Last week was the deadline for submitting initial comments to the FCC on the formulation of a national broadband strategy (NBS). Not surprisingly this has been a hot topic, with more than 8,000 pages submitted by a wide range of parties interested in our country's digital future.
Now we've entered the period during which the public is encouraged to review and reply to these initial comments up until July 7th.
To help facilitate this process I'm going to be summarizing and replying to both specific comments as well as to general themes that I see emerging across multiple comments.
To start with, let's focus on the comments submitted by the Japanese government. Given the fact that they're at least five to ten years ahead of us in terms of getting themselves wired with next-gen networks and inspired about using these networks, who better to listen to when it comes to formulating our NBS than them?
Right away in reading their comments it becomes apparent how much further ahead they are than America is. For example, they released their first in a succession of national strategies all the way back in 2001. Their initial goals were to provide "high-speed Internet" to 30 million households and "ultra-high-speed Internet" to 10 million households within five years. They achieved this goal by 2003, only two years after their initial strategy was set in motion, which shows what can be accomplished when a government sets clear goals and puts in place specific plans to achieve them.
With the deployment challenge well on its way to being overcome they focused their attention on policies that would encourage the effective use of ICT (or Information & Communication Technologies) to tackle social challenges in areas such as e-government, healthcare, and education. Central to the goals of this strategy was "propelling the deployment of optical fiber...and eliminating all zero-broadband areas by 2010." It's interesting how they've linked the demand side of the broadband equation into the need to encourage the deployment fiber and universal broadband.
Tied into all of this was a particular emphasis on "establishing a fair competition environment." They continue, "As for fixed communications we have been promoting to ensure a competition environment in the broadband market by opening networks." And to quote at even greater length:
"We have enforced the promotion of competition to realize the diversity of interconnection by other operators. The Government of japan has introduced enforcing policies for interconnection tariffs at proper rates, which has ensured that costs for using infrastructure of broadband have been low, while incentives for facility investment have not been diminished...A variety of business opportunities in the broadband market was encouraged and the range of consumer options was expanded, allowing the Government of Japan to enable operators to enter the broadband market in Japan without the need for establishing transmission facilities...This creating of an attractive market achieved an increase in the number of broadband users, together with faster and more affordable broadband services."
I have to admit, I found these remarks to be remarkable. Here in the US the arguments against open networks are that they'll dissuade investment and therefore competition and therefore innovation and therefore lower prices. But what Japan's saying here is just the opposite. They're claiming that by opening up networks they've encouraged investment and competition, which has led to both innovation, lower prices, and greater demand for broadband.
I realize that the dynamics of the Japanese marketplace aren't the same as in the US, but that doesn't negate the fact that in a country considered to be in the top 3 in terms of connectivity, that embracing an open mindset is the best way to facilitate evolutionary growth.
Also notice, though, that Japan is careful to acknowledge the need for "proper tariffs" to make sure there's a sufficient rate-of-return to justify investment in infrastructure.
Another interesting thing they've been doing is "to achieve the optimum usage of the radio spectrum through frequency reallocation to keep pace with technology advancements, since 2002, the government has surveyed usage, published the results, and evaluated the extent of efficiency in radio spectrum usage taking into account the opinions of the public."
Now compare that to the US's approach of seemingly having no idea who's using what spectrum and having little to no plan for how to maximize the efficiency of that spectrum. I'd imagine that if we were to embark on a similar analysis of how America's spectrum's being used (or not used) that we'd find a ton of under-utilized airwaves.
Japan also applies its open mindset to wireless as well. "To promote provision of mobile broadband services, the Government of Japan places priority on allocating frequency for operators who establish a plan to open their networks to other operators..."
I like what this approach implies as it seems like instead of saying "Thou shalt be open!" they've focused on providing incentives to get the market moving in the direction they want. By favoring and fostering open networks they can get where they want to go incrementally and organically.
Too often in the US I think we get caught up in trying to open up all the networks at once, which then industry pushes back on by saying that nothing should ever be open. If instead we focused on incremental steps, like prioritizing stimulus funds towards projects that feature open networks and rewarding those operators that do open their networks, we can start making more real progress rather than getting stuck in rhetorical debates.
Arguably the best point Japan made was what they've done to foster connectivity among schools and libraries: "Another example of support has been the Local Intranet Infrastructure Subsidiary since 1998, which has been providing for the building of a local public network in each area connecting its respective schools, libraries, and town hall in order to upgrade the quality of education, public administration, welfare, healthcare, and disaster prevention in these hitherto disadvantaged areas."
While this program is focused primarily on underserved areas, the idea that we need to get all schools, libraries, and public government buildings interconnected with fiber should apply to every community. This is a clear goal that we can set out to accomplish that will give the public better access to ultra-high-speed broadband, improve the ability of these community anchor institutions to operate efficiently, and, if done right, make the deployment of fiber further into a community easier and more economically viable.
The final thing I wanted to point out is that while they don't define them specifically in this document, the Japanese government does go out of its way to distinguish between "high-speed" and "ultra-high-speed" networks. By doing this they're clearly demonstrating that they understand that while getting everyone connected with high-speed broadband is important that they can't afford to take their eye off the ball of also working to get everyone hooked up with ultra-high-speed broadband.
I think for the US that should mean making sure we don't focus all our energy on getting everyone hooked up to 10Mbps and below service. That we can't afford to be on the lagging edge of broadband technology. And that we need to make sure that while we work to get everyone connected at any speed, that we're also striving to get the best broadband to everyone as quickly as possible.
And speed really is of the essence here. As I mentioned at the beginning of this post, Japan's at least 5-10 years ahead of us in terms of their connectivity, and that's a conservative estimate as they've been working on a clear plan of attack for 8 years already. If we don't get our act together soon, they could be 10, 20, 30 years or more ahead of us. In fact, since they don't appear to be slowing down any time soon, if we don't get a bold and specific action plan together we may never catch up, let alone have a chance to surpass them.
The reason this is so important is that while we're still trying to figure out how to get the networks built, Japan's going to have a head start of multiple years on us in terms of figuring out how to incorporate the use of these networks into the fabric of their society to drive new efficiencies and open up new opportunities. In this document they're already referring to broadband as part of their "social infrastructure."
So the takeaways from Japan's comments are clear:
- We're way behind them in terms of getting wired and inspired.
- What enabled their success was setting out a clear plan with bold goals.
- They've found that open networks are the best at fostering competition and innovation.
- And a particular emphasis should be placed on wiring community anchor institutions with fiber.
Again, I'm completely aware that the circumstances of the broadband players and marketplace in Japan are different from the US, but at the same time the principles of what makes for a healthy broadband marketplace are universal. So I'd suggest we take heed of what's worked in Japan and use it as the basis for what can work here in the US. That's not to say we should follow everything they've done in lockstep as I'm a firm believer that through American ingenuity we can find an even better path to our digital future, but at the same time we shouldn't ignore the lessons they've learned that have positioned Japan as a global broadband leader.