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DOCUMENT RESUME ED 334 045 RC 018 249 TITLE Bringing the Information Age to Rural America. Hearings before the Government Information, Justice, and Agriculture SubcommitteP of the Committee on Government Operations. House of Representatives, One Hundred First Congress, First and Second Sessions (June 14, 1989; October 12, 1989; and February 7, 1990). INSTITUTION Congress (Jf the U. S., Washington, D. C. House Committee on Government Operations. PUB DATE 91 NOTE 404p.; Some pages contain small or light type. AVAILABLE FROMSuperintendent of Documents, Congressional Sales Office, U.S. Government Printing Office, Washington DC 20402. PUB TYPE Legal/Legislative/Regulatory Materials (090) EDRS PRICE MF01/PC17 Plus Postage. DESCRIPTORS *Distance Education; Elementary Secondary Education; Federal Aid; Federal Regulation; *Futures (oi Society); Government Role; Hearings; *PI llic Policy; Rural Areas; *Rural Development; Rural Education; *Technological Advancement; *Telecommunications IDENTIFIERS Congress 101st; Deregulation ABSTRACT Ir. 1989-90 three Congressional hearings received testimony on the need for modern telecommunications infrastructure in rural areas and the ways arch infrastructure could foster rural economic development. A researcher on rural development reported findings that deregulation policies had removed incentives for telecommunications companies to serve rural areas, and that government assistance in rural telecommunications development would be necessary for rural areas to have equal access to information services and to compete in the riational economy. Testimonyby Congressmen and representatives of telecommunications companiesand federal and state regulatory agencies d!scussed: (1) competition versus monopoly in public utilities, and the effects of eachon the consumer; (2) the Rural Electrilication Administration's Telephone Loan Program and rural cooperatives; (3) improving rural eoucational opportunities through telecommunications technology; (4)regulation of cable television complinies;(5) the conditions under which rural customers receive telecommunications services; and (6) specific recommendatioAs for legislation. An extensive presentation byBell Atlantic describes how a public broadband networkintegrating audio, visual, and computer technologies could affect theeveryday lives of future American consumers. 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BRINGING THE INFORMATION AGE TO RURAL AMERICA HEARINGS RRPORIR GOVERMENT DIFORMATION, JUSTICE, AND AGRICULTURE SUI3COMMITTEE OP TI1R COMMITTEE ON GOVERNMENT OPERATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED FIRST CONGRESS FIRST AND SECOND SESSIONS JUNE 14; OCTOBER 12 1989; AND FEBRUARY 7, 1990 Printed for the use of the Committee on Government Operations GOVERNMRNT PRINTING OFFICI 26-920ft WASHINGTON : 1991 For sale by the Superintendent of Documents. Congressional Soles Office U.S. Government Printing Office. Washington. DC 20402 3 CDMMITTEE ON GOVERNMENT OPERATIONS JOHN CONYERS, Ja., Michigan, amirman CARDISS COLLINS, Illinois FRANK HORTON, New York GLENN ENGLISH, Oklahoma WILLIAM F. ?LINGER, Ja., Pennsylvania HENRY A. WAXMAN, Califonda AL MCCANDLESS, California TED WEISS, New York HOWARD C NIELSON, Utah MIKE SYNAR, Oklahoma RICHARD K. ARMEY, Texas SIEPHEN L NEAL, North Carolina DONALD E. "BUZ" LUKENS, Ohio DOUG BARNARD. JR., Georgia J. DENNIS HASTERT, Illinois BARNEY FRANK, Maisschusetts JON L. KYL, Arizona TOM LANTOS, California CHRISTOPHER SHAYS, Connecticut ROBERT E. WISE, JL, West Virginia PETER SMITH, Vermont BARBARA BOXER, California STEVE1 SCHIFF, New Mexico MAJOR R. OWENS, New York CHUCK DOUGLAS, New Hampshire EDOLPHUS TOWNS, New York C. CHRISTOPHER COX. California JOHN M. SPRATT, Ja., South Carolina CRAIG THOMAS, Wyoming BEN ERDREICH, Alabama ILEANA ROS-LEHTINEN. Florida GERALD D. LUECZKA, Wisconsin ALBERT G. BUSTAMANTE, Tema MATTHEW G. MARTINEZ, California NANZY PEWSI, California DONALD M. PAYNE, New Jersey JIM BATW, California GARY A. CONDIT, California DENNIS E. ECKART, Ohlo ahrLIAN EPargiri, Staff Director DONALD W. UreoN, Minority Staff Director GOVERNMENT INFORMATION, JUSTICE, AND AGRICULTURE SUBCOMMITTEE ROBERT E. WISE,Ja., West Virginia, Chairman GLENN ENGLISH, Okiahoma AL McCANDLMS, California EDOLPHUS TOWNS. New York STEVEN SCHIFF, New Mexico JOHN M. SPRATT, JIL, South Carolina CRAIG THOMAS, Wyoming 4 LOUISF M. SIAUGHTER, New York 1 ILEANA ROS-LEHTINEN, Florida I BARBARA BOXER, California GARY A. OONDIT, California Ex OFFICIO JOHN CONYERS. JR.. Michigan FRANK HORTON, New York Lgt GODOWN, Staff Director Aware A. BASHIGN, Professional Staff Member SusAN CnAnturenow, Clerk Atraou Ono, Clerk Below R. LOCKWOOD, Minority Prafewional Staff Mown TRIPP, Minority Professional Staff Reaigned from corn. 