Remarks of Commissioner Deborah Taylor Tate

"Convergence and Connectivity"

Global Forum 2007

"Global Convergence 2.0: Integration and Innovation"

As Prepared

Thank you, Miriam, for the opportunity to be here today in Venice, a
perfect venue for a conference on convergence and innovation. It is said
that this city was never a blank slate. Rather, it was built from
remnants of cities -- a convergence of Roman arches and statuary,
Moorish windows, facades from Constantinople, timber from the alpine
forests of the northern Balkans, carved friezes from Greek temples,
Istrian stone for facings, and glass made locally in Murano. Venice, the
"City of Bridges," truly served as a bridge linking Western Europe with
very different cultures, like China, the Byzantine Empire, and the
Islamic World. This city's famous citizen, Marco Polo, knew something
about communicating across cultures, which spawned commerce and trade
that generated wealth and financed great achievements in art,
architecture, literature, and music. We, too, seek to spawn new
developments in some of the most exciting technologies of our time, and
this forum is an ideal means to do so.

The schedule worked perfectly, as after this Global Forum I will be on
my way to Geneva for final negotiations at the World Radio Conference,
discussing issues such as the spectrum allocation for 3G and 4G
services. The rules adopted there will allow new services to enter the
market and will also protect incumbent services from interference, and
they are coordinated by countries from around the world. Again,
reiterating what a converged and connected world we now inhabit.

I congratulate you, Miriam, along with Sylviane Toporkoff and Sebastien
Levy, for arranging these continuing dialogues. I also wish to thank
Mayor Massimo Cacciari for opening this event, and the Fondazione
Giorgio Cini for hosting us. As I meet with my counterparts from all
over the world, I am reminded that our countries share so many issues.
In the past few months, I have met with colleagues like Chairman Shehadi
of the Lebanon Telecommunications Authority, who is trying to rebuild
the infrastructure of his beautiful land; negotiated bilaterals with
Vice Minister Xi of the Chinese Ministry of Information Industry at the
State Department in Washington; spent 3 days in in-depth discussion with
Anatel and the Ministry of Communications in Brazil; and last Friday
hosted Professor Alexandridis, the President of Greece\'s Hellenic
Telecom & Post Commission. In our conversations, both official and
personal, we shared themes of developing our economies in an
increasingly competitive and globally interconnected environment, and
adopting policies that incentivize and encourage the development of new
technologies. In the U.S., for example, we are committed to our
monumental DTV transition, across our entire nation, all in one day.
This will enable us to make available 100 megahertz of spectrum in the
valuable 700 MHz band for new and innovative uses that hold much promise
for devices, for providers, and most importantly, for consumers. In
addition, we have established rules for a nationwide broadband network
for public safety first responders who with each national disaster
realize the limitations of our present fragmented system and the crucial
need for interoperability.

It is truly appropriate that this year's Global Forum discusses
innovation and convergence in the same context. Innovators constantly
engage in what the economist Joseph Schumpeter called "creative
destruction" -- destroying entrenched business models and technologies
through some innovative vehicle to create value, whether in goods or
services, for consumers. At the same time, certain technologies are
converging, allowing us to do more things with the same wire or radio
waves, or with the same device -- whether communication with family,
sharing in-depth research with a colleague halfway around the world, or
for entertainment, such as a movie theater that now resides in the palm
of your hand, or a mobile communications device that is a personal
banking institution.

Several of the implications of disruptive technology are of particular
import to me personally, and I am spending a lot of time in the U.S. and
abroad discussing these issues. Three I would like to focus on today
include (1) Promoting the deployment of broadband service to all our
people, especially in our most rural and remote areas; (2) Protecting
our children through Internet safety; and (3) The War on Piracy.

**Access to Broadband**

Connecting to the Internet at broadband speeds means connecting to the
world -- *literally*. The Internet can, with the click of a mouse, take
our children on an educational adventure -- to the Louvre or the Library
of Congress, on an exploration of the Great Barrier Reef or the Great
Wall of China. It can help promote civic participation by adults, and
access to healthcare for families. Access to the Internet at broadband
speeds can increase workers' productivity, which makes us all wealthier
-- individuals, firms, and societies.

