SBC Communications (NYSE:SBC) today applauded President Bush for taking a leadership
role in advocating faster and wider broadband deployment across America. The
president's comments, made in a speech earlier today, are the latest in a growing
chorus of recognition that broadband policy should be a national priority.
With the United States ranked 11th in the world in broadband penetration, according
to some studies, SBC said it is encouraged that investment in this enabling
technology could increase if free-market competition is chosen over restrictive
financial and regulatory barriers.
Today, President Bush said: "A proper role for the government is to clear
regulatory hurdles so those who are going to make investments do so. Broadband
is going to spread because it's going to make sense for private sector companies
to spread it so long as the regulatory burden is reduced."
Edward E. Whitacre, Jr., SBC chairman and CEO, said: "We are pleased that
the president is expressing support for policies that would spur deployment
of broadband. We view this as an important development - one that will not only
re-energize the still-slumping telecom sector and reinvigorate the nation's
economy, but help deliver an essential technology to millions more American
homes and businesses. 'We're number 11' is not a slogan we want America to have
in this key global market segment."
SBC said the Federal Communications Commission must act wisely and swiftly
to help make the president's vision a reality. Under Chairman Powell's leadership,
the FCC already has begun work towards that goal, as evidenced in the broadband
portion of its Triennial Review Order, which the courts upheld. Going forward,
the FCC should refrain from appealing that landmark court decision, and should
also address three lingering areas of concern to help unleash the potential
of broadband.
The three areas of concern, all affecting consumers and the economy, are:
-- To free fiber and packet-based networks - the foundation for exciting new
technologies - from burdensome wholesale regulations designed for legacy voice
networks. These rules impose unnecessary costs, promote synthetic competition
and result in disparate government subsidies for those who don't invest.
-- To keep all IP (Internet Protocol) services free from economic and price
regulation in an effort to spur the development of innovative products for consumers.
-- To approach and apply public policy in the same manner for all broadband
providers. Unlike DSL, other broadband technologies, such as cable modems, are
allowed to develop and expand unfettered by most government restrictions. Similar
to other areas of technology and industry, consumers should be afforded the
ability to pick the winners and losers in the marketplace.
SBC has invested billions of dollars in developing and deploying broadband
technology, and has made broadband available to more than 38 million homes and
businesses, including rural communities and thousands of schools across the
country. However, an unpredictable, restrictive and often contradictory public
policy environment has slowed the pace of investment.
"That progress can be very deceiving for several reasons," Whitacre
said. "First, getting to this point has taken far too long because of onerous
rules. Second, many homes and businesses still are shut out from basic broadband
technology. And last, there is a new frontier of broadband investment - fiber
to the premises, distance learning, medical diagnostics and video-on-demand
- that is now being delayed from its fullest possibilities. We should have been
well on our way by now.
"These services aren't luxuries - they are fundamental tools for our consumers
and our economy," Whitacre added. "To deliver on their promise requires
tremendous investment. How government agencies decide to participate in this
important issue will determine how quickly the market will develop."
By acting swiftly, SBC said the FCC has an ideal opportunity to unleash this
emerging market, and follow through on America's vision of being a broadband
leader.
"America has led the way in the free market, and we should learn from
that," Whitacre said. "If the government had micro-managed the computer
industry like this, nobody would have invested in the next great microprocessor
or LCD monitor. If the wireless industry were micro-managed like this no company
would have invested in the next great handset or offer more minutes for less
money. And now, broadband - the engine that will really leverage these earlier
technological advancements - should be allowed to develop just as freely."
SBC Communications Inc. (NYSE: SBC) is a Fortune
50 company whose subsidiaries, operating under the SBC brand, provide a full
range of voice, data, networking, e-business, directory publishing and advertising,
and related services to businesses, consumers and other telecommunications providers.
SBC holds a 60 percent ownership interest in Cingular Wireless, which serves
more than 24 million wireless customers. SBC companies provide high-speed DSL
Internet access lines to more American consumers than any other provider and
are among the nation's leading providers of Internet services. SBC companies
also now offer satellite TV service. Additional information about SBC and SBC
products and services is available at www.sbc.com.
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