There is no question new and emerging technologies are changing the industry landscape almost daily.  In an increasingly consumer-driven market, people are choosing technology products and services based on their needs. However, public policy has not kept pace with the rapidly evolving technology sector.

As an example, the Illinois Commerce Commission recently issued an order requiring digital subscriber lines (DSL) be deployed in particular parts of the state in order to boost broadband access.  No one argues with the goal of increasing access to high-speed Internet services, but why are policymakers – and not the market – mandating which technology best meets that goal?  Technology consumers, both individuals and businesses, should determine which technology suits their needs — whether it’s DSL, Wi-Max, satellite Internet, cable, IPTV, 3G or 4G mobile networks, or fiber-to-the-home services. 

Technologies could soon emerge that are cheaper and faster than current services.  Under the state’s ruling, businesses and consumers could be forced to pay more for an obsolete service. That’s not effective policy and it certainly does not encourage innovation.

The increasing shift of consumers to wireless-only telephone services is another example of where policy is falling behind technology innovation.  Nearly 25 percent of households in America are relying solely on mobile phones, a move that has been accelerated by the recession according a recent article in The Economist.  Consumers and businesses are shifting to emerging technologies to reduce costs and increase flexibility, yet some policymakers have proposed new fees for wireless users.  According to The Economist:

As the number of [land] lines goes down, the subsidy required to provide lines to remote locations and poor customers will have to rise.
[…]
The danger, says Mr Moffett, is that regulators will introduce new taxes on wireless and broadband services. Revenues from new services would then be used to keep an obsolete infrastructure alive—a recipe for lower growth. At that point, he says, the “wireline problem” really will be everyone’s problem.

We should be encouraging the expansion of popular, innovative technologies that consumers want, not imposing taxes on them to maintain older systems.  In 2010, Illinois lawmakers will debate many of these issues as they review legislation that oversees telecommunications in the state.     

The technology landscape has changed drastically since that legislation was approved in 2001.  Nearly 10 years ago, no one could have predicted the explosion of online content and services or the degree to which businesses and individuals depend on wireless and broadband access. 

Today, nearly every business is a “high-tech” business.   Illinois lawmakers help determine how much we pay for those critical services.  We have to make sure consumers maintain access to cutting-edge technologies at affordable prices.

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