Copyright 2000 Federal News Service, Inc.
Federal News Service
March 28, 2000, Tuesday
SECTION: PREPARED TESTIMONY
LENGTH: 999 words
HEADLINE:
PREPARED TESTIMONY OF DAVID M. WOODROW EXECUTIVE VICE PRESIDENT COX
COMMUNICATIONS, INCORPORATED
BEFORE THE SENATE
COMMERCE COMMITTEE SUBCOMMITTEE ON COMMUNICATIONS
BODY:
Mr. Chairman and distinguished members of this Committee, my name is D
Woodrow. I'm Executive Vice President of Cox Communications and I am here on
behalf of Cox and as a representative of the cable industry. I appreciate the
opportunity to discuss the very important question of whether broadband
communication services are being made available to the American people in a
timely way and on a comprehensive basis. Although Cox is the fifth largest cable
MSO, it operates a substantial number of systems located collectively in Utah,
Nevada, Idaho, Kansas, Oklahoma, Missouri, Texas and Louisiana that serve fewer
than 10,000 customers. Many of these small systems serve fewer than 2,500
customers. Yet these subscribers will not be left behind - it is in Cox's
interest to provide them with advanced services. Moreover, Cox and all other
cable operators are prohibited by law from red-lining or cream-skimming. Mr.
Chairman, you and the members of this Committee are exactly fight to focus your
attention on this important subject. As financial analysts agree, the fabulous
U.S. economic performance of the last decade rests on a foundation of the
technology-driven information revolution. And the expeditious, widespread
utilization of broadband networks and content applications is the promise that
must be delivered to all Americans if our robust economy is to be sustained into
the next decade. Your urgent desire to see this broadband promise spread to
rich, poor, urban and rural citizens alike could not be more appropriate as a
national goal.
So how are we doing? Let's first look at some history. It
took almost 30 years for the telephone network to grow from the first intercity
service between Boston and Lowell, Massachusetts, in 1879 to the intertwined
Bell System of 1908. Cellular service was first offered to the public in 1983.
Six years later in 1989, two million customers were activated. In 1996, many,
but not all, cellular licensees had extended their networks to serve their
covered population. By contrast, interactive broadband network capability
started from ground zero in 1997. Two years and tens of billions of investment
dollars later, today broadband service is being delivered to more than 2 million
subscribers. So broadband has grown three times faster than cellular to reach
the same initial subscriber threshold.
Mr. Chairman, the encouraging
comparisons don't stop here. It has taken Cox roughly two years to be in a
position to offer fully one- half of its customer base high-speed data service.
Service to elementary and secondary schools is an important adjunct to this
achievement. We already have wired more than 3,400 schools with free monthly
cable service, and now, where we have upgraded to offer high- speed Internet
access, Cox is producing unique distance learning initiatives through its "Line
to Learning" program. This is our latest step in our ongoing commitment to
enhancing educational tools. Line to Learning utilizes Cox's high-capacity
networks to provide useful content and curriculum via high-speed Internet
access. As an extension of its Cox@Home service, Line to Learning takes
advantage of Cox's superior digital fiber-optic network, allowing more data to
be transferred at downstream rates that are up to 50 times greater than rates
achievable over standard, 56 kilobit per second telephone modems. Cox also has
established Cox Model Technology Schools, where advancements in technology can
be employed as teaching tools.
During the next five years.., not much
more time than it took Congress to successfully write the '96 Act ushering in
the era of interactive broadband deployment... virtually the
entire Cox customer base of 10 million households passed will have access to
broadband data service - rich, poor, urban and rural alike.
Mr.
Chairman, Cox proudly has led the cable industry in this Herculean effort. We
have spent about $5 billion already, and we will have spent
about $10 billion when the job is finished in 2004. But the
whole cable industry is right in step with us. Cable broadband infrastructure
spending to date stands at $31 billion and is steadily growing
year to year. Independent industry analysts project that more than 40% of all
U.S. households will have access to cable modem service by year's end. And by
2004, 93% will be passed by broadband two-way networks. Since cable systems
currently pass 97% of all U.S. households, in just a few years, high-speed cable
Internet service will be available virtually everywhere in this country.
Mr. Chairman, my comments have concentrated on the aggressive record of
the cable industry to squash the digital divide. Of course, many other
facilities-based broadband players are rushing to provide competitive services
to the American people. Telco DSL, third generation PCS, several flavors of
microwave, satellite, electric utility and digital broadcast networks are in
various stages of development and deployment. I have little doubt that within an
amazingly short period of time, every American will be able to secure
high-bandwidth access to the Internet. The equally good news is that as these
competitive services are deployed, the economics of scope and scale, together
with ever-improving technology, will drive the costs to consumers down.
I thank the Committee for the opportunity to present these views and I
ask that the National Cable Television Association's filing in response to the
Congressionally mandated Sec. 706 survey for the year ending 1999 be included in
the Subcommittee record of this proceeding. That filing provides useful
information and examples of high-speed data and Internet access services that
are already being provided to rural and small communities. Of particular
interest to the Members of the Commerce Committee are service offerings in
Arizona, Maine, Michigan, Mississippi, Missouri, Nevada, North Dakota, Georgia,
Louisiana, Tennessee, West Virginia, Oregon, Washington, and Texas.
END
LOAD-DATE: March 29, 2000 
