What keeps a man like Federal Communications Commission Chairman Julius Genachowski up at night? Try 40th out of 40. That's the US ranking in broadband improvements from 1999-2009 according to a study last year by the Information Technology & Innovation Foundation.
The bottom line is Genachowski is worried that the US is not keeping pace with global broadband competition and is in danger of losing its competitive advantage. In an interview at the Web 2.0 Summit, Chairman Genachowski apparently rehashed a speech he gave on Monday and cited the move by Applied Materials to relocate its CTO Mark Pinto to Beijing, something he chalked up to America's technology challenges. "The question we have to ask ourselves is how long before another company moves their CTO away before we fix this," he said at the Web 2.0 Summit. Chairman Genachowski said the U.S. is struggling to contend with some of the forward-looking policies and progress of the 20th century, which are making it harder to push ahead with broadband in the 21st century. He flogged the need for spectrum and reiterated the need to take some of the spectrum set aside for the television industry and move it over to serve the needs of mobile broadband, a process the FCC is working on with broadcasters. The dependence on copper for voice and DSL has also hampered the growth of broadband, which he said requires "fatter pipes."
Chairman Genachowski also blamed Google and Verizon for slowing down the process of agreeing on network neutrality rules. "I would've preferred if they didn't do exactly what they did when they did it." "It had the effect of slowing down some other processes," he said, noting that the FCC's own efforts were making progress. He confirmed that the contentious rules are still on the way. "That'll happen," Chairman Genachowski said of creating network neutrality rules, which would constrain how phone and cable companies manage Internet traffic on their networks. Chairman Genachowski also touted network neutrality regulations as one of the most important policies the country can adopt to improve its broadband deployment efforts, which he described as lagging behind other countries.
On Nov 15, Google CEO Eric Schmidt made his own assessment of the issue: "We spent a lot of time with the FCC. Indeed, the FCC was in a series of meetings with them that I was in." What he had wrought was not what he intended to reap. "Unfortunately, election fever took over,. Nothing will happen until January-February, or a while longer. All we were trying to do was move the ball a little bit forward."