"Constructing the National Information Infrastructure: Ensuring that All Americans Get Connected" Remarks by Larry Irving Assistant Secretary for Communications and Information National Telecommunications and Information Administration U.S. Department of Commerce at the Vermont Telecommunications Forum Winooski Park, Vermont March 20, 1995 [as prepared] I would like to extend a special thank you to Senator Leahy for inviting me to join you today. I would also like to commend Governor Dean and Pat Urban for their efforts to promote the development of telecommunications and information technologies for the good of all Vermonters. And I want to thank the Vermont Department of Public Service and the Vermont Telecommunications Council for sponsoring this forum and reaching out to all members of the community -- industry, educators, medical personnel, state and local government leaders, and many others -- who have an important role to play in bringing the benefits of telecom and information technologies to all residents. In 1966, Senator Robert Kennedy spoke about the need for connection and working together as a community. His words carry an important message for us today. He said, Even as the drive toward bigness [and] concentration . . . has reached heights never before dreamt of in the past, we have come suddenly to realize how heavy a price we have paid: in overcrowding and pollution of the atmosphere, and impersonality; in growth of organizations, particularly government, so large and powerful that individual effort and importance seem lost; and in the loss of the values of nature and community and local diversity that found their nurture in the smaller towns and rural areas of America. . . . We must attempt . . . to bring people back to . . . the warmth of community, to the worth of individual effort and responsibility . . . and of individuals working together as a community, to better their lives and their children's future. In essence, that is what the Clinton Administration's National Information Infrastructure (NII) initiative all about. It's about bringing people and communities together to better their lives. It's about connecting people to one another, to services, and to information. Our NII initiative is about connecting Americans to one another. We see this happening in the growing use of electronic mail to communicate with family, friends, and clients as well as the flourishing of free-nets across the country. It's about connecting Americans to their governments -- bringing new meaning to the word democracy. Many Americans are becoming better informed citizens by using the Internet to obtain information about what their federal and state governments are doing and to communicate their concerns to government officials. Over 10,000 people access the White House Web Server every day. Several states are now distributing government benefits to their residents electronically. Two years ago, virtually no federal agency had a presence on the Internet. Today, nearly every federal agency is on the Net, including the Small Business Administration, FEMA, the Department of Labor, Department of Commerce, NTIA, even the CIA. It's about connecting Americans with the education and computer- and technology-related skills they need to get high-paying, quality jobs. We see this happening in Vermont as a result of such initiatives as the Vermont Institute of Math Science and Technology's planning of a statewide telecommunications system for schools and communities. And in Governor Dean's plans to link the state's high schools and regional libraries to the Internet, the global web of computer networks, by upgrading Vermont's GOVnet. I'll talk about the importance of these initiatives later. And it's about connecting businesses and consumers in new and exciting ways. At any hour of the day, I can shop at Vermont businesses, such as the Vermont Teddy Bear Company and Speeder & Earl's Vermont Roasted Coffee, as they now have catalogues on the Internet. Yesterday, I got on my computer and visited a variety of Vermont places -- Cabot Creamery, Harrington's, Killington, Blue Chip Designs, Joan & Annie's Brownies. The question for all of us here today is how can we help ensure that the NII will connect all Americans, especially those living in rural areas such as Vermont, to one another and to people around the world? The Clinton Administration believes that we need to take two primary steps. First, we need to reform our regulatory structure to promote competition in the telecommunications marketplace. Second, we need to ensure that all Americans have affordable access to the NII. Promoting Competition At the center of our NII initiative is the need to reform regulations to bring competition to telecom markets, for this is how we can best accelerate deployment of the NII, which will bring American consumers lower prices, more choices, and better quality of telecommunications and information products and services. As a nation and in each state, we must remove unnecessary, artificial restrictions that prevent natural competition. We treat broadcasting, cable, and telephony under different regulatory schemes. We're acting like a painter who is keeping his primary colors in separate, distinct parts of his palette, and in doing so, is missing out on the emergence of greens, oranges, purples, and