'toe July 25, 1989. Appointed to subcommittee November 16, 198:1. Appointed to subcomndttee November 16, 1989. 4 Resigned from subcommittee November 16, 1989. ' Appointed to subcommittee November 16, 19 01) 4 CONTENTS Page Hearings held on: June 14, 1989 1 October 12, 1989 177 February 7, 1990 245 Statement of: Boucher, Hon. Rick, a Representative in Congress from the State of Virginia 190 Bresnan, William J., president, Bresnan Communications Co., represent- ing the National Cable Television Association 324 Coleman, Hon. Thomas, a Representative in Congress from the State of Miesouri 192 Collins, A. Gray, Jr., senior vice president, external affairs, Bell Atlantic, representing the U.S. Telephone Aseociation 56 Cooper, Hon. Jim, a Representative in Congress from the State of Tennes- see 199 Goatcher, Margaret, president, Cimarron Telephone Co., representing the Organization for the Protection and Advancement of Small Telephone Companies 149 Gregg, Billy Jack, director, consumer advocate division, West Virginia Public Service Commission 247 Greytok, Marta, chairman, Public Utility Cammission of Texas, repre- senting the National Association of Regulatory Utility Commissioners 17 Griffith, Boyce, chairman, Public Service Comnussion of West Virginia 31 Gunderson, Hon. Steve, a Repreeentative in Congrees from the State of Wisconsin 184 Kimmelman, Gene, Legislative Director, Consumer Federation of Amer- ica 263 Kiidak, Jonathan I., Deputy Under Secretary, Small Community and Rural Development, accompanied by Jack Van Mark, Acting Adminis- trator, Rural Elec. rification Administration; and Neal Sox Johnson, Acting Administrator, Farmers Home Administration 210 Lein, Kenneth L., general manager, Winnebago Cooperative Telephone Association, representing the Organization for the Protection and Ad- vancement of Small Telephone Qompanies 294 Maher, William F., Associate Administrator, Office of Policy Analysis and Development, National Telecommunications and Information Ad- ministration 347 Parker, Edwin B., president, Parker Telecommunications 3 Robinson, Kenneth, Senior Advisor to the Chairman, Federal Communi- cations Commission 362 Sampson, Curtis A., president and chief executive officer, Communica- tions Systems, hut, repreeenting National Rural Telecom Association 162 Skelton, Hon. Ike, a Representative in Congress from the State of Missou- ri 177 South, Gene, executive vice president, Panhandle Telephone Cooperative, Inc., representing U.S.Telephone Association 304 Thomas, Hon. Craig, a Representative in Congress from the State of Wyoming 206 Welch, Dwight, general manager, Hardy Telephone Co., representing the National Telephone Cooperative Association 45 Wise, Hon. Robert E., Jr., a Representative in Congress from the State of West Virginia, and chairman, Government Information, Justice, and Agriculture Subcommittee: Opening statement 1 IV Page Letters, statements, etc., submitted for the reevrd by: Bresnan, William J., preeident, Bresnan Communications Co., represent- ing the National Cable Television Association: Prepared statement 329 Coleman, Hon. Thomas, a Representative in Congresa from the State of Missouri: Prepared statement 195 Collins, A. Gray, Jr., senior vice president, external affairs, Bell Atlantic, representing the U.S. Telephone Association: Bell Atlantic study entitled "Deliverying the Promise" 58 Prepared statement 138 Cooper, Hon. Jim, a Representative in 0:ingress from the State of Tennes- see: Prepared statement 202 Goatcher, Margaret, president, Cimarron Telephone Co., representing the Organization for the Protection and Advancement of Small Telephone Companies: Prepared statement 152 Gregg, Billy Jack, director, consumer advocate division, West Virginia Public Service Commission: Prepared statement, and survey of basic cable television rates 250 Greytok, Marta, chairman, Public Utility Commission of Texas, repre- senting the National Association of Regulatory Utility Commissioners: Prepared statement 21 Griffith,