The National Broadband Plan and enterprise IT

This week, the Federal Communications Commission will put forth the country's first National Broadband Plan. The initiative will focus primarily on bringing very high-speed Internet access to residential users, but it is certain to have implications for business users as well.

The broadband plan is scheduled for official release Tuesday, but its main themes have been trickling out in speeches by FCC Chairman Julius Genachowski in recent weeks. There are going to be several seemingly random components to the plan, such as promoting electronic health records and a smart electric grid. But at the heart of the plan are two initiatives that have ramifications for enterprise IT users. First, Genachowski wants to ensure that 100 million households have access to affordable, 100 Mbps connectivity within 10 years. Second, he wants to make some dramatic changes in spectrum allocation to provide more capacity for mobile devices.

The 100 Mbps connectivity plan, which Genachowski calls the "100 Squared" initiative, would subsidize network build out in rural areas, which could affect enterprise users in several ways. Any company that has facilities in rural areas--or wants to move into rural areas, or make use of telecommuting in rural areas--will have greater connectivity options. This potentially could provide an array of advantages for those seeking new ways to reduce the IT budget.

Small businesses located in rural locations today would have a chance to become more competitive. According to the FCC, even standard cable modem service is unavailable to more than one-fourth of rural business sites. For large enterprises, connecting to these small players can mean a greater pool of suppliers and customers.

The other part of the plan that could have considerable implications for enterprise users focuses on mobile Internet connectivity. The FCC is thinking about ways that it might reclaim spectrum held by TV broadcasters and some government users, including the Department of Defense, and put it to use connecting portable devices to the Internet.

With the mobile broadband policy initiative, the FCC is showing a pretty good understanding of the industry trend toward portability. As companies discover greater advantages in providing employees with mobile productivity tools, a growing premium will be placed on spectrum.

The broadband plan will present the argument that near universal, high-speed broadband can be a rising tide that will raise all boats. In a column in the Washington Post Sunday, Genachowski suggested that cutting-edge broadband networks will stimulate innovation, business growth and job creation, improve social welfare, and ensure our leadership position in the world. It is an ambitious agenda. - Caron

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