FCC Chairman: The U.S. broadband economy is strong and growing

The Internet is the bright spot in the U.S. economy, said Federal Communications Commission chairman Julius Genachowski at a speech, “Jobs And The Broadband Economy” to the online coupon/deal site LivingSocial (Sept. 27, 2011).

Genachowski acknowledged that things are difficult for many. “Millions of Americans are struggling,” he said. “More than half of U.S. families include someone who has been unemployed during the downturn.” At the same time, he noted that “the U.S. broadband economy is strong and growing, opening doors to new opportunity every day.”

So, while “some categories of 20th century jobs, especially in manufacturing, are unlikely ever to return to previous levels,” Genachowski pointed out that:

“Innovation in wireless and wired broadband is thriving, and private investment in Internet applications and infrastructure is on the rise. New broadband-enabled industries – bringing with them new jobs – are opening their doors every day and growing, on mobile platforms, as well as in homes and businesses, in schools, and in hospitals.”

Statistics that Genachowski provided back him up:

•    According to a new report by McKinsey, broadband creates 2.6 new jobs for every one job lost.
•    A 7% increase in broadband penetration could create an additional 2.4 million new jobs.
•    Deloitte projects 771,000 new jobs as a result of 4G-network deployment.

Genachowski was speaking in favor of the proposed auction of federal spectrum, and the Rockefeller-Hutchison Senate bill, S.911: Public Safety Spectrum and Wireless Innovation Act of 2011. The chairman warned that “A spectrum crunch looms, and the costs of delay are significant and grow every day.”

In the end, though, Genachowski urged that we pursue “smart policies to extend broadband infrastructure everywhere and to everyone, to seize the opportunities to expand broadband’s invisible infrastructure – spectrum, and to empower U.S. entrepreneurs to out-innovate the world.”

Jobs And The Broadband Economy (FCC Chairman Genachowski speech, Sept. 27, 2011)

Creating Jobs & Driving Economic Growth (FCC Fact Sheet)

Internet matters: The net’s sweeping impact on growth, jobs, and prosperity (McKinsey report, May, 2011)

The Impact of 4G Technology on Commercial Interactions, Economic Growth and U.S. Competitiveness (Deloitte report, 2011)

S.911: Public Safety Spectrum and Wireless Innovation Act of 2011