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1996 Telecommunications Act: An Historial Timeline

Introduction

April 6th,1995. The first three months of this year have brought new proof that America is rushing head-long into the information age. MCI Communications Corp., the long-distance telephone company, has opened its on-line shopping mall. Bell Atlantic Corp., the regional telephone company, is busy developing programming for its court-approved video dial tone system. Microsoft Corp., the software company, has teamed up with the new studio DreamWorks SKG to create interactive software games and other products for computers and on-line networks. The Internet, now serving more than 20 million users, continues its explosive growth.

Amid the upheaval, though, there are some troubling signs. New census figures show that only 11% of U.S. households have computers with modems, while 64% have cable television. And people with higher income are more likely to have access to the information superhighway than others: almost 36% of households with annual income above $75,000 own computers and modems, compared to under 10% of those with income below $20,000.

At the same time, a new study by the Department of Education suggests the nation is far from realizing the Clinton administration's grand vision of linking the nation's schools to the information superhighway. Only 10% of classrooms currently are wired for telephone service, and just 3% are connected to computer networks.

How can the gap be closed? So far, 1995 hasn't brought many answers. Congress again has launched an effort to rewrite the nation's basic telecommunications laws. As expected, the new Republican majority is pressing for more rapid deregulation of the telephone and cable-television industries than proposed by the previous, Democrat-controlled Congress. Noncommercial interests face an uphill struggle in seeking to carve out a place for themselves in a debate focused largely on establishing the terms of competition between private companies. But they scored some gains: lawmakers voted to allow essential telecommunications carriers to receive subsidies for serving schools, libraries, and rural health-care providers and to require telephone companies to offer public, educational and governmental entities access to video dial tone systems at preferential rates.

The congressional debate, combined with technological change and mounting competition, are raising new questions about what telecommunications services should be guaranteed for all Americans and who should pay for them.

For the Clinton administration, the new year has brought renewed budget pressures. Facing potentially steep reductions in its program to finance innovative, public uses of the information infrastructure, it is continuing its effort to find low-cost ways to create public spaces in the emerging information superhighway.

The Federal Communications Commission is reviewing its rules governing children's educational programming on television, while considering issues ranging from what rules will govern the telephone companies' video dial tone systems to what terms to impose when granting broadcasters additional spectrum for advanced television or other services. In addition, the FCC is exploring ways to connect the nation's classrooms to the information superhighway.

State governments appear to have strengthened their hand since last year. The Senate telecommunications bill would grant them a considerably larger role in laying out the information superhighway than federal lawmakers contemplated last year.

All these developments underscore the importance for the nonprofit sector of remaining engaged, both in the federal and state policy arenas and in the marketplace as producers and users of the information that flows over the emerging infrastructure.

The experience of the Corporation for Public Broadcasting may be instructive. Despite Republicans' vows last year to eliminate its federal support, public broadcasting has demonstrated that it has substantial public backing. Nevertheless, it is reexamining its operations -- including seeking ways to become more self-reliant.

But Jeannie Bunton, the corporation's press secretary, said CPB remains committed to certain principles: "that public broadcasting remain universal; and that its noncommercial nature be maintained."

Key players and places

Congress--Torn between visions and industry's demands The Clinton Administration--Looking for low-cost ways to wire the country The Federal Communications Commission--A focal point for public interest efforts States--Laboratories for developing the I-way Challenges for nonprofits--Having to fight to keep their place at the negotiating table

www.benton.org/Policy/96act/history.html
Last updated: 10 December 1996 jss

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1996 Telecommunications Act: An Historial Timeline

Introduction

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