roundtable: NTIA Funding in Jeopardy


roundtable: NTIA Funding in Jeopardy

NTIA Funding in Jeopardy

DGARDNER@ntia.doc.gov
Fri, 08 Sep 1995 14:46:24 -0400


Message-Id: <s0505756.056@ntia.doc.gov>
Date: Fri, 08 Sep 1995 14:46:24 -0400
From: DGARDNER@ntia.doc.gov
To: roundtable@cni.org
Subject:  NTIA Funding in Jeopardy


Dear Colleagues:

In a markup session yesterday morning, the Senate Appropriations
Subcommittee proposed spending levels for NTIA that would essentially
eliminate most agency efforts.  An attached memo details the
implications of this action.  

In addition, the Senate Government Affairs Committee reported out
legislation yesterday that would scatter the functions of the Dept. 
of Commerce to three new agencies and eliminate many other important
functions all together.  Please see the attached memo for more details.

The full Senate Appropriations Committee will likely consider
NTIA appropriations, which is part of the Commerce, Justice,
State Appropriations bill, this Monday, Sept. 11.  The full Senate
is expected to vote on this legislation this Tuesday, Sept. 12.

If you have any questions on this legislation, please contact me at
202/482-5893.

Thank you,

David Gardner
NTIA
<dgardner@ntia.doc.gov>

******************************************************************************
IMPACT OF SENATE APPROPRIATIONS SUBCOMMITTEE ALLOWANCE
ON THE NATIONAL TELECOMMUNICATIONS AND INFORMATION
ADMINISTRATION (NTIA)

The Senate Appropriations Subcommittee on Commerce, Justice, and
State, and Related Agencies' appropriations mark-up yesterday
effectively eliminates NTIA -- the only Executive Branch agency with
comprehensive legal, technical, engineering and policy expertise in the
burgeoning telecommunications and information marketplace.  

Telecommunications and information services are the world's largest
economic sector, generating more than $590 billion in annual revenues
domestically and employing about 3.6 million workers.  The sweeping
cuts, reflecting an 82 percent reduction from the President's FY '96
budget request for NTIA, will have a devasting impact on the ability of the
United States to remain a world leader in this growing sector of the
world's economy.  The cuts will:
     
  o  Delete all but $14 million in funding for NTIA, presumably to handle
     spectrum management functions.

  o  Eliminate funding for the Telecommunications and Information
     Infrastructure Assistance Program (TIIAP) for FY 1996 and rescind
     funding for all TIIAP grants that were to be awarded this fiscal year.

  o  Provide $10 million for the Public Telecommunications Facilities
     Program (PTFP).
  
Moreover, the Subcommittee's actions will:

  o  Cripple the Administration's efforts to participate effectively in
     domestic telecommunications reform legislation, the most sweeping
     reform in 60 years.

  o  Impair the Executive Branch's ability to participate in high level
     international government-to-government negotiations, including the 
     World Radio Conference, the Asia-Pacific Economic Council Telecom 
     meetings, and the G-7 Information Society Conference to be held in 
     Durbin, South Africa next year.

  o  Prevent the effective and efficient management of the Federal
     Government's radio spectrum for such critical public services as air
     traffic safety, weather forecasting and national defense.

  o  Halt important projects in health care, education, economic
     development and library services that are designed to bring advanced
     telecommunication services to all Americans, particularly those 
     living in underserved and rural areas.

  o  Eliminate the only Federal program dedicated exclusively to the
     funding of educational programming for children.


*****************************************************************************

IMPACT OF ELIMINATING THE NATIONAL TELECOMMUNICATIONS 
AND INFORMATION ADMINISTRATION (NTIA)
U.S. DEPARTMENT OF COMMERCE

I. 	The  Senate Governmental Affairs Committee reported out
legislation yesterday on a party-line vote to scatter the functions of the
Department of Commerce to three new agencies and eliminate many
other important functions altogether.  With respect to NTIA, the
"Commerce Department Termination and Government Reorganization Act
of 1995" would:

  o  Establish a United States Trade Administration (USTA) within the
     Executive Branch, and transfer, among other things, the Under Secretary
     [sic] of NTIA relating to telecommunications policy analysis in support 
     of international trade policy and negotiation functions to USTA, along 
     with standard setting functions.

  o  Transfer NTIA spectrum management functions to GSA
     	
  o  Transfer telecommunications domestic policy to the White House

  o  Terminate all other NTIA functions, including its legal functions,
     grant programs, research and laboratory activities       

II.  The Impact:

The proposed legislation will hurt the ability of the United States to 
remain a world leader in telecommunications and information services.

  o  Telecommunications and information services are the world's
     largest economic sector, generating more than $590 billion in annual
     revenues domestically and employing about 3.6 million U.S. workers.

