Copyright 2000 Federal News Service, Inc.
Federal News Service
February 3, 2000, Thursday
SECTION: PREPARED TESTIMONY
LENGTH: 2157 words
HEADLINE:
PREPARED TESTIMONY OF GREGORY L. ROHDE ASSISTANT SECRETARY FOR COMMUNICATIONS
AND INFORMATION NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION U.S.
DEPARTMENT OF COMMERCE
BEFORE THE SENATE
COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY
SUBJECT - THE
"DIGITAL DIVIDE" IN RURAL AMERICA AND LOAN GUARANTEES AND RURAL TELEVISION
SERVICE
BODY:
Thank you Mr. Chairman for
inviting me to testify before this Committee regarding the "Digital Divide" that
exists in rural America and efforts to ensure that viewers in small and rural
markets have access to local broadcast programming. Both of these issues are
deserving of Congressional attention to prevent rural Americans from becoming
increasingly part of the "information have-nots."
The "Digital Divide"
With respect to the Digital Divide, the Administration recognizes that
despite incredible growth in personal computer ownership and Internet access in
this country, there remains distinct disparities in such access, especially in
rural areas. Last July, President Clinton and Secretary of Commerce William M.
Daley released Falling Through the Net: Defining the Digital Divide. This is the
third report authored by the National Telecommunications and Information
Administration (NTIA) documenting household access to telephones, computers, and
the Internet. This Falling through the Net report, which expands upon the
previous two reports, is a key component of the Department of Commerce's efforts
to understand, measure, and explain how the information revolution is affecting
this nation. This study provides valuable new information on how people are
gaining access to the Internet, how Americans choose to spend their time online,
and why some people are not connected. Access to new technologies, such as the
computer and the Internet, will be crucial to the economic success of American
businesses, communities, and individuals. The Internet is becoming an invaluable
tool for personal success and professional advancement. Increasingly, Americans
are using it to find jobs, contact colleagues, locate public information or take
courses online. Familiarity with new technologies will also prepare more
Americans for the high-tech workplace of the 21 st century.
In the
Falling through the Net report, we present some good news, which is that more
Americans are connected today than ever before. Computer ownership has nearly
doubled in four years, and Internet access has increased more than 40 percent in
the last year alone. More than one-quarter of American households have Internet
access at home and approximately one-third of Americans are going online from
some point. Additionally, those traditionally less likely to have telephones,
primarily young and minority households in rural areas, are now more likely to
have phones at home.
Unfortunately, this report also presents some very
troubling news. Data from this report reveals that Americans living in rural
areas are lagging behind the national average in computer and Internet access,
regardless of income level. This new data revealed growing disparities,
including the following:
- At almost every income level, those
households in rural areas are less likely to own computers than households in
urban or central city areas.
- At almost every income level, households
in rural areas are significantly less likely - sometimes half as likely - to
have home Internet access than those in urban or central city areas.
-
Black households in rural areas are more than 1/5th less likely to own a
computer than the national average U.S. black household, and are almost 2/5ths
less likely to access the Internet than the average U.S. Black household.
- Also for rural areas, the Kindergarten-12th grade school is a popular
point of Internet access: 30 percent of rural persons use school for Internet
access outside the home, as compared to the national average of 21.8 percent.
These statistics illustrate that a "digital divide" clearly exists among
different demographic groups, and that rural areas are falling on the wrong side
of this divide. The Administration is committed to working to closing this gap
between the information "haves" and "have nots" and also recognizes that such an
effort requires creative partnerships between government, industry, and
non-profit organizations.
Government programs, such as NTIA's Technology
Opportunities Program (TOP), (formerly known as the Telecommunications and
Information Infrastructure Assistance Program (TIIAP)), are already working to
expand access to technological resources in under served areas. TOP promotes the
widespread use of advanced telecommunications and information technologies in
the public and non-profit sectors. The program provides matching demonstration
grants to state and local governments, health care providers, school districts,
libraries, social service organizations, public safety services, and other non-
profit entities to help them develop information infrastructures and services
that are accessible to all citizens, in rural as well as urban areas. TOP has
provided support to such programs as the Mountain Area Information Network in
North Carolina, the Lincoln Trail TELEVILLAGE Project in Kentucky, the
Telecommunications Solutions for Rural Revitalizations project in South Dakota,
and the Vermont Telecommunications Application Center, all of which promote the
development and deployment of technology resources to address the needs of rural
residents in those states.
The assistance of non-profit organizations
and private industries is also a necessary component in expanding access to new
technologies. Companies are supporting the creation of community technology
centers, helping schools through "NetDays," and donating computers and software
to schools and neighborhood centers. The private sector's contribution is
essential because these companies know what kind of skills Americans will need
in order to find jobs in the future.
Community-based organizations can
also help provide access to computers and the Internet where communities need it
most. Each community knows best how to reach and connect residents, whether
through traditional community centers, churches, senior centers, fire and police
stations, or other centers.
