DRIVING ECONOMIC DEVELOPMENT AND BEYOND

In a presentation given at the U.S. Department of Commerce, Brilliant Nations illustrated how the build out of the Internet "first" in the United States, drove our unprecedented economic expansion of the 1990's and the build out of FTTP will foster an even greater U.S. and global economic expansion.

 

In the 1980s, the initial Congressional funding of the Internet brought about corporate investments in new Internet enabling technologies.  As the Internet proved its broad appeal and usability, new technology startups were formed and capitalized.  This in turn accelerated the Internet's capabilities and applications, which fostered even greater investments in an ever increasing base of start up companies.  The success of these companies facilitated the U.S. to become the destination of global investment capital, entrepreneurs and exceptional technology talent.

 

The rapidly expanding U.S. investment capital base and Internet footprint of users, enabled early Internet based companies like AOL, Earthlink, Amazon, Priceline, Yahoo, Google, and many others, to acquire capital, prove their business models and expand internationally, as the Internet was built out globally.

 

As the Internet expanded globally, the U.S. was a primary source of technology and investment capital,  which further expanded the U.S. economy as well as those countries that embraced Internet.  The expanding global Internet footprint enabled Google, Amazon, Yahoo and others to expand into international markets.

 

It all began because the Internet was built out first in the U.S.   The build out of national FTTP networks will drive far greater U.S. and global economic expansion.

FTTP WILL PAY FOR ITSELF

Health care expenditures in the U.S. will exceed $3 trillion annually by 2015.

 

Cost effective patient diagnosis, patient management, and overall health care delivery is highly dependent on exceptionally robust (bandwidth consuming) applications and services.  A widespread national FTTP footprint is prerequisite for the required substantial investment to fund the development of such applications and  services.  Once implemented such applications will be able to cut national health care costs by 5% to 10% annually.  These savings alone would capitalize a national FTTP network within two years or less.

 

FirstNet, the Federal program for a common first responder wireless network, could be built out and implemented for far less than its projected $10 billion cost, if FTTP networks were being built out in parallel.  The FirstNet responder network would also acquire advanced capabilities from the FTTP networks.

 

These are only two examples.  There are many others.

WHY FTTP HAS BEEN DELAYED

It has long been recognized by industry and communities that FTTP is the needed communications infrastructure of the United States.  Though the build out of ultra-high bandwidth (fiber) has been the campaign promise of a President, many U.S. Senators and Representatives, and countless state legislators….it has never happened.  This is in spite of numerous Federal initiatives, $6 billion or so of Federal broadband stimulus capital (BTOP), and dozens of individual state broadband task forces.

 

A few of the reasons as to why:

In in spite of all credible information to the contrary, extended "dumbing down" by Federal and

state agencies as to the "Mbps number" that defines broadband and that FTTP was the needed infrastructure

Initiatives of incumbent telcos and cablecos to “dumb down” standards of needed bandwidth

in Federal policy and state broadband task forces

Incumbent political and monetary influence and legislative efforts to impede communities

from building out FTTP networks

Delayed development of advanced and more cost effective FTTP technology due to lack of incumbent interest in FTTP

Use of $6 billion of Federal BTOP capital to fund of islands of FTTP and other broadband

networks through low cost loans and grants, which are not replicable in the capital markets;  BTOP capital should have been utilized to “leverage” investments by the capital markets, which would have increased the build out by a factor of six to eight times and potentially brought about full participation of the capital markets

Implosion of the capital markets in 2008 and market’s slow recovery, which forestalled

participation of the capital markets

Failure of companies and industry sectors reliant-to-dependent on the build out or utilization

of FTTP networks, to become proactive to assure accelerated FTTP build out (save Google)

Failure of Federal and state governments to comprehend the substantial cost savings in

health care, education, FirstNet, and economic development that will arise from the build out of a national fabric of FTTP networks