other creative combinations. We, too, are missing out on creative communications combinations -- cable companies providing telephone service and telephone and satellite companies providing cable services, or wireless or utility companies providing local telephone service -- because we continue to pigeonhole different segments of the communications industry into discrete markets. Competition is a creative force, and it will accelerate the deployment of the NII and bring a greater variety of telecommunications and information services to consumers, if we let it. Look at the long distance and cellular phone markets for the benefits of competition. Will competition emerge without national legislation? Sure -- it already is in several states either through initiatives adopted by state regulatory commissions or by court decisions. But it is happening on a piecemeal basis, which cuts against our goal of an interoperable and interconnected infrastructure, and leaves many consumers out in the cold. National legislation is needed to supply us with a national vision and a national system. It will promote private investment by providing regulatory certainty. And through national legislation, we can make sure that while we are deregulating, we also are providing safeguards for consumers. Importantly, we know we need the help and wisdom of the states as we develop new regulatory structures. Where are we on legislation? Two bills are pending in the Senate. On March 2, Assistant Attorney General Anne Bingaman and I testified before the Senate Commerce Committee on telecom policy reforms in general and draft bills in particular. In my testimony, I made the following points: o The Administration supports reform in many areas that the bills being considered by the Committee address. These include lifting the cable/telco cross-ownership ban, preempting state barriers to competition in local phone service, reexamining broadcast ownership and spectrum rules, and providing a process for reviewing the need for continuing regulation. o With respect to local competition, the Administration supports the development of nationwide regulations designed to ensure competition and prevent monopolists from harming competitors or consumers. Rural communities will benefit from competition, as new cellular, satellite, and other wireless providers emerge. o On the issue of Bell Operating Company entry into long distance and manufacturing, the Administration supports the establishment of preconditions for BOC entry, including a careful assessment of competition by the Department of Justice and a public interest analysis by the FCC. o Universal service remains a top priority for the Administration. We support the Committee's efforts to develop a new concept of universal service to serve the information needs of Americans in the 21st century, as well as the establishment of a Federal/State Joint Board. And any universal service policy must take into account the unique attributes of rural communities and ensure that they are not bypassed by the information superhighway. o With respect to cable television, the Administration is concerned about deregulating cable rates prior to the establishment of effective competition in local markets. o On the issue of foreign ownership, the Administration supports reexamining provisions of the Communications Act limiting foreign ownership of telecom licenses to foster open markets worldwide. We oppose, however, expanding the limit on foreign ownership of broadcasting beyond the 20-25 percent presently permitted. On the international scene, the Clinton Administration also is pushing hard to promote competition and open up markets. Three weeks ago, I travelled to Brussels for the G-7 Ministerial Conference on the Information Society. Our focus of discussion was the evolving Global Information Infrastructure (GII), which will link national networks, markets, and people. We focused not only on what is happening in the G-7 countries, but also on how the Information Society will impact and benefit lesser-developed countries. The United States delegation, led by Secretary Brown, was successful in helping steer discussion and the setting of goals in a direction that will further the GII as well as American interests. We focused a great deal on the five core principles that the Vice President has set forth for the GII: (1) encourage private sector investment; (2) promote competition; (3) provide open access to the network for all information providers and users; (4) create a flexible regulatory environment that can keep pace with the rapid technological and market changes; and (5) ensure universal service. Our efforts were fruitful, as the ministers pledged to pursue these important principles, among others. In his keynote address at the G-7 Conference, Vice President Gore called for all countries "to drop our barriers to foreign investment together." He pledged that "whether by new law or new regulation, we intend to open foreign investment in telecommunications services in the United States for companies of all countries who have opened their own markets." An exciting part of the G-7 Conference were the technology demonstrations. These included the workplace, library, classroom, and doctor's office of the future using technology available today. There were demonstrations of telemedicine