Thursday, December 23, 2010

Comments on net neutrality

Considering the recent ruling on net neutrality by the FCC, I thought that I would publish my testimony before the FCC from February of 2008. This was a hearing held in Cambridge as as they began looking at this issue.

It seems that the same issues guided their ruling. They were torn between the need for greater bandwidth, and the need to keep the internet usable for everyone. This is only the beginning of this issue. They will have to come back to it again and again as we continue to evolve technologically.



Representative Daniel E. Bosley
House Chairman
Joint Committee on Economic Development and Emerging Technologies
Rm 42, State House, Boston, Ma.


Testimony:
FCC Public En Banc Hearing on Broadband Network Management Practices

Monday, February 25, 2008


Thank you Mr. Chairman for the opportunity to participate in this hearing today. Broadband, particularly as it pertains to our economic development efforts in Massachusetts has been a focal point of my committee over the past few years. My district, the First Berkshire District, is a more rural part of the Commonwealth and our efforts to create jobs has been hampered by the inability to bring broadband to many of the communities of western Massachusetts.

For the record, I was the House Chair of the Government Regulations Committee for over ten years. This was the committee that heard all of our public utility legislation. For the last three plus years, I have been the Chair of the Economic Development and Emerging Technology Committee. More than that, I have been working for better telecommunication services in my district and throughout the state for all 22 years in the Legislature. Nineteen years ago I was an intervener in the first major rate case in telephony in many years. I took our Public Utilities Commission to the SJC in 1991 suing over rulings regarding rates and expansion of calling areas. In 1995, I was able to fund a Western Massachusetts initiative that became Berkshire Connect, a collaborative partnership formed to improve our county’s telecommunication system and Internet services.

In a $347 million economic development bill that I co-authored 2 years ago, I inserted a section creating an office of Broadband Director in our Economic Development Secretariat. The directive for that office included working on broadband expansion and this year, our Governor, Governor Patrick filed a bill to commit $25 million towards making Broadband ubiquitous in the Commonwealth.

I have made such an effort because the Internet has changed the way we conduct our business in the US, and it has changed our way of life. When I was first elected, I had one telephone number. Today I have eleven, I think. In those twenty-two years we have fundamentally changed our conduct based on new technologies. Without access to those technologies, we fall far behind other regions and other nations in our ability to create jobs and conduct commerce. I am here today to say that I support the efforts to craft some form of net neutrality legislation as a way of keeping the Internet vibrant, vital, and innovative. Without net neutrality, things such as Berkshire Connect would not happen and innovation will be stifled. Obviously, while my focus as a legislator has been on the business aspects of broadband, it is a much larger issue than just commerce. Broadband is dramatically changing the way we educate our children and treat our sick. In fact, in 1996, I was in a small town in Russia advising the region on how to set up unemployment systems. I had occasion to talk to a group of students from the Pskov Polytechnic Institute. I asked these students what brought about democratic changes to Russia and they immediately answered that the Internet was responsible. The government could no longer control the information that people received. The internet is a powerful influence in every facet of our lives today.

Mr. Chairman, in my ten years as Chairman of the Government Regulation Committee, I have seen many initiatives that were designed to advantage one company or another. These things include Reciprocal Compensation, Franchise Fee fights, open access or open documents, right of way fees and ownership as well as bandwidth and frequency issues. The discussions and deliberations over these issues have all been made from two very different perspectives. Businesses such as the Bells or Cable companies have a responsibility to their shareholders and want to profit from any expansion that they invest in. They argue for little government interference and the right to build out their networks as they see fit. Internet and smaller or start up companies want unlimited cheap access to the largest available customer base. They can argue as they see fit. On both sides it is their responsibility to argue the best possible policy for their companies or constituency. It is our responsibility in government to be the arbiters of what is good policy for our citizens.

There have been cases where Internet providers have slowed access or in a isolated cases to this point, denied access to certain sites. I know that they argue that they are doing so in order to ensure that they will be able to service customers and that it is not discrimination on their parts to do so, but good business practices. They also argue that they should have the right to tier their services or charge premiums for some sites especially those that use more bandwidth. I think they are wrong for several reasons. First, you can’t argue that you are not restricting access and then argue that you have that right. They have to pick one argument or the other. Both can’t be right. Second, millions in this country access the Internet at any one time. We cannot allow a few large companies to pick and choose what people should have access to. Tiering services creates the kind of stratification in our society that we are trying to get rid of and further restricts access to services and companies. The issue of tiered services reminds me of the issue of slotting for space in supermarkets. In any large supermarket, there are tens of thousands of different products. In order to ensure premium exposure some enterprising company offered to pay the supermarket for product placement. This is a good marketing strategy. However, today almost all firms are charged a slotting fee in order to get their product anywhere on the shelf. Small firms fall by the wayside and firms that could be major market players, or may have better products are prohibited from participating in the market. Many think this has thwarted competition and customer choice. What started out as an economic and marketing tactic has lead to a stifling of competition and only the wealthy companies can compete. Today, Food producers are routinely charged thousands of dollars for shelf space and even more money if they then want their product advertised or promoted. The markets use the same argument that is used by large Internet providers. If we don’t charge the users of shelf space, we will have to charge customers more for the goods we sell. Or if we can’t produce this revenue, we will have to limit our size and we can’t provide the services needed. I would submit that we should let customers decide which goods they want and let competition keep costs down.

