Here, Jim talks about how the regulatory structure in this country is designed to oversee a wireline voice monopoly, which does not exist today.

And here, Jim talks about how the Telecom Act is out of date and that there’s a need to take a fresh look at modernizing the function of the FCC  as well.

Roger Enter of Recon Analytics discusses his new study, “The Wireless Industry: The Essential Engine of U.S. Economic Growth,” and the impact the wireless industry has on job creation and GDP.

Tom Hazlett, Professor of Law & Economics at the nearby George Mason University, talks about the wireless innovation wave and that it is just beginning.

Mike Mandel, Chief Economic Strategist of the Progressive Policy Institute, addresses how while investment by the government has been falling in recent years, investment by wireless providers is very strong.  Are they “investment heroes”?

“We congratulate Committee Chairman Upton and Subcommittee Chairman Walden for their leadership in crafting this important, common-sense effort to reform current FCC practices, many of which predate the agency’s current leadership.  Passage by the House is a needed step forward, and is also an important signal of support for modernizing telecom regulation.  It has become increasingly clear that, for America to have the world-class broadband infrastructure it needs, all of us must rethink outmoded regulations and outdated mindsets.  The US broadband industry is today investing and innovating at Internet speed.  The legislation passed today by the House challenges the FCC to keep pace.”

said Cicconi.

Rick Whitt:

Google’s Rick Whitt also spoke of his shared concern that a top-down, common carrier regulatory regime on the international front could come to fruition.  He urged policymakers to “respect the integrity of the Internet.”

Howard Shelanski:

Georgetown Law Professor Howard Shelanksi addressed the pivotal role that private companies, and private investment, played in the tremendous growth of the Internet.  He also spoke to theory of non-discrimination and how everyone loves the idea…until you have to deal with the repercussions of network congestion.

Jeffrey Campbell:

Cisco’s Jeff Campbell provides some staggering stats of the growth of mobile data traffic on the Internet. Did you know that in 2011, traffic was 8X the size of the total Internet in 2000? And that the average connection speed in 2011 grew 66%? Watch the clip above to learn more.

Collaboration, consensus and consistency are key design principles in developing good public policy.  And we’re encouraged that a white paper issued yesterday by President Obama’s Administration embraces those principles.

All of us have a stake in the Internet ecosystem – whether it’s companies that provide connectivity or communications services, governments, app developers, small and large businesses and average consumers, who are constantly finding new and innovative ways to enhance their lives using the Internet.

That’s why it’s critically important that we approach Internet privacy from a holistic perspective that reassures consumers their privacy is protected whenever they use the Internet, regardless of platform or service provider. 

At AT&T, our privacy commitments are fundamental to the way we do business every day. We are committed to keeping our customers’ personal information safe and to transparency when communicating with them about privacy.  We also give our customers choices and tools so they can manage their security and privacy.  For example, our FamilyMap app requires the user to opt in to the use of their location and we send periodic notices to the devices that can be located by FamilyMap, as well as providing easy-to-use controls.

We are especially supportive of the continued need for consumer education and awareness, which has become a hallmark of our privacy program. For example, our Smart Controls website provides comprehensive access to information about AT&T safety and control tools, expert resources and tips designed to help customers manage their technology choices and keep their families safe online. We also collaborate with many third parties to support online safety and privacy education for all ages.

But in today’s market, effective privacy protections require cooperation and collaboration across the industry.  The use of apps is exploding both in terms of function and popularity.  For that reason we work with app developers to ensure that privacy considerations are taken into account from the start. We require apps on our AT&T Store to have a privacy policy and to adhere to our location information privacy policies.  Our AT&T Foundries also work with app developers to emphasize privacy by design and provide links to privacy resources and information.

The flexible approach to privacy advocated in the Administration’s white paper is a refreshing step beyond archaic regulatory approaches that were designed for the static communications market of the past.  We have been active participants in the development of industry guidelines and best practices designed to enhance consumer privacy, and we look forward to continued collaboration with the government and other stakeholders for the good of consumers.

We also appreciate the Administration’s ongoing efforts to protect the global free flow of information across borders.  By establishing a flexible privacy framework that is designed for today’s Internet, the U.S. is demonstrating leadership and setting a positive model for other countries.  Yesterday’s announcement lays the groundwork for increased interoperability with privacy laws in other countries, which will help promote growth and innovation on the global Internet.

“I want to congratulate Jessica Rosenworcel and Ajit Pai for their White House nominations to become FCC Commissioners. We have had the pleasure of working with both nominees in the past and they possess the experience, expertise and enthusiasm for public service that will serve them well as they navigate today’s communications policy challenges. We look forward to working with them at the agency once they are confirmed by the Senate. 

“Both nominees will have large shoes to fill at the FCC.  The announcement last night reminds us all that Commissioner Copps’ long, distinguished tenure at the FCC is coming to an end. We have climbed many hills with Commissioner Copps as he likes to say.  Personally and professionally, I always enjoyed the candid dialog and friendship with the Commissioner and the great people with whom he surrounded himself.”