to rural sites, wireless electronic mail, and kiosks with employment data, among others. At the conclusion of the Conference, the ministers agreed to collaborate on 11 "pilot projects," which will demonstrate the potential of the Information Age for all nations. Ensuring Affordable Access to the NII for All Americans Let me now address the issue of providing affordable access. Many Americans are wondering whether the information superhighway will be a toll road or a freeway. Unfortunately, many Vermonters living in rural areas are currently finding it to be an extremely expensive toll road. Many Vermont residents are paying high toll charges in order to get connected to the Internet and other on-line services. Moreover, where 800 number access is available, rural customers typically pay much higher hourly connect time rates to information providers. As many of you know, the higher rates for rural uses is especially burdensome because rural residents often have a greater need for services provided by the information superhighway than people living in urban areas with local sources of information not found in rural areas. In addition, rural residents face infrastructure barriers. Many rural communities do not have the underlying support structure or the equipment to take advantage of new technologies. While almost 79 percent of libraries that serve cities of 250,000 people or more have a connection to the Internet, only 17 percent of rural libraries do. Without computers, modems, microwave towers, satellite dishes, or cable connections, it is difficult for communities to get connected to the information superhighway. And private industry often finds commercial pressures favor building out telecom and information infrastructure in smaller, more densely populated areas. Extending the information superhighway to rural America and ensuring affordable access is a top priority of the Clinton Administration. We recognize that competition alone will not ensure that rural communities are connected to the NII. We are actively pursuing this goal through the following three initiatives: (1) working to preserve and extend the concept of universal service, (2) promoting community partnerships through such means as our NII grants program, and (3) reaching out to rural communities. Universal Service First, let me briefly talk about the importance of "universal service" policies. In 1949, only 60 percent of households in rural areas had basic telephone service; today, over 94 percent do. This is a result of our country making a commitment to ensuring that all rural communities have access to basic telecommunications services. Now, we need to commit ourselves to paving the dirt roads -- to ensuring that the information superhighway can and does extend to rural communities. As we develop new "universal service" policies, we must ensure that rural Americans have affordable access to the information superhighway. This access is crucial if rural Americans are to be prepared for the 21st job market. The number of education and technology initiatives happening in Vermont demonstrates that you recognize the importance of using these technologies to improve education and well as to equip students with the necessary skills to perform tomorrow's jobs. We have been focused as a nation on ensuring that our 3 and 4 year olds enter school "ready to learn." We have to equally committed to ensuring that our 17 and 18 year olds leave school "ready to earn." We need to be thinking about technology not only in the context of traditional K-12 education, but also for vocational training. When I was growing up in Queens, my high school had 4500 students. Some were on an academic track; some on a vocational track. One friend could take a car apart and put it back together in an hour. In 1970, the typical car contained about $75-worth of electronics, most of it in a radio. Today, the average car has about $2,000 worth of electronics. Even garage mechanics are going to have to be technologically literate. Companies are noting that it is getting harder to find employees who have the computer and technology-related expertise that is needed for high-paying jobs. People appear to recognize the importance of access to computers, especially for their children. According to a 1994 Census Bureau study, of the 54,000 households surveyed, 87.6 percent thought it was important for children to have access to computers. It is crucial that access to the information superhighway is available for all children, not just "Taffies" -- children from technologically-advantaged families. Community Partnerships Second, we are working to promote community partnerships that will provide needed infrastructure and affordable access and the resulting services to residents. Many Americans will access the information superhighway not from their homes, but from their public libraries, schools, community centers, and other public institutions. To promote development of such public access points, the Department of Commerce has a grant program, administered by NTIA, called the Telecommunications Information Infrastructure Assistance Program (TIIAP). TIIAP grants are available to state and local governments, schools and school districts, hospitals and clinics, libraries, community centers, and other public institutions. TIIAP grants require at least a 50 