Copyright 1999 Federal News Service, Inc.
Federal News Service
MAY 11, 1999, TUESDAY
SECTION: IN THE NEWS
LENGTH:
12313 words
HEADLINE: PREPARED TESTIMONY OF
LARRY
IRVING
ASSISTANT SECRETARY FOR COMMUNICATIONS AND INFORMATION
NATIONAL
TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION
(NTIA)
U.S. DEPARTMENT
OF COMMERCE
BEFORE THE HOUSE COMMITTEE ON COMMERCE
SUBCOMMITTEE ON TELECOMMUNICATIONS, TRADE,
AND CONSUMER PROTECTION
SUBJECT - REAUTHORIZATION OF NTIA
BODY:
Mr.
Chairman and Members of the Committee:
Thank you for this opportunity to
testify today on the reauthorization of the Department of Commerce's National
Telecommunications and Information Administration (NTIA).
Today, I would
like to describe NTIA's unique role in developing and advocating policy in the
telecommunications and information technology sectors; summarize our FY 2000
Budget Request; and highlight our key programs and initiatives. I have also
attached to my testimony two appendices. The first is NTIA's Comments on the
Discussion Draft "NTIA Reauthorization Act of 1999." The second is a list of
Recent Congressional Studies for NTIA and Potential Studies Proposed by
Congress.
INTRODUCTION
NTIA's UNIQUE ROLE
NTIA is the principal
adviser on telecommunications and information policy issues in the Executive
Branch. In this role, NTIA helps develop and present the Administration's
position on these issues before the Federal Communications Commission (FCC) and
other domestic and international fora. NTIA's goal is to assist the
Administration and Secretary of Commerce William M. Daley in promoting the role
of the nation's telecommunications and information industries by creating more
job opportunities, enhancing U.S. competitiveness in the global economy, and
ensuring that all Americans benefit from the digital age.
NTIA is unique
among Federal government agencies. The agency's expertise encompasses every
aspect of telecommunications and information technology. In addition to
advocating the Administration's positions on domestic and international issues,
we also manage the Federal use of the spectrum; resolve complex technical issues
through cutting-edge research in our laboratories; administer infrastructure
grants to promote the development of a widely accessible information
infrastructure; and manage grants to help public broadcasting maintain their
infrastructure and transition to the digital age.
NTIA's role in these areas
is more important than ever, given the ever-increasing significance of the
telecommunications and information technology (IT) sectors to our nation. Today,
these technologies are driving this country's economic growth. The White House
Council of Economic Advisors recently determined that revenues of communications
services and equipment companies rose over 60 percent in the last five years.
Over a third of real domestic product growth in the past three years has come
from IT industries. More than 7 million people are now employed by IT industries
and earn wages that are almost two-thirds higher than the average for all
private sector jobs. And, investments in new technologies - including computers,
satellites, wireless devices, and information processing systems - account for
over 45 percent of total real business equipment investment.
New
technologies will shape our economy even more significantly in the 21st century,
particularly with the growth of the Internet and electronic commerce. Today,
some 160 million worldwide are going online to shop, invest, trade, and e-mail,
according to Nua Internet Surveys. That figure is expected to increase to 320
million by the end of next year. As more people and businesses connect online,
the "virtual marketplace" will become commonplace. Electronic commerce among
businesses is expected to grow more than fifteen-fold in the next few years,
from $64 billion in 1999 to $980 billion in 2003, according to International
Data Corporation analysts.
The heightened importance of the
telecommunications and information sectors has engendered new and pressing
policy development and advocacy needs. NTIA is using its expertise, leadership,
and vision to address these urgent new questions.
In order to sustain the
rapid development of our information infrastructure, NTIA is considering ways to
promote the deployment of high-speed broadband networks, and to insure that
information and telecommunications services are available and affordable for all
Americans. We are facilitating the development of electronic commerce
("e-commerce") by addressing new questions of consumer privacy, security, and
domain name management. We are also working with other nations to promote a
market-driven, flexible and decentralized, and technology-neutral approach to
e-commerce policy. And, we are coordinating efforts under the federal Critical
Infrastructure Protection (CIP) plan to ensure that our telecommunications and
information infrastructures are secured against physical and cyber attacks.
NTIA's management of the federal use of radio spectrum is also promoting
public safety and competition. As the managers of federal spectrum, we are
trying to improve efficiency, increase private access to spectrum resources, and
plan for future spectrum needs, including those relating to public safety. These
goals will become ever-more important as global uses of satellite and wireless
devices increase.
We are also working to open up wireless and wirelined
markets to competition, both domestically and internationally. NTIA helped
secure the success of the World Trade Organization (WTO) Agreement on basic
telecommunications services in March 1997. Nearly 70 countries, representing
approximately 95% of the world's telecommunications revenues, agreed to
liberalize their telecommunications markets under that Agreement. NTIA is now
working to ensure, among other things, that the signatories comply with their
countries' regulatory principles in implementing the WTO Agreement.
NTIA's
expertise in these areas will help resolve some of the critical questions in our
global economy. The demands on our expertise and personnel are growing rapidly,
however, as the telecommunications and information sectors take on increasing
importance. Virtually every day, we address new technologies and new issues. The
importance of these issues is reflected in the increasing number of requests we
have also received from the White House, the Department of Commerce, other
Federal agencies, and Congress. At the same time, our staffing levels have
declined in recent years. In 1994, NTIA had 361 employees; today, we have 267.
NTIA's budget request for FY 2000 should provide necessary resources to help us
respond to the increasing number of demands and challenges as we enter the new
digital economy of the 21 st century.
OVERVIEW OF FY2000 BUDGET ESTIMATES
Let me start by giving an overview of NTIA's proposed FY 2000 budget. NTIA's
budget request for FY 2000 is $72,369,000, with a staffing level of 336 FTEs.
This represents an increase of $23,604,000 over NTIA's FY 1999 funding level and
an increase of 48 FTEs. NTIA is seeking $17,212,000 for Salaries & Expenses
(S&E).
This includes increases for enhancing Federal radio spectrum
management; upgrading our telecommunications research facility; implementing
World Trade Organization requirements; and implementing the Presidential
Critical Infrastructure Protection (CIP) program. NTIA is also requesting
$20,102,000 to fund the Telecommunications and Information Infrastructure
Assistance Program (TIIAP), and $35,055,000 to fund the Public
Telecommunications Facilities Program (PTFP). The PTFP request is part of an
Administration initiative with the Corporation of Public Broadcasting to assist
broadcasting stations during the transition to digital broadcasting.
This
funding will help NTIA maintain and augment its existing programs, which support
the development of the nation's information and telecommunications sectors. I
would now like to describe highlights of these, and other of NTIA's programs,
which are critical to the continued development of our telecommunications and
information technology sectors.
HIGHLIGHTS OF NTIA'S PROGRAM OPERATIONS
DOMESTIC POLICY
NTIA's domestic policy activities support NTIA's
responsibilities as principal adviser to the President on telecommunications and
information policies. The goal of these activities is to enhance the public
interest by generating, articulating, and advocating creative and influential
policies and programs in the telecommunications and information sectors.