The market to provide broadband service is changing every day, due to
endless innovations in communications technology by different types of
providers. This makes it all the more important for those of us in
government to practice regulatory humility and not assume we can pick
the best technology or service. In the U.S., we have opted for a light
regulatory touch for broadband service provided over cable systems,
telephone lines, power lines, and wireless platforms, which helps ensure
what we refer to as a level playing field -- or equality of regulation
-- among competing providers, no matter the technology or business
model. A light regulatory touch promotes vigorous competition, and last
year the number of broadband connections by all these competing
providers increased by 61 percent, to a total of 82.5 million lines.

Each platform competes in unique ways. For example, telephone companies
and cable companies seek to offer services -- wireline voice, wireless
voice, video, and high-speed Internet access -- with triple-plays and
quadruple-plays that include a broadband component. We have provided
regulatory relief to traditional telecom companies to add multi-channel
video to compete with cable, and they are doing so -- AT&T with U-verse
and Verizon with FiOS, which I am sure you will hear more about at the
conference. Cable companies are competing with telecom companies by
adding voice service -- most often VOIP -- and cable already has 32
million broadband connections. As providers build bigger pipes, access
to high-speed Internet service grows even faster and hopefully more
affordable.

Using wireless transmissions, satellite service providers offer
broadband and, increasingly, so do terrestrial wireless service
providers. In the U.S., we estimated there were about 23 million
*wireless* broadband connections last year, counting satellite and
mobile devices, and I hope we will observe an even greater increase for
2007.

The convergence of wireless technologies is especially exciting in the
U.S., where our technology-neutral approach to policy has allowed CDMA
and GSM to compete head-on. This competition has produced dramatic
results, with wireless providers employing a quarter million people and
generating annual industry revenues well over \$100 billion. Most
notably from this competition, there are over 240 million mobile
subscribers in the U.S. who use over *two trillion* minutes every year.
As these mobile technologies compete to offer Internet access with, for
example, EDGE and EV-DO, we see a convergence in which more functions --
such as authentication and network security and quality of service --
can be handled at the network level. This convergence will make
interoperability easier, lower costs, and facilitate improvements to
network design.

Much has been written about WiMax, from the potential for another "last
mile" broadband connection to the home, to fast connections that may
reach 20, or 50, or even 75 mbps. Two providers, Sprint-Nextel and
ClearWire, have committed to building a WiMax network sufficient to
cover 100 million Americans by the end of 2008. Given the departure of
the Sprint-Nextel CEO, we are awaiting updates regarding the timeline
and continued commitment to the incredible advancement and possibly
3^rd^ pipe for American consumers. And let's not forget WiFi, the
technology of choice for coffee shops and community centers around the
world. Best of all, the type of technology no longer matters in this
world of convergence; we communicate and connect in cyberspace.

**Public-Private Partnerships**

I also would like to highlight another type of convergence today, and
that is a convergence of interests -- public, private, global, and local
-- dedicated to providing greater access to broadband communications.
This convergence is leading to new collaborations. It moves beyond
government simply writing a check to a service provider or issuing
requirements that providers expand into particular areas. Rather, one of
the most innovative and effective solutions in the U.S. has been through
public/private partnerships. One example is Connected Nation, a
non-profit group that coordinates governments, communities, businesses,
and service providers to identify supply and demand conditions and
tailor services to unmet needs. Through GIS mapping of areas without
access to broadband, this effort outlines a "business case," identifies
barriers to consumer adoption, and helps develop plans for broadband
expansion. In the State of Kentucky, which is approximately the size of
South Korea and has almost half of its population living in rural areas,
a local public/private partnership, "Connect Kentucky," envisions 100
percent broadband coverage of the entire state by the end of this year.
My home state of Tennessee recently launched "Connect Tennessee," and
there are other examples where cities, local mayors, communities and
even neighborhoods are leading efforts to attract broadband providers
rather than waiting on a government program. This is truly what
democratization of the Internet means. Most public policy issues are
never solved entirely by the government. That is why I generally believe
in market-based solutions and in creative approaches, such as
public/private partnerships, which converge at the intersection of
technology (GIS mapping), consumer needs, and proven business models --
all of which is "in the public interest."

