A law for the next 21 years

Few lawmakers could have envisioned how the world has changed since Congress passed the Telecommunications Act of 1996, which promoted competition and lifted some regulations, allowing phone, cable TV and media companies to transform their business models to compete head to head.

Just 20 million American adults had access to the Internet back then, through dial-up services like America Online, CompuServe or Prodigy. In 1996, it would have taken a typical PC user with a 28.8 Kbps modem roughly 58 minutes to download the three-minute Schoolhouse Rock video “I’m Just a Bill.” Today, consumers can stream it on their cell phones, laptops or smart TVs within seconds.

{mosads}In 21 years, the honk and screech of boxy old modems has given way to sleek whole-house Wi-Fi networks powered by modern fiber broadband networks. At least 84 percent of U.S. consumers now have a choice between two or more landline services or four or more wireless broadband providers, offering download speeds of 25 Mbps.

With investments totaling more than $1.5 trillion in wired and wireless networks since 1996, America’s broadband networks have become the backbone of the nation’s economy, powering economic growth and prosperity for communities, businesses and innovators and opening up a world of information to our nation’s children and educators. But the law that set the rules for our broadband networks is now woefully out of date.  Lawmakers tried to future-proof the ’96 Telecom Act, but that feat was nearly impossible, given how dramatically technology and communications have changed over the years. It is now time for a refresh.

While we have seen great progress and opportunity from broadband connectivity, we need updated telecom laws to acknowledge the dramatically shifting lines of competition, to clarify the rules of the road for internet providers and ensure that consumers and businesses continue to enjoy the benefits from our increasingly connected world.

Recent policy decisions by the Federal Communications Commission have contributed to a tick down in capital investments in broadband networks There is concern that trend will continue unless regulators – or Congress – step in to enact policies that protect consumers and provide clarity for network operators.

How have things changed in the past 21 years since the Telecom Act? 

• Nearly 72 percent of the 325 million Americans now carry a smart phone. About 85 percent of the time consumers are on smart phones, they are using internet-enabled apps such as Facebook, not making calls.
• Goodbye CDs, DVDs, Blockbuster and Tower Records. Ubiquitous broadband and wireless networks enable Spotify, Pandora, SiriusXM, Apple Music and others to stream music on demand to more than 100 million subscribers. Netflix, which used to mail DVDs, now has 93 million online subscribers worldwide and its video streams consume up to 35 percent of traffic on North American fixed networks.
• Online commerce has democratized retail, allowing practically any store to serve any location. The result: a $350 billion dollar industry in the U.S. which has also provided a growing stream of shipping revenue to FedEx, UPS and the U.S. Postal Service.
• The internet is the new office water cooler and search engines and social media are the new media companies. Google and Facebook and their digital brethren brought in $72 billion in advertising in 2016, edging out TV for the first time.

The Telecom Act was a remarkable success story but to keep our innovation economy moving, American consumers deserve a blockbuster sequel. 

Jonathan Spalter is USTelecom President & CEO.

The views expressed by this author are their own and are not the views of The Hill.