While NTIA believes that open markets, competition, and industry development
serve the public interest, NTIA also works to ensure the public interest in
other ways. Foremost among these issues are those related to access to basic and
advanced telecommunications services, the ability for people to control indecent
or violent information coming into their homes, the transition to digital
television, and encouraging minority participation in telecommunications. NTIA
has also played a significant role in promoting electronic commerce and
developing Internet policy, discussed in a separate section below. Throughout
its existence, NTIA has developed and advocated policies to support the public
interest in many areas such as these, and will continue to do so.
NTIA
frequently files comments with the Federal Communications Commission (FCC) to
represent the Administration's position on a broad range of matters. This year,
for example, our filings included comments on the broadcast ownership rules;
"truth-in-billing" on local telephone bills; the definition of "over the air
signals" for purposes of the Satellite Home Viewers Act; guidelines to promote
the deployment of broadband services; and tariffs relating to digital subscriber
loops (DSL).
As mentioned above, NTIA is also increasingly called upon for
its telecommunications expertise. We assist the White House and other Federal
agencies in implementing the procompetitive goals of the Telecommunications Act
of 1996, addressing issues relating to new technologies, and promoting
affordable access to the nation's growing information infrastructure. NTIA also
will be an integral part of a congressionally mandated commission on Internet
content as a result of the Children's Online Protection Act.
Promoting
Competition
NTIA continues to work towards eliminating barriers to
competition in the telecommunications industry while protecting consumers.
Throughout NTIA's twenty-year history, this agency has been at the forefront of
pro-competitive telecommunications issues. Among other things, we contributed
our expertise to debates concerning first passage, then implementation, of the
Telecommunications Act of 1996. This Act required the FCC to adopt regulations
regarding such things as access charges, universal service to rural and other
areas, interconnection, and broadband services. NTIA filed comments in each of
these areas.
Going forward, NTIA will continue to articulate policies on a
host of issues surrounding new, better and lower priced communications products
and services. We are continuing to advocate policies that spur innovation,
encourage competition, and create jobs. NTIA will suggest, for example, ways to
encourage the availability of new services to rural and underserved communities
and will identify impediments to the growth and vitality of industry sectors.
Addressing New Technologies
New technologies and new competitive
providers are also spawning new questions in domestic policy. Foremost among
these issues are those related to the growth of the Internet, the transition to
digital television, and the widespread availability of wireless communications
devices. NTIA has met these challenges in various ways. We often focus our
limited resources on identifying and analyzing "over-the-horizon" issues well
before they become widely known even among telecommunications professionals. One
such issue is that of "Internet telephony," the use of the Internet or Internet
Protocol, in place of traditional long distance telephony. NTIA sponsored a
forum in 1997 to bring together technical and industry experts with
policymakers. In comments to the FCC that same year, NTIA took the view that
this technology should be allowed to grow and therefore should not come under
full common carrier regulation. The intersection of industry sectors is also
raising additional sets of issues regarding technological convergence. The
telephone network, for example, is increasingly used to transmit data, and the
television provides viewers access to the World Wide Web. As a result, we are
seeing varied and unique combinations of previously discrete technologies. Such
convergence presents major challenges to the existing regulatory infrastructure,
and NTIA is examining new regulatory issues and challenges.
Competition,
Diversity, and the Public Interest in Mass Media
NTIA has been active in
mass media issues as well. Several years ago, we promoted inclusion of
provisions in the 1996 Telecommunications Act calling for a voluntary television
ratings system and the requirement that all new television sets be equipped with
a "V-Chip." NTIA believes that the V-chip, in particular, will help parents
choose which television programming is suitable for their children. As the first
television sets containing the V-Chip become available this year, we will lead
efforts to monitor implementation of the V-Chip requirement.
NTIA has also
worked to advance policies to protect and extend the public interest in many
other contexts as well. We believe that, as with other telecommunications
services, robust competition in the video services markets will serve the public
interest by providing consumers with greater choices, lower prices, and better
services. Thus, for example, we wrote to the FCC last year regarding the matter
of delivery via satellite of television network signals to households unable to
receive local broadcast signals. We urged the FCC to adopt a definition and
measurement of "over the air grade B signal intensity" to promote consumer
choice and competition. More recently, NTIA helped develop the Administration
position on pending legislative proposals to modify the Satellite Home Viewer
Act.
In developing mass media policies, competition often supports the
additional goal of providing a diversity of voices to be heard by the American
people. NTIA has been monitoring trends towards concentration in the ownership
of radio and television stations. The Telecommunications Act of 1996 relaxed
broadcast ownership rules and directed the FCC to review the public interest
merit of remaining rules every two years. In February of this year, NTIA wrote
to FCC Chairman Kennard supporting relaxation of some broadcast ownership rules
while maintaining others.
NTIA's involvement with the mass media also
extends to new broadcast services, such as the upcoming transition to advanced
television. Most notably, NTIA served as Secretariat for the President's
Advisory Committee on the Obligations of Digital Television Broadcasters, which
presented its report in December 1998. In the role of secretariat, NTIA did not
direct or influence the recommendation of the committee. NTIA was pleased to be
a part of this consensus-building process, which brought together experts from
the broadcasting industry, the public interest community, and academia to look
at the future of television. Now that the work of this committee is complete,
NTIA plans to continue policy development in this field.
Minority Ownership
Another of NTIA's goals is to enhance minority participation in
telecommunications.
NTIA's Minority Telecommunications Development
Program (MTDP) is undertaking specific efforts in this regard, including: (1)
directing ComTrain, a training program to assist new minority commercial
broadcast owners; (2) disseminating information and conducting seminars on
ownership opportunities in telecommunications (3) developing and commenting on
legislative and regulatory proposals that promote minority ownership in
telecommunications; (4) working with industry, and other government agencies on
initiatives to increase public/private sector assistance to minorities
interested in ownership of telecommunications businesses and services; (5)
promoting TELECAP, a study of capital development strategies for minority
investment in telecommunications; and (6) tracking minority ownership in
broadcasting. NTIA will also continue to analyze policies that affect minority
participation in telecommunications.
Universal Access
Ensuring universal
access to communications and information networks also remains a high priority
for NTIA. We have been leading efforts to redefine universal service to
telecommunications services to ensure that rural Americans have access to the
same new services being offered in urban and suburban America. Over the past 40
years, rural Americans have gone from about 60 percent having basic phone
service to 94 percent today. This is due in large part to our commitment as a
nation to universal service policies.
NTIA has undertaken numerous
activities to promote universal service. In the 1995 and 1998 Falling Through
the Net reports, NTIA documented the relatively low penetration of telephone
connections and computer and modem ownership in rural and inner city
communities. In a 1996 filing with the FCC, we recommended that the Commission
set a national subscribership goal for the year 2000 to ensure that the
telephone penetration level for all segments of society will be at least equal
to the national average existing as of November 1996.
As the
Telecommunications Act of 1996 continues to be implemented, NTIA will continue
to be a strong advocate for rural and underserved Americans, undertaking
research, filing comments with the FCC, and participating in a variety of fora
to ensure that these communities have access to these services, and the
opportunities they provide, at reasonable rates.