Earlier today, I participated in the official kickoff event for the month, the 2011 Michigan Cyber Summit, which AT&T sponsored.  The event was hosted by Governor Rick Snyder and included speakers such as Secretary Janet Napolitano, White House Cybersecurity Coordinator Howard Schmidt, and Congressmen John Dingell, Mike Rogers, and Hansen Clarke. 

The theme for this year, which was echoed throughout the event, is “shared responsibility” – everyone can play a role in helping our cyberspace stay secure.  We agree and that’s why we not only work hard to keep our networks safe, but we make sure consumers have the information and tools they need as well to help themselves stay safe online.

During a panel discussion with representatives from Google, Comcast and Symantec, I mentioned how cybersecurity threats are constantly evolving.  But as those threats are evolving, we’re constantly innovating.  We’re investing significant resources to increase the security of our customers’ private information, our networks and our portion of the nation’s infrastructure to protect against cyber threats.  Our goal is to stay one step ahead of the hackers. 

Cybersecurity is so important to us that we’re using this month as an opportunity to remind our customers once again about the importance of making sure they (and their information) are safe online.

We’re including awareness messages in both English and Spanish on consumer billing statements throughout October and November.  And we’ll be distributing the National Cyber Security Alliance PSAs via our U-verse TV platform.   Another way we’re having an impact in the community is by engaging our employees to help spread the word through NCSA’s C-SAVE program, enabling employee volunteers across the country to teach children and adults important online safety practices.  And to help state and local government customers better secure citizen and government data, AT&T sponsored the development of a cybersecurity guidebook.

We take our part of shared responsibility seriously and we’re proud of the work we do to keep our customers safe online.  Cybersecurity is an issue that goes beyond one month, but October provides a good opportunity to focus public attention on the issue and make sure all parties who share in the responsibility are engaged.  It’s events like today’s that encourage us to see how all the many parties – industry, government, non-profit organizations and consumers – can work together in making sure we keep a safe and secure cyberspace for everyone.

Thousands of small business owners and their supporters recently descended upon Washington, D.C., for the 48^th annual U.S. Small Business Administration’s National Small Business Week to honor and recognize the contributions and achievements made by outstanding entrepreneurs. This year’s theme of empowering entrepreneurs couldn’t be more appropriate, as I had the good fortune to be there and witness government agencies, thought leaders and enterprises come together to offer support and provide small companies with the resources, tools and technologies they need to work better, faster, smarter and more efficiently.   

Here at AT&T, we are dedicated to supporting the needs of small businesses and we participated in many events throughout the week to demonstrate that support. From our sponsorship and collaboration with SCORE for the “Growing Your Business While on the Go” workshop, to providing insights during the Exporting Forum, we had the chance to engage with small business owners and hear first-hand how technology is enabling these companies to thrive.   

On the heels of the pre-event workshop, I had the honor and privilege of delivering remarks at the event’s Library of Congress Opening Reception alongside SBA Administrator Karen Mills and President and CEO of the American Red Cross, Gail McGovern, a mentor of mine.  As part of my remarks, I highlighted an announcement we made earlier that day regarding AT&T’s sponsorship of the SBA’s Office of Women’s Business Ownership’s September training conference. In support of President Obama’s initiatives to help women-owned businesses continue to prosper and grow, we are thrilled to provide assistance and training to representatives from the nationwide network of more than 100 Women’s Business Centers, which are focused on counseling some 160,000 socially and economically disadvantaged women entrepreneurs. 

We’re so proud to have been a part of National Small Business Week and to help support the upcoming training conference because it’s critical to support small businesses, a key growth engine of the U.S. economy.

But first, I need to point out that T-Mobile doesn’t provide special access, and indeed has made significant strides to move away from local landline carrier special access. In fact, last year, T-Mobile projected that by 2Q11, 75% of its cell sites would be served by alternate providers. 

What this means is that this merger has absolutely no impact on the issue of special access/wireless backhaul.  But despite that, Mr. Hesse brought it up anyway as an issue in this merger. 

Specifically, Mr. Hesse asserted that, “Two companies would control most of our nation’s wire line infrastructure and the critical last mile that Sprint and the rest of the industry need [my emphasis] to provide affordable rates and quality service.”  And that special access “is a huge piece of our cost structure and the cost structure of all wireless carriers.”  He further went on to say that,  “What we pay roughly – if you will, 30 percent of the cost of putting in a new cell site goes back to a local landline carrier in the form of payments for special access and those payments are very, very high.”

Now, we all know that this isn’t the first time that Sprint has made complaints on this issue and AT&T, and I personally, have both addressed these issues before.  However, given that Sprint sent Mr. Hesse to Congress on Wednesday to say that Sprint needs access to local landline carrier special access facilities (that are priced “very, very high”) to provide backhaul for his broadband services, and that 30% of the cost of his cell towers goes to local landline carriers in special access payments, I thought a little fact-check perspective was warranted. 

