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November 19, 2008 12:44 PM PST

Broadband proponents to Congress: Invest in future, not autos

Posted by Stephanie Condon
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WASHINGTON--Rather than investing emergency funds into old economic sectors like the auto industry, the federal government should look to the future and invest in a national broadband strategy, panelists at a broadband symposium said Wednesday.

"Let Detroit go bust, let the banks go bust--put $700 billion into broadband," said Paul Dickson, CEO of the Carbon Disclosure Project. "Broadband is the future."

The U.S. economy will surely come to a halt if the country cannot keep up with the pace of modern technology, said panelists at the event, which was hosted by the Internet Innovation Alliance.

More access and broader utilization of broadband can improve the country's future economic outlook, they said, but it can also help Americans struggling to keep up in the current economy. As resources become scarcer in tight economic times, far more government programs will be easier to reach via the Internet.

Paul Cosgrave, commissioner of the New York City department of information technology and telecommunications, discussed broadband deployment in his city on Wednesday.

(Credit: Stephanie Condon/ CNET News)

"For someone trying to pull themselves up by their bootstraps, that whole process has changed," said Paul Cosgrave, commissioner of the New York City department of information technology and telecommunications. "They have to pull themselves up by the mouse cord, not necessarily their bootstraps."

It is up to President-elect Barack Obama and his administration to set the tone for broadband legislation and regulation, said David McClure, president of the United States Internet Industry Association. Yet while the goals for broadband accessibility should be far reaching, the investments to get there should be targeted at areas that need it, he said.

The panelists agreed there should be more investment in broadband deployment but acknowledged the realities of today's economic and political climate.

"There are a lot of pressures from the old economy that are going to come into the mix" as Congress works on creating a new stimulus package, either in its current lame-duck session or at the start of next year, said Elaine Kamarck, a lecturer in public policy at Harvard Kennedy School.

She urged those at the symposium to "work hard to make sure this stimulus package is a 21st century stimulus package."

Dickson said levying taxes on air fuel would be better for the economy than taxes on information and communication technology.

"The one hope for our world is being strangled," he said.

The quality of American life is clearly hampered by limited broadband access, panelists said, when a soldier can more easily search for medical information from his camp in Iraq than his home in Alabama.

Similarly, the country's potential to grow is obviously constrained when a college student is limited in which classes she can take because she does not have broadband access.

The integration of technology into the American education system pales in comparison to what has been accomplished in other countries, said Susan Patrick, president of the North American Council for Online Learning.

China has already digitized its entire kindergarten through twelfth grade curriculum, she said, and will reach 100 million more students online after WiMax becomes available.

The changes in online learning will "fundamentally shift what we call a world class education," she said.

Utilizing broadband technology in education will bolster our future workforce, but implementing it into human services programs can help the country's current workers, panelists pointed out.

New York City has seen a major increase in applicants for human services because of its Access NYC site, from which residents can determine if they are eligible for any of 35 services. The site is accessible in seven different languages.

Putting services online is "critically important when we will probably have more people applying for benefits than ever before," said Kamarck. "We have tighter budgets, and therefore any kinds of efficiencies will obviously help us keep more benefits for the people who need them."

Stephanie Condon is a staff writer for CNET News focused on the intersection of technology and politics. She is based in Washington, D.C. E-mail Stephanie.
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Add a Comment (Log in or register) 10 comments
by cyberDJ-2038765336053745013836 November 19, 2008 2:09 PM PST
I agree.

Let Detroit die.
They got themselves into this mess by making **** cars and counting on cheap oil.

Buh-bye.
Reply to this comment
by chuchucuhi November 19, 2008 3:33 PM PST
Yes, somebody said it. More broadband, easier to work from home in all areas across the country, reduce traffic, reduce depence on oil, increase access to information, increase quality of life.
Reply to this comment
by bonesbautista November 19, 2008 3:38 PM PST
I've got mixed feelings about this. Detroit's business model sucks and generally needs an overhaul - but millions of people depend on the industry for employment, from GM to NAPA. Bring some of the jobs home and kill the contracts that are strangling the industry. I'm pro union, but I'd rather earn $40-55 in pay and benefits for the long haul over getting $70 now and nothing in the very foreseeable future.

