Hundt: Government needs to bolster broadband

DALLAS--Despite the state of current financial markets and a few missteps by carriers, the potential benefit of getting broadband to all consumers is so great that government needs to push policies that will make it happen, according to Reed Hundt, former chairman of the FCC.

Speaking before an audience of high-level executives at Broadband Connections in Dallas, Hundt said he doesn’t see the need for deep government involvement. In fact, he cited Japan’s government imposing regulations that didn’t embrace innovation and entrepreneurship as a reason for not using a heavy hand.

“The result throughout the ‘90s [was] they missed all of the benefits of the communications revolution until a few years ago,” Hundt said.

While steering clear of recommending specific steps, Hundt said getting broadband delivered to the masses will require an individual within the government to take the lead.

“Broadband is either promoted by dozens and dozens of small steps or hampered by dozens and dozens of small steps,” he said. “The fundamental point is: Will anyone say they will be a leader?”

Hundt said the evolution of broadband poses some significant danger to incumbent carriers, despite their current position.

“Within five years, it will be absolutely clear to everyone that communications is fundamentally data,” he said. “In five to 10 years, everyone will understand that voice is just an application riding on top of that data. This is the scariest thing for the Bell companies in their 100-plus years.”

On a panel of carrier and vendor executives following Hundt’s talk, Charles McMinn, founder and chairman of Covad Communications, said the recent demise of North Point Communications damaged the whole industry.

“We don’t need to demonstrate a way we can’t serve the customer,” he said. “It hurts the credibility of everyone.”