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Tia2015 Playbook TIA2015 PLAYBOOK An overview of the ICT market, technologies, and policies that drive innovation and investment TELECOMMUNICATIONS INDUSTRY ASSOCIATION TIA Key Contacts For more information on TIA’s public policy positions and activities, Other departments: please contact one of the TIA government affairs staff members below: FRANKLIN FLINT SCOTT BELCHER AVONNE BELL Chief Technology Officer Chief Executive Officer Senior Manager, +1.703.907.7703 +1.703.907.7702 Government Affairs [email protected] [email protected] +1.703.907.7711 [email protected] PATTY HIGGINBOTHAM MARK UNCAPHER Senior Vice President & Director, Regulatory & DAVID GRAY General Counsel Government Affairs Associate, Government Affairs +1.703.907.7722 +1.703.907.7733 +1.703.907.7710 [email protected] [email protected] [email protected] JOHN JACOBS BRIAN SCARPELLI Vice President, Market Development Director, Government Affairs & Industry Relations +1.703.907.7714 +1.703.907.7747 [email protected] [email protected] DILEEP SRIHARI TALY WALSH Director, Legislative & Vice President, Marketing, Government Affairs Networking & Intelligence +1.703.907.7715 +1.703.907.7744 [email protected] [email protected] TELECOMMUNICATIONS INDUSTRY ASSOCIATION TIA Timeline 2007 COMPETES Act Increases Funding 1996 2002 for R&D in Areas Identified by TIA Telecom TIA and 1934 TIA Is Established Act Member 2011 as a Part of Passed by Companies USF’s Annual $9 Billion Transitions to Fund Electronic Industries Congress Key to Broadband After 7-Year TIA Advocacy Effort Alliance Unbundling of Telecom 2014 LOOKING FORWARD: j Networks NIST Cybersecurity Incentive Auctions Framework Released, j Telecom Act Rewrite Incorporating TIA j Internet of Things Policies in Guidelines j 5G 2003 2015 TIA Develops TIA Strongly Opposes Onerous Title II Connectivity Regulatory Approach Proposed by FCC Principles 1994 (Basis of 2012 CALEA Passed Succeeding Spectrum Bill Passed, TIA by Congress and Net Neutrality Benefits from Incentive Auctions & 1992 TIA Standard Principles) Nationwide Public Safety Network CDMA2000 for Compliance Through Standard Created High Tech 2009 Initiated Broadband TIA Successfully Advocates for $7.2 Billion at TIA Coalition Toward Broadband Through Stimulus Bill (HTBC) TIA 2015 PLAYBOOK 1 TELECOMMUNICATIONS INDUSTRY ASSOCIATION Innovation Drives Jobs and Economic Growth j ICT COMPANIES ACCOUNTED for 3.5 million jobs, with average compensation for ICT workers more than 80 percent higher than for the workforce overall. j ICT FIRMS CONTRIBUTE about $1 trillion to the U.S. GDP through both direct and indirect contributions — about 7 percent of the U.S. economy. j ICT’S DIRECT CONTRIBUTIONS to GDP have increased nearly 25 percent since the 1990s, growing from 3.4 percent per year in 1991–1993 to an average of 4.2 percent per year in 2005–2009 — gains unmatched by any other industry. j THE USE OF ICT INCREASES THE PRODUCTIVITY OF THE BROADER U.S. ECONOMY. Firms that use ICT effectively grow faster, invest more, and are more productive and profitable. According to the World Bank, businesses that use ICT effectively have 3.4 percent higher sales growth and 5.1 percent more profitability than businesses that do not. 2 TIA 2015 PLAYBOOK TELECOMMUNICATIONS INDUSTRY ASSOCIATION TIA Innovation Agenda DRIVE INVESTMENT ACCELERATE GLOBAL ENABLE FORWARD-LOOKING THROUGH: COMPETITIVENESS THROUGH: TECHNOLOGIES WITH: j Internet j Market Access and j Tax Reform [17] Ecosystem [4] Trade [9] j Research and j Broadband [5] j Standards and Intellectual Development [18] Property Rights [12] j Spectrum j Global Cybersecurity [20] Availability [8] j Device Approval [13] j Green ICT and Smart Grid [21] j Accessibility [14] j Intelligent Transportation j Public Safety Systems [22] Communications [15] j Health ICT [16] TIA 2015 PLAYBOOK 3 AGENDA | INVESTMENT Internet Ecosystem GOVERNMENT SHOULD ENSURE UNIFORMITY CONSUMERS’ ABILITY TO CONNECT to and as Congress considers a Communications Act access content and services over the Internet legislative re-write, including: should be preserved: j ENDING TECHNOLOGY SILOS for services j NET NEUTRALITY PRINCIPLES adopted by the to reflect the reality of intermodal competition; FCC a decade ago have proven effective; j PROMOTING COMPETITION with rules that j LIGHT TOUCH REGULATION has fostered encourage competition among existing and innovation, broadband deployment, emerging platforms and providers; competition, and investment; and j TECHNOLOGY NEUTRALITY, with rules focused j HEAVY HANDED UTILITY STYLE REGULATION on the services performed, not the tools used to of broadband service providers is not necessary do so; and and stifles innovation. j EXCLUSIVE FEDERAL JURISDICTION for IP-services. 