First, I will point out that Sprint owns a majority stake in Clearwire (54% of the “voting power of Clearwire’s outstanding Common Stock,” according to its most recent Proxy Statement and has appointed seven of Clearwire’s 11 Directors (including the Chairman and Interim CEO).  In fact, Mr. Hesse himself served on Clearwire’s Board until last September.

Thus, in accordance with the Sprint mythology, when Clearwire was constructing its 4G WiMax network, it must have HAD to purchase gobs of backhaul facilities from AT&T and Verizon, costing Clearwire millions of dollars because if Sprint has do it, others must too.  The reality is, however, strikingly different.

Clearwire’s CTO, John Saw, at a September 2009 Yankee Group presentation stated that 90% of Clearwire’s cell towers (many of which are shared with Sprint, according to claims made at the time of the Sprint/Clearwire merger announcement) were served by microwave backhaul.  The same technology, by the way, that Sprint used as backhaul for its XOHM WiMax network – this according to Sprint XOHM then-Chief Barry West when Sprint launched XOHM in 2008.  And this is the same backhaul technology, I might add, that the aforementioned Barry West claimed did not develop quickly in the U.S. because of the “relatively abundant and inexpensive” special access services of which Sprint repeatedly complains, most recently at last Wednesday’s hearing. 

The last time I checked, neither AT&T nor Verizon was providing a microwave backhaul service. In fact, it was only a couple of weeks ago that Verizon announced that it was using Level 3 for backhaul solutions that utilized microwave technology. So, I assume that the Sprint family of companies was able to acquire those broadband backhaul services without dealing with either Verizon or AT&T.  And I also have to conclude that if Clearwire has alternative backhaul suppliers to towers that it shares with Sprint, Sprint must have at least those same alternatives too.

Given all of these facts, I am having trouble squaring Mr. Hesse’s backhaul statements with the genuine marketplace reality…at least according to the folks that work for him and Sprint’s interests in these areas. 

Now, Clearwire obviously chose to spend its capex dollars building out its own high speed infrastructure rather than lease copper-based solutions from AT&T and/or Verizon.  Clear-ly (no pun intended) Sprint has not made the same choices.  For whatever reason, Sprint has chosen to lease rather than to build.  But that is a strategic decision by Sprint, not a reason for government regulation or intervention here.  And, again, as Barry West aptly pointed out when he was Sprint’s CTO, unnecessary government regulation can actually delay new technology investment as it did for microwave backhaul in the United States.

As I said at the beginning of this post, we have been down this road with Sprint before.  It seems that ever since Sprint decided to spin-off its own special access business, someone there has been talking about special access.  But given the facts above, one begins to suspect this topic is The Reflex rather than The Reality.

In January, President Obama instructed each agency to improve regulation within their responsibility, by ensuring alignment between current regulation and policies that will both protect public welfare and promote economic growth, innovation and competitiveness.   With focused effort within five months, today the FCC shows that it can be a leading agency to fulfill the Administration’s pledge. 

Today’s order to streamline and modernize international data reporting requirements is a welcome measure that will eliminate unnecessary burdens on industry and the FCC.  Indeed, the reporting requirements removed today had ceased to have any relevance to the Commission’s duties because of increased competition in the markets and associated changes in Commission policies.  This streamlining will help industry and the Commission to focus on advancing the customer issues of the future, issues that will require the Commission to rethink not only the data it collects but how it uses that data to assess the need for regulation in an increasingly competitive marketplace.  

The Commission also seeks to modernize the reporting requirements by proposing some changes in a further notice of proposed rulemaking (FNPRM), and we will participate actively in that review to help ensure that any new requirements are essential and not excessively burdensome. 

Equally important at today’s Open Meeting, the Commission proposed to eliminate the International Settlements Policy.  Although this policy  was important for many decades as a competitive safeguard, the transformation of the global telecommunications marketplace over the past 15 years has made the policy at best obsolete, and at worst, an unintended impediment to further competition by US carriers in a global marketplace. 

We strongly support the Commission’s fresh look at these rules, and the proposal to replace the outdated regulations with new protections better suited to the contemporary business environment.  These changes will support U.S. competitiveness. 

Getting rid of outmoded requirements takes effort, fighting against institutional inertia, and AT&T appreciates the commitment of the Commission, and specifically the International Bureau, to move quickly to advance the President’s regulatory reform agenda.

“We are grateful to Rep. Eshoo for introducing legislation that will facilitate broadband deployment in areas where highways are being built with federal funding. This terrific bill provides an imaginative way to lower deployment costs while easing some of the inconveniences citizens encounter during the installation of fiber-optic communications cable. We look forward to continuing to work with the bill’s sponsor, Rep. Eshoo and Rep. Waxman, an original cosponsor. We appreciate their leadership in helping to get our nation to 100 percent broadband availability.”