1. FCC Internet Broadband Robert Cannon Senior Counsel for Internet Issues FCC Office of Plans and Policy Views expressed are mine and do not necessarily represent those of the FCC, the Commissioners, its staff, or my dogs.

2. Consumer Technology Adoption *3Q2001; Sources: ebrain.org; Telechoice, Cable Datacom News, DSL Prime (Household Penetration) CD Players PC Cellphone Color TV, VCR Broadband * Years

3. Percent Internet Use As compared to group Source: NTIA

4. Online Activities Percent Online Users Source: NTIA: A Nation Online

5. Value Proposition Telephony Long Distance Cable Broadband Telephony LD Video Internet $90 $75 Normal to be expected? Consumer learning curve Customer acquisition issues What’s the value proposition for consumers? What applications will drive demand? Residential or business Chicken and egg problem CD players needed CDs Game consoles need games What for broadband? What are bandwidth hungry apps? Residential, business, institutional Role of copyright holders

7. Conclusions Adoption and Deployment are Reasonable and Timely Don’t Assume What Consumer Want –Markets are good indicators of what consumers want –Don’t use regulation as a substitute for the market Don’t Impose Legacy Regulation on New Networks Prevent bottlenecks and anti-competitive behavior.

8. Open Proceedings Open Cable Internet NPRM Broadband NPRM Universal Service Reform Erate NPRM Incumbent Carrier Broadband NPRM Pending Interactive TV Computer III And More...

9. Thank You... Robert Cannon Senior Counsel for Internet Issues FCC Office of Plans and Policy rcannon@fcc.gov