Intel characterized the current broadband market as "discouraging," and, citing anticipated benefits to the economy, urged the FCC to review the regulations that apply to broadband providers to encourage investment in the infrastructure needed to bring high-speed Internet access to the home.
According to Intel, under section 706(a) of the Telecommunications Act of 1996, the FCC is "obligated to promote the reasonable and timely deployment of broadband through a variety of regulatory tools." At a minimum, the company asserts, the FCC should propose deregulating all new, last-mile broadband investment to "encourage the fastest possible deployment of the highest speed technology."
Peter Pitsch, the director of communications policy for Intel, said the company simply wants the FCC to act on the broadband issue in order to begin the process of improvement.
"We are proposing the commission undertake an effort in a more comprehensive way -- that they undoubtedly would have sooner or later -- but in an expeditious way," said Pitsch. "Regulations are undercutting the telephone companies incentive to deploy risky and expensive fiber and DSL electronics."
Pitsch said Intel wants the FCC to propose a rule change regarding broadband deployment regulations, which, in turn, would lead to the filing of written comments with the commission from both sides of the issue.
"It is important to get that comment cycle going, hopefully by the end of this year or earlier," he said.
As the FCC examines broadband, it should consider not only the current state of deployment of high-speed access, but also the likely deployment of higher bandwidth in the future, Pitsch added.
According to Intels pleading, the "true benefits" of broadband will require faster transmission speeds than 200 kbps (kilobits per second) upstream and downstream. These benefits include video on demand, file sharing and peer-to-peer computing, all of which need faster access, the company asserts.
Further, Intel said the "true benefits" of broadband will require a critical mass of users with high-bandwidth broadband. Intel proposes what it termed "ambitious" national broadband goals. By the end of the decade, the company would like at least 100 million homes and small businesses to be able to get affordable, 100 Mbps (megabits per second) broadband capacity.
By the end of 2002, under Intels plan, 80 percent of U.S. homes should be able to get at least 1.5 Mbps capacity and 50 percent of U.S. homes should be able to get 6 Mbps from at least two providers.
The current broadband market is "risky and competitive," said Intel, especially with the recent downturn in the economy. The cost of capital is crucial, the company argued, because improvements in transmission speed and availability will require massive infrastructure investment by broadband service providers -- possibly up to $200 billion, according to a Bear Stearns & Company analyst.
Because of the risk involved, Intel urged the FCC to review current regulations to ensure the companies that "take the risk of deploying new last-mile broadband facilities reap the rewards if they prove successful."
Michael Bartlett, Newsbytes
