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An
article
in Foreign Affairs by Thomas Bleha discussses why the
U.S. is falling behind other developed nations in
broadband adoption. Bleha notes that the Japanese can
access broadband at speeds up to 16 times faster than
Americans for half the price.
The blame is laid at the feet of the current
administration, but some, including The Economist (see
story, subscription required), are quick to point
out that the warning may be a little alarmist.
Bleha writes
that other countries have fostered broadband adoption by
creating policies that rewarded the expansion of fiber
optic networks and the deployment of technology to
facilitate broadband access. For example, the Japanese
government used a combination of debt guarantees, tax
breaks and partial subsidies to improve its
infrastructure.
A key
regulatory event that triggered infrastructure
investment in Japan was when its telecommunications
regulators forced local telecoms to grant outsiders
access to residential telephone lines, thus opening up
competition for DSL service. Bleha believes that the
lack of corresponding policies here dooms the U.S. to a
continuing lesser position in the world of broadband.
On the
wireless front, Bleha notes that even in major cities,
it is possible to lose a call on an ordinary cell phone.
Due to geographic challenges, nationwide coverage is
still only a dream. While Asia and Europe look at cell
phones as data carriers, and have developed many new
uses for them, the U.S. view of cell phones is still
myopic – using phones mainly for conversations and
taking pictures.
While it is
true that the U.S. is losing its leadership position in
many areas of technology, the FCC sees this as a
strategic move, according to Bleha. While other
countries fund and create policies to foster
development, the U.S. relies on market forces and
private investment. For example, in wireless technology,
the U.S. is lagging behind many countries that have
developed 3G (third generation) systems. However,
because many different U.S. companies are working on
solutions to this challenge, the government believes the
U.S. will be better off in the long run with three or
four platforms instead of one.
Is Bleha
Chicken Little or Nostradamus?. Time will tell if his
criticisms are valid or overstated. However, there seems
little doubt that there is vast room for improvement in
current U.S. broadband policies. What was once a major
election plank now seems to be an afterthought.
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