Broadband growth dependson demand

By Scott R. Burnell,UPI Science News

WASHINGTON, (UPI) -- Growth in the use ofhigh-speed Internet connections, also known as broadband, willrequire compelling reasons for such services rather than theirmere availability, a U.S. Commerce Department report concludes.

The Technology Administration paper, "UnderstandingBroadband Demand," reviewed the state of broadband in theUnited States in order to identify trends, issues and opportunitiesfor both lawmakers and technology providers.

Broadband usually is defined as an Internetconnection that transmits about 200,000 bits of information persecond, or four times more data than a normal phone line can carry.Future versions of broadband are projected to carry millions ofbits per second, but most likely will require wider use of fiber-opticcable and similar technologies.

The report is part of the TA's ongoing focuson promoting broadband rollout, said Bruce Mehlman, the department'sassistant secretary for technology policy and the report's primaryauthor.

"The factor most likely to acceleratebroadband demand is the creation and deployment of easily understood,value-adding business and consumer applications at prices thatmeet the needs of the market," Mehlman said in the report."With respect to maintaining a world-class information infrastructure,there may be no element more critical today than ubiquitous andaffordable high-speed Internet (connections)."

Recent efforts on Capitol Hill have attemptedto assist regional phone companies and cable operators in expandingtheir broadband networks because existing capability has yet tobe utilized fully, the report said. For example, applicationssuch as telecommuting and digital entertainment are the most likelycandidates for spurring broadband usage, but concerns over controllingmisuse of digital music, movies and so on have created a majorobstacle to the technology's expansion.

"Panelists (at a July TA discussion)mostly agreed content creators can never expect a piracy-freeenvironment, and they cannot wait for an end to piracy beforethey venture forth," the report said.

The report is useful in some ways, saidRobert Atkinson, vice president of the Progressive Policy Institute,a Democratic think tank in Washington. PPI issued its own paperTuesday on strategies for boosting broadband usage.

"The fact that they say broadband demandis important advances the ball down the field," Atkinsontold United Press International. "We're rapidly getting tothe point, however, where (admitting that) is not what we needanymore, we need to go beyond to a specific agenda they endorse,and that's what I see lacking from this report."

The Bush administration faces an internalconflict when it comes to broadband, Atkinson said. It realizesthe technology's promise but does not want to set industrial policy.For example, the White House often discusses the idea of "e-government,"where services such as license renewal are provided online. Yeta major initiative has yet to get rolling, he said.

The TA report seems to identify consumerapplications as the most worthwhile area to prompt greater demand,Atkinson said. As far as businesses go, those that do not graspthe reality of what the Internet offers will probably suffer financially,he said.

The PPI report's recommendations includefaster e-government transformation, through such means as a $50million federal grant program to spur state and local governmentsonto the Web. Telecommuting should be encouraged by exemptinghome offices from workplace regulations and developing teleworkprograms for government agencies, the report said.

As far as improving availability of digitalentertainment, Atkinson said, Congress might want to considera sort of antitrust exemption for music companies and moviemakers.An entertainment version of the Orbitz online travel agent, forexample, could provide a single aggregation point for digitalcontent, he said.

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