In addition, as the President's principle
adviser on telecommunications and information policy matters, NTIA will continue
to advocate policies that advance the goals of promoting competition and
advancing universal service, consistent with the objectives of the
Telecommunications Act of 1996. In particular, the
Administration remains committed to the preservation and advancement of
universal service reforms that will ensure that consumers living in rural and
high cost areas can fully participate in the digital economy. To this end, we
will work with the Federal Communications Commission and the states to implement
universal service reforms that achieve the goals of the Telecommunications Act
that "access to advanced telecommunications and information services should be
provided in all regions of the Nation" and that rural consumers have comparable
services at comparable rates.
All of these efforts are necessary if we
hope to close the digital divide that exists between urban and rural America.
I look forward, in my capacity as Administrator of NTIA, to promoting
public and private programs designed to ensure that all Americans are able to
fully participate and benefit from new technology.
Loan Guarantees and
Rural Television Service
I also appreciate the opportunity to testify
before this Committee on providing loan guarantees to providers to carry local
broadcast signals to residents of small, rural local broadcast markets. The
Administration believes that the question of how consumers in small and rural
markets receive local news and information is very important and deserving of
Congressional attention.
I can recall well the night that the Senate
passed the Omnibus Appropriations Act and the Senate discussed a proposal to
provide loan guarantees for carders to provide local-into-local broadcast
coverage to small and rural markets. I was struck by the fact that when this
Administration took office in 1993, there were no operational direct broadcast
satellites (DBS)providing service to viewers. In 1993, there never could have
been a debate like that which embroiled the Senate last November over the
question as to how small and rural markets would get local-into-local service
over satellite systems. Today, there are more than 11 million DBS subscribers.
DBS companies are providing local-into-local service in 24 markets and are
currently negotiating for the rights to deliver local-into-local broadcasting in
20 more. The question remains, however, as to how viewers in the remaining 200
or more television markets obtain access to local-into- local service.
The Administration strongly supported the provisions in the Satellite
Home Viewer Improvement Act (SHVIA) that provided authorization to satellite
providers to carry local-into-local broadcast programming. The Administration
believes that authorizing local-into-local service not only promotes greater
access to local television signals for all Americans, but also strengthens DBS
providers' ability to provide meaningful competition to cable with comparable
program offerings. Unfortunately, markets in which local-into-local broadcasting
over satellite systems is not offered will be less likely to enjoy the same
competitive benefits. Moreover, in some rural areas, there is no multichannel
video programming supplier offering local broadcast signals and many of these
communities lay outside of the signal coverage area of their local broadcast
stations.
For these reasons, the Administration believes that it is
important to find ways to ensure that consumers in rural and small markets have
access to local broadcast programming. The Administration is prepared to work
closely with the Congress on any proposal to address this issue, including a
loan guarantee proposal. We believe that these three principles should guide
such legislation. First, the Administration believes that any new program should
be technology neutral in recognition of the fact that different technologies may
best be suited to deliver local broadcasting services to unserved areas in
different parts of the country. Technology neutrality can spur innovation and
the application of new technologies to address this problem. Second, the program
should be crafted to ensure that it promotes competition in the multichannel
video programming market and encourages future private investment in
infrastructure. Third, the program should demonstrate fiscal responsibility by
conforming to Federal credit program policies, which minimize Federal exposure
to loss and ensure the least expensive, most efficient financing of Federally
guaranteed loans.
The Administration also believes that the discussion
over ensuring local-into-local broadcast programming in the digital era should
not be limited to the loan guarantee approach. Thus, NTIA recently announced
that it will publish a Federal Register Notice to solicit public comments and
suggestions as to how viewers in small and rural markets can receive local
broadcast signals. All comments will be posted on NTIA's web site
(http://www.nfia.doc.gov). As part of this effort, I intend to host a roundtable
discussion in early March with various stakeholders: consumers, industry
representatives, policy makers, and technology experts, to explore ways in which
small and rural markets can have access to local programming via satellite and
other technologies. Our efforts in this area are intended to complement the
Congressional action and efforts by the Federal Communications Commission to
examine this question as required under SHVIA. Our intent is to help raise
visibility on this issue and contribute to the debate.
Extending the
reach of local broadcasting and its vital news and information has been a
longstanding goal of NTIA. The agency administers the Public Telecommunications
Facilities Program (PTFP), which provides grants to establish and extend the
reach of local public television and radio stations into unserved areas. Since
1962, the program has been a major factor in the nation's success in bringing
local public television stations to rural areas -- through the establishment of
full power stations, as well as the construction of television translators and
repeaters. PTFP estimates that approximately 94 percent of all Americans can
receive at least one free, over-the-air public television signal from a local
PBS member- station.
The preservation of local broadcasting in the
digital era is vitally important and ensuring that viewers in small and rural
markets are included in this new age is critical. The Administration pledges its
support to advance the goal of extending the reach of local broadcasting to all
Americans and looks forward to working with Congress on the loan guarantee
proposal as well as exploring other approaches to this issue. We would
appreciate the opportunity to provide comments on any specific legislative
proposal.
Thank you for the opportunity to testify and I would be happy
to respond to your questions.
END
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February 4, 2000