Enough about supermarkets. If we want a truly innovative Internet, we need to make sure it is nondiscriminatory. That is my definition of net neutrality. The large providers will tell us that in order to provide services they must have some leeway in deciding what to slow down or they reserve the right to tier services so that people will pay for more excessive use of bandwidth. The question is, who decides what is excessive use? Is it the 50th Youtube video of people tasering one another? Is it the 100th video of people using Mentos and Coca Cola to create an explosion? Or is it a fringe political group? Or how about a group of social activists? How about such as the views of a black minister who was sick of discrimination and wants to become active in his community? If firms could prohibit some users and the Internet was in effect at the time, would the Reverend Dr. King get his website published or would it be excessive use to go to the website of a small town activist preacher? Would Google become a leader today used by millions if it couldn’t pass muster on start up as worthy of placing in an affordable tiered service. The answer is we need all of these sites if the Internet is to be truly nondiscriminatory and ubiquitous. Let users decide what they should open and download. That said, there should be some small exceptions. Providers should be able to remove viruses and viral sites as well as be able to remove or restrict sites that demonstrate a clearly defined public safety danger.

Lastly on this, providers claim that competition will keep them affordable and keep most websites in service supposes that there is enough competition to achieve this. This is just not so. In many places there is one provider. Some small providers try to compete by reselling services, but that leaves them subject to the whim and the bandwidth of the large providers. That doesn’t solve the problem. We must keep the Internet open and free from a few deciding what we can or can’t open and/or download.

Finally, Mr. Chairman, the issue is not content, it is capacity. And here the large providers have a point. The chairman of Cisco Systems has said that in one day, Youtube sends data equivalent to 75 billion emails. This is a problem and we need to keep up with expansion if we are to continue to expand the content and knowledge found on the Internet. I would make two suggestions. First, by keeping the Internet open and nondiscriminatory, we will continue to witness the kinds of innovation that has kept up with market demand for many. DSL was an innovation that allowed us to receive higher speed Internet over old twisted copper wires. Today people are looking at VPN or P4P in order to work within the existing system. Innovators are working to make packets smaller with new compression techniques. As long as they can participate in an open system, creative individuals and companies will find innovative ways to adapt and achieve more service within our existing system.

Second, we need a national broadband plan. Business claim that they have to maintain the right to make bandwidth decisions is a perverse incentive that allows them to maximize profits by keeping the system restricted. There is no incentive for them to expand capacity as supply drops demand and price. Yet, this system is as important to us as deployment of universal voice was in its time. Government must step in with a plan and with money to build out our systems, and not just to keep up with demand, but also to increase our average US speed in order to compete in the global marketplace. We are falling behind other countries in our ability to conduct business at maximum speeds. Japan is ten times faster than our speeds and others, such as Korea, France, and Singapore to name a few are leapfrogging over our aging infrastructure . Today Japan has fiber to the home in 80 percent of their households. We need to act to compete. We need a national plan to achieve universal coverage and to increase speed to 100MBpS. We need fiber to the house. A.T. & T’s stated policy is fiber to the neighborhood node, while Qwest hasn’t even committed to that penetration! This may be good for their shareholders but it is disastrous for our long-term needs. We need more long term planning and planning that takes into account our national needs and not just short-term profit margins. There is nothing wrong with making a profit and certainly these companies have a responsibility to their bottom line. But we have a national need that we need to address that transcends any one companies’ corporate strategy. While we have been trying to devise a plan in Massachusetts and other states, such as New York in the planning stages or Kentucky has implemented are increasing coverage on a state by state basis, we are the only industrialized nation in the world without a national broadband strategy. The Brookings Institute has said that widespread increased coverage of high-speed broadband would immediately add hundreds of millions to our economy and over 1.2 million jobs per year. This is too important and too expensive to presume that large companies will do this by themselves. I read recently that the large North American providers invested $70 billion in infrastructure last year alone. But at the end of the day, they have invested where they think they can make the most profit and investment is uneven. Verizon alone has spent hundreds of millions in Massachusetts over the last few years, and yet one third of Western Massachusetts has little or no access to Broadband, and those that do are at much lower speeds than are necessary to be competitive in today’s marketplace. Just as Massachusetts is poised to commit $25 million or more to broadband development, other states and the federal government need to work together to develop a national strategy. This is critical. We should be partners with companies to build a strong competitive market in order to keep up with demand, negate the argument for discrimination in use of bandwidth, lower costs to international levels, and provide the strong business network we need to compete with in today’s global economy.

