TIA will send a letter to the Federal Communications Commission (FCC) encouraging the commission to make its decision on use of the vacant channels in the television band, referred to as the “white spaces,” based on technical reasons. In the letter, TIA will urge the FCC to wait for the results of the FCC Office of Engineering and Technology (OET) testing on this matter. The OET has been studying this issue for a number of years and should be given enough time to write the rules carefully without responding to political pressure.

The FCC has considered opening these spaces for the use of broadband services, among other uses. The rulemaking proceeding, initiated in 2004, has drawn considerable attention from industry, and the FCC may adopt rules for operating devices in this spectrum as early as October 2007.

For more information on white spaces, please contact Patrick Donovan at pdonovan@tiaonline.org or +1.703.907.7739.

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On September 17 and 18, TIA participated in the U.S. Commerce Department-led commercial information, communications and technology (ICT) dialogue with the Government of Vietnam. During the talks, industry representatives from the United States and Vietnam, including representatives of several TIA member companies, were able to break through initial skepticism to develop a list of mutually beneficial recommendations, which were presented to both governments for consideration. As a result of the dialogue, the U.S. and Vietnamese governments will continue to work together on issues such as techology neutrality.  Further, the two sides agreed to organize a series of capacity-building workshops on spectrum allocation, network security and the U.S. ICT investment legal framework. The Commerce Department anticipates that the next bilateral meeting with Vietnam will take place in April or May 2008.

Vietnam is rapidly emerging as a potentially lucrative destination for ICT products and services. The value of its telecommunications equipment and services market is expected to reach $5.3 billion in 2007, with imports making up a significant share of the market. Vietnam’s recent accession into the World Trade Organization will reduce market-entry barriers, accelerating ICT growth and contributing to lower prices as competition increases. Indeed, U.S. companies are already taking advantage of the market opening: according to a report of the U.S. Department of Commerce, U.S. foreign direct investment, including ICT, in Vietnam is expected to double in 2007 from $10 billion in 2006.

For information on TIA's participation in the dialogue, contact Michael Nunes at mnunes@tiaonline.org or +1.703.907.7725.

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TIA continued its advocacy efforts to extend the Internet access tax moratorium this week and applauded the efforts of Senators John McCain (R-Ariz.), Trent Lott (R-Miss.) and John Sununu (R-N.H.), who held a press conference in favor of The Permanent Internet Freedom Act of 2007.  The senators spoke in the Senate Radio-Television Gallery to highlight importance of making this tax ban permanent. All three have joined 17 other senators of both parties in co-sponsoring this very important bill.

The Permanent Internet Freedom Act of 2007, sponsored in the House of Representatives by Rep. Anna Eshoo (D-Calif.) and in the Senate by Sen. Ron Wyden (D-Ore.), would end the uncertainty that has surrounded this very effective tax ban since its inception in 1998. Rapid action is necessary on these bills because the current ban ends on November 1 of this year. Under the leadership of dedicated senators and representatives, however, consumers and Internet providers alike can continue to enjoy the benefits of the U.S. digital economy.

TIA supports this action to protect the growth of innovative technology and ensure the availability of advanced, secure communications to all Americans. In a time when the government is busy formulating the best methods for deploying broadband, such a strong disincentive to network investment as an Internet access tax could undo a decade of positive trends.

“By making the moratorium permanent, Congress will permanently eliminate a critical barrier to making broadband more accessible to more Americans,” said TIA President Grant Seiffert.  He added, “TIA’s goal remains a 100-percent connected America.”

The Senate Commerce Committee will hold a markup today (Thursday) for the bill among several others.

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On Wednesday, September 19, House lawmakers came one step closer to moving legislation that would facilitate the deployment of IP-enabled 911 and E-911 services. House Subcommittee on Telecommunications and the Internet held a hearing on the 911 Modernization and Public Safety Act of 2007 (H.R. 3403), featuring a panel of witnesses representing U.S. Telecom Association (USTA), National Emergency Number Assocation (NENA), Comcast, Intrado and EarthLink.

The proposed bill, sponsored by Rep. Bart Gordon (D-Tenn.), would particularly affect Voice over Internet Protocol (VoIP) providers by granting easier access to nation’s 911 system.  VoIP providers are required to provide 911 service by the FCC, but, unlike traditional telephone companies and wireless providers, they lack the legal right to connect to the 911 infrastructure. The legislation would also extend liability protection to VoIP providers and plans for the migration to an IP-enabled emergency network.

The Senate Commerce, Science and Transportation Committee approved by voice vote a similar bill (S. 428) sponsored by Senator Bill Nelson (D-Fla.), on April 25.

For more information on this legislation, please contact Tom Shull at tshull@tiaonline.org or +1.703.907.7014.

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TIA held a Broadband and Technology (B&T) Luncheon featuring Rep. Chip Pickering (R-Miss.) on Wednesday, September 19. A member of the House Telecom Subcommittee and longtime friend of the technology industry, Pickering recently announced his retirement from public service, for the time being. After the 110th Congress, Pickering is planning to spend time with his family and seek a position in the private sector before a possible return to public service. 

