[Congressional Record Volume 144, Number 94 (Wednesday, July 15, 1998)]
[House]
[Pages H5582-H5583]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          SAVE THE ``E-RATE''

  (Mr. McGOVERN asked and was given permission to address the House for 
1 minute and to revise and extend his remarks, and include extraneous 
material.)
  Mr. McGOVERN. Mr. Speaker, the telecommunications industry is holding 
hostage the future of every single child in America. We all know our 
classrooms and libraries must be wired to the Internet for our children 
to have the skills to compete in the 21st century, but this must happen 
today if our children are to become the leaders of tomorrow. Over half 
of all jobs in the future will require computer and networking skills.
  The Telecommunications Act of 1996 specifically provided such 
services to our schools and libraries at discount rates. Over 30,000 
schools and libraries have applied for this education rate, including 
59 from my own congressional district. Yet now, just as this important 
program is getting off the ground, the telecommunications industry, 
which has profited by billions of dollars from this act, is reneging on 
its part of the deal, with the full support of the Republican 
leadership of this House.
  It is shameful. We cannot let corporate greed put an end to this 
historic effort to meet a critical national need. I urge my colleagues 
to stand up on behalf of our children and support the E-rate.

               [From the School Board News, June 9, 1998]

 To the Telecommunications Industry, Congress, and the FCC: Don't Pull 
                     the Plug on America's Children

                          (By Anne L. Bryant)

       When Congress was debating new telecommunications 
     legislation a couple of years ago, NSBA was there lobbying to 
     make sure the law included a plan so schools and libraries 
     can afford to provide Internet access, distance learning, and 
     other technologies.
       When the Federal Communications Commission (FCC) began 
     drafting the regulations to put the e-rate into effect, NSBA 
     lobbyists were there to make sure the e-rate would provide a 
     deep enough discount and to ensure that schools could use the 
     discount for a wide variety of services with few limitations.
       NSBA and other education groups were key players in the 
     FCC's negotiations with the telecommunications industry and 
     utility regulators to come up with a plan to finance the e-
     rate that all parties agreed to.
       And now that the e-rate is under attack, NSBA is there, 
     working with a coalition of education groups, to make sure it 
     is not held hostage in a ``telecommunications war'' as long 
     distance and local phone companies fight over market share.
       Since NSBA and five other education groups launched the 
     ``Save the E-Rate Campaign'' last month, school officials 
     from across the country generated 10,000 letters to members 
     of Congress, the FCC, and telecommunications companies to 
     support full funding for the e-rate.
       Despite earlier statements from the FCC that it would 
     provide up to $2.25 billion a year for the e-rate discounts, 
     first-year funding now is likely to be in the range of $1.75 
     billion.
       Schools and libraries that have applied for the e-rate have 
     requested a total of $2.02 billion, and the Schools and 
     Libraries Corp. (SLC) is carefully reviewing all the 
     applications to make sure that the discounts are

[[Page H5583]]

     used for eligible costs. If there is not enough money in the 
     fund to finance all the applications, FCC Chairman William 
     Kennard says schools in poor and rural communities will get 
     first priority.
       Local school boards' overwhelming support for the discounts 
     underscores how crucial the e-rate is to ensure that our 
     students can be full participants in the Information Age. 
     Without the e-rate, the gap between the technology haves and 
     have nots will continue to grow.
       The SLC received more than 30,000 applications for the e-
     rate before the April 20 deadline. These applicants have 
     developed extensive technology plans and have lined up local 
     funding sources to support their part of the bargain. They 
     are counting on these discounts to start July 1 so they can 
     begin providing services to the students they serve.
       Just as this important program is getting off the ground, 
     the telecommunications industry is backing off from its 
     commitment to contribute enough to the FCC's Universal 
     Service Fund to pay for the discounts.
       Certain long-distance telephone companies--AT&T, MCI, and 
     Sprint--are undermining the program by charging their 
     customers higher rates and blaming the increases on the e-
     rate. Other companies--SBC, BellSouth, and GTE--have filed a 
     lawsuit that, if successful, could destroy the e-rate 
     program.
       The fact is, the Telecommunications Act of 1996 cut the 
     access fees the long distance carriers are charged to connect 
     with local telephone systems. These fees will be cut even 
     further in July.
       The savings from these fee reductions would offset the long 
     distance companies' contributions to the Universal Service 
     Fund to finance the e-rate and also allow the companies to 
     pass along the savings to customers. In addition, these 
     companies, have the opportunity to make a profit by winning 
     contracts to serve schools and libraries.
       Despite earlier agreements, however, AT&T has raised its 
     long distance rates, and now claims it won't be able to 
     contribute to the Universal Service Fund unless it adds a 
     surcharge to customers' phone bills.
       This ploy has gotten the attention of consumer groups, who 
     now have asked the FCC and Congress to delay implementation 
     of the e-rate until the issue of access charge reductions is 
     resolved.
       A coalition that includes the Consumer Federation of 
     America, Consumers Union, and groups representing business 
     telephone users wrote to the FCC May 21 requesting another $1 
     billion be cut annually from the access charges. They claim 
     that is the amount consumers are being asked to pay in 
     unrelated new line-item charges that began showing up on 
     long-distance bills earlier this year. The groups want the e-
     rate to be halted until new fees are imposed to pay for it.
       That would be a grave mistake. The e-rate must not be 
     delayed or reduced. The FCC and Congress should not break 
     their promise at the eleventh hour.
       We must not let the nation's schools be held hostage to 
     policy disputes among various sectors of the industry, 
     government policymakers and regulators, unrelated businesses, 
     and consumer groups. Schools and libraries--and the thousands 
     of students, teachers, parents, and community members they 
     serve--are consumers, too.
       There is a huge demand for the e-rate. Our children's--and 
     our nation's--future requires that our schools have access to 
     the telecommunications services they will need to succeed in 
     the 21st century.
                                  ____