Thank you and I look forward to questions after the entire panel has spoken.

Thursday, December 24, 2009

Happy Holidays

I haven't posted lately and feel bad about that. There are things I am working on and need to write about, but it is the holiday season. I went to the lighting of the menorah at the State House last week (on the fourth day. I guess the political calendar dictated that but it worked out fine because Rabbi lit the initial candle, then the Governor, Senate President and the Speaker lit a candle, so it worked out.)The children who sang were wonderful, and each constitutional officer spoke also. (I am going to miss Joe DeNucci.)

So here it is Christmas Eve and I am home, having finished my shopping and every present is wrapped, with big thanks to my daughter Stephanie. Tonight is traditionally with my family and we are headed to my sister's house. Tomorrow, we are home and at my wife's aunt Pat's house. It will be nice to see everyone and spend the day relaxing with relatives.

There are many problems in this world, in our country and in our state today. We still have many people unemployed and we struggle to create jobs. Our budgets aren't healthy enough to satisfy everyone's needs, and we are mired in a quagmire in Afghanistan. But if there is one universal theme in our stories of the holidays, it is a theme of redemption and hope. Whether it is a lamp that burns brightly for eight days on one day’s oil, or a star that burns brightly lighting the way to Nazareth, the holidays remind us that the human experience is one of rising above our adversities. Whether it is a band of brothers or one person with disciples, our collective religions tell us that miracles do happen if we have hope and faith and work together towards a higher goal of peace and brotherhood.

On this holiday, despite the news on Fox News or CNN, I will take comfort in my friends and family, renewed by the spirit of the holidays and its story of hope and faith. My wish on this Christmas eve is that we remember this spirit and use it to guide us the day after and the next day and that day after that. Here's to all of you on this Christmas Eve. I wish you all the best of holidays, and the merriest of new years.

Tuesday, November 24, 2009

Capuano For US Senator

The race to elect a successor to Senator Ted Kennedy holds its primary election on December 8. I am urging everyone to vote for Congressman Mike Capuano. I do not do this lightly. This is a decision that marks the first chance to vote for someone other than Ted Kennedy in 47 years. And Ted Kennedy was so important for our area and our state that we need to ensure the best person is elected to take his place and carry on the tradition passionately advocating for the people in the Commonwealth. I believe that the best person for this job is Mike Capuano. He has the passion, energy, intelligence, and voting record that make him a worthy successor to Kennedy.

We have been faced with a population that has not kept up with the US population growth. We have lost Congressmen in the past during redistricting and we face the prospect of losing another. That means we must fight even harder to make sure that the northeast and Massachusetts in particular continues to get our fair share of government programs. It means that we need to fight harder to shape national policy. Mike Capuano has proven that he is a fighter.

A few people have come up to me in the Berkshires asking why I am not supporting the “hometown” candidate. One letter writer has called me a turncoat for not advocating for the Berkshire candidate. I take exception to that. First, Coakley hasn’t lived in the Berkshires for thirty years. When she ran for state representative and district attorney, she stated she was from Dorchester. In my mind it is far more important to elect the best person based on credentials rather than gender, relationship, or where they lived thirty years ago.

I like Martha Coakley. I campaigned and voted for her as Attorney General. However, I have to judge her based on my interactions with her office. I have a list of five different issues that I have either spoken to her or her office about over the last three years. None have been acted on. A few, like gas pricing hearings to find out why we pay higher prices in the Berkshires as opposed to areas like Phillipston-Templeton; or why we can’t provide a list of companies raising charitable funds with how much goes to the charity as opposed to the paid fundraiser, have statewide implications. Yet, I have been told there is nothing we can do on my concerns or there has been no response.

I would however, like to be very clear. My vote is not against another candidate, but because I believe that Mike Capuano is clearly the best choice. Mike Capuano has always answered my phone calls. I called his office recently over the Financial Stability bill to advocate for some amendments that would help small communities. His staff was responsive, knowledgeable, and ready to work on my concerns. He is familiar with our area and always discusses the Berkshires with a knowledge that most from his side of the state don’t have.

