Power Line Communications Association 3rd Annual Conference

1
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
• Washington, DC
• December 11, 2003

2
Economic Indicators

• Thanks to the Presidents 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 SP 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.

3
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.

4
Growth of Telecommunications (Selected Markets)
Annual Percentage Growth of Revenues by Sector
Annual Revenues in Millions by Sector
Source Telecommunications Industry Association
5
Broadband Household Access
Source Leichtman Research Group as reported in
USAToday on11/14//2003.
6
Broadband Market Share(Residential Users)
Source Pew Internet American Life Project
(August, 2003)
7
Broadband Competition Heats UpAnd 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.

8
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

9
Functions of The National Telecommunications and
Information Administration (NTIA)

• Presidents Principal Adviser on
  Telecommunications and Information
  Policies/Agency of Commerce Department
• Authorizes Spectrum Use by Federal Agencies
• Operates Telecommunications Research Laboratory
• Participates with State Dept and FCC in
  International Telecommunications Activities
• Administers Telecommunications Grant Programs

10
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

11
Administration Successes in Opening Spectrum to
New Uses

• Third Generation (3G) Service
• Ultrawideband
• 5 GHz Spectrum
• 70/80/90 GHz

12
NTIA the BPL Challenge

• BPL could be a source of innovation and
  competition in the broadband marketplace.
• The central technical issue from NTIAs 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.

13
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.

14
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.

15
NTIA Studies (cont)

• NTIAs 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.

16
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.