Subject: [NEXTEL-1] TIA Outlines Plan To Save Telecom Sector

From: [email-masked]
Date: Mon, 27 Oct 2003 20:38:39 -0500

TIA Outlines Plan To Save Telecom Sector

While the economic turndown of recent years has affected industries across the
board, the then-soaring telecom sector was hit especially hard. And, notably, as
the rest of the economy begins to crawl, albeit slowly and awkwardly, back up the
slope, the telecom sector remains mired in losses and declining employment.

The Telecommunications Industry Association (TIA) has presented a five point plan
for reversing the telecom slide and creating what it calls, "a sustained telecom
recovery." The strategy essentially involves using broadband as the driver for new
services and thus for new technological development and investment.

At the moment, according to TIA President Matthew Flanigan, the industry "remains
in an unstable condition. It has not fully rebounded from the 600,000
manufacturing jobs lost, $1 trillion in corporate debt and dramatic capital
expenditure cuts that have occurred over the past three years."
TIA's plan for, in Flanigan's words, "get[ting] this sector out of the rut include
some points TIA has been pushing all along, such as a national broadband policy.
TIA has been urging President Bush to adopt such a national policy framework since
2001, and is now asking him to address the issue in next January's State of the
Union address. TIA also encourages the FCC deregulatory framework, praising the
Triennial Review Order for freeing new last-mile broadband construction from
unbundling requirements.
Once the policy framework is in place and regulatory obstacles are removed, TIA
wants to see growth drivers including tax credits for broadband deployment,
spectrum allocation for new wireless services and increased R&D investment.

For the most part, TIA is calling for the passage of existing bills or the
implementation of existing plans. It praises the broadband expensing measure
included in Sen. Chuck Grassley's (R-Iowa) Jumpstart Our Business Strength Act, as
well as the Commercial Spectrum Enhancement Act and finalization of the rules for
1700 MHz spectrum.

For the longer term, TIA emphasizes the importance of increased R&D spending.
Flanigan cites an alarming drop in telecom R&D spending in the United States,
which has taken it to fifth place in spending as a proportion of gross domestic
product. "When it comes to R&D, America is losing its leadership position," said
Flanigan. "Many telecom companies can no longer afford to invest in their futures
-- they are focused on survival."

If the trend continues, TIA warns, not only will telecom companies themselves
suffer, but spillover effects will be felt in other parts of the economy.

Along with the plan, TIA released a white paper titled The Economic and Social
Benefits of Broadband Deployment. It lists a variety of broadband applications it
says have the potential to drive economic growth, and also lists broadband
deployments being undertaken by various U.S. communities and foreign governments.
>>Matthew Flanigan, TIA, 703/907-7701<<
http://www.telecomweb.com/broadband/feature.htm

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