# Presentation: 522774

##  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](http://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

- Annual Percentage Growth of Revenues by Sector

*Source:  Telecommunications Industry Association*

## Broadband Household Access

- Source: Leichtman Research Group as reported in USAToday on11/14//2003.

## Broadband Market Share(Residential Users)

- 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.