The EDC’s Broadband “Plan of Action”

The NYC Economic Development Corporation released a report in 2005 detailing its recommendation for broadband expansion throughout New York City. In an attempt to promote New York City’s image and status as a global financial center it would therefore attract “sophisticated” people and businesses to the city. “Telecommunications and Economic Development in New York City: A Plan for Action,” a report to the office of Mayor Bloomberg, is clear in its ideology concerning broadband deployment and expansion, but is fairly unspecific in detailing actual measures for improving access, especially in underserved areas.

Armed with representatives from the big telecommunications conglomerates like Time Warner and Verizon and even from the non-profit “trickle down Internet” advocates One Economy on their Telecommunications Policy Advisory Group, it is no surprise that the report seeks to ensure that the City government’s role is relegated to a strictly supportive one. According to the EDC, the City does not encourage entrepreneurs to stimulate competition.

Of the three critical issues the report chooses to focus on, 1) network reliability, 2) infrastructure, and 3) technological innovation and entrepreneurship, the solutions simply seeks to enhance what the “haves” already have. For instance, with regard to improving network reliability, the EDC proposes that the Utility Restoration and Infrastructure Rebuilding program (a program designed to provide assistance to investor-owned utility service providers that suffered losses as a result of the September 11 attacks on the World Trade Center) finance redundant fiber connections for important facilities in Lower Manhattan. The report also advocates wireless backup for businesses in Lower Manhattan and the installation of carrier neutral lateral conduit. Even though the report acknowledges that there are significant problems facing small to mid-size businesses outside Manhattan and outside prominent business centers, all it says is “Unfortunately, small businesses and organizations generally pay higher prices than the City’s residential customers for the same services.” The report mentions obstacles such as demand and cost as preventative in persuading service providers to address the lack of adequate infrastructure. Yet, there is no recommendation to address that issue. The report mildly suggests working “with current providers of broadband infrastructure and services to identify opportunities for extending their services into commercial and industrial areas that do not now have access – or only have very limited access – to broadband” but does not actually use this report to propose specific solutions.

The report does talk about possibly expanding the NYSERNET New York City Dark Fiber Network to bring service to properties housing non-profit organizations in “high priority development areas” but it is unclear if these “high priority development areas” include those underserved areas outside Manhattan. Of course the EDC also encourages the City to utilize public property to develop network infrastructure by enlisting the help of public property owners like the MTA, Port Authority and the Department of Transportation. It also places a lot of emphasis on City initiatives to educate businesses, particularly ones in areas with little or no access, in the benefits of broadband as a way to increase demand in those areas, thus stimulating the market without intervening in the process. All this is categorized in the “supportive” role of the government by the EDC and there is little concern about that cost the City incurs in telecommunications spending and little desire to decrease it.

Lastly they remain adamant about promoting NYC as an innovative place through a media campaign to attract “entrepreneurial talent and start-up companies.” That would theoretically, I guess, spur telecom companies to improve and expand the services they offer—something echoed in the reports recommendations to encourage innovation and entrepreneurship. Unsurprisingly they also write-off New Yorkers as having a history of being “sophisticated users” not necessarily “producers,” although since the report delegates the innovation and entrepreneurship to the private sector, they are not too concerned about that fact.

You can read the full report here.