COMPTEL PLUS: Herda Stresses Business Broadband’s Role in ‘New Telecom Economy’

The competitive telecom industry sits at a crossroads and must decide whether to continue permitting consolidation and deregulation, or whether to “take a fresh look and develop a meaningful broadband policy.”

tw telecom's Larissa Herda

That was the message keynote speaker, tw telecom inc.’s (TWTC) Larissa Herda, delivered Tuesday evening at the Spring 2009 COMPTEL PLUS Conference & Expo in Dallas.

“We’re leaving one of the most unfriendly regulatory environments possible and, guess what? We’re still here, we survived,” said Herda, chairman, president and CEO of the Colorado-based Ethernet services provider. “Getting through the past eight years has been nothing short of phenomenal – like a scary reality show, ‘Survivor FCC.’”

But there’s no immunity on this island, Herda said, and with a new presidential administration in place – and in spite of the recession – it’s time to head straight for the “new telecom economy.”

This is the environment that embraces collaboration, Web 2.0, SaaS and cloud computing or, services that require “massive amounts” of bandwidth, Herda said. However, success will require help from regulators, she added.

“Access to end user buildings is still constrained. This is the one constant.”

That can’t continue to happen if CLECs are to reach some of the thousands of businesses that need Ethernet services for reasons ranging from disaster recovery to green IT and cloud computing, she said.

So, CLECs must get federal officials to understand that broadband – on which the new telecom economy rests – must be extended to businesses and enterprises, not just residential customers. For that to happen, Herda said, the FCC needs to take three steps: effectively regulate special access rules, including those overseeing Ethernet services and UNEs; regulate interconnection for data and IP voice; and either reform or eliminate the forbearance process. But competitive providers have to talk to politicians in Washington, emphasizing that a national broadband policy must encompass business broadband too.

“You, we, are at the center of the elusive national broadband policy,” Herda said. “We can and we will play a role in that effort and we hope that you will join us.”

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