ALAWON v6n16 (March 17, 1997) URL = http://hegel.lib.ncsu.edu/stacks/serials/alawon/alawon-v6n16.txt ------------------- ALWN616.TXT follows -------------------- ================================================================= ALAWON Volume 6, Number 16 ISSN 1069-7799 March 17, 1997 American Library Association Washington Office Newsline In this issue: (102 lines) REPORT ON MARCH 12 SENATE COMMERCE COMMITTEE HEARING ON DISCOUNTED LIBRARY RATES AND THE TELECOM ACT _________________________________________________________________ REPORT ON MARCH 12 SENATE COMMERCE COMMITTEE HEARING ON DISCOUNTED LIBRARY RATES AND THE TELECOM ACT On March 12 the Senate Commerce Committee held its first oversight hearing to address universal service and related issues from the Telecommunications Act of 1996. Several more hearings under the new chairmanship of Senator John McCain (R-AZ) are anticipated in the coming months. Overall the hearing went well for libraries and education, although there were numerous questions on the library discount provision. The intra-industry conflicts between the local and long-distance companies at the hearing were evidence of the enormous challenge the committee and the FCC face to implement universal service while promoting a competitive telecommunications market. In contrast the library/education portion of the universal service battle is relatively small, but one clearly in the public interest. It does not appear, at least at this time, that the Commerce Committee will reopen any part of the Act or universal service provisions. The discount rate provision will continue to move forward as part of the Federal Communication Commission's (FCC) pending rulemaking on universal service. Three main issues addressed included: the FCC's authority in the process of implementing the new Act; the disputes between the local and long distance telephone industries over universal service; and the universal service discount provision for libraries and schools. The hearing's lead witness was FCC Chairman Reed Hundt. McCain, who voted against the Telecommunications Act when it was passed last year, asked Hundt whether the $2.2 billion dollar cap on the library/school portion of the universal service fund would raise consumer rates. Hundt defended the FCC's approach and emphasized the broad support within the Joint Board for the recommendations, and referred to ongoing studies by the FCC on related issues, such as access charges. Senators Olympia Snowe (R-ME) and Jay Rockefeller (D-WV) strenuously defended the committee's skeptical questions regarding the pending decision by the FCC on the library/school discounts. (Both senators sponsored the Snowe-Rockefeller-Kerrey-Exon provision of the Act calling for the telecom discounts for libraries and schools.) The recommendations include a range of discounts for libraries and schools ranging from 20 to 90 percent based on a local community's degree of poverty as well the overall $ 2.2 billion cap. These recommendations also call for discounts to be applied to inside wiring & networking and Internet service costs, also a concern to several senators. The FCC is expected to complete final rulemaking on universal service by May 8, 1997. Hundt was followed by four witnesses from the local and long distance telephone industries -- Bill Barr, Senior Vice President, GTE Corporation; Anne K Bingaman, President of Local Services for Comptel (LCI); Gail McGovern, Vice President of AT&T's Consumer Services Division; and Roy Neel, President of the United States Telephone Association. The predictable arguments regarding universal service, access charges and the broader issues of competition were clearly visible in this panel's comments and discussions. Although some observers thought this panel offered little new insight into the overall process, it was an excellent example of the classic positions of the two parts of the telephone industry. There was lively debate between the local and long-distance phone representatives. The hearing's last witness, and the only one testifying on behalf of libraries and education, was Anthony Wong, a member of the Cecil County Board of Education from Elkton, Md. He testified on behalf of the Education and Library Networks Coalition, (EdLiNC, of which ALA is a member) and the National School Boards Association (NSBA). (See ALAWON v6, n15; March 12, 1997.) Wong urged continued Congressional support for discounted rates for telecommunications services. Senators Ted Stevens (D-AK) and Conrad Burns (R-MT) asked about access in rural areas. Burns especially seemed to have rapport with Wong, who even invited Burns to a meeting of the local Cecil County Board of Education. Throughout the discussion Senator Rockefeller kept emphasizing that he thought Wong's remarks were the most important of the hearing. Further information regarding this hearing is available from the Senate web site at http://www.senate.gov/~commerce/hearings/univserv/univserv.htm. Also there is a link to the Senate source on the EdLiNC website at http://www.itc.org/edlinc/3-12commerce/index.html. _________________________________________________________________ ALAWON is a free, irregular publication of the American Library Association Washington Office. To subscribe, send the message: subscribe ala-wo [your_firstname] [your_lastname] to listproc @ala.org. ALAWON archives at http://www.ala.org/washoff/alawon. Visit our Web site at http://www.alawash.org. ALA Washington Office 202.628.8410 (V) 1301 Pennsylvania Ave., NW, #403 202.628.8419 (F) Washington, DC 20004-1701 800.941.8478 (V) Lynne E. Bradley, Editor Deirdre Herman, Managing Editor Contributors: Carol C. Henderson All materials subject to copyright by the American Library Association may be reprinted or redistributed for noncommercial purposes with appropriate credits. =================================================================