[Congressional Record Volume 140, Number 45 (Thursday, April 21, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                   NADO RELEASES TELECOM WHITE PAPER

                                 ______


                           HON. RICK BOUCHER

                              of virginia

                    in the house of representatives

                        Thursday, April 21, 1994

  Mr. BOUCHER. Mr. Speaker, the importance of advanced 
telecommunications for economic development of our small towns and 
rural communities is detailed in a white paper released this week by 
the National Association of Development Organization [NADO] entitled, 
``Telecommunications and Its Impact on Rural America.''
  The paper highlights the role that telecommunications applications 
can play in helping rural communities overcome the barriers that result 
from geographic isolation. It also serves as a timely reminder of the 
importance of consideration of rural America's unique needs when 
crafting telecommunications reform legislation.
  The NADO white paper includes a set of policy goals and specific 
recommendations designed to ensure that the information superhighway 
not only traverses rural America, but also that rural communities are 
prepared to take advantage of its offerings.
  Included with my comments is a copy of the paper's executive summary. 
I urge my colleagues to carefully consider the recommendations 
contained therein in anticipation of House action on H.R. 3626 and H.R. 
3636.

                           Executive Summary

       Telecommunications has significant potential to contribute 
     to economic development in rural America. Applications of 
     information technologies in rural businesses, schools, health 
     care institutions, and government agencies can help make 
     those organizations more efficient and effective, help them 
     to overcome the ``rural penalty'' that results from 
     geographic isolation, and help rural communities to diversify 
     their economies. This report describes some of these 
     applications, and the opportunities they present for rural 
     communities.
       For the full power of these opportunities to be realized, 
     however, action is required by many different players in a 
     number of jurisdictions and industries. We must work together 
     to meet two requirements:
       A rural public telecommunications infrastructure that is 
     capable of supporting advanced equipment and services at 
     reasonable prices; and
       Community preparedness to make informed decisions about the 
     planning, purchase, implementation, and evaluation of new 
     information technologies.
       This report discusses the challenges raised by these two 
     requirements. Changes in market structure and technological 
     advancements are threatening many of our traditional policies 
     for achieving universal service, which leaves rural America 
     especially vulnerable. We will need to find new means for 
     assuring that all Americans have access to basic telephone 
     service, and that, as new advanced services are made 
     available in urban areas, they are introduced in rural areas, 
     as well.
       The challenge to prepare rural communities to use 
     telecommunications technologies effectively is just as 
     formidable. We need new partnerships that will improve 
     communication among telecommunications providers and policy 
     makers, economic development professionals, and rural 
     communities. We must also look for new ways to inform 
     potential customers about telecommunications applications, 
     and give them the skills to deploy those applications 
     effectively.
       We suggest the following set of goals for the 
     telecommunications industry and policy makers:
       1. Comparable Service Delivery: The telecommunications 
     infrastructure in rural communities should support services 
     that are comparable in quality, availability, and cost to 
     those provided by urban infrastructure.
       2. Community Preparation: Rural communities should be 
     familiar with the types of telecommunications services 
     available in their community, and have the skills to plan 
     for, implement, and evaluate new services and equipment 
     effectively.
       3. Access to Funding and Financing: Rural communities 
     should have access to adequate capital financing and other 
     forms of funding for telecommunications-related equipment and 
     services.
       4. Economic Development Strategy: In each rural community, 
     telecommunications-related development strategies should be 
     integrated with the larger economic development strategies of 
     the community and region.
       We have included several recommendations that will help 
     achieve these goals. The recommendations support the two 
     requirements of creating an adequate and affordable 
     telecommunications infrastructure and preparing our 
     communities to take advantage of such an infrastructure.
       Our first set of recommendations target national and state 
     policies that assure rural America has an adequate and 
     affordable telecommunications infrastructure. These 
     recommendations are based on the assumption that competition 
     in the telecommunications industry is both desirable and 
     inevitable, and that the role of policy makers should be to 
     facilitate that competition and safeguard consumer interests. 
     These recommendations include:
       Lift current restrictions on increased competition in the 
     telecommunications industry including long distance 
     telephone, local telephone and cable television services as 
     well as manufacturing and other communications related 
     services.
       Protect rural communities from potential negative effects 
     from competition which may result in reduced capital 
     investments in rural telecommunications through appropriate 
     timing of local competition and universal service safeguards;
       Bring down long distance rates through increased 
     competition and extended local calling areas;
       Protect universal service funds and broaden the base of 
     contributors to universal service to include all providers of 
     telecommunications services;
       Create a new definition of basic telephone service for all 
     consumers that evolves over time to take advantage of new 
     technologies;
       Support infrastructure sharing between larger and smaller 
     local telephone companies in order to allow rural customers 
     access to advanced telecommunications services; and
       Provide incentives for local telephone companies to invest 
     in rural telecommunications infrastructure through 
     alternative state regulations.
       The second set of recommendations target rural communities, 
     telecommunications providers, and economic development 
     professionals in order to help them prepare for the 
     opportunities that an expanded information infrastructure 
     provides in job creation and economic growth. These 
     recommendations include:
       Include telecommunications strategies as a component within 
     comprehensive, locally based economic development plans which 
     are created in partnership with regional development 
     agencies;
       Create opportunities for better communications and 
     interaction between telecommunications companies and economic 
     development professionals;
       Better educate rural leaders in government, education, and 
     key industries about telecommunications technologies and 
     applications; and
       Include the creation and funding of telecommunications 
     strategies as an integral part of existing federal rural 
     development programs.

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