Can Small Business Compete in the Telecommunications Field?

On Tuesday, April 27, 2010, Susan Walthall, Acting Chief Counsel of the Office of Advocacy of the SBA testified before the Senate Committee on Small Business and Entrepreneurship on "Connecting Main Street to the World:  Federal Efforts to Expand Small Business Internet Access.      
 
According to Ms. Walthall, federal efforts to expand small business Internet access should focus on the challenges faced by small business providers. The most pressing concerns for the small business providers are special access and acquisition of spectrum.  Special access refers to the increased price imposed on smaller operators requiring cross connectivity. Spectrum acquisition refers to the process of acquiring broadband spectrum, which is the continuum on which a signaling method handles frequencies. Currently, the FCC has rules in place with who can participate in the auction process.
 
The SBA is currently conducting a study to evaluate the broadband options available to small businesses.  The results of this upcoming study will be geographically specific and include details about underserved areas and service ability.  Ms. Walthall recommends that the FCC amend the rules to allow greater small business involvement in the telecommunications industry.    
 
Because there are few alternative options available, small businesses are forced to pay a higher price for access. This limits small business growth, and renders a business unable to compete in a global market.  Additionally, small businesses should have the ability to be involved with the spectrum auction process.  There is limited spectrum that is available for purchase as is. By allowing small businesses to participate in the auction process, this will reduce prices and expand service beyond what is currently available.
 
To watch a video of the Committee Hearing, please click here.