Copyright 2001 Federal News Service, Inc.  
Federal News Service
May 24, 2001, Thursday
SECTION: PREPARED TESTIMONY

LENGTH: 685 words

HEADLINE: PREPARED TESTIMONY OF MIKE PENCE CHAIRMAN
 
BEFORE THE HOUSE SMALL BUSINESS COMMITTEE REGULATORY REFORM AND OVERSIGHT SUBCOMMITTEE RURAL ENTERPRISES, AGRICULTURE AND TECHNOLOGY SUBCOMMITTEE
 
SUBJECT - ELIMINATING THE DIGITAL DIVIDE: WHO WILL WIRE RURAL AMERICA?

BODY:
Our hearing held jointly with my good friend from South Dakota's Subcommittee on Rural Enterprises, Agriculture and Technology addresses the rise of the new economy and the technology needed to ensure that rural areas can share in the global business opportunities that arise from the continuing penetration of the Internet. This is the third in a series of hearings that the Subcommittee on Regulatory Reform and Oversight has held on the Internet-based economy. Last week's hearing focused on the so-called digital divide: the lack of high-speed or broadband access to the Internet currently plaguing rural small businesses. Today's hearing examines the various technologies for eliminating the digital divide: be it cable, satellite, DSL, fiber optic, or wireless. The businesses testifying today have decided that it makes good business sense to provide broadband to rural areas and I look forward to a very informative session. I would like to thank the gentleman from South Dakota,. Chairman Thune, for agreeing to co-chair these very timely and important hearings.

The evidence is pretty clear - a digital divide exists in this country. While urban areas get broadband access, rural areas are being left behind. As the Federal Communications Commission noted in its August, 2000 report on deployment of broadband services "Consumers in Los Angeles County have a rich variety of choices of advanced services, while there are no providers of advanced services for residents of rural Wilsondale (West Virginia)." Given the benefits of broadband service and the importance it can play in maintaining the vitality of America's rural communities that disparity must change.

Inroads are being made to reduce this disparity as the witnesses at today's hearing will demonstrate. More investment will be required as the National Exchange Carder Association estimates that it may cost nearly $11 billion to make telephone lines in rural America broadband capable. My primary concern is that the investment will not occur quickly enough to stimulate the economies in rural America.

The only favorite I seek to play in the debate over broadband is to ensure that businesses in rural America have the same access to advance telecommunication services that are available to businesses in Los Angeles, New York, and Washington, DC. I have no preference concerning technology or providers. All I am interested in is making sure that the government gets out of the way or otherwise adopts policies that ensure all businesses interested in serving rural America have that opportunity. I look forward to the testimony from the witnesses and the problems that they see in delivering broadband to rural America.The businesses at today's represent the entire spectrum of technologies for delivering broadband access. We will hear from a company that provides satellite service, a cable operator focusing on serving rural America, two competitive local exchange carders that started to serve rural America after the enactment of the Telecommunications Act of 1996, and a very small telephone cooperative that serves rural South Dakota. Conspicuously absent are the largest incumbent telephone companies serving rural Indiana, South Dakota, and rural New Mexico. Invitations were extended so the Joint Subcommittee members could inquire about their plans for broadband deployment in rural areas. The invitations were turned down due to the press of business. I might note that a number of the small businesses represented here today were able to attend even though they clearly do not have the resources of the companies that did not wish to attend. I know that I am disappointed at not being able to create a full and complete record on the potential providers of broadband service for rural America and the problems they face in eliminating the digital divide.

Again let me thank the gentleman from South Dakota for agreeing to co- chair this heating. I look forward to working with him and other members interested in addressing the critical need for telecommunications infrastructure in rural America.

END

LOAD-DATE: May 31, 2001