Net@EDU: Overview onBroadband

Mark Uncapher, Senior Vice President & Counsel, ITAA

October 1, 2003

About ITAA

Established in 1961 Over 400 Corporate Members

Plus global affiliate, WITSA Offices in Arlington, VA and Silicon Valley

Leader in Public Policy Advocacy Internet, E-Commerce, Broadband

Specialty Internet Division

Discussion over Broadband Should Focus on Benefit to Users

•Broadband is more than infrastructure investment.

•ITAA is afraid that limiting to “platform to platform” competition, as opposed, as opposed to intra-module competition, will reduce consumer choices.

•Need to provide Consumers – be they individuals or businesses – more choices, new choices to broadband applications content and services.

•No one wants Empty Pipes.

What Constitutes Telecom Sector Recovery?

Recovery Requires Unprecedented Convergence of IT and Telecom

Demand (User Take Rate) Lags Supply

0%

20%

40%

60%

80%

100%

1999 2000 2001 2002 2003 2004 2005 2006

DSL Availability DSL Take RateCable Availability Cable Take Rate

Source: Morgan Stanley Dean Witter, July 2001

Per

cent

age

of U

S H

omes Supply

DemandGAP

Demand

Drivers of Broadband Demand

High Speed Connection

66%

Other5%

Always On14%

Doesn't Use Phone Line

15%

Source: Primary Research; McKinsey and JPMS analysis

Current Broadband

*Input from Existing Broadband Subscribers

Interactive Games Remote

Access to Work

Interactive TV

Video Conferenc-

ing

Video-on-Demand

Next Generation Broadband

Broadband Vision

BROADBANDVISION

BROADBANDVISION

CompetitiveCommunicationsInfrastructure

ContentServicesApplications

FinancialSocial EconomicFactors

Baseof Users

HardwareSoftwareDevices •Economic

Investment•Infrastructure Rollout•Empowered Users

Our Industry Supports User Connectivity Choice Consumers should have a right to meaningful information regarding

their service; Consumers should have access to their choice of Internet content; Customers should be allowed to run applications of their choice, if they

do not harm the provider's network and their bandwidth service plan limits;

Consumers should be permitted to attach any devices they choose if they operate within the agreed bandwidth and don’t harm the provider's network;

 Some have been wary about creating a new set of FCC regulations – including for the first time, regulation of ISPs.

 High Tech Broadband Coalition Comments to the FCC on the Appropriate Regulatory Treatment of Broadband Access to the Internet Over Cable Facilities June 18, 2002

ITAA Supports Diversity Among Broadband

ISPs for Connectivity Choice An alternative, more market –oriented strategy to Connectivity

Choice is to continue existing the policies that would promote vigorous competition and variety among ISPs offering wireline high-speed Internet access services.

ISP BB competition and diversity also provides market-based assurance to e-commerce companies, that ISPs will not hinder access to their websites or applications.

Letting consumers to choose from among a large variety of wireline broadband ISPs uses market forces to promote Connectivity Choice.

Transparency about new "fiber to the home" investments to measure progress

ITAA has asked for transparency about new "fiber to the home" investments.

While the FCC chose not to adopt the mandatory build out metrics that many in the high-tech industry had sought as part of the Triennial Review, reporting requirements are a reasonable substitute approach.

Good information is necessary for application, content and others to make informed decisions about the available market.

As the Triennial decision moves to the courts, investment transparency could counteract the impression that investment is slowing as a result of litigation.

Spectrum and RecoveryWireless Local Area Networks

Platform for Integration of Multiple Intelligent Devices from Edge of Network

W-LAN Equipment Sales Up 150% since 2000 to over $2 Billion

Enterprise, Home and Public Access Markets

Gartner Research Projects 5.4 Million Users Worldwide this Year

VOIP and Recovery

Voice Traffic over IP (data) Networks

$1 Billion Global Revenues Application Growing to $7 Billion Plus in Three Years

Provides Phone Number Portability and Many Other Network Efficiencies

Poses Options for Integrating Voice with Other Applications (e.g., Voice E-Mail)

Grids and Recovery IT Resources + High Speed IP Connectivity = Global Information Utility

On the Fly SupercomputingData Rich Applications in Science, Technology, Mathematics, Engineering, Business and MoreCreates Virtual Organizations and CollaborationsUtility Delivers everything from Advanced Simulations to every day Videoconferencing and WebcastingPumping IP Traffic to 550 Exabytes by 2008*

One Exabyte = 1,152,921,504,606,846,976 bytes

Applications and Recovery

Other Promising Applications for Immediate Impact: E-Work E-Health E-Education E-Government E-Entertainment

A Positive, Competitive Broadband Agenda for the Nation

Mark UncapherMuncapher@itaa.org703-284-5344www.positivelybroadband.org