percent matching grant, which has led to community partnerships, often between the public and private sectors. Last year NTIA awarded $24 million to TIIAP projects in 46 states. If I told you that for $24 million, we are: * assisting a project in Alaska in which the University of Alaska, the state, the K-12 education system, public broadcasting, the library community, and the community at large will integrate networks that will result in 81 percent of Alaskans having non-toll access to a combined education-government-library network; and * providing a grant to the Siskiyou County Office of Education in Yreka, California, to upgrade their present computer network service to the 29 local school districts in its area. Upon completion, the network will provide Internet, audio-visual, library, e-mail, health, and business support services to this predominantly rural area; and * assisting a pilot project in South Dakota that is connecting 47 schools to networks and providing distance learning programs -- the Rural Development Telecommunications (RDT) Network; and * enabling youth services organizations in New Haven, Connecticut and East Palo Alto, California will link teenagers in the two cities for education and skill-building; and * enabling schoolchildren in the District of Columbia will go on "virtual visits" to museums in New York and Washington using two-way video and teleconferencing technology; and * supporting the Native American Public Broadcasting Corporation and its partners in their work with tribes throughout the country to develop plans for using the NII in health care, education, economic development, and other important services; and * assisting the State of North Carolina in linking physicians in rural hospitals with major medical centers in the state to provide video teleconsults and to transfer high-resolution diagnostic images for emergency care; and * supporting the development of a community-based electronic communication system for the citizens of Fairfax, Vermont -- I hope you agree that this would be pretty incredible for $24 million. Actually, the projects I described involved only $2.3 million of federal funds. There are 84 other, equally wonderful projects that we also funded. Because of this federal seed money, private companies and public players came together to form community partnerships and support these projects. I challenge those of you in this room today to form similar partnerships, which will enrich your lives and your community. TIIAP provides a tremendous amount of benefit for Americans, with a very modest budget. Yet, TIIAP is under attack on Capitol Hill and it is questionable whether it will survive. I believe that our country cannot afford to eliminate such a valuable program. Senator Leahy and John Romano, JP Dosel, and Kim Duell of his staff -- thank you for your support of this program. Outreach to Rural Communities Third, we need ensure that rural residents are informed about the opportunities that exist and the best ways of harnessing them for their communities. Rural communities need to know what technologies and applications are available, what existing infrastructure they have and need, and what has worked for similar communities. The Administration has just launched a public education campaign to do just that. Conclusion Can we really accomplish this? I say yes -- we can and we will. But we need to all work together -- at a national, state, and local level. If we are to connect our entire nation, we all need to make the commitment -- all levels of government, all sectors of industry, all providers and users of the information superhighway. Otherwise, for many Americans, the information superhighway will be as real as the yellow brick road to Oz. On Friday I received an e-mail that really brings home the importance of what we are doing. The e-mail reads: Dear Mr. Irving, My students and I are participants in the GMU project funded from the Department of Commerce. We are at Mount Vernon Community Center School in Alexandria, Virginia. The students have ties to many countries with 75% minority and 80% on free or reduced lunch. Although we are at-risk, they have embraced the technology with enthusiasm . . . [I]t is a powerful tool to inspire students with the immediacy of learning. I believe strongly in the African proverb: "It takes a whole village to educate a child." For example, as I was setting up some internet screens for my second graders, an exciting door opened up. I called up the (ART)WORLD TREASURES which is located in Switzerland. Included in the program are treasures from Thailand. A 7 year old girl became very excited. She said that was "her country." Amanda has been a reluctant visitor to our country and often has been upset when her grandmother returns to Thailand. I sensed a "teachable moment" and called up the treasures from Thailand. She eagerly identified the ones from Thailand. Other students asked about treasures from their other countries. We are now eagerly waiting for equipment and account numbers so that we can send e-mail to their countries and expand our "village" to include the "world." Americans want to be connected to one another; they want to be ready to meet the challenges of the 21st century. The NII is a way for us to come together to do great things. Please join with us in connecting the nation.