1896_telephoneMicrosoft.  Amazon.  Expedia.

These are among the tech giants that are household names and have grown and flourished in the Pacific Northwest.  Another generation—companies like Mobisante, Inrix and BYNDL—are raising capital, hiring and innovating at a pace that rivals tech hubs elsewhere in the U.S.

While it doesn’t enjoy the geek glamor of Silicon Valley, an increasing number of entrepreneurs are heading for the hills, so to speak, and the Northwest continues to rise—attracting new businesses, startups, venture capital investors, and skilled workers. The results?  Increased economic growth, new jobs in the tech sector, and national prominence in the mobile “app economy.”

Washington ranks #1 in the number of app economy jobs compared to the total jobs in the state and #2 in economic impact of the app economy ($2.67 billion), according to CTIA.  Oregon’s statewide tech employment is at a seven-year high according to a recent report.

The region even has outside honchos turning heads—Texas Governor Rick Perry, for example, reportedly attempted to recruit companies from Oregon, according to an Oregon state official. Locals will turn their noses up at posing outsiders trying to trade cowboy boots for all-weather gear, but everyone has an interest in ensuring the economic benefits of building a strong technology sector are protected and encouraged to grow.

And many of our elected leaders embrace policies that are needed to keep the region competitive and prosperous. switchedtrafficU.S. Senator Ron Wyden (OR) and U.S. Representatives Greg Walden (OR), Kurt Schrader (OR), Doc Hastings (WA), Cathy McMorris-Rodgers (WA), Dave Reichert (WA), and Derek Kilmer (WA) have all championed legislation that encourages private investment and innovation that benefits consumers and is aimed at sustaining the region’s progress and growth.

So what jeopardizes the success of our competitive and diverse economy?

In this case, old laws that haven’t been updated to reflect today’s technology. According to a newly released study by the Internet Innovation Alliance, the Federal Communications Commission can (and should) take a big step in acknowledging a modern economy by updating regulations that govern communications infrastructure.

Right now, legacy telephone companies are required to maintain their old-fashioned copper wire networks.  This is despite the fact that 99 percent of all U.S. communications traffic runs on high-speed Internet-based networks, while less than 1 percent of traffic runs on those old telephone lines. phone-share

More advanced broadband networks afford consumers the choice between numerous service providers, devices, and technologies that outdated infrastructure cannot. Growth in the communications industry – annual investment in U.S. wireless networks reportedly grew more than 40 percent to $30 billion from 2009 to 2012– illustrates how consumers certainly aren’t waiting, and regulators shouldn’t delay the benefits that so many depend on in their daily lives.

As analyst Dr. Anna-Maria Kovacs explains, obsolete regulations are not merely innocuous holdovers from history.

These rules are hamstringing technological innovation, economic growth, and the deployment of modern broadband networks, a severe disadvantage to consumers and our entire economy.  Dr. Kovacs estimates that companies are spending $13.5 billion per year on older legacy networks. Forcing companies to divert investment to obsolete networks (Plain Old Telephone Service or POTS), which 66 percent of consumers choose not to use (see figure below), means that less money is available to upgrade to advanced high-speed networks.

Next-generation broadband networks undoubtedly increase economic growth and job creation and will continue to meet skyrocketing consumer demand.

Over the next five years, private investment in wireless broadband infrastructure will create 1.2 million new jobs and generate $1.2 trillion in economic development, according to a new study. To ensure a connected and competitive future for consumers and entrepreneurs everywhere, regulators have to make sure rules are modernized to reflect today’s needs, and to focus private investment in modern networks that will in turn spur competition and drive innovation.

Our region will benefit from new opportunities as we continue to lead in mobile innovations and attract the best and the brightest in tech.

Tom Gurr is the executive director of the Pacific Technology Alliance, an advocacy group that promotes policies to foster competition, innovation, increased choice and access to technology..      

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