NTIA has vigorously argued
for the connection of schools, libraries, and other "community access centers"
to the National Information Infrastructure. This step is integral to making
access to advanced telecommunications and information services more readily
available. Technology will be central to the mission of our nation's schools in
our country. Numerous studies demonstrate the advantages afforded to students
who have access to this technology. As the President has clearly stated, in
order to succeed in the 21st century, our children must attain technological
knowledge and tools. NTIA continues working to ensure that these tools are
broadly available to the public.
ELECTRONIC COMMERCE
In addition to the
domestic policy issues listed above, NTIA is playing a pivotal role in the
Administration's cross-cutting efforts to develop electronic commerce and
Internet policy. NTIA has been at the forefront of these issues, both
domestically and internationally. We were a key participant in the development
of the Administration's electronic commerce policy, reflected in .4 Framework
For Global Electronic Commerce, issued in July 1997. Since then, NTIA has been a
key participant in the White House's Electronic Commerce Working Group on such
issues of broadband deployment, online content, domain name
management, and consumer protection. Finally, NTIA has also played a leading
role internationally by representing the United States government at bilateral
discussions and at international fora. We have advocated the tremendous benefit
of the Internet and electronic commerce to other nations' economies, as well as
the merits of a non- regulatory, market-driven approach to the development of
electronic commerce.
Domain Name Management
Since July 1997, NTIA has
also been the lead agency responsible for implementing the President's directive
to privatize the management of Internet domain name system (DNS) functions and
increase competition in the registration of Internet domain names. The Statement
of Policy on the Management of Internet Names and Addresses, which resulted from
extensive public consultations, invited the private sector to create a new,
not-for-profit corporation to undertake management of DNS functions and was
universally well received. The private sector responded by creating the Internet
Corporation for Assigned Names and Numbers (ICANN) to assume this management
responsibility.
Currently, NTIA is working with ICANN under a Memorandum of
Understanding to develop the procedures and steps necessary to complete a smooth
and stable transition from the government to the private sector by September
2000. NTIA is also working with ICANN and Network Solutions to introduce
competition in domain name registration services. On April 21, 1999, ICANN
announced the names of 34 companies that have been accredited to begin
registering names in the .com, .net and .org domains within the next 60 days. We
believe that this competition will result in lower prices, greater choice, and
better registration services-for all users of the World Wide Web and we look
forward to our continued work on these issues. We have had numerous discussions
with the staff of House Commerce Committee Chairman Bliley on the progress being
made on this issue, and will continue to keep them informed of developments in
this area.
Privacy
NTIA has also been at the forefront in addressing
privacy on the Internet. We played a leading role in encouraging private
industry and privacy advocacy groups to develop and adopt effective codes of
conduct and technological tools to protect privacy on the Internet. Following
extensive consultation with the private sector in January 1998, NTIA and the
Department of Commerce issued The Elements of Effective Self Regulation for
Protection of Privacy, which expresses our view that effective self regulation
involves substantive rules, the means to ensure that consumers know the rules,
that companies comply with them, and that consumers have appropriate recourse
when injuries result from noncompliance.
In June 1998, the Department of
Commerce held a public meeting on privacy, coordinated by NTIA. Although
industry was somewhat slow to take up the self-regulation challenge, there are
signs that business leaders are beginning to understand the need to take
decisive action on privacy. For example, the Online Privacy Alliance (OPA), a
consortium of information technology companies and industry associations,
representing over 80 global corporations and associations, requires its members
to adopt and post privacy policies consistent with OPA guidelines and
participate in a selfregulatory enforcement mechanism provided through third
parties such as BBBOnLine and TRUSTe. We will continue to closely monitor their
progress.
NTIA has been involved in examining other issues of domestic
privacy. For example, NTIA has met with leaders in the area of online profiling
by Internet advertisers and is planning a meeting in July 1999, in collaboration
with the Federal Trade Commission (FTC), to examine the issue in a public forum.
Controlling Indecent and Violent Content
NTIA will continue to examine
policies that empower parents and other individuals to control the nature of
information that comes into their homes, particularly that which is indecent or
violent. NTIA supports the free flow of information over the Internet or through
television and radio. It therefore has directed its policy positions towards
developing tools to allow individuals to determine the types of material they
receive.
NTIA has helped promote online content initiatives, such as "green
spaces" to help parents and others find Web sites suitable for their children.
We were designated as the Secretariat for the Congressionally-appointed Child
Online Protection Act (COPA) Commission. We look forward to working with the
Commission in producing a report on child online safety issues. All of these
efforts take on new importance, following the senseless killings at Columbine
High School in Littleton, Colorado. NTIA will continue to work on national
policies to help citizens control the type of information their children
receive, while not impinging on fundamental free speech rights.
Consumer
Protection
Another critical issue is online consumer protection.
We
know that consumers will be reluctant to shop on the Internet unless they feel
confident that they will get what they pay for online and that redress will be
available if they do not. Therefore, NTIA has facilitated private sector
outreach in developing US policy in this area.
NTIA is working both
domestically and within a number of international fora to foster the development
of effective consumer protections for consumers participating in electronic
commerce. In cooperation with the FTC and other government agencies, we have
also helped to shape the policy debate in the Organization for Economic
Cooperation and Development (OECD) regarding the development of guidelines for
online consumer protection. The issue of online consumer protection intersects
with many other e-commerce issues in which NTIA is active, such as jurisdiction,
privacy, security, and authentication. NTIA provides an important broad
perspective on these issues when formulating policy approaches for electronic
commerce consumer protection.
International Advocacy
Finally, as the
representative of the United States government, NTIA has been working to build
international consensus for a non- regulatory, market driven approach to the
development of electronic commerce. We know that the Internet allows its users
to exchange ideas and to experience the freedom of public speech of political
expression, unlike any other medium before it. In many parts of the world,
including Asia and Eastern Europe, the Internet is used by citizens to promote
and spread the values of democratic government. Our efforts to promote greater
use of the Internet and other new technologies should also facilitate the
promotion of democratic values.
NTIA is actively engaged in discussions,
both bilaterally and in international fora, to ensure that the "rules of the
road" for the Information Superhighway are pro-competitive, empower end users,
and avoid establishing artificial impediments to the conduct of global
electronic commerce over the Internet. NTIA led the U.S. negotiations on
Internet and electronic commerce issues at the International Telecommunication
Union's (ITU) Plenipotentiary Conference in November 1998. NTIA has also been a
leader formulating best practices for Internet infrastructure deployment in
developing countries. INTERNATIONAL POLICY
In addition to Internet and
e-commerce issues, NTIA plays a key role on a range of other important
international matters. As the representative of the U.S. government, we are
working to attain an international consensus on open, competitive
telecommunications policy; develop international satellite communications
policy; and open foreign markets to U.S. industries. NTIA's efforts in these
areas are spurring the development of the telecommunications and information
sectors on both a national and global level.
