Between the Broadband Plan and Net Neutrality lies Confusion: [29th Apr 2010]

HughesNet have released a survey this week which shows that of the 23,000 people questioned, 43% felt that having a high speed internet connection helped them to stay connected with friends, family and the global community. The majority of those questioned also said that the internet was a positive change in their lives. The study also revealed that 36% of people are consuming more news online and 30% spoke to their family and friends more often due to the internet. Peter Gulla from Hughes stated that the internet services offered by the company was changing lives in rural areas. HughesNet offer a satellite service to areas where cable and DSL do not reach.

Senator Mary Landruieu, the Chair of the Senate Committee on Small Business and Entrepreneurship has convened a hearing on the implementation of the FCC national broadband plan. She highlighted the importance of small businesses having access to broadband services to compete on a global level. She commented that access to broadband must be affordable for entrepreneurs. Currently those with fewer than 25 employees pay twice as much per employee for broadband than those with more staff. She also announced the release of a federal guide for small businesses on how to apply for loans and grants.

The National Association of Broadcasters have said that they support the US federal Communications Commission in their goal to bring broadband to all US residents, however they have expressed disappointment that the role of TV broadcasting hasn't been fully recognized. Gordon Smith the president of the NAB has suggested that television broadcasters make better use of the spectrum than broadband providers would. He said that broadband providers should simply put up more towers to solve their spectrum problems. Broadcasters have been encouraged to give up some of their spectrum, a move which will not be compulsory at this stage. Smith has said that this may become a requirement and would endanger the roll out of new applications such as mobile TV and would stifle opportunities for entrepreneurs in the broadcasting sector.

A study by Coleman Bazelon, a telecoms economist with the Brattle Group has estimated that net neutrality rules adopted by the FCC could result in the loss of 340,000 jobs in the next 10 years. It was also suggested that revenue growth in the broadband industry would slow by about one sixth during that time. He suggests that the FCC should be very careful not to undermine its own goals of promoting broadband by developing these net neutrality rules. The rules have been considered by the FCC after it was suggested that they would preserve the investments of web content producers such as newspapers and bloggers. It is thought that mobile broadband would be hit hard by the rules as they are likely to increase the most in the next decade. Proponents for the rules point out that jobs are being lost in the sector already regardless of the possible introduction of the rules.

The FCC has launched an investigation into the set top box market in the US. They say they are eager to promote a more competitive market place for the devices. They would like customers to be able to buy one box which is not locked and hook it up to any service they want. This will prevent people from having to replace a box if they change providers. Providers have pointed out that this will seriously impact on the companies which make the boxes and rental companies. It could also impact on development of new features.

T-Mobile has announced it will stop the 5 gigabyte per month cap on its mobile broadband service for customers who pay for their $59.99 per month contract. Experts believe that the move is in an effort to encourage people to sign up to their network in an increasingly competitive market. However, people who go beyond 5 gigabytes per month can expect their internet speeds to slow down. T-Mobile say that this will affect only a very small number of customers. It is thought that this type of mobile broadband contract is likely to become standard for other providers.