OTOH - everybody I can think of wants free broadband internet access. Not cheap broadband internet access. Free. Metro-Fi tried, and failed - couldn't find people to buy in or advertisers to do what they do. Most of the major providers - cable, wireless, wired - have all instituted bandwidth caps and raised their fees due, in large part, to abusers of the respective TOS agreements. And, how many people will gain employment? Buying a bunch of cheap Chinese-made electronic components to build an infrastructure system customers don't want to pay for or are looking for the cheapest alternative. Yeah, I'd be voting to not consider that option in a heartbeat as a taxpayer.
Reply to this comment
by Nicholas Buenk November 19, 2008 3:48 PM PST
We need green and efficient electric cars a lot more than we need broadband, bail out Detroit with conditions.
Invest as much as you like in broadband, it won't do anything more in terms of carbon footprint reduction than make people commute a little less. A new type of vehicle is the real solution.
Also of note, is that the economic impacts of peak oil will easily be as great as this financial crisis, government should be taking action to mitigate it's impact.
Reply to this comment
by sparlings November 19, 2008 6:58 PM PST
The auto industry needs to be downsized and redefined along with a measured and controlled change to tech. Industry. Broadband is an intrical part.
Reply to this comment
by Commander_Spock November 19, 2008 9:58 PM PST
They should all invest in the commercial production of a "QUIETER ENGINE" for SUPER-SONIC COMMERCIAL AIRCRAFT industries around the world. And, Bada Bling, Blah De Blah!
Reply to this comment
by Commander_Spock November 19, 2008 10:20 PM PST
Re: "They should all invest in the commercial production of a "QUIETER ENGINE" for the SUPER-SONIC COMMERCIAL AIRCRAFT industries around the world. And, Bada Bling, Blah De Blah!" Here is the rationale - the United States of America should invest in an industry in which it has been known to outclass the competition; and, the rest will follow later.

Space - The Next Frontier!

Commander_Spock And Crew.

Live Long And Prosper! ;-)
Reply to this comment
by magicmaster November 20, 2008 1:05 AM PST
That's a valid point there.

Instead of bailing out non-innovative US Auto Industry, investing the amount to the broadband industry help rural residents make a living out of online businesses.
Reply to this comment
by SactoGuy018 November 20, 2008 4:43 AM PST
I think we will see some sort of bailout, but with a lot of strings attached. This will hit GM especially hard, since GM will have to drastically change their product mix and substantially reduce its size to get back to profitability again. Interestingly, Ford stands a far better chance of getting a bailout, since unlike GM, Ford is committed to developing a more "green" product mix and they can show Congress the steps Ford has taken in this direction (new Fiesta, new Focus, improved Milan/Fusion, replacing Escape/Mariner SUV with a European Ford Kuga derivative).

This is where Honda and Toyota can really shine. Honda's flexible production system in North America means they can switch to essentially producing a lot more Civics, four-cylinder Accords and even the Fit in their North American assembly lines to cater to the new economic reality. The same applies for Toyota--they could retool their assembly lines to build more Corollas and maybe even start building the Yaris in North America.
Reply to this comment
by DrollTroll November 20, 2008 7:56 AM PST
Let Detroit die? sounds good to me Fat America needs to walk more anyway. Too far to walk? bicycle, skate, ride fuel-efficient green public transit. Don't know what to do with your 4 car garage? store your gas grills where the fatty foods are made. No more tailgate parties? stop goin to athletic events and keep your money to pay the mortgage you plan to default on.

Build up broadband? just what America needs. Stay indoors 24/7, never see people, become even more fat exercising only your fingers, China has digitized its learning? China is also a poor country where the majority of its many folks still get out and do hard labor...
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