House Small Business Committee Watching FCC Internet Debate
"Small businesses have much at stake” in the way network neutrality plays out at the FCC, said Chairwoman Nydia Velazquez, D-N.Y., of the House Small Business Committee. But at a hearing Wednesday, small-business executives touched only lightly on the matter. Most instead emphasized the need for continued government support for broadband deployment and adoption efforts.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
"It is vital that the Internet remain a platform where free speech and new ideas flourish -- and consumers can connect with whomever they choose, while accessing services of their choice,” said Velazquez. FCC Chairman Julius Genachowski’s proposal last week to affirm the commission’s broadband regulatory authority is “aimed at preserving this freedom, without discouraging investment in our nation’s broadband infrastructure,” she said. “In coming weeks, the strengths and weaknesses of this initiative will receive significant consideration,” and what’s decided could affect small businesses, Velazquez said.
Small-business officials offered mixed opinions about possible net neutrality rules. Policymakers must be cautious making rules because there’s a “tremendous risk for unintended consequences,” said Synteractive CEO Evan Burfield. Government should “steer clear of foreclosing” business opportunities for small companies, he said. But Revenue Spark CEO Steve Messere said his business would be hurt if an ISP limited the company’s ability to use Skype or other online tools important to its business. BeSafe CEO Tom McDonald said “the rules of the road” must be clear, because uncertainty could stifle investment. “We don’t want today’s solutions to cause tomorrow’s problems,” he said.
Most of the hearing concerned deployment and adoption. The National Broadband Plan may accelerate broadband rollout and encourage small businesses to adopt, Velazquez said. “Internet services are not as widespread as we'd like to think,” said Ranking Member Sam Graves, R-Mo. Building broadband to rural areas will spur economic development there, he said.
Witnesses urged continued government support for broadband and digital literacy education. BeSafe’s business “survival is really dependent” on the continuing growth of broadband in the U.S., said McDonald. The company uses broadband to provide real-time, site-specific information to first responders. Law enforcement agencies and other customers of CrimeReports.com want new bandwidth-intensive reporting apps, but the company is limited by technology, said CEO Greg Whisenant. “Although the invisible hand will solve many of these problems over time, we can move the needle in a meaningful way with a vision of where we are heading and a concerted effort to get there."
Broadband is the “linchpin” for creating the future success of small businesses, Burfield said. With the help of cloud computing, Synteractive and its partners helped build Recovery.gov in less than 10 weeks for about $6 million, he said. “To build a platform like Recovery.gov 10 years ago would have been a $100 million effort and would have, by its very nature, been done by a company like IBM or Lockheed Martin."
If small businesses had to choose between telephone service and broadband Internet, many “would choose the Internet without hesitation,” said Messere. Revenue Spark is a “virtual company,” since it does “almost everything via telecommuting,” he said. Cloud computing “means that instantaneous cooperation is now possible between different individuals regardless of where they might be located,” he said. Telecommuting has enabled the company to “put recently displaced people back to work” because they're not limited by geography, he said.
"Access to the Internet is our business,” said Urban Agent Team co-founder Lindsay Dofelmeier. “Without the existence of broadband and social media, Urban Agent Team would not exist.” The real estate company uses Internet technologies to enable communication and collaboration between agents and to serve customers. The company doesn’t have a central office, so having access to high-speed broadband everywhere is key, she said. Acting on the National Broadband Plan and rolling out digital literacy efforts for small businesses will “fuel job creation and economic growth,” she said.
Small-business committees in both houses of Congress have staked claims to the FCC’s National Broadband Plan. Senate Small Business Committee Chairwoman Mary Landrieu, D-La., held a hearing last month (CD April 28 p7) and plans a public roundtable Thursday morning with small business owners.