Verizon CEO: Give us tax incentives to invest

Verizon Communications CEO Ivan Seidenberg yesterday said Congress should move quickly to pass an economic stimulus package that would provide a 30% “bonus depreciation” to companies that make new equipment purchases during the next three years.

In a speech to the National Press Club, Seidenberg also called for passage of the Tauzin-Dingell broadband relief bill that has languished in the House of Representatives since September and said he was encouraged by FCC Chairman Michael Powell’s recent statement supporting a broadband investment strategy that “lines up very closely with the simple, market-driven priorities that have proven to be successful in other technology industries.”

The events of Sept. 11 were a central theme of Seidenberg’s remarks. He noted the role of digital subscriber line (DSL) and cable-modem broadband Internet services that allowed many people to communicate during the crisis even though voice circuits were either overwhelmed or destroyed. He also said such services were critical in the days immediately following the tragedies when many Americans were forced to telecommute.

Seidenberg said these events underscore the need for policies that foster capital formation and high-tech growth by embracing sound economic principles that benefit the entire industry, unlike the current regulatory model, which he said encourages competitors to rely on incumbent facilities.

“Riding on someone else’s network and investment is not a growth business,” he said. “It will not help us--or the interexchange companies and CLECs, for that matter--compete against the cable, satellite, wireless, software and content companies for the information-age consumer. And it will not help build the platform for the rebirth of technology-driven growth that will kickstart the American economy.”

Regarding Tauzin-Dingell, Seidenberg said the bill would “take down the ‘Do not enter’ signs that impede the flow of capital” required for the buildout of data-centric networks.

Robert Saunders, an analyst with the Eastern Management Group, said Seidenberg’s views are gaining traction.

“People are starting to understand that regulatory is the market mover, not technology,” he said. “And policymakers are coming to the conclusion that they’re going to have to bet on those that are going to spend money. The CLECs aren’t interested in spending money on their facilities right now, and the Bells have said for so long that they will, if they get relief, that they’re starting to be believed.”