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September 06, 2007

Comments

Claudia

SusanGlad to have you back, but I'm in profound dseegriament with your conclusions.I do believe affordability is an important factor for consumers, with U.S. prices for high speeds twice what similar service costs in France and Britain. NTIA and DOJ explicitly hold back on meaningful steps to solve the problem. I therefore conclude that the U.S. broadband plan is failing at speeds above wireless. Without the plan, 90% of the U.S. will get 50 megabits but it is too expensive for many. With the plan, little changes for those 90%. (Not much is being done for the other 10%, but that's another story.) If used heavily as a broadband replacement, wireless today tops out at 500K to 2 megabits. That will go to 2-6/7 meg in 2013-2015, the LTE generation. (Much uncertainty here, but those estimates are informed by Bell CTOs and the like. Wireless is shared, so the higher speeds like 12 meg LTE can only be offered to a limited group.) Providing more spectrum may or may not create decent competition at these lower speeds. AT&T and Verizon are already pulling away from the pack. Sprint has more spectrum than they can use, but is losing money. It's possible the spectrum will allow more players, but equally possible it won't be enough. The decisions implicit in NTIA-DOJ therefore are that little will be accomplished except for a possible at lower speeds, and very limited lifeline subsidies (USF is already 15%). I don't think that should be acceptable. Too many nations are doing much better. It's a mistake for the U.S. to fall behind. With respect.Dave Burstein

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