Wednesday’s discussion focused primarily on broadband deployment to rural areas, spectrum availability and use, and keeping a hard date for the 2009 DTV transition.  Representing rural Madison County, Miss., Pickering has always been an advocate for legislation supporting broadband deployment to rural America. Recognizing the importance of these issues to TIA member companies, the association looks forward to continuing to work with Rep. Pickering and his district and offering assistance to his office.

TIA is planning a similar event in October with Mr. Hauko Saito, telecom attaché for the Japanese Embassy. Details on this event will be forthcoming.

For information about future TIA policy events, please contact Tom Shull at +1.703.907.7014 or tshull@tiaonline.org.

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TIA International and Government Affairs Director Mike Nunes, along with representatives from TIA member companies, participated in the Bilateral Dialog on ICT trade in Hanoi, Vietnam, this week. The TIA delegation led the way on talks aimed at enhancing ICT trade and investment between the United States and Vietnam. 

The inaugural meeting included a public seminar, government-to-government talks and an industry-to-government dialog. TIA laid out an agenda featuring the key issues to its members, including:

• Clear Policies and Procedures. Infrastructure-related laws and regulations should be clearly defined, implemented and enforced to attract investment. Market liberalization must be an essential agenda item for Vietnamese leadership as it reforms its markets.
  
• Regulatory Independence and Transparency. Regulatory independence is a critical aspect of regulatory effectiveness, because it is key to creating an environment that fosters competition in telecommunications. A lack of a transparent rule-making process can signal a high degree of uncertainty, which often results in delayed investments. 
  
• Procurement. TIA is concerned about a trend toward commodity-based procurement for telecommunications infrastructure without sufficient consideration of the impact of increased fragmentation of network topologies and technologies. In the long run, this fragmentation leads to increasing operational expense as well as high costs of implementing new services. An example of this is a situation facing many large operators where the integration cost for deploying a new technology such as mobile Internet Multimedia Systems (IMS) outstrips the capital cost of their entire existing network infrastructure. We encourage procurement policies that balance competition with a longer-term view of operational efficiency.
  
• Successful Licensing. Licensing provides the basic certainty and legal security investors need to make significant investments in telecommunications infrastructure. Licensing criteria and conditions should be applied in accordance with regulations developed in a transparent and open manner. Licensing procedures should be expeditious, particularly for value-added services that can be provided in a relatively short time once the market is liberalized.
  
• Barriers to Foreign Direct Investment (FDI). Countries that have eliminated barriers to FDI have benefited from greater commitment and longer-term engagement by foreign investors, as well as new management approaches, technology and skills transfer to the host country. FDI has typically been the driver of telecom sector growth in liberalizing economies. TIA encourages the Vietnamese government to quickly implement World Trade Organization (WTO) commitments that allow increased foreign investment and to consider further liberalizing the telecom services market by allowing 100 percent ownership in both facilities-based and non-facilities-based entities.
  
• Timely and Robust Implementation of WTO Commitments and Principles. Adherence to WTO commitments and principles is critical for an orderly and successful liberalization of the telecom sector. As Vietnam makes progress on its efforts to implement new laws and regulations in a manner consistent with its commitments to the WTO, industry recommends prompt and comprehensive reforms that exceed the spirit and letter of the commitments. By supplementing the WTO legal protections with a show of clear intention to open markets to competition, Vietnam will foster investor confidence and participation in the market. This will lead to a dynamic ICT sector and, in turn, an improved operating environment for ICT-dependent industries. Industry encourages the Vietnamese government to establish competitive safeguards to prevent anti-competitive practices in the telecom sector, ensure efficient interconnection with major suppliers of telecommunications services, and administer universal service obligations in a transparent, non-discriminatory and competitively neutral manner.

Telecom-specific issues raised by TIA members include urging Vietnam to establish a structural framework for improvement of telecoms infrastructure; establishing network reliability and quality of service; maintaining consistent global products and standards; authorizing strong encryption; and maintaining coordination among interconnecting carriers.

For information regarding TIA's participation in the U.S.-Vietnam ICT Trade Dialogue, contact Mike Nunes at +1.703.907.7725 or mnunes@tiaonline.org.

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On September 12, TIA hosted a briefing over coffee with Matt Borman, Deputy Assistant Secretary of Commerce for Export Administration, in Nortel’s D.C. office. Mr. Borman briefed TIA members on the recent developments in export controls, including recent updates to dual-use controls for China.

Mr. Borman capably filled in for scheduled speaker Christopher Padilla, whom President Bush recently nominated to be Undersecretary of Commerce for International Trade, and who was forced to reschedule his appointments.  Mr. Borman has been with the Commerce Department since 1992 and is expected to become acting secretary upon Mr. Padilla’s confirmation. In his current position, Mr. Borman is responsible for implementing the Bureau of Industry and Security's controls on the export of dual-use items for national security, foreign policy, nonproliferation and short supply reasons.

TIA is planning a similar event in October with Mr. Hauko Saito, telecom attaché for the Japanese Embassy. Details on this event will be forthcoming.

For information about future TIA policy events, please contact Tom Shull at +1.703.907.7014 or tshull@tiaonline.org.

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