EMFA: T2E8 - NTIA and Expanding Universal Service Concept - Irving

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Theme: Universal Internet - Essay 8
Author: Larry Irving, Asst Secretary for Communications & 
        Information, US Depart of Commerce and Admin, NTIA
E-mail: lirving@ntia.doc.gov


A fundamental goal of this Administration is to expand the
universal service concept to ensure that information resources
are available to all at affordable prices.   This applies both to
households that are not currently connected to the National
Information Infrastructure (NII), and to public institutions that
are traditionally providers of information access to the general
public.  Both President Clinton and Vice President Gore believe
that public policymakers should work with the private sector to
connect every classroom, library, hospital, and clinic in America
to the NII by the year 2000.  The commitment is broad and deep. 

Early on, the Administration sought to accommodate and embrace
the information revolution and issued a vision statement called
the NATIONAL INFORMATION INFRASTRUCTURE: AGENDA FOR ACTION.  One
of its principal goals for government action centered on the need
for a new, more up-to-date universal service.  The AGENDA
directed NTIA to hold hearings around the country and to work
with the states to develop a new definition of universal service
suitable for the new age.  During my tenure at NTIA, no task has
been given a higher priority, and, truthfully, no challenge has
given me more satisfaction.  Dedication to modernizing the
universal service concept and ensuring universal access started
at the very highest levels of this Administration.  As President
Clinton asserted in 1996: "[Internet access] will revolutionize
and democratize education in a way that nothing ever has in the
history of this country."  Vice President Gore stated at our
February 1998 "Connecting All Americans" Conference: "...the
communications revolution in America means that everyone has a
chance to succeed, and no one is left behind."  And at the same
conference, Commerce Secretary Daley observed: "As we enter the
21st century, if you do not have a phone line, and you do not
have a computer, then you cannot take advantage of electronic
commerce."  It is hard to overstate  the importance of this
initiative.

I am proud that NTIA has been able to help develop the vision of
this Administration and to vigorously pursue its implementation.
These activities range from field hearings, a virtual conference,
NOI, and a Federal-State-Local Summit to TIIAP, our Falling
Through the Net user profile and penetration study, Rural
Information Infrastructure study, Joint Board and FCC filings,
and participation in implementation task forces for the E-rate,
rural health care discounts, and the disabled community regarding
Sec. 255.  We feel good that the FCC has embraced a number of
NTIA's recommendations, such as relying on the market where
possible, (with ED and USDA) establishing E-rates with tiered
discounts, competitive bidding, integration of technology and
curriculum, no cut-off of local service for toll overspending,
and (with HHS and USDA) elimination of distance-sensitive charges
for rural rates for health care providers plus toll-free Internet
access.

Let's look for a moment at Internet access for households.  As
you probably know, this has been an area of great interest for
the Administration.  In July 1995, NTIA released its study,
FALLING THROUGH THE NET, which analyzed Census data collected
for over 50,000 households in November 1994.  The study
confirmed what many suspected: there are significant groups and
geographic areas that tend to lag behind most of the nation with
respect to Internet connectivity.  These are disproportionately
inhabitants of rural areas and central cities and include the
poor, the youngest household heads, minorities in general, and
those Americans with little education.  What did surprise was
this: once the so-called information "have nots" surmount the
numerous obstacles for them to gain access to a phone line, a
PC, and then a modem, they are among the most enthusiastic of
Americans in using their on-line access to take courses and
search job ads -- to empower and to better themselves.

That was what we found in the mid 1990s; where does the country
stand today as the Millennium approaches?  Studies abound but
often lack adequate sample size and randomness, or cohesive
definitions. The studies are diverse in their methodologies and
typically employ telephone surveys, which cannot capture insights
from the most disadvantaged group of all: the phoneless.  For all
of these reasons, last week the Vice President directed NTIA in
partnership with our sister agency at Commerce, the Census
Bureau, to undertake an update of Falling Through the Net in two
phases.  More specifically, in late July, we intend to issue an
analysis of trend line data on Americans in the Information Age
for selected years during the period 1984-97.  In December,
Census will undertake for us a substantial, customized
supplemental survey of on-line access and usage that was
cooperatively designed; and deliver compiled, quality data
several months later. NTIA will release its analysis by mid-1999.
I cannot emphasize enough that the Administration intends to
stay abreast of this information revolution.

It is clear to me that universal service has served the country
well as a policy for most of this century, and that the concept
in its modernized form has the potential to assure Americans
available and affordable access befitting a new century based on
information.  Albeit essential, universal service policies,
however, are not the answer by themselves.  Robust competition
will drive down prices and foster technological change.  There
will also be a continuing role for competitive, targeted, and
incentive-based grants programs.  We at NTIA are proud of the
accomplishments of our small but pivotal TIIAP program.  Over
five years, the program has elicited vigorous demand (more than
5,300 applications), but we have been very selective with our
awards (7% of applicants).  The  awards have been targeted: about
half of our applicants are rural, and a sizable proportion from
the inner cities.  Approximately $100 million in grants has been
leveraged into more than $150 million in money contributed by
grant recipients and their partners.

What is our vision for the Information Age?  A long-term
strategy should be to provide a means for Internet access to all
households that desire it.  During the interim period and
arguably beyond, schools, libraries, and other "community access
centers" connected to the NII should be publicly accessible.  At
the heart of this process should be public-private partnerships
and intergovernmental collaboration; no one can or should have
to do it alone.

Larry Irving,
Assistant Secretary for Communications & Information, 
U.S.Department of Commerce, and Administrator, the 
National Telecommunications & Information Administration (NTIA)


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