Without doubt Google has been the single biggest beneficiary of high-speed Internet access and has in turn contributed to the growth in the number of consumers using the Net. Google CEO Eric Schmidt, an open and avid Obama backer, this week addressed the US’ economic situation and proposed what could be done to build a better economy long-term.
Speaking to an audience of academics, government workers and others in Washington this week as chairman of the board of the New America Foundation, Schmidt said, “This may be the toughest economic time that most of us will face in our lifetimes.” He said it’s also a good time to look for opportunities.
“Let’s not just have bailout programs,” he said. “Why don’t we use the stimulus money to get infrastructure built?” Schmidt suggested the development of smart electric grids that could be used for Internet access and would create more competition among broadband providers.
“We have to find the right balance of incentives,” he said. “We’ve had the most extreme version of the free-market approach, and we’ve seen some of its consequences. You never know where innovation’s going to come from, but with an open platform, you welcome it,” he said.
He applauded the FCC’s recent decision to open up unused broadcast TV spectrum for unlicensed use and called it an “act of remarkable courage.”
Schmidt said the government could benefit from the kind of openness the Internet has. “Open systems have this clear promise of innovation and greater choice,” he said.
The government should reform its own practices, Schmidt said, to create more public engagement and restore trust it has lost. “We can stream almost all public meetings,” he said. “The bandwidth is there, so why don’t we get more people involved?”
Google would probably be the single biggest beneficiary of more broadband and more competition in the broadband market, so it’s natural to take Schmidt’s recommendations with a grain of salt. Google does want to run its online advertising network on every device that’s connected to the Net. And the more ways devices can be connected to the Net, the better off Google is.
At the same time, what Schmidt is recommending is good for consumers and good for any country that wants to improve its economic future. Low-cost, high-speed broadband benefits everyone, from the homemaker looking for bargains to the movie industry that wants a direct connection to its customers.
It’s significant that, having gotten the FCC to approve license-free wireless broadband in unused spectrum, Google has now set its sights on broadband over Powerline. Perhaps Google can help carry the broadband over Powerline water bucket where others have failed.
Last week IBM said it’s making a foray into broadband over Powerline in rural and less densely populated areas where no broadband is available. It’s hooked up with the start-up International Broadband Electric Communications (IBEC), which has gotten its hands on some money from the Department of Agriculture.