**Protecting our Children**

I also want to briefly address an issue that more leaders are
recognizing every day. As we work to deploy broadband and access to the
Internet to every family in America, we also must recognize and educate
our citizens regarding the potential dangers of the Internet to our
children. Just as the Internet can transport our children to the Louvre
or the Library of Congress in a mouseclick, so can it take them to the
back alleys of abuse and sexual exploitation. In fact, one in seven
youth between the ages of 10 and 17 in the US has been sexually
solicited online. Parents need to be just as aware of the dangers in
their online world as they are in their offline one.

I am pleased that many companies have made important efforts to help in
this effort, including starting education and outreach campaigns to
teach parents about the tools that are available to protect their kids
online. For example, cable companies hosted a "teen summit" with Miss
America to reach teens by video. The Entertainment Software Association
recently hosted a Congressional forum on Capitol Hill, and nonprofit
groups such as Common Sense Media have partnered with Internet service
providers to offer ratings systems and blocking tools. To reach young
children, the Internet Keep Safe Coalition has developed animated
programs and a mascot to teach online safety. The National Center for
Missing and Exploited Children also has developed a variety of resources
for both parents and kids, such as NetSmartz, an award-winning
interactive educational program.

Now that wireless devices are being marketed to children as young as
six, I have encouraged the wireless industry to be part of the solution
as well. I have been working with Microsoft, Google, CTIA, and some of
the largest wireless carriers about their particular solutions to this
critical issue. I encourage you, in your leadership positions, to do the
same. And let me be clear. This is not about censorship. It is about
illegal activities online -- child solicitation and worse -- that are
criminal. We as government leaders along with law enforcement officials
have addressed issues that have already arisen in cyberspace, such as
financial fraud and identity theft. Now we must begin applying this
expertise to child protection. I welcome and encourage these efforts.

**War on Piracy**

Finally, a real world example of disruptive technologies causing angst
to my heart is the problem of piracy, *especially given that I am from
Nashville -- Music City USA.* Like Nashville, Venice is home to great
music -- opera. It was here that opera expanded beyond control of the
nobility and the courts and garnered support with publicly attended
performances. From Monteverdi to Verdi to Puccini and those who perform
their works, Venice helped make them stars, the prima donnas. Thus, it
is appropriate that Venice would be the place to call upon you, the
leaders gathered here, to help preserve the music, the art, the stories
for centuries to come.

While technology has enhanced our ability to distribute and share more
music and art than ever, and at faster speeds, it also has allowed
pirating and counterfeiting of great works -- our music, our movies, our
songs, and our stories. In the U.S., piracy and counterfeiting cost the
economy up to *\$250 billion* annually across all industries -- from
movies and music to software, retail, auto parts, and pharmaceuticals.
Ask Disney or Ralph Lauren or Lilly what is their number one issue and
it's the same: piracy. Nor is this just an American malady. It is
affecting *your* designers, *your* artists, and *your* cultural gifts to
the world. Just as we would not allow an individual to walk in and steal
a painting from the Gallerie dell'Accademia, we cannot allow this to
continue unchecked.

When I recently visited Brazil, I brought country music cds as gifts. I
also said this gift is a personal request for you to do all you can as
leaders to stop the 1.3 billion illegal downloads in Brazil each year. A
few weeks later, the American Chamber hosted a forum on piracy, and I
hope that this is a first step in cracking down on this illegal
activity. Just as I have asked for help from the brilliant creative
minds in software giants in the U.S., I ask for your help here today as
well, as we all do what we can to protect these precious treasures for
future generations.

**Conclusion**

In closing, we should remember that technology speaks a language of
peace, as did commerce, a lesson taught seven centuries ago by Marco
Polo. This language is understood across cultures and respected for its
tremendous ability to connect us in new ways -- from e-commerce,
e-government and e-911 alerts, to access to educational and healthcare
and the "virtual" jobs of the future. But ensuring that the advances in
technology continue -- and that they serve all of us, especially our
children -- requires a global dialogue in this shared language. I look
forward to staying connected with many of you as we work together to
address the exciting challenges that convergence has presented, in order
to embrace all its potential and possibility for innovation, for our
economies, and for future generations.