CEO's discuss 'digital divide'

[Doug Schuler]

Forwarded by Steve Cisler, fyi.

-- Doug

Date: Fri, 10 Sep 1999 08:42:25 -0800
From: "cisler" <cisler at pobox.com>
To: AFCNmembers <afcn-members at lists.colorado.edu>
Subject: CEO's discuss 'digital divide'

New York Times

September 10, 1999 NY Times


CEOs Discuss 'Digital Divide'

By THE ASSOCIATED PRESS

ASHINGTON -- Executives in the telecommunications industry, from companies
both big and small, spelled out for regulators and lawmakers Thursday the
obstacles they face in providing high-speed Internet services to rural
communities.

A panel convened by Senate Minority Leader Tom Daschle of South Dakota and
moderated by the head of the Federal Communications Commission highlighted
the so-called ``digital divide'' between those who have access to
high-speed Internet services and those who live in underserved areas where
such capabilities may not be readily available.

``If we don't do this right, we will have a nation of haves and
have-nots,'' said Sen. Byron Dorgan, D-N.D.

Daschle echoed this, saying those without access to high-speed Internet
services could also be cut off from affordable information on education and
healthcare.

AT&T chief Michael Armstrong said he believes his industry does have a
responsibility to prevent such a future, trumpeting AT&T's investments in
high-speed Internet technology delivered over its recently acquired cable
lines as a way to reach more consumers.

``We're putting our money where our mouth is,'' Armstrong said.

FCC Chairman Bill Kennard urged the chief executives assembled to ``get
beyond the rhetoric of blaming the Congress, the FCC or each other'' and
focus on ways to tackle the problem.

But industry heads raised both regulation and economic incentives as
hurdles they sometimes face in bringing their advanced telecommunications
services to areas with low volumes of customers and large distances to
cross.

``Public policy does effect the level of investment that goes into
developing technology,'' said Ivan Seidenberg, head of Bell Atlantic. His
company and some other regional Bells like U.S. West are seeking to enter
the long-distance market -- a move which they argue will enable them to
make greater investments in rural areas at lower costs.

Newer telecommunications businesses say they are willing to expand their
reach to underserved areas, but it cannot be cost prohibitive for them to
do so.

``We need a little help in making sure the cost of entry is conducive to
making investments,'' said Robert Knowling of COVAD Communications. ``I'm
poised to go anywhere I can if it makes sense.''

Some of the smaller companies represented at Thursday's event described how
they have successfully introduced high-speed Internet services even to the
sparsely populated areas they serve.

Averaging about a customer per square mile, Valley Telephone Cooperative
Inc. of Texas began offering Internet access over high-speed digital phone
lines several years ago to serve just a few dozen customers

``The economics are unique,'' said the company's chief, Charles Gowder.

Representatives from the wireless industry say using that technology to
deliver Internet services may provide a way around the distance problems
posed by offering them over traditional landlines.

``Economically, wireless is a better way of providing universal service,''
said John Stanton of Western Wireless. ``You simply out up a tower and are
available to provide service.''

* * * * * * * * * * * * * *  From the Listowner  * * * * * * * * * * * *
.	To unsubscribe from this list, send a message to:
majordomo at scn.org		In the body of the message, type:
unsubscribe scn
==== Messages posted on this list are also available on the web at: ====
* * * * * * *     http://www.scn.org/volunteers/scn-l/     * * * * * * *