International
Telecommunications Policy
NTIA continues to play a lead role in promoting
and building international consensus for open, competitive telecommunications
networks, which creates opportunities for U.S. businesses abroad and offers
market-based solutions to close the digital global divide.We are a strong
advocate for liberalization and privatization both in developed and developing
country fora. For example, NTIA promotes implementation of the World Trade
Organization's (WTO) Basic Agreement on Telecommunications, which calls for the
liberalization of signing nations' telecommunications markets. We have also
helped develop and implement training workshops for foreign telecommunications
regulatory authorities, which focused on implementing the WTO Basic
Telecommunications Agreement and covered a range of issues, including
interconnection, spectrum management and universal service. NTIA has also served
as a U.S. Vice-Chair at both the ITU World Telecommunications Development
Conference in Malta and at the Plenipotentiary Conference held in Minneapolis
last November. In our view, the ITU conference would not have been such a
success without the Federal support provided by the Congress.
Additionally,
we have sponsored several international telecommunications summits in
cooperation with the Telecommunications Industry Association (TIA) and the
International Trade Administration (ITA). These summits bring together
government officials and telecommunications industry representatives to discuss
major policy matters affecting specific regions. They provide a unique
opportunity for foreign government officials and business representatives to
meet privately with senior U.S. telecommunications industry representatives.
Currently, NTIA is planning the fifth Latin American Telecommunications
Summit (LATS). Industry participants report that previous LATS have facilitated
millions of dollars in sales and invaluable contacts with Latin American
government and industry representatives. In March 1999, NTIA, TIA and ITA also
collaborated on the second China-U.S. Telecommunications Summit (CATS) in
Guangzhou, China, where 32 U.S. companies met with Chinese telecommunications
officials, and Chinese telecommunications and IT companies. One company reported
that the summit provided "immediate opportunities that may not have developed
without the summit" and that they "were approached with proposals for joint
ventures and set plans for further high level negotiations for deals that could
run into hundreds of millions of dollars."
In addition to our activities in
international fora, we have also pursued other steps to open markets to U.S.
companies. Recently, NTIA helped assess the anti-competitive impact of Deutsche
Telekom's interconnection policy. Working with U.S. companies seeking to enter
the newly liberalized German telecommunications market and with other agencies,
NTIA found that certain changes made market entry by new service providers more
difficult. NTIA has supported efforts to bring about appropriate corrective
action.
NTIA is also supporting the U.S. wireless industry in proposing
multiple standards for third generation (3G) wireless systems. NTIA is
advocating the industry's position through the ITU and is further advocating
that other governments similarly support the outcome of the ITU deliberations.
NTIA and other agencies have successfully obtained assurances from the European
Union Commission that the European Union member states will respect the
recommendations developed by the ITU for 3G systems and offer licenses on a
technology-neutral and non- discriminatory basis.Finally, NTIA has been an
active and longstanding advocate for reform of international accounting rates
(i.e., those charges paid by U.S. carriers, such as AT&T, Sprint and MCI
WorldCom to foreign carriers to terminate traffic at the foreign destination).
NTIA seeks to lower accounting rates by bringing them in line with cost. We have
helped shape U.S. advocacy and outreach efforts at the ITU, where member
countries are seeking to reach an agreement on accounting rate reform. In 1999,
NTIA has been concentrating its efforts on transitional arrangements for lesser
and the least developed countries, which may need more time to adjust their
rates to international competitive market pressures.
International Satellite
Policy
NTIA also continues to play a pivotal role in the development and
implementation of the U.S. policy objective of increasing competition in the
international satellite communications sector.
On April 15, 1999 Inmarsat
was privatized, completing a process begun over 5 years ago. We expect that
INTELSAT itself will be fully privatized in the next several years. Throughout,
NTIA has advocated policy changes to increase global competition in the
international satellite communications sector. Iridium recently stated that it
is able to offer service in 150 countries and expects this number to increase to
230 by year end. Moreover, ICO Global has, as NTIA consistently insisted, issued
an initial public (stock) offering diluting control by former Inmarsat
signatories and two U.S. firms (TRW and Hughes) have become strategic investors
in ICO. The United States government, with NTIA's leadership, has pursued a
procompetitive outcome in the face of opposition from other nations, and we are
confident of achieving a similar result with INTELSAT's privatization. As a
result of the International Anti-Bribery and Fair Competition Act of 1998, NTIA
will be conducting a study of any advantages ac to the intergovernmental
satellite organizations (INTELSAT and Inmarsat; the ISOs) as a result of their
unique status. NTIA's report will examine any advantages affecting market access
which result from government ownership, government contracts to the signatories,
favorable tax or regulatory treatment for the signatories or from use of the
ISOs' privileges and immunities. The study will be included in the Secretary's
report to Congress.
SPECTRUM MANAGEMENT
Another of NTIA's chief roles is
to manage the radio frequency spectrum that is used by Federal agencies in
satisfying their legislatively assigned missions.
In this role, NTIA
processes the Federal agencies' requests for frequency assignments; provides
Executive Branch leadership in coordinating both current and future spectrum
requirements among the Federal agencies and with the FCC; develops and promotes
positions at Treaty Conferences and other technical and management fora of the
International Telecommunication Union regarding United States spectrum
management interests; and supports specialized administration initiatives that
are designed to achieve specific improvements in areas such as air traffic
safety, federal spectrum management procedures, protection of critical
infrastructures, and public safety.
The fundamental goal of spectrum
management at NTIA, as it is worldwide, is to avert potential interference
between users and to ensure that spectrum is available for future needs. NTIA's
spectrum coordination is therefore critical to the success of air traffic
control, national defense, national resource management, and other vital
government functions.
Nevertheless, further coordination efforts are
essential, particularly for public safety purposes. The horrific incident in
Littleton, Colorado last month demonstrates the need for further coordination
among communications systems. We understand that a number of the local, state,
and federal agencies lacked interoperable communications systems, making the
coordination of a response more difficult. NTIA will be looking more closely in
the coming year at new ways to manage spectrum to help coordinate public safety
efforts.
Satisfying Spectrum Needs
NTIA continues to coordinate the
spectrum needs of the Federal Government by processing frequency assignment
requests by some 53 Federal agencies. NTIA processes 300 to 400 such requests
daily through an automated screening process to correct errors in the data and
ensure conformity of rules and regulations and through a coordination process
with Federal spectrum-using agencies via the Interdepartment Radio Advisory
Committee (IRAC) to ensure interference free operation. In addition, NTIA also
certifies spectrum availability of approximately 60 to 70 new major radio
communications annually.
NTIA also provides leadership for and manages the
activities of the lILAC, a body of representatives from twenty major Federal
agencies. The IRAC has provided valuable advice to the Executive Branch on
numerous spectrum policies and issues for the past 75 years. NTIA has maintained
a constant relationship with the FCC both through the IRAC and directly to
ensure compatible operations. This is especially important today since the vast
majority of the spectrum is no longer divided into exclusive private-sector and
Federal-sector bands, but is shared by all users in the United States.
Spectrum Efficiency
The Federal Government constantly seeks to modernize
its radio communications, increase the amount of information transmitted per
unit bandwidth, and expand the use of more efficient digital technology and the
use of private sector radio communications. In order to improve Federal spectrum
use, NTIA uses the following management tools. First, NTIA requires that every
Federal Government user requesting a frequency assignment determine whether its
need can be met by a private or commercially available service provider. This
policy has helped encourage consideration of commercial services by many Federal
Government agencies, including the Department of Defense.Second, we promote the
use of new spectrum efficient technologies. The Federal Government is a leader
in developing new spectrum-efficient techniques such as narrowbanding, digital
modulation, and spectrum sharing as well as in the use of the highest quality
spectrum-efficient equipment. These techniques will lead to nearly double the
number of frequencies available for land mobile communications. NTIA has
required that all Federal users move to more efficient 12.5 KHz equipment for
mobile communications by 2005 or 2008, depending on the frequency bands in which
they operate.