  o  The proposal would hinder efforts to promote pro-competitive
     policies.  By splitting up various NTIA/DOC functions, the proposal 
     will scatter important domestic policy-making, legal, economic and 
     technical expertise throughout the government.  Worse still, some 
     important activities would be eliminated.  

  o  NTIA's operations are interrelated.  NTIA brings a strong
     multi-disciplinary approach to complex telecommunications policy issues. 
     Spectrum engineers, policy analysts, economists, and lawyers work
     together on such diverse issues as negotiating for more global spectrum
     for mobile satellite services, hammering out the basic principles for
     competition between countries, and establishing U.S. positions on such
     issues as privacy and intellectual property rights.
   
  o  NTIA's domestic telecommunications policies affect the ability of
     U.S. business to compete internationally.  By the same token, the
     international policies that NTIA pursues affect the success of business
     back at home.  For example, NTIA's domestic policy office promoted
     competition in the provision of wireless services through reports,
     testimony and FCC filings.  NTIA's international office is currently
     promoting such pro-competitive policies in Europe, Latin America and
     Asia, with government-run monopolies, in an effort to give U.S. business
     greater opportunities in those markets. 

  o  The proposal would eliminate NTIA's laboratory in Boulder,
     Colorado, the Institute for Telecommunication Sciences (ITS). ITS
     provides the technical telecommunications foundation for all of NTIA's
     efforts.  For example, ITS is involved in long term research to find 
     ways to use higher frequency spectrum that is not now viable for many 
     radio services.  ITS is also helping to promote U.S. standards for 
     telecommunications services in international fora and thereby helping
     U.S. business gain access to foreign markets.       

The proposed legislation will reduce the availability of telecommunications
services to millions of Americans.

  o  The proposal would eliminate an extremely popular nationwide
     grant program, the Telecommunications and Information Infrastructure
     Assistance Program (TIIAP), that relies on public-private partnerships 
     to help extend the benefits of advanced telecommunications technologies 
     to all Americans.

  o  TIIAP's $24 million in 1994 grants generated $40 million in private
     investment to support projects in health care, education, economic
     development, infrastructure planning and library services. 
     Telecommunications and information technology can reduce the cost and
     improve the availability of critical services for all Americans, 
     particularly those living in underserved and rural areas.  

  o  The proposal would eliminate the Public Telecommunications
     Facilities Program (PTFP), a 33 year-old program that has helped to
     ensure the availability of public television and radio services to 
     every region of the country.  This program offers matching grants to 
     public broadcasting stations to help purchase necessary 
     telecommunications equipment.  

  o  It has been estimated that approximately 10 million Americans still
     do not receive a reliable public television signal, and approximately 
     25 million do not receive a reliable public radio signal.  Almost all 
     of the unserved citizens reside in rural areas.  Abolishing the PTFP 
     now would mean that many of these Americans would continue to be 
     deprived of these services. 

  o  The proposal would eliminate the National Endowment for
     Children's Educational Television (NECET), the only Federal program
     dedicated exclusively to the funding of educational programming for
     children, the National Endowment for Children's Educational Television
     (NECET).  

  o  Numerous studies indicate that students in the United States
     are lagging considerably behind students in other countries in such
     fundamental skills as reading, writing, math, geography, and science. 
     Such skills are essential for the future economic success of this 
     nation.  Through a very modest grant program, NECET provides funding 
     for the creation and production of important children's programming 
     to help children learn.

The proposed legislation would transfer Federal spectrum management
activities to the General Services Administration, an agency with no
expertise in this highly technical area.

  o  Federal agencies need radio spectrum to provide essential
     services to the public including air traffic control, law enforcement,
     weather forecasting, and national defense.  NTIA processes some 8,000
     to 10,000 radio frequency assignments monthly to enable these Federal
     agencies to fulfill their public missions. 
      
  o  NTIA continuously promotes efficient use of the radio
     spectrum using advanced technologies and has encouraged the Federal
     government to transfer spectrum to the private sector for new and
     emerging telecommunications technologies.  In fact, NTIA has recently
     identified 235 MHz of spectrum to be transferred to the private sector. 
     NTIA is also meeting the increasing demands for spectrum to support
     public safety, federal law enforcement, and interoperability needs 
     among Federal, state, and local law enforcement.

  o  GSA procurement functions and NTIA spectrum management functions are 
     based on quite different disciplines -- administrative versus 
     engineering and technology.  NTIA also has a significant domestic 
     and international role relative to spectrum and telecommunications 
     policy, while GSA has no significant role in those areas.

  o  Placing the control of federal spectrum within GSA would
     de-emphasize spectrum policy and management at a critical point in 
     time.  This de-emphasis is contrary to the national and international 
     focus on the importance of spectrum to new, emerging wireless 
     technologies and could put the U.S. telecommunications industry at 
     a severe disadvantage in the marketplace. 


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