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10/12/2009 Genachowski: Fair Rules for Open Internet on Agenda

SAN DIEGO—FCC Chairman Julius Genachowski used his opening keynote at CTIA Wireless I.T. & Entertainment on Wednesday to outline his four-point Mobile Broadband Agenda, a plan that gave CTIA at least some of the items on its wish list.

As an investor and executive before his appointment three months ago, the chairman said, he has watched the wireless industry grow from a "futurist fantasy" to a "must-have strategic priority" and he knows the industry will be a central part of the FCC's mission.

"No sector of the communications industry holds greater potential to enhance America's economic competitiveness, spur job creation and improve the quality of our lives," Genachowski said.

He said his goals for the wireless industry including making new spectrum available for mobile broadband, removing obstacles to 4G deployment, promoting "fair rules" for an open Internet that recognize the difference between wireless and wireline networks and helping consumers in the marketplace.

The chairman drew mild applause from the audience when he promised the FCC will "move forward with a shot-clock proposal designed to speed the process" of getting tower siting approval.

Steve Largent, president and CEO of the CTIA, also commended Genachowski for supporting the industry's push for additional spectrum.

"These two efforts, on behalf of the commission, will help the United States to continue to lead the world in wireless," Largent said in a statement. "We share the chairman's commitment to ensuring every American has access to the best wireless products and services in the world."

Saying that mobile is "essential to the future of broadband," Genachowski said a "looming spectrum crisis" is the biggest threat to the future of the mobile industry in the United States. The FCC, he said, has tripled in recent years the amount of available commercial spectrum – principally through last year's 700 MHz auction, but the commission expects the amount of spectrum that will be needed in coming years will be 10 times that amount.

The FCC will look at secondary markets and spectrum flexibility policies for additional spectrum, using Wi-Fi as an example of free spectrum that carriers can use to off-load traffic. He also mentioned smart antennas and femtocells, and said he would like to provide incentives for other technological measures.

But the FCC also needs to push the reallocation of spectrum that's being used for other purposes, Genachowski said, adding that it "takes years to reallocate spectrum and put it to use. And there are no easy pickings on the spectrum chart."

The chairman mentioned his goal on an "open Internet," which the commission is scheduled to address Oct. 22 with a proposed "net neutrality rule" that Genachowski promised will recognize the difference between wireless and wireline networks.

"The goal of the proceeding will be to develop sensible rules of the road," he said. "Rules clear enough to provide predictability and certainty, and flexible enough to anticipate and welcome ongoing technological evolution."

That being said, the chairman added, "I believe firmly in the need for the FCC to preserve Internet openness, whether a person accesses the Internet from a desktop computer or a wireless laptop or netbook."

Genachowski didn't elaborate on what he expects the commission will do in its neutrality rules. Analyst Andrew Seybold said he thinks the commission will require wireless operators to set aside a portion of their capacity for open access, while keeping a portion for their own commercial customers. The question will be how much spectrum might be stipulated for open access, Seybold said.

In his address, Genachowski also lauded AT&T Mobility for deciding to allow Internet voice applications like Skype on the iPhone, as well as the Verizon Wireless' partnership with Google on the Android smartphone platform. In addition, he congratulated CTIA and the four leading carriers – Verizon Wireless, AT&T, Sprint and T-Mobile USA – for  a $1 million, two-year partnership with the One Economy Corp. to help educate youths in low-income communities about mobile broadband applications and services.

The CEOs of the four carriers came out on stage to ceremoniously present the $1 million to Rey Ramsey, CEO of One Economy. The partnership, called Wireless Digital Connectors, will educate 360 youths from low-income communities about mobile applications for health, finance and government services. The youths then will become mentors on those applications in their own communities, CTIA said.

 
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