Gartner Dataquest Says Broadband Information Access Is the Key to Driving Next Generation of IT Innovation
Analysts Say Spending on Broadcast Information Access Will Give Boost to Economy
STAMFORD, Conn., December 13, 2001 - U.S. government officials continue to debate various telecommunications policies to promote competition, but these political debates are distracting the marketplace. The industry needs to develop a broadband information access infrastructure, and this needs to be done immediately, according to Dataquest, Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).

Spending on broadband information access infrastructure would have huge multiplier effects on several sectors of the economy including, but not limited to, the computer industry, software, media and equipment. Gartner Dataquest analysts estimate this spending could inject more than $200 billion into restructuring the industry in the next two years.

Gartner Dataquest analysts point out that broadband is not just about DSL, wireline cable modem, wireless data services or optical service alternatives. It is about creating the new Internet infrastructure that will drive the next generation of IT innovation.

"We believe that the entire telco, cable, Internet and data industry will have to evolve to a new structure that creates a stable broadband information access environment with equal access imperatives and a dynamic services economy. This is all necessary to lead the United States into the advanced information services economy, something we refer to as the 'Infocosom,'" said David Rendall, group vice president for Gartner Consulting.

"To accommodate this, Gartner Dataquest, within its 'Infocosom Initiative,' is calling on the FCC to issue an Information Inquiry to accelerate the inevitable and eliminate those rules standing in the way of allowing this initiative from moving forward and establishing those procedures and policies that will ensure that we will get there," Ron Cowles, principal analyst for Gartner Dataquest's worldwide Telecommunications and Networking group.. "This Information Inquiry should be put on a schedule that leads to a final rule making in an expeditious manner."

The telecommunications industry is floundering, and the overriding cause has been the stifling effect of the unintended consequences of 1996 Telecommunications Act has had on innovation, particularly with the emergence of new technologies and new services.

"The primary intent of the 1996 Telecommunications Act was to give residential customers a choice in providers of voice services. The emphasis over the last five years has shifted more and more to data - particularly broadband access and bridging the so-called 'digital divide,'" Cowles said.

Additional information is available in the Gartner Dataquest Alert "Mr. Chairman: Change in Telecommunications Policy Will Promote Commitment to Competition, Broadband Vision." This report examines current telecom policies being analyzed, and it provides Gartner Dataquest's recommendations for telecom regulators.

This research is published by Gartner Dataquest's Telecommunications and Networking group. This group provides analysis for the full spectrum of telecom and networking issues. To keep up to date on the latest telecommunications issues, please visit Gartner's Telecommunications Focus Area at www.gartner.com/1_researchanalysis/focus/telecom_fa.html. To subscribe to Gartner Dataquest programs, please call 408-468-8000. Reports can be purchase on the Internet at www.gartner.com.

Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software and services sectors of the global information technology industry.

Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut, and consists of 4,300 associates, including 1,200 research analysts and consultants in more than 90 locations worldwide. The company achieved fiscal 2001 revenue of $952 million. For more information, visit www.gartner.com.

Contact:
Tom McCall
408-468-8312
tom.mccall@gartner.com