Third, NTIA collects fees from Federal agencies for its
spectrum management services, pursuant to Congressional mandate. Congress
initially directed NTIA to begin a process to collect fees from federal agencies
in the FY 1996 Appropriations bill for NTIA. At the same time, Congress reduced
the amount of direct appropriations to NTIA by the amount of the fees. Because
of serious difficulties in collecting fees in FY 1996, Congress subsequently
passed a law directing Federal agencies to cease using the spectrum if such fees
were not paid. Based on this legislation, NTIA and the Federal agencies entered
into agreements in which the agencies agreed to pay their prorated share. These
fees cover 80% of the Spectrum Management's funding requirement. Although we
continue to experience some delay in payments because of the different methods
of payment within the Federal agencies, NTIA has received the requested funds
from the agencies. We are pleased with the progress that has been made with this
program.
Increasing Private Sector Access to Spectrum
NTIA continues to
work with the FCC, the private sector, and Federal agencies to promote sharing
of spectrum, where feasible, with private sector users. Since 1978, NTIA has
coordinated the reallocation of more than 5,000 MHz of spectrum to exclusive
private use or greater shared use with private sector entities. This is a
significant amount of spectrum -- today's entire wireless telephone system,
including cellular and personal communications systems, is allocated only 170
MHz.
Spectrum reallocation and reimbursement
Over the past several
years, NTIA has begun to reallocate 235 MHz of spectrum from Federal ....
Government use to the private sector. The process for identifying spectrum for
reallocation was based on a two year study which took into account two major
factors: (1) the impact on the Federal agencies, in terms of mission, costs, and
potential reduction of services to the public, and (2) the benefits expected to
be realized by the public. Based on the extensive planning and coordination with
the FCC, government agencies, and the public to produce this report, NTIA
identified an additional 35 MHz of Federal spectrum to transfer to private use.
NTIA has already reallocated 195 MHz of the previously identified spectrum. The
remaining spectrum is scheduled for auction by the FCC by 2002, in accordance
with the Balanced Budget Act of 1997.
NTIA has also recently transferred
spectrum to the private sector to support satellite systems. During the
International Telecommunication Union World Radiocommunication
Conference(ITU/WRC) in October 1995, NTIA coordinated the release of 3 MHz of
Federal Government spectrum for exclusive use in mobile satellite systems (low
earth orbiting satellites, or LEOs). NTIA has also arranged for shared use of
360 MHz of Federal Government spectrum for mobile satellite links for big LEOs.
Most recently, NTIA identified 20 MHz of spectrum for reallocation by the
FCC to private sector uses and assignment by competitive bidding in accordance
with the Balanced Budget Act of 1997. Proceeds of these auctions were originally
to be contributed towards balancing the Federal budget by fiscal year 2002.
Federal agencies' relocation costs associated with this reallocation are in
excess of $ 1 billion. Under the recently enacted defense authorization statute,
these affected Federal agencies will be reimbursed for their relocation costs by
the winners of the spectrum auctions of the 20 MHz and the previously identified
1710-1755--MHz band. NTIA will work closely with the Office of Management and
Budget, the FCC, and affected Federal agencies to see that this process is
successful. We appreciate the Commerce Committee's support in securing this
legislative authority.
Planning for Future Spectrum Needs
Reinventing
the spectrum authorization process
NTIA began a program in 1993 to develop
an automated Federal spectrum management system to provide a standardized,
automated method for Federal agencies to submit applications for spectrum
support, select spectrum that is interference free, and validate that the
spectrum requested is within the rules and regulations governing spectrum
authorization. This system will allow NTIA to make the spectrum management
process more efficient and responsive, more accessible, and less bureaucratic.
NTIA introduced the Joint Spectrum Management System for windows (JSMSw) in
March 1997. Based on feedback the Federal agency users, JSMSw has been revised
to make it efficient and effective. Improvements will continue on JSMSw to make
it even more effective and to make actual use of spectrum more efficient. JSMSw
provides spectrum management tools to spectrum managers in the field so that
they can manage their own use of the spectrum, use the spectrum more
efficiently, and more rapidly obtain spectrum to meet their needs.
Seventeen seminars have been conducted by NTIA for Federal agency
spectrum managers in-the use and application of JSMS.
Public Safety Need
One of the most pressing Federal spectrum needs is that of public safety.
Under Congressional leadership, NTIA and the FCC established the Public Safety
Wireless Advisory Committee (PSWAC) in 1995. The Committee was composed of
appointees from Federal, State, and local governments and private sector public
safety organizations. The goals were to evaluate the wireless communications
needs of public safety agencies through the year 2010 and recommend possible
solutions to the lack of available spectrum and interoperability problems. In
September 1996, PSWAC submitted a report outlining the public safety community's
need for additional spectrum, improved interoperability, more flexible licensing
policies, and increased sharing of spectrum resources. Many of the PSWAC
recommendations have now been adopted.
The FCC is currently conducting a
rulemaking to provide the state and local public safety community with 24 MHz of
spectrum that will be made available when broadcast TV migrates to other
portions of spectrum as part of the deployment of digital television. NTIA is
working with the FCC to develop procedures for licensing of this spectrum and to
provide a means to establish interoperability between state, local and the
Federal government. To this end, NTIA will be participating in the FCC's
recently established Public Safety National Coordination Committee. The advisory
committee will develop an operational plan to achieve national interoperability,
as well as technical standards to achieve full interoperability and network
integration. The work of the committee is to be completed by September 2000.
As provided for in the FY 1999 budget, NTIA is increasing its public safety
staff to identify the long-range spectrum requirements for the next 10 years and
develop a strategy to provide sufficient spectrum for growth of current
services, advanced technologies, and interoperability requirements. Through
these efforts, we will continue to ensure that spectrum is available for Federal
Government and the public safety community to meet the needs of law enforcement,
national security, safe airways, disaster and environmental control, and the
promotion of safe living conditions.
Global Positioning System (GPS)
Expansion.
NTIA is also addressing issues that will protect the radio
spectrum currently used by the global positioning system (GPS) and facilitate
the expansion of GPS services. GPS is a worldwide utility that provides precise
position, velocity, and time information anywhere in the world. GPS information
is used by the public and private sectors in such areas as aviation, maritime
and waterways, public transportation, railroads, telecommunications, surveying,
defense, weather, environmental protection, and law enforcement.
In order
for GPS to be used reliably and confidently as a worldwide utility, the radio
spectrum within which it operates must be protected. NTIA is responsible for
leading the efforts in preparation for the World Radio Conference 2000 to
protect the radio spectrum used by GPS.
NTIA is also dedicated to making
spectrum available for the expansion of GPS. The President's FY 2000 budget
would provide for two new signals for civilian uses of GPS. One of the signals
will be available for general applications. The other signal will be located in
a portion of the spectrum allocated to aeronautical radionavigation services for
aeronautical safety applications.
