The Quorum Report

Editor: HarveyKronberg
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December 1, 2004 7:26 AM
Copyright December 1, 2004 by Harvey Kronberg,
www.quorumreport.com, All rights are reserved


KING TO ADVOCATE FOR RURAL HIGH SPEED INTERNET

New technologies opening doors

State Rep. Phil King (R-Weatherford), chair of the Regulated Industries Committee, says that the geography of his district makes him well aware of the digital divide and why it needs to be closed.

House District 61 is part suburban and part rural. While constituents in the suburban areas have the option of purchasing high speed Internet access, many of those in rural areas do not. King said legislation on broadband access for rural areas would be a key feature of his committee's work during the upcoming session, with the focus on market-driven solutions.

"I hear from people all the time asking when are we going to get DSL in our area," King said. "Many business people say they would like to relocate into the country but they cannot do so without high speed Internet. They cannot get cable and satellite is too expensive."

According to the federal government, 80 percent of Americans do not have broadband access in their homes. King said laying cable lines to houses five miles apart is uneconomical and the future lies with wireless technology.

King said a new wireless service was being rolled out early next year providing broadband access to rural areas. Another exciting development, King said, was IP telephone technology, which allows customers to make calls over the Internet, thus avoiding long distance charges.

Another new development, about to be offered in Blanco, Texas, is the provision of broadband through power lines. Broadband Horizons is providing Internet access to about 6,000 customers in rural Central Texas. The company says customers will be able to connect by plugging a modem device into a wall socket. King said electrical cooperatives are particularly interested in such technologies.
"All the pieces are coming together," King said. "The key for the state is to be technology-neutral. We want this to be marketplace-driven, not through statute or over-regulation."

King said it was not coincidence that consumers were benefiting from new advances in wireless and broadband, while heavily regulated areas of the telecommunications industry, such as long distance telephone services, had not delivered significant price reductions for 15 years.

King's views are shared by many of the major players in the telecommunications industry. Jan Newton, president of SBC Austin, testified before the Sunset Commission, that the Public Utility Commission should be restricted from regulating new generation technologies.

During the presidential election campaign, President Bush made a commitment to have affordable access for broadband technology available across the country by 2007. King said he hopes that commitment will translate into grant opportunities for the state and partnerships with the federal government.
"There's going to a lot of fun stuff this session when in comes to broadband and access for rural areas," King said. "This technology is an economic driver. It will help education and economic development."

Not everyone agrees that leaving things to the market will close the digital divide. During the election campaign, Gene Kimmelman, public policy director for Consumers Union, and Mark Cooper, research director for Consumer Federation of America, argued that under the Bush Administration, broadband prices have increased and choice has been limited.

"We believe the Administration has moved away from giving consumers more competitive choices, and instead supported or adopted policies that have strengthened the hand of cable and phone monopolists, who together own and control virtually all broadband connections," Kimmelman said.

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