SEIDENBERG SAYS FCC BROADBAND AID ‘IN PRINCIPLE’ ISN'T ENOUGH
FCC Chmn. Powell’s endorsement “in principle” of market- based approaches to broadband infrastructure investment is encouraging, but falls short of addressing need for immediate action in stimulating growth in communications industry, Verizon Pres. Ivan Seidenberg said Wed. at U.S. Chamber of Commerce luncheon: “Consensus is growing behind this issue. But agreeing in principle isn’t enough. Now it’s time for the FCC, along with the Congress, to take action to open the gates to broadband investment and let us put our resources to work where they can do the most good for America.”
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In addition to need for FCC regulations to evolve with changing technologies, it’s critical that Senate move swiftly on economic stimulus package containing 30% “bonus depreciation” provision similar to that passed by House last month, Seidenberg said. That proposed change in tax law, which would apply to capital investments over next 2-3 years, was endorsed by Senate Majority Leader Daschle in recent speech (CD Jan 7 p5) at Center for National Policy, Seidenberg said: “Businesses need a reason to invest sooner rather than later… [We] urge the Congress to make this one their top priorities when they return to Washington later this month.” He said such tax relief would be effective in promoting network upgrades only if govt. also developed national broadband policy. He also lauded TechNet coalition of high-tech companies in its call this week (CD Jan 16 p2) for such a national policy: “In particular, they advocate freeing telephone companies from the ‘old rules’ that govern the traditional telephone business as a way of stimulating faster growth.”
Seidenberg said Congress had been responsive in approving emergency aid package for residents and businesses in N.Y.C. and other areas affected by Sept. 11 terrorist attacks: “But emergency aid won’t do the trick. To rebuild lower Manhattan and retain its economic base, New York City needs an infusion of capital investment… For the sake of the 125,000 jobs and $12 billion in tax revenues lost to the City of New York, not to mention the national interest in restoring the strength and vitality of the world’s greatest financial center, we urge the Congress to enact these pro- growth policies as soon as possible in 2002.”
Reiterating opposition to mandatory provision of discounted access by CLECs to incumbents’ networks, Seidenberg called for Congress and FCC to put Verizon on “equal footing” with AT&T Comcast and AOL Time Warner. Proposed EchoStar acquisition of DirecTV and drive by wireless companies to upgrade their networks for high-speed data services also must be considered in development of new regulatory model, he said: “All these companies are looking to expand their footprint in the markets that will drive growth in communications: Data, high-speed Internet access, and, increasingly, content… And, not coincidentally, the action is taking place outside the sphere of traditional regulation, which squashes innovation and impedes the flow of capital.” When asked whether Verizon intended to acquire content-providing companies, he said: “That’s not our business… We operate networks… everything from security to firewalls to switches… We want content to flow over that.”