NTIA will be addressing the associated
international spectrum issues at forthcoming technical fora and the World
Radiocommunications Conference 2000. NTIA will also continue its efforts to work
with the Department of Transportation, the Department of Defense, the Department
of State, the FCC, and the private sector to ensure that spectrum is available
in the future for this purpose.
Infrastructure Protection
Finally, NTIA
has taken a leading role in protecting the national information infrastructure.
As information and telecommunications systems become increasingly critical to
our daily communications and our national economy, protection of this
infrastructure is also becoming a priority for the nation. In May 1998, the
President issued a Decision Directive (PDD-63) to create a public/private
partnership to address the nation's need to protect our critical infrastructures
from purposeful attacks. PDD-63 designated the Department of Commerce as the
lead agency to conduct a vulnerability assessment to protect the nation's
information-and communication infrastructure. The Secretary of Commerce assigned
NTIA the responsibility to carry out this program.
NTIA is planning to
undertake numerous activities as lead agency. Among other things, we will be
working with industry to raise awareness of the threat to, and vulnerabilities
of, their infrastructure. NTIA will also work with industry to develop plans to
mitigate the risks, deal with attacks, and reconstruct damaged infrastructure.
Additionally, we will encourage the adoption of security standards and best
practices, not only within the United States, but also among our major
industrialized partners. Our goal is to harmonize our efforts with other
countries and take best advantage of their developments in technology and policy
because this infrastructure is inherently global.
Throughout this process,
we will be working closely with industry, as most of the information and
communications infrastructure is owned and operated by the private sector. We
are working with three key trade associations -- the Information Technology
Association of America (ITAA); the United States Telephone Association (USTA)
and the Telecommunications Industries Association (TIA). In addition, NTIA has
established close working relations with other government agencies, which will
contribute to the effort. These include the National Communications System
(NCS), the President's National Security Telecommunications Advisory Committee
(NSTAC), the Federal Communications Commission's Network Reliability and
Interoperability Council (NRIC) and the FBI's National Infrastructure Protection
Center (NIPC). These close working relationships should ensure the cooperation
of industry and government in our efforts to protect the nation's
infrastructure.
TELECOMMUNICATIONS RESEARCH
NTIA is greatly assisted on
spectrum management and other telecommunications issues by its laboratory in
Boulder, Colorado. The laboratory, operated by NTIA's Institute for
Telecommunication Sciences (ITS), performs state-of-the-art telecommunications
research to support NTIA and Department of Commerce goals. It also conducts
specific research under reimbursable agreements with other Federal agencies and
under cooperative research agreements with private sector partners.ITS is an
active contributor to many agency endeavors, including those dealing with
spectrum efficiency and sharing issues, digital television, broadband wireless
technology and convergence issues, advanced video and voice performance testing
and standards development, Internet technology issues, and critical information
and communication infrastructure research and development. Most recently, ITS
provided essential information with respect to signal contours for purposes of
the Satellite Home Viewers Act and related proceedings.
The Value of Federal
Research
ITS's research laboratory plays a critical role in
telecommunications research because it is unbiased and cuts across government
and industry needs. In many instances, ITS's input is essential to resolving
pressing technical questions that can't be resolved by industry. For example,
ITS's research laboratory recently assisted the FCC in the development of the
national digital television channel assignment plan to facilitate the
introduction of Digital Television (DTV) across the United States. Without this
work, digital television channel assignments could not have been made in a
timely and effective way, potentially costing television broadcasters millions
of dollars due to increased interference. Private sector experts probably could
not have done this work in an unbiased fashion, since their livelihood depends
on the continued affiliation with their broadcast customers. In another recent
example, ITS participated in international frequency band allocation proceedings
for direct satellite audio broadcasts. ITS was tasked to determine the viability
of the proposed bands in the United States. ITS's measurements, which showed
that the satellite signals could not be received, prevented the investment of
billions of dollars in potentially unusable satellites. The private sector
probably could not have provided such measurements, because they would be
considered biased and would not have had the same influence as Government
measurements.
Additionally, industry did not have the means to make
these measurements in a short time frame.
Over the years, there have been
numerous external and internal reviews of NTIA's laboratory. All these reviews
concluded that there is a compelling need for a centralized Federal
telecommunications laboratory that serves the public interest by undertaking
uniquely governmental research functions in a cost-effective fashion. The ITS
laboratory is essential because it is guided by the public interest, not profit
motives. A centralized laboratory is also crucial to preventing the duplication
of telecommunications research efforts among Federal agencies.
Review of
Telecommunications and Information Technology (IT) Systems
ITS also provides
expert advice to government agencies with regard to telecommunication and IT
planning and implementation. The laboratory helps these agencies provide
cost-effective and interoperable systems to accomplish their missions. For
example, ITS provided the U.S. Forest Service a national strategic plan for
upgrading telecommunications and IT systems across all National Forests;
assisted the Department of Transportation in developing a national Intelligent
Transportation System to aid traffic control and general public transportation
safety; analyzed Federal Railway Administration telecommunication requirements
for rail safety and positive train control systems; evaluated and designed
Federal Aviation Administration augmentations to Global Positioning System
capabilities for air traffic control and ship navigation; and conducted
engineering studies and developed standards for the National Communications
System to assure interoperability and continuity of operations during national
emergencies.
ITS is also playing a central role in the Department of
Justice's Interoperability Standards Task Force (a consolidated effort of
several Justice information integration programs), which is aimed at
establishing telecommunications interoperability and effective information
sharing among agencies in the local, State, and Federal criminal justice and
public safety communities. ITS has the responsibility for identifying and
analyzing the user needs at all levels and for proposing a comprehensive set of
interoperability standards that will allow a nationwide criminal justice and
public safety enterprise network. Spectrum Use
Finally, NTIA's laboratory
provides significant information on spectrum use. ITS maintains the Nation's
database of radio propagation characteristics for the entire radio spectrum to
help improve radio communications in the U.S. and internationally. The database
provides the foundation for models used by NTIA to prepare domestic and
international radio standards and spectrum sharing agreements, by NTIA and the
FCC in national spectrum management, and by the broad community of private
sector and government users for planning, designing, and implementing radio
telecommunication systems. This information also facilitates work on advances in
telecommunications technology -- such as personal communications services and
high definition television--to benefit all citizens.
ITS also provides
comprehensive measurements of spectrum use and occupancy. These measurements
provide critical information for spectrum policy and regulation which otherwise
would be based solely on information contained in licensing documents and other
records. This measurement capability is also used to solve difficult radio
interference problems. Suspected radio interference between Government agencies,
or the Government and private sector, can become contentious. ITS, because of
its neutrality and expertise, is able to establish the trust of the parties and
develop the evidence regarding any suspected interference. ITS has been able to
quickly resolve many interference problems that other Government agencies and
private sector organizations were not able to resolve.
ITS is proposing in
FY 2000 a Broadband Initiative to develop the fourth generation of its Radio
Spectrum Measurement System. This work is required to keep pace with the changes
in spectrum use brought about by the deployment of new technologies such as
spread spectrum wireless communications. Without the initiative, ITS will not be
able to maintain its capability to make comprehensive spectrum use and occupancy
measurements and to quickly resolve suspected interference by Government systems
to private sector operations.
