Motorola: Provide tax credits to expand broadband access

In the early stages of the 21st century, broadband networks are beginning to deliver similar social and economic benefits. Studies by the World Bank and others establish that broadband correlates consistently with gains in Gross Domestic Product and productivity. Beyond macro effects, broadband has the power to reduce commuting, increase commerce, and deliver a host of benefits across a diverse range of sectors.  Whether the goal is more efficient healthcare delivery, improved access to resources for small business, or enhanced distance learning capabilities, broadband is a vital tool in meeting these challenges.

{mosads}As was the case with the Roosevelt administration, the Obama administration correctly recognizes the need for a coordinated and well-developed strategy for addressing broadband issues. This strategy will be embodied in the National Broadband Plan, which is currently under development and has the potential to serve as the broadband equivalent of the Rural Electrification Act.

But a successful plan to promote increased broadband deployment and adoption requires a commitment of resources. Part of those resources will come from the government with the allocation of $7 billion to broadband initiatives as part of the American Recovery and Reinvestment Act of 2009.

This investment by the federal government is a critical first step. But this amount, while large, represents little more than a down payment on the future.  

If ubiquitous broadband in the United States is to become a reality, we need to create effective incentives, like broadband tax credits, for continued investment in broadband networks. For example, if the federal government extended federal universal service fund (USF) subsidies to broadband, it would facilitate broadband deployment to areas where it may be otherwise uneconomical to offer service.

A surprising amount of cable infrastructure still operates on an analog base. Not only does that disparity potentially create digital “haves” and “have-nots,” it is an incredibly inefficient use of bandwidth, eventually driving up costs to consumers. Eliminating requirements that impede moving to all digital systems will free up bandwidth, allowing providers to offer greater speeds and other digital services like high-definition programming.  

Implementing broadband in a technology-neutral manner will enable providers to offer the most advanced and appropriate broadband service that can be economically supported. If the National Broadband Plan promotes wireless broadband service as part of a multi-platform approach to deployment, it will meet the needs of customers in many markets, particularly rural and unserved areas where traditional wireline systems may be too costly.

Addressing the need to allocate additional spectrum will help make wireless broadband ubiquitous and ever more useful for consumers, businesses and government. As customers increasingly demand more sophisticated wireless broadband devices and rely upon more bandwidth-intensive mobile applications, the Broadband Plan should ensure access to sufficient amounts of licensed spectrum and unlicensed spectrum and embrace deployments using both approaches. Wireless provides an important option for deploying cost-effective solutions and meeting the broadband needs of rural areas.  

While consumer applications are critical, so too are public-sector needs. The challenge for public safety agencies is obtaining the necessary spectrum and funding to build broadband networks that meet their higher level of requirements in terms of coverage, reliability, and performance, and in particular, interoperability. And as the nation focuses on improving efficiencies in energy production, distribution and consumption, broadband applications will represent an irreplaceable component to utilities to create a true and effective Smart Grid.  

President Barack Obama has said that we should not let the “perfect” be the enemy of the “good.” I heartily agree and hope that the same philosophy applies to a National Broadband Plan. When it comes to prioritizing projects and putting funds into the field where people can take action, we must move with all deliberate speed. For government, that means that processes cannot be overly burdensome. For industry, we must allow the need and available resources to determine the best technical approach rather than attempt to force square solutions into round holes.  

Just as was the case with electricity in the 1930s, increased broadband penetration and adoption will be critical to our national recovery in today’s challenging economic times. The National Broadband Plan is an important step that can help deliver these economic benefits and drive our national and even global success well into the future.

Brown is co-CEO of Motorola and CEO of Broadband Mobility Solutions.