The U.S. House of Representatives Energy and Commerce Subcommittee on Communications and Technology has begun the arduous process of considering 25 separately introduced bills that seek to improve America’s broadband infrastructure.
The measures address a variety of topics, including expanding broadband in disaster areas, better identification of underserved areas, supporting innovation, and lifting obstacles to expansion.
Subcommittee Chairman Marsha Blackburn (R-TN) opened the Jan. 30 hearing by stressing the importance of an “inclusive” approach to legislation aimed at closing the nation’s digital divide.
“Whether you agree or disagree with any individual idea, it is so important that we get the conversation started,” Rep. Blackburn said. “I very much appreciate all of the thoughtful proposals and look forward to seeing many of them progress in the coming weeks.”
“This is an exciting time for America,” added Energy and Commerce Committee Chairman Greg Walden (R-OR). “We want to be in the lead, we don’t want to wait.” He encouraged subcommittee members to work in a bipartisan manner to put the nation back “in the forefront on development of connectivity, wired and wireless, and the newest innovation and technology.”
Before the seven expert witnesses testified, Subcommittee Vice Chairman Leonard Lance (R-NJ) pointed out that private investment is necessary for advancing the use of high-speed internet across the country.
“As we consider how best to promote broadband deployment and next generation networks it is important that we remember the successes of private investment in the past and pursue federal policies to help and encourage an emphasis on more private investment in the future,” Lance said.
In fact, according to American Cable Association President and CEO Matthew Polka, the new Tax Cuts and Jobs Act already is incentivizing investments in broadband.
“We estimate that the new tax law will turn more than 400,000 homes in unserved areas into economically viable areas ripe for private investors to build high-speed broadband or fiber-to-the-home services,” Polka testified during the hearing. “Additional areas would also become suitable for private investors using other technologies.”
At the same time, however, some areas of the nation continue to see little or no investment in the technology, a factor that cuts across community size or location, CTC Technology and Energy President Joanne Hovis told the lawmakers.
“If return on investment is low or nonexistent, the investment will not be made,” Hovis said. “To solve this, state, local and federal governments can take steps to improve the economics of broadband deployment in areas where investment has been insufficient.”
While rural areas are often highlighted in discussions about underserved areas, Hovis pointed out that they also include “urban areas such as small business locations in cities and suburbs, as well as low-income areas where adoption is low and incumbents see no return that justifies network upgrades.” Without needed changes, “private dollars will continue to flow primarily to the most profitable areas,” she said.
And once broadband service is deployed, connectivity won’t be smooth sailing, Shirley Bloomfield, chief executive of NTCA-The Rural Broadband Association, told subcommittee members.
“Even where broadband is available, sustaining it and upgrading it to keep pace with today’s economy and user demands is a challenge unto itself,” Bloomfield testified.
That’s a fact broadband providers support, according to Jonathan Spalter, president and CEO of USTelecom, who said despite their front-line efforts and $1.6 trillion in capital spent to upgrade and expand the nation’s infrastructure since 1996, more work is needed to close the digital divide.
“Many of USTelecom’s member-companies, family-owned businesses in small towns serving America’s rural heartland, can testify to how expensive it can be to expand or upgrade networks in rural areas,” Spalter said. “While the Executive Orders signed by the president are a welcome first step in addressing this issue, congressional action is also critical to address this gap.”