An FY 2000 initiative has been proposed for
ITS to lead efforts in Critical Infrastructure Protection (CIP) research related
to telecommunications and information technology. With its tremendous expertise
and experience, ITS is a natural candidate to lead these efforts. ITS will
develop a process for characterizing the assets of existing infrastructures,
work with other Federal agencies and industry to identify threats and
vulnerabilities to specific parts of the infrastructure, and define and evaluate
mitigation strategies based on existing and emerging products and technologies.
GRANT PROGRAMS
Another significant area of NTIA's activities is its two
grant programs, which help expand access to new technologies. Having documented
the "digital divide," NTIA is also seeking to bridge the divide between those
with access to new technologies, and those without. The Telecommunications and
Information Infrastructure Assistance Program (TIIAP) provides matching grants
to non-profits and public entities that are using new technologies in innovative
ways to reach those in rural, low-income, and traditionally underserved areas.
NTIA's Public Telecommunications Facilities Program (PTFP) supports the
maintenance and improvement of public broadcasting facilities throughout the
United States and its territories. Both programs are ensuring that Americans
have greater access to the benefits provided in our digital age.
Telecommunications and Information Infrastructure Assistance Program
Since 1994, TIIAP has helped underserved communities use information
infrastructure to improve the quality of, and the public's access to, lifelong
learning, health care, public safety, and other community based services. TIIAP
provides critical seed money, without which many innovative and vital
applications would not take root and grow in these communities. We have awarded
378 grants to schools, libraries, hospitals, State and local governments and
other non-profit entities in all 50 states, the District of Columbia and the
U.S. Virgin Islands.
This competitive program has been able to award only
one out of every 14 applications. Over the first five years of the program, NTIA
received almost 5400 applications. Approximately $ l 18 million in federal
grants have been matched by more than $180 million in non- federal funds. In
1998 alone, TIIAP leveraged $18.5 million in federal funds matched by $24
million in private, State and local funding and awarded 46 grants from over 750
applicants to projects in 35 states and the District of Columbia. For 1999,
TIIAP has received 702 applications seeking over $278 million in grant funds.
These applications represent more than sixteen times what NTIA can fund, making
TIIAP one of the most competitive federal grant programs.
TIIAP has an
excellent track record of supporting highly successful information
infrastructure projects in underserved communities. The program leverages a
modest federal investment into significant community investments and provides
national models for public and nonprofit organizations to follow.
For
example, through a TIIAP grant to the City of Winston-Salem, fire department
vehicles responding to emergencies in Winston-Salem and surrounding communities
have access to graphic information about the emergency sites as they respond.
Detailed images of all city buildings have been created and made accessible in
the fire department vehicles by using technologies such as document imaging,
geographic information systems (GIS), mobile computers, and global positioning
technology. By giving fire fighters better decision-making options during
emergency responses, the system enables them to fight and contain fires more
effectively, to save lives and property, and, in some cases, prevent fires from
spreading to other locations. This project has received international acclaim --
it was recently selected as a finalist in the prestigious Global Bangemann
Challenge, which honors "the best information technology projects that cities
can show."
A TIIAP grant has also provided Internet connectivity for
chronically- ill children at the University of Mississippi Medical Center. This
connectivity enables these patients to continue their education and maintain
contact with peers, teachers, and parents. Through the TIIAP grant, both
hospitalized and homebound patients can use laptop computers and desktop video
conferencing to gain access to their teachers, their classroom assignments, and
their friends and families. Its impact on their emotional well-being, as well as
their continued classroom involvement, is invaluable.
The benefits
of the TIIAP grant program were confirmed recently by an independent evaluation
by Westat of projects funded in the program's first two years. Among other
things, the evaluation found that 90 percent of the projects are still in
operation, and that the majority of projects reported meeting or exceeding
nearly all of their objectives. Most important, the projects are sustaining
themselves beyond the federal grant period and are generating new funds. Each
grant dollar has generated another four non-federal dollars to support
information infrastructure. In addition to matching funds, the grants led to
investments that expanded their services beyond the original scope and further
investments to support spin-off activities.
The projects' role as national
models further leverages the TIIAP investment. Extensive outreach by the
projects in response to the tremendous interest is spreading the benefits of the
TIIAP grants to other communities. The 206 organizations surveyed in the
independent study reported responding to 79,000 unsolicited requests for
information and hosted visitors representing over 5,000 organizations.
The
evaluation also found that TIIAP projects help communities in need and serve a
diverse public. Sixty-five percent of the projects involved rural areas, while
48 percent served the inner cities. Fifty- nine percent reached those living in
extreme poverty and 42 percent involved users with disabilities.
TIIAP
grants provide the catalyst for the vast majority of these programs.
Seventy-five percent of grant recipients reported to Westat that their projects
never would have happened without the TIIAP funds. Of the remaining 25 percent,
90 percent indicated that, without TIIAP support, the projects would have either
reached significantly fewer people, or have been substantially delayed, or
dramatically reduced their range of services.For a modest federal investment,
TIIAP is providing a tremendous body of knowledge on which policy makers,
community leaders, and technologists in the private, public, and nonprofit
sectors can rely as they work to ensure that advanced telecommunications and
information technologies reach the farthest comers of our nation. The excellence
of the TIIAP-funded projects is reflected in the nationwide and international
acclaim they receive. For example, four TIIAP grant recipients were recently
named on a short list of finalists in the Global Bangemann Challenge, which
honors the best information technology projects that cities can show. TIIAP
projects have also received awards from the NII/GII awards competition, the
National Rural Health Association, the National Association of Development
Organizations, the Medical Library Association, and the National Association of
Counties, among many others.
Most importantly, TIIAP is strengthening our
communities by revolutionizing how we learn, how we take care of our sick, how
we control crime, and how we create opportunities for people most in need.
Public Telecommunications Facilities Program (PTFP)
NTIA's PTFP has
helped public broadcasters maintain and expand their equipment and facilities
for the last 35 years. The grants achieve three Congressionally mandated
objectives: (1) extend delivery of public telecommunications services to as many
American as possible by the most effective and efficient means; (2) increase
public telecommunications services and facilities available to, operated by and
owned by minorities and women; and (3) strengthen the capability of existing
public broadcasting stations.
Facilities funded by PTFP have given millions
of Americans access to the educational and cultural programming of public
broadcasting. With the program's assistance, a public television signal now
reaches about 95% of our nation's population and public radio reaches
approximately 90% of the population. NTIA and its predecessor agencies have
assisted noncommercial entities to acquire the necessary hardware to produce and
broadcast public television and radio programs, radio reading services, and
descriptive video services for the disabled. NTIA also supports the delivery of
instructional and educational services by a broad array of community
institutions.
