Transcript Power Line Communications Association 3rd Annual Conference & Strategic Business Briefing

Power Line Communications Association
3rd Annual Conference &
Strategic Business Briefing
Keynote Speaker Session:
Michael D. Gallagher
Acting Assistant Secretary for Communications and Information
U.S. Department of Commerce
National Telecommunications and Information Administration
www.ntia.doc.gov
Washington, DC
December 11, 2003
Economic Indicators
Thanks to the President’s policies, America is once again
growing robustly:
 “Real” personal consumption expenditures rose 6.4
percent in the third quarter this year compared to a 3.8
percent growth rate in 2Q 2003.
 “Real” GDP grew at an 8.2 percent annual rate during
the third quarter.
 The manufacturing sector enjoyed a 9.0 percent
increase in productivity in the 3Q.
 This year, the S&P 500 is up over 20 percent.
 The Nasdaq Composite is ahead 42 percent.
 The President will not be satisfied until every American
who wants a job has a job.
Administration Commitment to
Technology Development
"The role of government is not to create
wealth; the role of our government is to
create an environment in which the
entrepreneur can flourish, in which minds
can expand, in which technologies can
reach new frontiers."
-- President George W. Bush, Technology
Agenda, November, 2002.
Growth of Telecommunications
(Selected Markets)
Annual Revenues in $ Millions by Sector
250
250000
200
200000
150
150000
$ Millions
Percent
Annual Percentage Growth
of Revenues by Sector
100
50
100000
50000
0
2000
2001
2002
High-Speed Internet
0
2000
2001
Wireless Services
High-Speed Internet
Wireless Services
Spending on Services in Support of Voice & Data Comm. Equip.
Spending on Services in Support of Voice & Data Comm. Equip.
Source: Telecommunications Industry Association
2002
Broadband Household Access
25
22.7
20.7
19.1
20
Households (millions)
17.2
15.4
15
13.7
12.3
10
5
0
Q1-2002
Q2-2002
Q3-2002
Q4-2002
Q1-2003
Source: Leichtman Research Group as reported in USAToday on11/14//2003.
Q2-2003
Q3-2003
Broadband Market Share
(Residential Users)
Wireless
3%
Other
4%
DSL
34%
Cable
Modem
59%
Source: Pew Internet & American Life Project (August, 2003)
Broadband Competition Heats Up
And Prices Come Down

May 2003: Verizon boosts broadband speed to 1.5
mbps and lowers its price to $29.95 per month as part of
a package.
“We expect . . . to win new business among customers
using competing technologies and to open a new market
among the millions of consumers who have yet to
purchase broadband services."

December 2003: SBC markets its SBC YAHOO! DSL
service through 2000 retail outlets for $26.95 per month
as part of a package.
“The [SBC] companies are innovators in expanding the
reach of DSL . . . through an aggressive expansion plan.”
Voice Over Internet Protocol (VOIP)


VOIP is like gravity – it is an irresistible force
•
10% of international minutes were IP in 2002; projected to be more than 50% by
2007 (Probe Research 2002)
•
About 1 billion business phone lines worldwide were IP by the 2Q 2003, or about
12% of the total; numbers are projected to be approx. 1.8 bill. (17%) by year end
2003. (Wall St. J., Oct. 9, 2003)
VOIP Could Increase Competition in Equipment and Services
•

Business spending on IP phone equipment worldwide more than doubled
between 2002 and 2003 to approx. $1 bill. (nearly 20% of all business phone
equipment purchases). (Id.)
Need sound regulatory approach to VOIP – should not be a “grey
market” service
Functions of The
National Telecommunications and
Information Administration (NTIA)

President’s Principal Adviser on Telecommunications and
Information Policies/Agency of Commerce Department

Authorizes Spectrum Use by Federal Agencies

Operates Telecommunications Research Laboratory


Participates with State Dep’t and FCC in International
Telecommunications Activities
Administers Telecommunications Grant Programs
Spectrum Policy

Spectrum Policy: The who,
what, where, when, and
why of access

Great potential for government
action towards a positive effect
on economic and national security

NTIA and FCC share joint jurisdiction over spectrum
• NTIA authorizes use by Federal Government Agencies
• FCC authorizes all other spectrum use, by license or by license exempt
operation
• NTIA and FCC work together to determine national and international
allocations
Administration Successes
in Opening Spectrum
to New Uses

Third Generation (3G) Service

Ultrawideband

5 GHz Spectrum

70/80/90 GHz
NTIA & the BPL Challenge

BPL could be a source of innovation and competition in the
broadband marketplace.

The central technical issue from NTIA’s viewpoint is the risk that
BPL systems might interfere with federal government radio
communications or other private users that are important from a
national perspective:
• FCC Part 15 rules establish a means to accommodate unlicensed
devices in balance with the risk of harmful interference to authorized
radio services.
• The Part 15 rules require operators to eliminate harmful interference.
• Therefore, BPL operators have an incentive to design and operate their
systems to avoid such interference.
NTIA Concerns

Range of interest for BPL is 1700 kHz to 80 MHz frequency range.

At these frequencies, signals bounce off the ionosphere and can travel
great distances, thus increasing the potential for interference.

There are over 80,000 assignments for Federal Government operations in
this range.

National emergency response, law enforcement, search and rescue, and
aeronautical and maritime operations are supported, among others.

At some frequencies, certain operations, e.g., distress and safety, require
and are entitled to special protection.

In principle, efficient interference mitigation procedures can enable higher
risk tolerance.
NTIA Studies

NTIA is studying interference risks and potential means
for making risks more tolerable:
• Risk is controlled by Part 15 “field strength” limits and
compliance measurement procedures.
• Risk tolerance is established by the technical and operational
nature of the radio communications operations.
• Objective is to accommodate BPL with acceptable risk.

Over 10 million BPL signal samples have been
measured to define the signals radiated by BPL systems.

Numerous variants of BPL deployments have been
modeled to further characterize potential BPL emissions.
NTIA Studies (con’t)

NTIA’s Phase 1 report will address potential local interference
involving overhead power lines:
• Will recommend radiated emission limits, compliance measurement
procedures, and other authorization conditions.
• Anticipate completion and filing with FCC filing this Winter.

Phase 2 will further address these and other BPL aspects and
should be completed in mid-2004:
• Potential long-distance interference from large scale, mature
deployments of BPL systems;
• Underground and indoor wiring.
Conclusion





The American economy is growing.
Broadband is an important and growing part of the
economy.
The Administration has developed successful policies to
advance broadband, including successful radio spectrum
policies.
BPL could be a source of innovation and competition.
The Administration is addressing the balance between
accommodation of BPL and protection of vital federal
and private services.