Public safety, Internet tax, and FCC oversight move to forefront

On January 4, 2007, the 110th Congress convened with the House of Representatives under a new Democratic majority led by Speaker Nancy Pelosi (D-Calif.) and the Senate under Majority Leader Harry Reid (D-Nev.). The Democrats campaigned on a platform of reform highlighted by a first "100 Hours Agenda" calling for the passage of legislation ranging from federally-funded stem cell research to raising the minimum wage. To date, the Democrats have been successful in passing all legislation that has been brought to the House floor.

One of the first bills passed by the House was the implementation of several 9/11 Commission recommendations. One component of the bill is the establishment of a grants program to ensure communications interoperability for first responders. While this bill authorizes such grants, it does not include any appropriations or cost estimates. The Senate has the responsibility to establish funding principles.

In late January, the Senate introduced the Interoperability Emergency Communications Act (S. 385), which would guide the Department of Commerce's National Telecommunications and Information Administration (NTIA) on awarding the Digital Television (DTV) Transition and Public Safety Fund's $1 billion, allocated for emergency communication grants to first responders. The act also reaffirms the September 30, 2007, deadline for distribution of the grants, as mandated by the Call Home Act passed in December. In addition, the bill would allow up to an additional $100 million to be spent on facilities and equipment to be used in communications readiness and to allow more rapid deployment.

Sen. Ron Wyden (D-Ore.) has introduced the Permanent Internet Tax Freedom Act, which would make a ban on multiple and discriminatory taxation on Internet access and online sales permanent. In the House, similar legislation was introduced by Rep. Anna Eshoo (D-Calif.) and Rep. Bob Goodlatte (R-Va.). TIA, along with the Electronics Industry Alliance (EIA), sent letters of support to Wyden, Goodlatte and Eshoo, as the bill will build off TIA's overarching principle that the Internet should remain free from regulation.

On February 1, the Senate Committee on Commerce, Science and Transportation held a hearing entitled "Assessing the Communications Marketplace: A View from the FCC." The Democrat-controlled committee pressed Republican FCC Chairman Kevin Martin and the four FCC commissioners on pending consumer issues such as net neutrality, broadband access and media ownership, as well as homeland security issues, universal service reform, the DTV auction, the AT&T/BellSouth merger and broadcast decency standards.

Chairman Martin began his testimony by citing TIA's 2007 Telecommunications Market Review and Forecast: "According to the Telecommunications Industry Association's latest report, U.S. telecom revenue rose to $923 billion in 2006, representing a 9.3 percent increase since 2005 - the most growth since 2000. TIA attributes the growth to the demand for broadband services, which has spurred providers to invest in fiber, IP technology and wireless infrastructure."

TIA looks forward to working with members of Congress and their staffs throughout the 110th session and remains willing to participate and offer support and perspective where necessary. For further information, contact Danielle Jafari at (703) 907-7734 or email djafari@tiaonline.org.

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TIA is planning to conduct a trade education seminar in Atlanta in May. The seminar will focus on the basics of exporting, with a specific focus on doing business in South Korea. A panel of experts will discuss market opportunities and business trends, as well as provide detailed information on how to get into the market. Topics under consideration include, for example:

• Policy trends: What current Korean government initiatives are driving growth in the ICT sector?
• Demand trends: What products are companies in South Korea's ICT sector purchasing now?
• Applying for export loans: How to work with the U.S. Small Business Administration and the U.S. Export-Import Bank.
• Navigating the regulatory environment: What are the customs requirements, licensing requirements, investment restrictions you need to worry about?
• Partnering with other U.S. and South Korean companies: Where do you find potential partners and/or sales agents?
• Business etiquette, culture and language: What cultural issues should you be aware of? How do you find interpreters and translators?
• And much more

The exact date and location are yet to be determined. If you are interested in attending the seminar, go to http://www.tiaonline.org/business/small/seminar_signup.cfm

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TIA is committed to global issues, particularly as they relate to international trade and foreign market opportunities. Through the International Committee, TIA addresses key market access and investment barriers our members face in conducting business abroad. The committee meets regularly to discuss issues important to TIA members, such as broadband deployment, import duties, cumbersome customs procedures, transparency issues and other market access barriers.

Greg Jones, General Manager of Service Provider Strategic Marketing for the DSP Systems division of Texas Instruments, has been chairman of the committee since 2005, and his term expires in 2008. Recently, Mike Nunes, TIA's new international director, spoke with Mr. Jones about his responsibilities and vision for TIA's international program.

TIA: What are your responsibilities as chairman of TIA's International Committee?

Jones: As the chairman of the International Committee, I work with TIA staff to develop strategies for helping our member companies conduct business in the international marketplace.

TIA: What are the biggest challenges you've faced so far?

Jones: As TIA's member companies become more global, it is important that we help them with education on international issues. It is important that member companies understand the dynamics of international trade and how policies implemented by the U.S. and foreign governments affect their bottom line. Communicating the importance of those policies to the majority of members, especially some of the smaller members, has been the most challenging part of the job for me.

TIA: What are your major priorities for the committee over the next year?

Jones: I would like to see TIA do more education and B2B [business-to-business] networking for our small to mid-sized businesses. It is often difficult for the smaller companies to know how to start selling internationally, and I feel we could be a valuable resource for members.

TIA: From your perspective, how has the international telecom market changed over the last several years, and what should TIA's role be as the global industry continues to evolve?

Jones: The market continues to grow and is very dynamic. One aspect has been the development of country-specific standards. It is important for TIA to remain engaged on standards and policy issues and to continue to educate U.S. and foreign trade negotiators on market barrier and other issues that are important to our members.

TIA: With respect to the evolving global market, are there major geographic regions that pose bigger challenges than others?

Jones: International business is always challenging. There are language barriers, monetary issues, trade issues, and possible standards issues. Some of the largest potential markets, such as China and India, have many of these issues.

TIA: What can the international committee and TIA do to help ensure that fair and competitive rules exist in all the major market where TIA member companies have a presence?

Jones: It is important that we continue our work with the U.S. and foreign government trade and policy representatives to educate them on the positive effects of a fair and competitive marketplace.

TIA: What can TIA do to better serve its member companies with respect to international issues?

Jones: I would like to see us not only continue our focus on the policy and trade issues, but also to help educate some of our smaller companies in various aspects of international trade. Through our trade show NXTcomm, we have a great opportunity to launch several B2B networking sessions to help them with their efforts.

TIA: As you know, I started as TIA's international director on January 4. Do you have any advice for me going forward?

Jones: Focus on continuing our excellent relationships with the U.S. and foreign governments, and seek opportunities to help our member companies leverage this relationship into new business.

For further information, contact Mike Nunes at (703) 907-7725 or email at mnunes@tiaonline.org.

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