over the next several years.  

Last week, an article that ran in the Ocala Star Banner announced President Obama signing a presidential memorandum stating a plan to auction 500 megahertz of spectrum for mobile broadband use.  CDF’s Senior Advisor, Ray O’Connell, submitted a letter to the editor applauding the administration for facilitating increased availability of wireless spectrum.  O’Connell noted that, “the additional spectrum should go a long way toward assuring that all wireless broadband providers will be able to meet the exploding demands of their customers.”  Looking ahead, O’Connell emphasized the importance of modernizing outdated telecommunications regulatory structures in Florida, which,  will, “encourage investment in broadband and digital technologies,” as well as support a competitive marketplace to benefit consumers.  

To read the full letter, please click here.

Mapping Broadband

July 13th, 2010

Last week, the Pew Center on the States released a report entitled, “Bringing America Up to Speed: States’ Role in Expanding Broadband.  The report measures the proximity of states to the broadband minimum standard established by the National Broadband Plan that the FCC released in March. 

The comprehensive map identifies the many states that support robust broadband development and have taken the necessary steps to increase adoption and access.   Additionally, the broadband map pinpoints the regions that have room for improvement.  An important step that many states have taken in support of broadband deployment is to modernize telecom legislation to encourage broadband investment and much needed job creation.  CDF supports states in updating their telecom laws and hopes that other states will recognize the value of broadband in their communities to help support future growth and development. 

To check out the full report, please click here.  To see a map of how broadband in your state measures up to other states, please click here.