And he has a record he can be proud of. He became the Mayor of Somerville and cleaned the city up. As Mayor, he was a respected leader advocating for our cities and towns. That is where I first met Mike. He was at the State House working to secure money for our communities.

Mike has experience in Washington and serves on a couple of committees that have given him experience in areas that we need in Massachusetts. One of the most pressing issues facing us today statewide is transportation. How do we make capital improvements on the MBTA without bankrupting the state? How do we get rid of the backlog of projects necessary to improve our infrastructure? Mike has worked on these. Mike serves on Financial Services and what is more important to our economy than stability and job growth? Mike has experience in foreign affairs and that has become increasingly important for Massachusetts as we try to expand our foreign trade, foreign direct investment, and deal with international companies. How many had the courage to stand up and vote against the Iraq war with Ted Kennedy? Not many, but Mike did. And if that isn’t enough, he is also the person that was charged as chairman to lead a Special Task Force on Ethics Enforcement.

Add all this together and you get a hard working passionate representative that I would be proud to have as my Senator. I hope you look at all the candidates and examine their records. They are all decent people who want to serve you. But the person with the most experience is Mike Capuano. I hope you agree and vote for Mike on December 8.

Sunday, October 18, 2009

Basic Research

There is a great op-ed piece today in the Boston Globe over something I have been writing about for a number of months. This piece written by Robert Weisman is titled Business Intelligence and can be found here: http://www.boston.com/business/articles/2009/10/18/the_building_blocks_of_new_industries_are_missing/.

The article states that we have little basic research in the US as compared to the past and that hampers our abilities to create new industries and new inventions or innovations. While our life science success in Massachusetts has been very good, it has masked this lack of basic research that we used to do in abundance. In a state that relies on innovation and creativity in our economy as much as Massachusetts does, it is critical that we return to our roots, tend our knitting, begin at home or any other worn but true cliché you can come up with.

The articles about Evergreen Solar in the Globe over the past few days detail the problem with picking winners and losers in our economy. I hope that Evergreen does well and becomes a leading company in Massachusetts, but we need to take precious state resources and put them in areas where all businesses can take advantage of them. We need to maximize our resources and let the market decide what is the next technology or invention. If I were king of the Forest, I would have used the stimulus money to launch a new economy rather than bail out the old. I would have called it “Retool America” and we would invest in job training, basic research along with the renewed emphasis on science and math in our schools. I would prepare industrial sites, manage our water and electric systems better and new equipment for our voke-tech schools.

A few years ago, I was in Mexico visiting companies along with other state officials including then Gov. Mike Huckabee from Arkansas. One of our fellow travelers told the companies in Mexico that they believe that Mexico took our jobs in the US after NAFTA was enacted. The companies replied that this wasn’t true and went on to defend their roles. However, they then bemoaned the fact that they were losing jobs and market to companies in China! Last year, I was in China in October to speak at a large tech conference. In meetings with Chinese officials, they told me they were losing jobs to Vietnam and Thailand because labor was cheaper. My point is this: We are never going to be the cheapest labor in the US. However, we can use our strengths in innovation and education to create new good paying jobs in new areas. We need to stay one step ahead of the competition on this and that means basic research to create new businesses.

Shakespeare and Company

There has been a lot written on Shakespeare and Company over the last few weeks. My role in this was simple. I have a relationship with someone at their bank and a mutual friend told me that Shakespeare may have some troubles that needed attention. I talked with Tina Packer from Shakespeare and Company and talked with Rep. Smitty Pignatelli who represents that district. I think it is important to be able t find a way to address ways to assist our cultural facilities and felt that, if we can help Shakespeare and Company, we could help all the other facilities in similar straits. Part of this is recognizing these facilities as parts, important parts of our business community. If a widget factory was having trouble and employed several hundred people, there would be several state agencies that would be rushing to help. We need to apply the same standards to cultural, tourism, agricultural, and other businesses that are extremely important for our economic health.

Having read the Boston Globe editorial this morning concerning Shakespeare and Company, I am of two minds. First, I think it is a tribute to the importance and the breadth of work from Shakespeare and Company that the Globe bothered to editorialize. They clearly understand that there are many many activities of the Company that transcend merely putting on performances. So it is heartening that the Globe gets it and opines that it is essential that Shakespeare and Company right their ship and restore their fiscal health.

