Government Intrusion Threatens Future Technological Innovation

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Government Intrusion Threatens Future Technological Innovation

By Americans for Tax Reform | 10/04/09 | 03:23 PM EDT | 2 Comments

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Only a week after President Obama’s newly-appointed FCC Chairman, Julius Genachowski, announced his plans for government regulation of the internet, a study by the network planning consultancy AIRCOM International revealed the cost of an upgrade to LTE (or 4G) telecommunication technology could be as much as $1.78 billion for a tier one US operator in the first year. When implemented, this technology will significantly increase broadband speeds for consumers, and allow for significant improvements in speed and quality.

This clearly should not provide a problem for companies, who have invested over $850 billion in the last ten years to development viable broadband across the country, and are expected to invest an additional $300 billion through 2012 if they believe they can recoup their investments. Clearly the free market is working, and companies keep coming up with innovative, flexible approaches to recoup their costs and provide the best value services to customers.

Unfortunately, if Genachowski gets his way and is allowed to begin regulating the internet, and micro-managing telecommunication operators, network operators won’t be able to turn a profit from their investments in infrastructure because they can’t manage their own networks. So they just won’t build the infrastructure. And Americans will miss out on the quality services they would have received had the government not intervened.

As Americans for Tax Reform stated in an earlier submission to the FCC: “In order for free-market models to provide for the further development of broadband access, it is absolutely critical that government intrusion not prevent private capital from recouping its investment. If private capital becomes convinced that its ability to recoup its investments is less likely, it will be less likely to make the significant investments in broadband that is the very goal of this FCC inquiry.”

The free market has allowed the internet to flourish and proper for the last 20 years. It is sheer folly now to crush it under the cold dead hand of government.

2 Comments | Related Topics »National

Comments

Killing incentice for

Killing incentive for innovation is a by-product of big government. This comes as no surprise.

Submitted by Toni on Sun, 10/04/09 - 03:49 PM »

What Will it Take?

Dear Americans for Tax Reform, ok, you wrote the obvious in this article.

The problem I have with the article and the slow pace of advancement the independents and republicans and American people in general are making, is this,.,. we all know the content of your article already, but the democrats and those who voted for this bumbling idiot of a president don't get the message. I mean we've got record unemployment and devastation in every State of the Union and millions of Americans cannot afford to feed their families--and the president--with 24/7 5-star chefs at his beck and call in the White House--so what does he and his wife do? They show off to those of us who are footing the bill by going out to a so-called Wedding Anniversary dinner, just the two of them, ahhhhhh, swoon, then puke. This guy just does not "get it."

Today, Sunday none of the major three networks mentioned the word "Chicago." None mentioned the embarassment and arrogance of our White House and its representatives and their immature actions abroad. When Europe says America is Censored, now I know what they mean. The entire world is talking about what happened in Copenhagen, that is, except America. We have a news black-out.

In your opinion, that is, in the opinion of ATR, what the hell do you think its gonna take to get all those who still support this president and the democrats that are in congress, to, well, "get it"?

Submitted by Anonymous on Sun, 10/04/09 - 10:06 PM »