McCain and Obama on Broadband in the United States

Before I start...... and if anyone wants to know - I will not endorse a specific candidate here and will keep my final choice to myself.

That said...... I've been picking apart the candidates technology policies - specifically in the area of broadband. I've written frequently here about the broadband divide - basically the bandwidth have and have-nots. Our track record over the Bush presidency period has not been good - in 2001 the U.S. was rated number 5 in the world for broadband penetration by the OEDC, today we rank 22nd. What happened over the past 8 years? What have other countries done that we have not been able to do? How come someone in Japan can get a 1Gbps Internet Connection in Japan for $51 / month while all I can get in South Hadley, MA is around 5Mbps for right around the same price?

Lawrence Lessig (an Obama supporter) claims our nosedive is because of changes in government policy. Lessig says we began the Bush administration with literally thousands of ISPs, both narrowband and broadband ISPs. We will end the administration with essentially two, if you are lucky, in any particular district.

From my perspective, Lessig is right - in 2001 I had one choice for broadband (cable modem) and I had probably 20 choices of narrowband (dial-up) service. Today I've got two choices for broadband - ADSL from Verizon and cable modem from Comcast. I'm not sure how many dial-up choices I have and don't really care! I do find myself asking why there is not more DSL competition where I live. Providers can legally co-locate in Verizon facilities and offer service over Verizon lines - what's up here? Why didn't the dial-up ISPs move to offering ADSL service? Many of them tried but most of them failed. Has policy driven these providers out of the market? Have the markets consolidated to the point where we do not effectively have competition any more?

Speaking of competition - I'm jealous of those who live in Verizon FiOS territory - we're just starting to see the cable companies and Verizon starting to leapfrog each other in bandwidth and price offerrings. Am I seeing this kind of response where I live - no. Why? I only have the two broadband options - cable modem from Comcast and ADSL from Verizon. Sources at Verizon tell me it will be years before I'll see FiOS in my neighborhood. Am I seeing any competition? Minimal - the two companies compete on price in my region, not bandwidth.

In his policy, McCain describes his “People Connect Program” that rewards companies that offer high-speed Internet access services to low income customers by allowing these companies offset their tax liability for the cost of this service. Former FCC Chair Reed Hundt (another Obama supporter) estimates this would cost us over $8 billion for just the top two U.S. broadband providers. If Hundt is right and not playing politics, the People Connect Program will end up driving most of the money to the largest providers and further burying smaller competing companies.

Obama's policy says: As a country, we have ensured that every American has access to telephone service and electricity, regardless of economic status, and Obama will do likewise for broadband Internet access. Obama's policy continues saying: we can get true broadband to every community in America through a combination of reform of the Universal Service Fund, better use of the nation’s wireless spectrum, promotion of next-generation facilities, technologies and applications, and new tax and loan incentives.

The Universal Service Fund (USF) Obama's policy references is one fund with four programs. The four programs listed on the USF website are:

High Cost - This support ensures that consumers in all regions of the nation have access to and pay rates for telecommunications services that are reasonably comparable to those in urban areas.

Low Income -This support, commonly known as Lifeline and Link Up, provides discounts that make basic, local telephone service affordable for more than 7 million low-income consumers.

Rural Health Care - This support provides reduced rates to rural health care providers for telecommunications and Internet services so they pay no more than their urban counterparts for the same or similar telecommunications services.

Schools & Libraries - This support, commonly referred to as E-rate support, provides affordable telecommunications and Internet access services to connect schools and libraries to the Internet. This support goes to service providers that provide discounts on eligible services to eligible schools, school districts, libraries, and consortia of these entities.

Here's more from the USF website:

Currently, all telecommunications companies that provide service between states, including long distance companies, local telephone companies, wireless telephone companies, paging companies, and payphone providers, are required to contribute to the federal Universal Service Fund. Carriers providing international services also must contribute to the Universal Service Fund. Telecommunications companies pay contributions into one central fund. USAC makes payments from this central fund to support the four Universal Service Fund programs.

McCain's policy does not mention the USF but does say ......he supports private/public partnerships to devise creative solutions and help rural area and towns and cities in their efforts to build-out broadband infrastructure through government-backed loans or low-interest bonds.

So, Obama says he'll reform the USF fund and use it to give new tax and loan incentives. McCain says he'll build out the infrastructure using government-backed loans and low-interest bonds...... I like Obama's idea of appointing the nation's first Chief Technology Officer (CTO) to ensure that our government and all its agencies have the right infrastructure, policies and services for the 21st century. The CTO will ensure the safety of our networks and will lead an interagency effort, working with chief technology and chief information officers of each of the federal agencies, to ensure that they use best-in-class technologies and share best practices.

Both lack enough detail to really get down to specifics. For example, neither policy includes what I consider one of the biggest broadband roadblocks in this country - a modern definition of broadband bandwidth. Obama's policy uses the term true broadband (whatever that is) and I did hear Obama use the word broadband in the debate last week. I did not hear McCain use it in the debate. I wonder if we'll ever see the 1Gbps they are getting today in parts of Japan for $51 / month in South Hadley, MA.

I teach so I suppose I should give them each some sort of a grade for the broadband sections of their policy papers:

McCain: C-
Obama: C

If McCain updated his policy, saying he would also appoint a CTO, I would probably change his grade to a C .........