1. Decisions that Lead to the Internet and Wireless Boom Draft 2.19.11

2. Communications was very different. It was only by voice and only over a wire. And videos one saw were only those who were able to get on by permission of the cable industry. But there were seedlings of a new hope; better mediums to serve all Americans. It wasn’t, however, going to be easy for those services—wireless and internet---to reach their potential given the desire of existing providers to control them. Their impact was not inevitable. It required decisions that gave those services the ability to grow, innovate and challenge the existing order. Decisions like……

3. Clinton Budget Act Authorizes Spectrum Auctions Provides way to accelerate wireless build-out Administration privatizes Internet and adopts non-governmental, multi- stakeholder governance Structure standardizes platform to enable innovation from all; no permission necessary FCC implements program access rules New competition to cable causes cable to invest in new competitive advantage over DBS: Broadband 1993 Wireless Internet

4. FCC designs and holds spectrum auctions Process more than doubles number of competitors; stimulates investment boon FCC deregulates wireless prices; preempts state regulation Prices start 10 year drop; increases investment in sector FCC deregulates technology standard for 2G wireless service Creates innovation in wireless chips; accelerating 3 and 4G service and leading to growth of Qualcomm and other innovators in US 1994

5. FCC rejects phone company effort to impose terminating access charges on internet traffic With US consumers, unlike European consumers, not focused on time spent, powers growth of internet applications and services in US Administration adopts position of no taxation on Internet services Enables Internet entrepreneurs to gain foothold 1995

6. Under ’96 Act, FCC requires unbundling Rules lead to increased DSL and ISP competition Under ’96 Act, FCC creates program to connect all classrooms Enables poor schools to keep pace with rich schools in utilizing internet resources Under ’96 Act, FCC ends punitive wireless to wired terminating access charges Enables large bundles—the first being AT&T’s One Rate—that sparks massive wireless subscriber uptake FCC sets hard deadline for DTV transition of 10 years Instead of the prior plan of spectrum becoming available in 2023, at the earliest, spectrum becomes available in time to become the footprint for 4G in the US 1996

7. Administration and FCC lead effort that results in new WTO Telecom Agreement Exports regulatory ideas that enable growth of wireless service Administration and FCC lead effort that results in new WTO Telecom Agreement Exports regulatory ideas that enable growth of internet services FCC opposition leads SBC and AT&T to stop merger talks Leads to new investments in new competitive networks instead of premature consolidation 1997