Since PTFP's inception, over $500 million in federal funds has
been invested in the public broadcasting infrastructure. Local communities have
provided upward of another $500 million dollars to match the federal grants. In
1998, NTIA awarded $19.9 million for 115 projects in 41 states to facilitate the
expansion of public broadcasting services to communities across the country and
ensure the continuation of service. After receiving clearance from the FCC, NTIA
recently awarded three addition projects from 1998. A number of the awards will
expand access to public radio to 450,000 persons who presently do not receive
any signal. Communities such as Santa Rosa, CA; Wilmington, DE; Kilauea Town, on
the island of Kauai, HI; Leonardtown, MD; Manteo, Buxton, and Waves, NC;
Manahawkin, N J; Lund and Ely, NV; the Duck Valley Reservation of the
Shoshone-Paiute Tribes in Owyhee, NV; Defiance, OH; and Vernal/Uintah, UT, will
receive either their first public radio service or greatly expanded service.
The President's FY 2000 budget requests $450 million over 5 years to go
towards the conversion of digital television. In April 1997, the FCC issued
regulations requiring broadcasters to transition from analog to digital
broadcasting. Public broadcasters must convert to digital broadcasting by May 1,
2003. This deadline allows the analog spectrum to be turned over to commercial
users by the 2006 date established by Congress and mandated in the Federal
Balanced Budget Act of 1997. The President's budget requests advance
appropriations for a multi-year effort to allow advance planning and certainty
in the public broadcasting system's transition to digital broadcasting. In FY
2000, the Administration is seeking $35 million from Congress to the PTFP. The
$35 million request is part of the $450 million initiative, now in its second
year. The initiative seeks funds in both the Corporation for Public Broadcasting
and PTFP. Funding through PTFP will be targeted for digital transmission
equipment, while funding for Corporation for Public Broadcasting will support
necessary expenses related to digital program production and development.
Public broadcasting stations are undertaking an enormous new financial
burden as they transition to the digital format. Over $700 million is needed for
the nation's public television stations to meet the FCC's minimum digital
broadcast pass through requirements. The conversion will place an enormous
strain on the already precarious budgets of many of the public broadcasting
stations. Federal assistance is critical during this transition period. For
almost half the public television licensees, the cost of conversion to digital
is projected to exceed their annual revenues. If stations are forced to convert
without assistance, many stations will be forced to go off the air or reduce
hours of operation, adversely affecting programming quality and diversity.
PTFP will take special measures to assure that the full potential of the new
digital technology is used to provide the most economical means possible of
providing public broadcasting services. Special consideration will be given to
stations broadcasting in under served markets, especially those in rural,
remote, or disadvantaged communities. In addition to digital conversion
assistance, PTFP will continue its traditional support to expand the
availability of public broadcasting services to those areas without such
service. PTFP also will assist public radio and television stations to continue
providing their existing analog service during the federally mandated transition
period.
Since September, NTIA has awarded fifty-two awards to assist public
television stations with the purchase of digital-ready or digital- compatible
equipment. Three of these projects--KCTS-TV, Ch. 9, Seattle; KQED-TV, Ch. 9, San
Francisco; and KCET-TV, Ch. 28, Los Angeles-will allow stations to complete
their full digital conversion. Another grant will permit KERA-TV, Ch. 13,
Dallas, TX, to share the cost of a digital TV antenna, thus allowing the station
to remain on its current tower and greatly assist in its digital conversion.
As a result of an emergency grant to the Mississippi Authority for Education
Television, the state network restored analog public television service to the
Jackson area and allowed the Jackson station to broadcast experimental digital
programming. NTIA funded a new tower and transmission equipment in response to
the collapse of the commercial tower on which the public television station's
antenna had been located.These examples demonstrate NTIA's efforts to preserve
public broadcasting, bring service to remote and rural communities, and
encourage efficient technologies.
NTIA will follow the same objectives
as we assist public television with digital conversion and ensure that all
public television transmitters are converted by 2003.
AGENCY OPERATIONS
NTIA is also committed to improving agency operations and management.
Beginning in 1990, Congress passed several major pieces of legislation governing
the way Federal departments and agencies operate, specifically:
-- the Chief
Financial Officers Act of 1990, as amended by the Government Management Reform
Act of 1994; -- the Government Performance and Results Act of 1993; and -- the
Clinger-Cohen Act of 1996.
NTIA has made significant progress in
implementing these laws. The Chief Financial Officers Act requires Federal
departments and agencies to prepare annual financial statements and have those
statements audited in accordance with generally accepted auditing standards. The
Department of Commerce is committed to improving financial information and
financial management capabilities. NTIA was one of the first Commerce agencies
to receive an unqualified opinion on its financial statements for 1993, and has
continued to receive unqualified opinions on all subsequent statements. Since
1995, the audits conducted have been formal full scope audits. The unqualified
opinions confirm that NTIA's financial statements fairly present the financial
position of the agency.
Under the guidance provided by the Government
Performance and Results Act (GPRA), NTIA has established a strategic planning
process and developed an agency strategic plan. During the past year, NTIA's
senior managers have focused on redefining NTIA's goals and objectives and
succeeded in reducing the agency goals from seven to four. A continuing emphasis
has been placed on measuring performance, both internally and at the Department
level. NTIA's internal planning process is designed to complement and reinforce
the Department of Commerce planning efforts. NTIA managers have embraced the
planning process as a way to improve our management and maximize the return to
the public from the agency resources available.
NTIA is also supporting the
Department's efforts to properly implement the philosophy of the Clinger-Cohen
Act. Clinger-Cohen (also called the Information Technology Management Reform
Act) is designed to improve our management of the information technology
investments necessary to enable us to fulfil our missions. The information
technology investments NTIA makes are directly linked to our business needs. The
strategic and operational information technology plans directly support for the
agency's goals and objectives. NTIA has processes in place designed to ensure
that all major information technology investments are evaluated in terms of the
overall business value to the organization. In addition, NTIA's laboratory (ITS)
is performing aTelecommunications Assessment across all bureaus and agencies of
the Department to provide the current status of telecommunications and
information technology assets for Commerce management, and to allow informed
decision-making on future evolutions in the infrastructure.
NTIA has
declared two information technology systems to be mission critical for year 2000
efforts: the Spectrum Frequency Management Systems and the Grants Processing
System. Both these systems are year 2000 compliant. NTIA is in the process of
developing year 2000 contingency plans for its own essential operations and
working with the Department of Commerce to ensure telecommunications and other
services are available for essential personnel.
CONCLUSION
NTIA serves a
critical role in developing and promoting policy in all areas relating to the
telecommunications and information sectors. We have taken the lead, both on the
domestic and international front, in setting forth positions in spectrum
management, universal service, broadband networks, global competition, and
electronic commerce - to name a few key areas. Given the increasing importance
of these issues to our domestic and global economy, NTIA is playing an
increasingly significant role in its position as representative of the U.S.
government and Executive Branch advisor.
As NTIA Assistant Secretary for six
years, I continue to be proud of the role we play and the accomplishments we
have achieved. We hope to continue to address the myriad new issues in
telecommunications and information technology with the same level of expertise
and thoroughness that we have always displayed. This objective has become
increasingly difficult, however, as the issues and demands on NTIA have
increased, and the staff levels have decreased. I fear that NTIA's leadership in
the dynamic and expanding telecommunications and information arena could be
compromised without adequate resources. We therefore appreciate the support of
this Committee as it considers our FY2000 Budget Estimates so that NTIA can
continue to play a leadership role.
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