Bush, Kerry see broadband as election issue
WASHINGTON (AFX) -- The decisive issues of the 2004 presidential election battle: Iraq, the war on terror, job creation and ... broadband? Well, maybe it won't serve as a candidate litmus test for many voters, but President Bush and Democratic challenger John Kerry have both pledged to make expanded access to high-speed Internet an important component of their economic plans
"We ought to have a universal, affordable access for broadband technology by the year 2007, and then we ought to make sure as soon as possible thereafter, consumers have got plenty of choices when it comes to purchasing the broadband carrier," Bush told a crowd Friday in New Mexico, a state that he lost to Al Gore by less than 400 votes in 2000 and promises to again be a key battleground this November
Bush offered no details regarding the broadband strategy
Kerry, who on Friday unveiled a corporate tax plan in the first of three speeches on economic policy, said he would soon lay out his approach to boosting broadband access
"I will focus on raising American competitiveness by spurring the growth of new industries like the broadband technology that will dominate the future," he said
Bush's proposal garnered applause from John Chambers, CEO of telecom equipment maker Cisco Systems . Other top makers of the routers and other equipment used to connect the Internet include Lucent , Nortel Networks , Juniper Networks and Extreme Networks
"Having affordable broadband for all Americans by 2007 will help ensure the nation's competitiveness for decades to come. Cisco looks forward to working with the administration, the Congress, the FCC and others to realize this important goal," said Chambers, a Bush supporter and GOP campaign contributor who has advised the president on tech issues
Besides equipment makers, the large fiber-optic "backbone" networks could benefit, including MCI , Level 3 , Global Crossing , Wiltel and Qwest
Broadband is an issue that looms large for major players throughout the tech industry, which has been fertile ground for Democratic and Republican fund-raisers alike
Policymakers have long been debating the best approach to broadband policy. The Federal Communications Commission last year ruled that dominant Baby Bell local phone companies don't have to provide rivals with access to newly laid fiber-optic cables -- an important broadband conduit -- at low, wholesale rates
The Baby Bells say that will help spur their investment in broadband. Cable companies aren't required to share their networks with rivals. The FCC also offered some relief to companies such as Covad that use a portion of the Bells' copper wires to deliver high-speed Internet access to customers. While the agency plans to phase out so-called line-sharing requirements within three years, existing customers will be grandfathered in
Covad and other high-speed suppliers could still receive wholesale rates if they pair up with other carriers such as AT&T to provide consumers with a package of local phone and high-speed Internet service
FCC Chairman Michael Powell on Friday issued a statement welcoming Bush's 2007 broadband goal
"I look forward to working with my commission colleagues, Congress and the administration to deliver on this vision for the American people," he said. "Universal and affordable access to broadband is vital to the health and future growth of our economy." The broadband industry was hit hard when the dot-com bubble burst starting in 2000. Data networks were overbuilt, creating thousands of miles of "dark fiber," and when the overcapacity became apparent there were losses in the hundreds of billions of dollars in shareholder equity and debt securities. As well, hundreds of thousands of network equipment workers lost their jobs as demand dried up.
fxstreet.com
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Broadband an election issue?
Really?
Perhaps to CSCO.
Mish |
