ing opportunities for future research include enhanced Internet architectures, more trustworthy networks, and adaptive and cognitive wireless networks.

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.

The NSF and the Defense Advanced Research Projects Agency (DARPA) have been the two primary sources of federal telecommunications R&D support. NSF, long a supporter of telecommunications R&D spanning a range of topics, has recently been increasing its attention to telecommunications R&D, with an emerging emphasis on new approaches to networking. DARPA, which funded a number of important telecommunications advances in the past (including elements of the Internet itself), has been shifting its emphasis toward more immediate military needs and giving less attention to long-term telecommunications research.


A strong, effective telecommunications R&D program for the United States will require a greater role for government-sponsored and university research, and more funding of long-term research by industry. The committee recommends that the federal government establish a new research organization—the Advanced Telecommunications Research Activity (ATRA)— to stimulate and coordinate research across industry, academia, and government. ATRA would be a hybrid of activities of the sort historically associated with DARPA (which through the ARPANET program managed a research portfolio, developed a vision, and convened industry and academia to build what would become the Internet) and SEMATECH (which brought the semiconductor industry together, initially with some federal support to complement industry dollars, to fund joint research, development, and roadmapping activities). There are a number of options for where within the federal government such a program could fit, each with its own set of tradeoffs (see Chapter 4). For example, ATRA’s proposed mission would align with that of existing agencies within the Department of Commerce, and NSF has developed mechanisms for joint academic-industry engineering research, albeit more focused and on a smaller scale.

The committee also recommends that all segments of the U.S. telecommunications industry increase their support for fundamental research, possibly taking advantage of the avenue provided by participation in joint, cooperative research activities organized by ATRA. Indeed, industry should provide a significant fraction of total R&D funding for ATRA, which would

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