4 TIA 2015 PLAYBOOK AGENDA | INVESTMENT Broadband Goals & IP Transition THE IP TRANSITION IS ONGOING. TIA calls on the Administration, Congress, and other government bodies to adopt a framework for next-generation broadband that supports the following: j UNIVERSALLY AVAILABLE, high-quality, and j LIGHT-TOUCH, MARKET-BASED REGULATIONS affordable broadband connectivity for rural and as well as certainty in the marketplace will hard-to-serve places, using public universal ensure continued investment in a technology- service funding where necessary. neutral manner. j ENCOURAGING INVESTMENT in network j TECHNOLOGY MANDATES by the government infrastructure, allowing the market to reflect hamstring innovation and increase consumer consumer choice, and accelerating broadband costs. user access speeds. 76.6 71.4 VoIP Share of Residential Subscribers 65.7 Business Subscribers 59.5 Residential and 53.4 47.1 Business Telephone 41.6 40.5 36.3 Lines in the U.S. 33.8 30.9 28.0 25.3 (Millions) 20.1 15.4 Source: TIA’s 2015-2018 8.4 11.3 ICT Market Review and 6.2 Forecast 2010 2011 2012 2013 2014 2015 2016 2017 2018 TIA 2015 PLAYBOOK 5 AGENDA | INVESTMENT Broadband Penetration Broadband Penetration of the Population, 2014 (Percent) THE U.S. CONTINUES TO LAG Source: TIA’s 2015-2018 ICT Market Review and Forecast BEHIND OTHER DEVELOPED Switzerland NATIONS in broadband Denmark penetration. Netherlands South Korea j ALTHOUGH PENETRATION France ROSE TO 30.73 PERCENT IN Iceland 2014, topping 30 percent for Belgium the first time, its 17th ranking United Kingdom Norway remained the same as in 2013. Germany j Canada THE U.S. MUST NOT BE Luxembourg OUTPACED by major trading Malta partners in deployment of Finland cutting-edge technologies and Sweden networks. Hong Kong UNITED STATES j LACK OF BROADBAND New Zealand CONNECTIVITY inhibits job Belarus Japan creation in the U.S. 0 10 20 30 40 6 TIA 2015 PLAYBOOK AGENDA | INVESTMENT Infrastructure Spending THROUGH ECONOMIC AND REGULATORY INCENTIVES for network deployments and upgrades, the U.S. Government can stimulate investment in next-generation broadband infrastructure. j THE U.S. MUST j TAX POLICIES SHOULD BE j THE U.S. MUST CONNECT ENACT PERMANENT IMPLEMENTED THAT WILL STUDENTS AND LIBRARY TAX INCENTIVES FOR DRIVE INVESTMENT IN USERS to the benefits of more INNOVATION, which will BROADBAND through tiered tax robust broadband by increasing allow companies to make incentives that accelerate as the technological flexibility for long-term research plans speed offered by such service E-rate program participants, while being assured that the increases, recognizing differing coupled with greater incentives incentives will continue for tiers and floors depending on for efficient and economical the life of the project. the technology deployed. investment decisions. Access Infrastructure Equipment Spending in the U.S. by Category ($ Billions) Cable is the Source: TIA’s 2015-2018 ICT Market Review and Forecast principal fixed 3.5 broadband access n DSL n Cable Modem n FTTH 3.0 platform but fiber- 2.5 to-the-home is 2.0 rapidly catching up. 1.5 By 2018 there will 1.0 be nearly as many 0.5 FTTH subscribers 0 as cable modem 2010 2011 2012 2013 2014 2015 2016 2017 2018 subscribers. TIA 2015 PLAYBOOK 7 AGENDA | INVESTMENT Spectrum Availability and Management GOVERNMENT SHOULD ADOPT FORWARD-LOOKING, market-oriented spectrum policies, including further reallocations of federal spectrum for mobile broadband services, flexible regulations, and improved spectrum management. j BUDGETARY INCENTIVES AND A LONG-TERM PLAN that supports predictability and a stable regulatory environment for commercial and government uses will encourage more efficient use of spectrum. 45,250 j SPECTRUM ALLOCATION AND ASSIGNMENT decisions should be made by market-driven, open, and transparent processes involving government/industry consultation. j THE VOLUNTARY INCENTIVE Wireless Data Traffic in the 30,130 AUCTION should maximize the U.S. (Millions of Gigabytes) amount of spectrum available Source: TIA’s 2015-2018 ICT Market Review and Forecast for licensed mobile services, 19,150 and the FCC should continue its efforts to attract the greatest 11,830 possible number of broadcast 7,040 participants. 3,230 388 867 1,468 2010 2011 2012 2013 2014 2015 2016 2017 2018 8 TIA 2015 PLAYBOOK AGENDA | GLOBAL COMPETITIVENESS Market Access and Trade MARKET ACCESS AND TRADE — Securing access to international markets can be achieved by promoting trade liberalization and policies that are market-based and technology-neutral. j ENHANCING TRADE LIBERALIZATION AND EXPANDING TRADE can FTA Shares of U.S. be achieved in 2015 by prioritizing the conclusion or advancement Telecommunications of ongoing trade negotiations and Congressional renewal of Trade Equipment Trade, 2013
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