Wired Wisconsin: Commerce study shows need for state telecom reform

Contact: Thad Nation

414.412.7814

Broadband adoption growing rapidly, but some being left behind

MILWAUKEE — The US Department of Commerce released a new report this week that shows a dramatic increase in broadband Internet access across the country over the past few years.

The report, titled “Exploring the Digital Nation: Home Broadband Internet Adoption in the United States,” shows that nearly 64% of all American households subscribe to broadband Internet services – an increase of more than 54% since 2001. More than 90% of all households that connect to the Internet now do so via a broadband connection.

“The pace at which new technologies like broadband have been adopted is staggering,” said Thad Nation, Executive Director of Wired Wisconsin. “As consumers turn away from older forms of telecommunication and embrace newer technologies, it’s vital for our state’s regulatory system to keep up with changes in consumer behavior. Passing modernized telecom rules, like those introduced during the last legislative session, would go a long way towards keeping our state competitive for new jobs and investment dollars.”

While broadband adoption has risen significantly since 2001, several gaps remain between key demographics. In 2009, only 50% and 48% of African-American and Hispanic households subscribed to broadband, respectively, and only 51% of rural households subscribed. Among some of the major reasons listed for lack of adoption were the lack of affordable service and the lack of availability.

“In order to close these gaps in broadband adoption, we need to expand and build upon existing infrastructure to ensure that all Wisconsin residents have access,” Nation said. “Modernized telecom rules would help encourage the investment in infrastructure we need to reach that goal.”

Modernized telecom rules were introduced in the Wisconsin State Legislature during the last legislative session, but failed to pass before the session ended.

Other Midwestern states, including Illinois, Ohio and Michigan, have passed similar legislation in the past few months, and Indiana has passed legislation within the past few years. As a result, Illinois has seen more than 80 new cellular towers and upgrades to 300 existing towers, Ohio has seen $120 million in wireless infrastructure improvements, and Indiana has benefited from roughly $1.8 billion in new, direct investment since the states’ respective legislation took effect.

Governor-elect Scott Walker has suggested he is open to new telecom legislation, saying his administration “will seek to update telecommunications laws to encourage competition and lower prices” here in Wisconsin. [Source: http://www.scottwalker.org/issues/jobs, accessed 11/9/10]

“With a new State Legislature and a new Governor comes a new opportunity to put modern telecom regulations in place,” Nation said. “In order to see the benefit that other Midwestern states have seen, Wisconsin needs to pass reform as soon as possible when the Legislature convenes next year.”

To view the complete US Department of Commerce report, please visit http://www.esa.doc.gov/DN.

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Wired Wisconsin is the Wisconsin-based project of Midwest Consumers for Choice and Competition (MCCC), a non-profit organization of individual consumers interested in technology, broadband, and telecommunication issues with state projects throughout the Midwest region.

The project will work to support an environment for innovative technology, high-tech job creation, and economic growth. Wired Wisconsin will seek to educate consumers, policy makers, and businesses about technology- related legislative and regulatory issues that impact our lives and advocate for common-sense approaches to spur innovation and grow the economy. For more information, visit http://www.wiredwisconsin.org.