@jbtaylor on tech

I'm a spokesman for Sprint. This personal site is where I share news stories and my views about our company, our phones and other devices. I also write a bit about tech policy, the wireless industry and life in Washington, D.C.

To ensure that Sprint's lawyers continue to support employees' use of social media, please read the disclaimers on my "About this Posterous" page.

Special Access: The $10 Billion Hidden Broadband Tax

You pay a hidden broadband tax every day and you don't even know it.

  • You pay it when you send an email or surf the Internet or make a wireless phone call.
  • You pay it when you use your credit card at the check out aisle at Target, Home Depot or Wal-Mart.
  • You even pay it when you use your ATM card to withdraw cash from your bank.

It's a lot of money. Each year, you and other consumers pay $10 billion in hidden broadband taxes.

Who's collecting all of this money? Verizon, AT&T and the big landline phone companies. They collect this windfall in the form of fees they charge other businesses and non-profit institutions to use certain telecom circuits known as special access circuits.

Wireless companies, banks, retailers, hotels, manufacturers, educational institutions and insurance companies depend on special access circuits to access broadband and deliver services to you. It's an essential part of the broadband economy.

And guess what these businesses do when they are charged these excessive special access fees? They pass it on to you in the form of higher prices.

For years consumer groups and businesses have asked the FCC to reign in AT&T and Verizon. Finally, it appears the FCC is ready to act.

To learn more about this issue, visit http://nochokepoints.org and then contact the FCC and demand that they end this hidden broadband tax.

After all, who needs this money more? You and your family or AT&T and Verizon?

The Biggest Story about the Wireless Industry is not your Smartphone

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Contrary to what most tech writers will tell you, your EVO, Droid or iPhone is not the biggest story about the wireless industry. The spectrum these devices operate is more important, yet most consumers and many tech writers miss that point.

President Obama however, understands the importance of spectrum and what his administration and the FCC can do to get more spectrum deployed so your smartphone and other advanced wireless devices can operate at faster speeds in more places.

This morning, the president signed an executive memorandum which will make available for public auction some 500 MHz of spectrum, implementing portions of the National Broadband Plan was released in March by the Federal Communications Commission. Certain aspects of the President’s directive will still require Congressional approval. Later over lunch, Larry Summers, director of the National Economic Council delivered a speech which explained the president's approach on spectrum and how its effective deployment can help expand our broadband economy.

Sprint Nextel's Vonya B. McCann, senior vice president – government affairs issued the following statement:

“Sprint is pleased that President Obama has put his support behind the FCC’s National Broadband Plan recommendations concerning spectrum allocation. The President’s order will facilitate all federal agencies working cooperatively to identify spectrum availability and best manage this scarce resource. If the plan’s recommendations are implemented fully over the next ten years, they will create jobs, promote innovation, and further expand the country’s broadband economy.”

Sprint's Take on Possible FCC Regulation of Broadband

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Earlier today, the Federal Communications Commission voted 3-2 to seek public comment on the best approach to regulate broadband.

Sprint's Vonya B. McCann, senior vice president of Government Affairs issued the following statement:

“Sprint looks forward to providing the FCC input on the issue of reclassification of broadband services and the manner in which broadband networks are regulated and managed.

In order for the FCC to successfully secure a vibrant and innovative future for broadband in America, it must take the steps necessary to promote a competitive broadband market. The reclassification issue has no affect on the FCC's broad regulatory authority to address critical inputs, such as special access circuits, to the provision of broadband service. Sprint understands, however, the importance of having a clear legal basis for any regulatory regime.

Sprint appreciates the thoughtful approach the FCC is taking on the complex issue of reclassification and will carefully review each of the FCC's alternative proposals for a future broadband regulatory regime."

When it Comes to a Public Safety Broadband Network, there's a lot Verizon & AT&T Won't Tell You

This morning, I'm watching a live webcast of a hearing of the House Energy & Commerce Subcommittee on Communications, Technology, and the Internet.

Admit it, you're a C-SPAN junkie and you're jealous I get paid to do this and you don't.

As wonky as this hearing sounds, its subject -- creating an interoperable nationwide public safety broadband network -- is critically important for the country. I'll leave it others to explain why the country hasn't taken this step already. 

One of the witnesses at the hearing is representing Verizon Wireless. Verizon, along with AT&T, control  92 percent of the spectrum in the 700 MHz band in the top 54 U.S. markets.

Don't expect this fact to be brought up by Verizon today. As Harold Feld of the consumer advocacy group Public Knowledge told Bloomberg News, "This is all about AT&T and Verizon trying to keep their spectrum advantage.”

What Verizon and AT&T want is to do is block the FCC's approach which would allow Sprint, T-Mobile, U.S. Cellular, Clearwire, Metro PCS and others to bid on the spectrum at a public auction. The reason is this is the spectrum which AT&T and Verizon are using to deploy 4G -- something they plan on doing some time next year. If AT&T and Verizon can stop an auction, they can stop others from bringing more choice to the marketplace -- not only for public safety, but also for consumers. They can also stop the FCC from raising approximately $3-4 billion in auction proceeds which would go to build the public safety network.

As Jeff Silva, with the investment firm Medley Group Advisors told The Washington Post, "The conventional wisdom has seemed to be that a direct public safety allocation would keep another competitor out of the 700 megahertz band and potentially open up commercial opportunities with public safety for Verizon and/or AT&T in light of their dominance of the 700 auction of 2008."

Of course, Verizon and AT&T hope people won't notice. They also hope people won't notice that they are underwriting a $500,000 public affairs campaign by a public safety group which opposes the FCC's plan. 

I'm betting people will take note.

But the question remains, will the Congress agree to promote more competition in the 700 MHz spectrum band or will they endorse the anti-competitive approach recommended by Verizon & AT&T?

Sprint's Take on Legislation to Create a Public Safety Broadband Network

On Monday, House Democrats began circulating draft legislation which would fund and construct a nationwide, interoperable public safety broadband network. In response, Vonya B. McCann, Sprint's vice president of government affairs issued the following statement:

"It’s undeniable that continued innovation in today’s wireless industry can only be achieved by preserving competition and spectrum access among broadband carriers, and the same holds true for the creation of a nationwide wireless broadband network for America’s public safety officials and first responders. 

The Public Safety Broadband Act of 2010 would create a climate for this continued innovation. Through the auction of the D-Block spectrum, public safety personnel will have the funding necessary to obtain the reliable wireless broadband communications capabilities they need every day and particularly during times of crisis and emergency.

Sprint believes the House Energy and Commerce Committee’s draft legislation is a great first step towards making the 700 MHz band accessible to wireless carriers and encouraging both public and commercial investments in an interoperable wireless broadband public safety network."