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FCC Calls for Faster Internet in the U.S.

By Michelle Minton

Internet access is not a right. It is a privilege; one that we pay for. FCC Chairman Julius Genachowski, while not explicitly demanding high-speed Internet access for all Americans did tip-toe toward that ledge in recent comments, in which he noted the importance of high-speed broadband Internet in economic development.

Pointing out that the United States ranks far behind several other nations in Internet speeds, Genachowski revealed a major goal outlined in the broadband plan–to provide speeds of 100 megabits per second (Mbps) to 100 million households by 2020. He noted that other countries have already benefited economically from national broadband, citing one example in China.

“Look at Shenzhen, China,” he said in his speech. “In the 1980s, it was a fishing center. Today, it is a city of 12 million that produces about 25 percent of the world’s cell phones.”

Sure, America is in a tight spot right now and economically speaking we might be experience less growth than China, but that isn’t necessarily a bad thing and anyway do we really want to emulate China? Do we want the government to filter out websites it doesn’t like and throw bloggers in jail for talking about things it doesn’t want us to discuss? Do we want to erode property rights and contract law?

Genachowski seems to believe that Internet access is a root cause of prosperity, employment, and economic growth. While high-speed Internet access certainly improves the efficiency of job searches, information gathering, and advertising, the reason Internet technology has developed so quickly, become ingrained in our society, and dropped precipitously in price is because of competition and the freedom to experiment. Internet technology has become more available and cheaper precisely because it is not free.  The money consumers pour into the latest technological advances drives competition, innovation, and cost cutting. Simply demanding more access to broadband may result in  more folks having the Internet, but it will likely also bring innovation to a crawl or a grinding halt.

As I have noted in previous posts the way to increase access to high-speed Internet it not through regulation and government intervention, but rather by protecting the rights of tech companies and allowing them the freedom to develop and market their products as they choose.

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Comments

Michelle Minton's picture

a cup of chamomile tea for the gentleman

I am not part of the internet industry, you are right about that.

But I think you are misinterpreting what I said--confusing the word "expansion" with the concept of " government intervention".

The post does not assert that it's "expansion" that slows innovation to a crawl, but rather that government *intervention* in the internet market will negatively impact development.

For example, take the merger of Yahoo and Microsoft has been delayed for 7+ months costing these companies lots of money and ground in the competitive market http://techliberation.com/2009/07/29/our-forbes-com-op-ed-on-yahoo-microsoft-search-partnership /
The truth of the matter, whether we're talking about Internet tech or another industry government forced "expansion" is synthetic and not as effective, innovative, or cheap as competition and profit-driven development.

The one thing I regret not including in my original post (which I have dealt with where this post was originally published at www.openmarket.org ) is that the Chairman brought up the good idea of freeing freeing up spectrum for use.

While I understand your emotional reaction to an outsider commenting on an industry of which you feel you have expert and insider knowledge connection to, but I think it was far too strong considering my moderate comments on the Chairman's remarks and the more forceful commenting on the broad concept of free market innovation.

Rice klowN's picture

Oh, to clarify

Expansion forces companies to demand better cheaper faster products from technology developers like Cisco for example. This creates jobs in the tech industry, promotes massive innovation drives and is mutually benificial to everyone involved.

The ISP themselves are not forced to spend money on R&D, for clarification, they are forced to demand that technology providers spend capital in R&D... And this is a good thing. Or at least you'd know that if you had a clue what you're talking about.

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