                                     House of Representatives,

                                     Washington, DC, June 9, 1998.
     Hon. William E. Kennard,
     Chairman, Federal Communications Commission, Washington, DC
       Dear Chairman Kennard: We are writing to you today to 
     express our utmost concern and support for the education rate 
     (E-rate) created by the Telecommunications Act of 1996. It is 
     absolutely imperative that you, as Chairman of the F.C.C., 
     work with your fellow Commissioners to implement the 
     intentions of Congress regarding this initiative and ensure 
     that the E-rate receives the comprehensive funding that it 
     has been promised. It is vital that you hear of the positive 
     support that the E-Rate program has in Congress, as well as 
     the valuable and practical impact that the program will 
     directly have in all of our communities. We urge you and the 
     Commission to ensure that funds allocated to the E-rate meet 
     the demand that has already been demonstrated by schools and 
     libraries in the 30,000 applications submitted thus far.
       Despite the adverse message that has been relayed by a 
     small number of Members of Congress, the E-rate has 
     overwhelming endorsement in the House, Senate, and in 
     communities nationwide. By creating the E-Rate, Congress 
     clearly enumerated its commitment to guarantee that each 
     child and community have the tools necessary to become 
     technologically capable of participating in the global 
     marketplace. The influx of advanced technology in our society 
     makes it imperative for our schools and libraries to have 
     adequate technology with which to teach the youth of our 
     future. The E-Rate program provides discounts to schools and 
     libraries for a limited number of services. Internal wiring, 
     one of the most integral endeavors eligible for E-Rate 
     discounts, would enable countless local schools and libraries 
     access to the information superhighway.
       The E-rate, financed through reductions in the regulatory 
     fees assessed to telephone companies, is a positive and 
     beneficial program which encourages the economic development 
     of infrastructure for both schools and libraries. However, 
     the uncertainty of such funding now becoming a reality 
     greatly concerns us--the overall impact on Massachusetts 
     would be devastating if E-Rate discounts were not provided 
     for the projects proposed statewide. The Massachusetts 
     Department of Education has begun the initial implementation 
     of a statewide dial-up Internet access network for all 
     Massachusetts educators. Though there are already over 20,000 
     educators who have registered for this service, without 
     financial assistance through the E-Rate program, thousands 
     more will be denied of a tremendous opportunity to access the 
     Internet and ensure that they will be able to transfer 
     information and technological skills to their classrooms.
       The negative publicity that has surrounded the 
     implementation of this program is distressing, and despite 
     some naysayers, the program has attained solid support from 
     local communities, educators, students, and many businesses. 
     This effort must not be compromised nor delayed by the 
     potential ongoing debates and criticisms that are fueled and 
     based on misinformation. The message from local communities 
     has been resoundingly clear--our students need to be exposed 
     to technology and have access to as much information as 
     possible in order to be successful and to function in modern 
     society. The E-Rate is a prime means by which the federal 
     government can offset, and often times initiate, the 
     inception of high tech infrastructure in our schools and 
     libraries.
       We urge you to not impede or delay decisions to grant many 
     Massachusetts schools and libraries with the funding needed 
     to access technology. Thank you in advance for your time and 
     attention to this matter. We look forward to hearing from you 
     in the very near future and to working with you to promote 
     the E-Rate program and the goals that it aims to achieve.
           Very truly yours,
     Richard E. Neal.
     John W. Olver.
     Joe P. Kennedy, II.
     William Delahunt.
     Jim P. McGovern.
     Marty Meehan.
     Joe Moakley.

                          ____________________