substantial investments in telecommunications from ravitejafe's blog

Without an expanded investment in research, however, the nation’s position as a leader is at risk. Strong competition is emerging from Asian and European countries that are making substantial investments in telecommunications R&D.For many telecommunications products and services that are now commodities, the United States is at a competitive disadvantage compared with countries where the cost of doing business is lower. Continued U.S. strength in telecommunications, therefore, will require a focus on high-value innovation that is made possible only by a greater emphasis on research. Expansion of telecommunications research is also necessary to attract, train, and retain research talent.


Telecommunications research has yielded major benefits such as the Internet, radio frequency wireless communications, optical networks, and voice over Internet Protocol Nevertheless, research support has fallen off in recent years. Prior to the restructuring of the telecommunications industry in 1984, the Bell System’s research labs played a dominant role in long-term, fundamental telecommunications research for the United States. Post-restructuring, industrial support for such research has declined, become more short-term in scope, and become less stable. A diverse array of competing telecommunications firms— telephone, cable, Internet, and wireless—emerged, leaving most research to equipment vendors, which increasingly focused on short-term goals. Telecommunications research is increasingly being done at universities rather than by industry, and outside rather than inside the United States. In addition, the diversity of players in today’s telecommunications industry makes it difficult to design and deploy major, end-to-end innovations.


Federal funding of long-term research has not increased to cover the decline in industry support. No systematic efforts, such as took place for the semiconductor industry with SEMATECH, have emerged. Because the benefits of much telecommunications research cannot be appropriated by individual firms, therefore, public funding of such research appears necessary.

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