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Mar. 26, 2010

Verizon Wireless says it is taking the discussion of a National Broadband Plan managed by the FCC as an opportunity to advocate for the type of full-scale changes in wireless communications laws that only Congress can enact and then dictate to the FCC.

Verizon is hoping for a better regulatory environment that basically treats all wireless service providers equally.

In a speech yesterday, Tom Tauke, Verizon executive v.p. of public affairs, policy and communications, said that traditional regulatory models written for static, one-purpose industries, such as TV or telephone service, are not only out of step with today's dynamic, converged Internet ecosystem, they are harmful to the innovation process that characterizes the Internet.

Presumably, Congress could make everyone subject to those same rules, whether they like it or not.

Tauke is setting the table for getting rid of regulations. The last time there were major changes in communication law in 1996, there was a clear separation among cable, phone and satellite companies, and laws both recognized and institutionalized those differences.

For many years now, cable companies have almost always negotiated franchise agreements with local governments. For example, when AT&T got into the video business, it refused to do likewise, instead negotiating for statewide and national franchise allowances.

To make matters worse, phone companies were even compelled to give new rivals access to their own networks, which had the effect of throwing fuel on the fire.

Tauke added that the approach articulated by former FCC Chairman Bill Kennard, of using a light regulatory hand to create a highly competitive marketplace has worked in the past, but that could change real soon.

"Now, we need to put in place a framework that will continue to encourage ongoing investment and innovation for this system to work in today's market and using today's technology. This should be the cornerstone for a refreshed policy framework," said Tauke.

Tauke also suggested 4 general principles as the foundation for a new policy framework to be determined by Congress.

"Today, wireless users must be fully empowered and well-informed. Second, they must feel safe and confident that their online security and privacy are protected. Third, consumer access and adoption should be priorities. Fourth, the test for government intervention in the marketplace is to prevent either harm to users or anti-competitive activity," said Tauke.

Earlier this month, Verizon Wireless said it invested a little over $681.8 million in its wired network in 2009 and almost $485.4 million in its wireless network, and that's just in the single state of California. Major investments were also made in other U.S. states as well.

Last year, the wireless carrier expanded its revolutionary fiber-optic-powered FiOS TV and FiOS WebTV services and its copper-network-based Verizon High Speed Internet products, and it also strengthened Verizon Wireless' statewide coverage while enhancing access to its 3G high-speed wireless services throughout California.

Tim McCallion, president of the west region for Verizon says "on average, Verizon makes significant capital investments in its wired and wireless network infrastructure, not just in California but in other states as well. These investments not only add to the quality of our customers' personal and professional lives, but they also contribute greatly to the economic vitality of our state."

Verizon Wireless also built its new FiOS network facilities reaching nearly 166,000 more households, expanding availability of its FiOS TV and FiOS Internet services to more than 1.15 million premises in more than 85 cities and communities across Southern California.

FiOS services are now available to more than one million single-family homes in the U.S., nearly 90,000 apartments and condos, and to more than 46,000 businesses.

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Source: Verizon Wireless.