May 4, 2010
Diane Smith: Net neutrality could block jobs
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CHARLESTON, W.Va. -- According to the U.S. Bureau of Labor Statistics, all 50 states saw an increase in unemployment during 2009. All 50 states. In West Virginia, people are weathering an unemployment rate of more than 9 percent. Fortunately, in the first quarter of 2010, the nation is seeing stabilization in jobless rates. However, in order to sustain a recovery from this recession and bolster the economy, the U.S. needs employment growth, not just stabilization, to recoup the 8.4 million lost jobs since December 2007.

As the government is stretching itself to the gills to rejuvenate the economy, it is heartening to see officials acknowledge that mobile innovation, investment and competition put people to work and help entrepreneurs in rural America, like myself, stay competitive.

Recently, the Federal Communications Commission unveiled a National Broadband Plan that recognized the critical role wireless technology plays in sustainable high-quality job creation -- whether you live in New York, L.A or Charleston. Entrepreneurs in rural communities are relying on mobile solutions to manage operations and serve as a gateway for businesses to reach their urban counterparts. Broadband opens up opportunities to grow and run your business anywhere, and when entrepreneurs can think "big," new job opportunities get bigger.

While there is great promise ahead in communications, there may also be a looming threat to future entrepreneurship and new employment opportunities. A recent study by The Brattle Group examining the employment and economic impacts of network neutrality regulation found extensive controls would restrict technology advances, innovation and job growth. And a recent ruling by the U.S. Court of Appeals for the District of Columbia Circuit rejecting the Commission's claim of authority to enforce existing Internet freedom principles adds even more uncertainty to the broadband ecosystem.

The report projects network neutrality regulation could mean a loss of activity and output in broadband Internet-related activities equaling $292 billion and impacting approximately 1.5 million direct broadband sector jobs in the next decade. Compare this potential loss to the carriers' investment of $264 billion since 1985, with $120 billion of that in the last five years -- the fruits of which have been the exponential growth we have seen in the dynamic wireless and broadband sector so far.

For the U.S. economy, accelerated deployment of broadband technology and applications can generate further productivity gains of $860 billion over a 10-year period. However, this will only happen with continued private sector investment in the networks. Last year, amid a challenging economy, American mobile phone operators invested $20 billion in wireless networks. The industry has also invested $33 billion in payments to the federal government in the last two spectrum auctions to ensure it can meet customers' future mobile broadband needs. And with this expansion come much-needed jobs.

Now is not the time to put these gains at risk. Both the wireless sector and the federal government should be commended for their efforts to stimulate the economy and create jobs. But during a time when every job and dollar count, policymakers should proceed cautiously to avoid thwarting a sector that is a boon to both these goals.

Smith serves on the board of Mobile Future (mobilefuture.org) and was co-founder and chief executive officer of Auroras Entertainment, an IPTV and advanced media services company in Kalispell, Mont.

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Diane Smith: Net neutrality could block jobs

CHARLESTON, W.Va. -- According to the U.S. Bureau of Labor Statistics, all 50 states saw an increase in unemployment during 2009. All 50 states. In West Virginia, people are weathering an unemployment rate of more than 9 percent. Fortunately, in the first quarter of 2010, the nation is seeing stabilization in jobless rates. However, in order to sustain a recovery from this recession and bolster the economy, the U.S. needs employment growth, not just stabilization, to recoup the 8.4 million lost jobs since December 2007.

As the government is stretching itself to the gills to rejuvenate the economy, it is heartening to see officials acknowledge that mobile innovation, investment and competition put people to work and help entrepreneurs in rural America, like myself, stay competitive.

Recently, the Federal Communications Commission unveiled a National Broadband Plan that recognized the critical role wireless technology plays in sustainable high-quality job creation -- whether you live in New York, L.A or Charleston. Entrepreneurs in rural communities are relying on mobile solutions to manage operations and serve as a gateway for businesses to reach their urban counterparts. Broadband opens up opportunities to grow and run your business anywhere, and when entrepreneurs can think "big," new job opportunities get bigger.

While there is great promise ahead in communications, there may also be a looming threat to future entrepreneurship and new employment opportunities. A recent study by The Brattle Group examining the employment and economic impacts of network neutrality regulation found extensive controls would restrict technology advances, innovation and job growth. And a recent ruling by the U.S. Court of Appeals for the District of Columbia Circuit rejecting the Commission's claim of authority to enforce existing Internet freedom principles adds even more uncertainty to the broadband ecosystem.

The report projects network neutrality regulation could mean a loss of activity and output in broadband Internet-related activities equaling $292 billion and impacting approximately 1.5 million direct broadband sector jobs in the next decade. Compare this potential loss to the carriers' investment of $264 billion since 1985, with $120 billion of that in the last five years -- the fruits of which have been the exponential growth we have seen in the dynamic wireless and broadband sector so far.

For the U.S. economy, accelerated deployment of broadband technology and applications can generate further productivity gains of $860 billion over a 10-year period. However, this will only happen with continued private sector investment in the networks. Last year, amid a challenging economy, American mobile phone operators invested $20 billion in wireless networks. The industry has also invested $33 billion in payments to the federal government in the last two spectrum auctions to ensure it can meet customers' future mobile broadband needs. And with this expansion come much-needed jobs.

Now is not the time to put these gains at risk. Both the wireless sector and the federal government should be commended for their efforts to stimulate the economy and create jobs. But during a time when every job and dollar count, policymakers should proceed cautiously to avoid thwarting a sector that is a boon to both these goals.

Smith serves on the board of Mobile Future (mobilefuture.org) and was co-founder and chief executive officer of Auroras Entertainment, an IPTV and advanced media services company in Kalispell, Mont.

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