On the other hand, almost every cultural facility relies heavily on their ability to fund raise private funds. When donors lose confidence in the future of a facility, it always hampers their fund raising ability. The Globe editorial was harsh, but honest and straightforward. Unfortunately, the word bankruptcy was mentioned in a local story and that hasn’t helped. A note to Alan Chartock: despite a disclaimer that he wants the company to survive, you can’t use that to excuse the rest of the column. It’s like the old comedian who said something to the effect of saying to someone” Gosh you gained weight and look awful.” And then saying, “I mean that in a good way.” You can’t have it both ways and your info is bad, even if you playfully use your dog as a foil.

There is a big lesson to be learned in the trials and tribulations over Shakespeare and Company’s troubles. A few cultural facilities have bemoaned the fact that people were looking to Shakespeare and Company as opposed to their needs. A few have suggested that we shouldn’t help them because they didn’t manage their finances as well as some others. I would suggest that they read the parable the Prodigal Son. We help where we can and no one suggested that we help one at the expense of another. I didn’t hear Shakespeare and Company complain when other received earmarks in the budget or received money from the Cultural Facilities fund. Rather than trying to stop assistance to one facility in a time of need, perhaps the parties in question should have been on the phone calling to find out how they can help each other for mutual benefit.

Monday, October 12, 2009

Stone Soup

When I was very young (yes, yes, a long, long time ago), I loved the Captain Kangaroo Show. Bob Keeshan was the Captain, and along with Mr. Greenjeans would entertain us every morning. I didn’t realize until many years later that this show was much more than Mr. Moose getting the Captain to say the word that would make lots of ping pong balls drop. It was also educational.

Jim Carville once said that all life you needed to know about life you can learn from watching The Andy Griffith Show. That’s how I feel about Captain Kangaroo. Life lessons were learned there long before Sesame Street. Where am I going with this? Well, as I watch our reaction to the recession, I am reminded of the story that the Captain used to read every now and then called “Stone Soup”.

The story goes something like this. Three soldiers were on their way home from a war when they happened into a small village of suspicious and war weary inhabitants. They stopped and asked for food. The villagers replied that there was no food to be had. One of the soldiers suggested that they make stone soup and feed the entire town. They got a big pot, filled it with water and placed three large stones in the bottom. They proceeded to boil this, stirring it and tasting it every now and then. The townsfolk were very curious. How could you make soup from stones? The soldiers said it would be delicious and would serve the entire town. As they went along, one soldier opined that it was good, but could be great if there were only a few carrots. One of the townsfolk said that he may be able to find a few carrots. So that went in. Over the course of cooking the soup, the townsfolk responded like this with potatoes, tomatoes, and much more until there were all sorts of seasonings, vegetables, and much more in the soup. The soldiers fed the town, ate, and went on their way. As they left the town marveled at how they made soup from stones!!

I haven’t seen nor heard that story since the days of the Captain (Kangaroo, not Morgan), but think of it often in my job. It should be required reading for all elected officials.

The federal government’s use of stimulus funds is much like the stones. It requires people to feel it works and then they begin to supply the other ingredients. Consumers spend on things like cars. Businesses invest in manpower or equipment upgrades. Each of these borrows from financial institutions as people invest in themselves and the economy. Government doesn’t have enough spending power by themselves, but must inspire and lead as we rebuild our economy. Whether that causes people to start to invest depends on whether you have sold them on the idea of stone soup, and of course, whether they have a few carrots or potatoes left.

Friday, October 9, 2009

Local News

For those who have said I don’t post enough about district concerns, it isn’t because we are not working on district issues. This week was a very good one in spite of the economy. The biggest news was that the Governor released his five year capital spending plan and MCLA’s science building is in the plan. Despite having to cut over $1.1 billion from the original plan, the $50+ million science building has made the cut and we will release $500,000 this year to begin the design phase. This is good news. It brings our science facilities into the 21st century, consolidates the classes, and stabilizes this area of curriculum. Besides that, it allows us to train our future workforce for the types of jobs that we need. That can be truly transformative for our economic efforts.

This week also saw the release in committee of the creative index bill for our classrooms. I believe that this will help to continue the innovation and creativity that is the hallmark of the Massachusetts’s economy. In this area, coupled with the Berkshire compact, the lap top initiative, and other local programs, gives us an ability to compete with other parts of the state to improve our economy and compete or anywhere else.

We also had a hearing on renaming the local skating rink. This bill was released from committee and we should see action on it very soon. It is important that we continue to remember the Viet Nam Veterans who the rink is names after, but giving it the name also of Peter Foote will personalize the sacrifice that each one who served in Viet Nam made and that will amplify the remembrance of that sacrifice.

Finally, we will be delivering a check to the city of North Adams this week on the improved corridors to the city. This transportation money will improve the entry corridors to the city. This helps us in so many ways from looking nicer, better services for constituents, to improving our ability to attract businesses.