Planning Broadband for the “New Normal”

In his recent conversation-starter essay, The New Normal, Ian Davis poses the question of “What comes next?” in terms of our current economic turbulence. Davis’ basic premise is that the current downturn is fundamentally different from recessions of the past, and that we are about to face a restructuring of known economic order. He states that the “new normal” will be shaped by a confluence of powerful forces – some arising directly from the financial crisis and some that were at work long before this all began. One-time factors such as the entry of women into the labor force and loads of new college graduates conveniently coincided with peak spending years of the baby boom generation – all helping to boost consumption-driven growth since the 1980s. It is clear that these forces will not predominate in whatever emerges. Rather, Davis says that the factors shaping the world economy of the near future are less leverage and more government.

We already see evidence of the effect these factors are having on efforts to stabilize the financial crisis and revitalize growth in the banking and financial services sector. In the arena where the e-NC Authority is most directly concerned (broadband deployment), decreased leverage is sparking a new wave of mergers and acquisitions, delays in equipment upgrades and new deployments and reduced investment in product R&D. Countering these negative trends is another that makes us cautiously optimistic: increased interest in broadband at the highest levels of federal government through targeted investment of the American Recovery and Reinvestment Act (ARRA).

On Feb. 17, 2010, at long last, a national broadband plan will be delivered to Congress by the Federal Communications Commission (FCC). As its primary goal, this plan will espouse ubiquitous and affordable broadband access. On May 22, 2009, acting FCC chairman Michael, J. Copps made an important down-payment toward the national plan with the release of the report Bringing Broadband to Rural America. This report fulfills a requirement of the June 2008 Farm Bill that the USDA and the FCC submit a rural broadband strategy to Congress. Other critical federal broadband legislation includes the ARRA that will provide funds to map the current broadband footprint and help fund network deployment to unserved and under-served communities, and the October 2008 Broadband Data Improvement Act that requires the FCC to deliver an annual status report to Congress that benchmarks progress toward ubiquitous broadband access.

Highlighted recommendations contained in the Rural Broadband Plan include:

• Improve coordination among federal agencies and with stakeholders to better harmonize broadband agendas and working definitions – leverage broadband dollars across federal agencies and improve communication via an improved Web site
  
• Assess and address broadband needs thorough accurate mapping, education and training to stimulate demand – and provide subsidies to increase penetration while decreasing the cost of deployment
  
• Overcome challenges through consideration of universal services reform, network openness, spectrum access, middle mile and speed access reforms, inter-carrier compensation, access to poles and rights-of-way and tower studies
  
• Monitor and adjust the plan through annual status reports to Congress

In support of a national vision for broadband, acting FCC Chairman Copps harkens back to other instances where leadership and vision were successfully employed in the face of considerable opposition – and those adventures ended up delivering critical infrastructure that catalyzed and sustained economic growth. Think about it – he’s right. U.S. Postal Service. Transcontinental Railroad. Interstate Highway System. Rural Electrification and its spin-of, the Rural Telephone Cooperatives. All then of course, the Internet itself. All of these initiatives represent transformative public investments whose development depended on a strong and coordinated national vision. We agree with Copps’ statement that it is time for the United States to meet the challenges of the 21st century with universal broadband deployment. Whatever our collective “New Normal” turns out to be, we will be better prepared to meet it if we are all connected.