Speech by Education Sec. William Riley (excerpts).
Re: E-Rate: Universal Service Support for Schools and Libraries.
Date: July 29, 1998.
This document was transcribed by TLJ from an audio recording.  Words inside of parentheses may have been transcribed incorrectly.

"... the e-rate has faced a number of serious challenges.  (?) an example of how even the best ideals can get sidetracked or even derailed by powerful special interests."

"... the Telecommunications Act of 1996.  This law largely deregulated the industry - telecommunications industry.  It provided telecommunications companies with broad new opportunities for growth, kind of opened up their opportunities for growth.  We have seen an awful lot of that since.  Well, (attached) to this deregulation opportunity was a responsibility to continue what referred to as universal service."

"And it was part of this deregulations process that would have benefits.  And this was one of the responsibilities, as we see it.  This was in my judgment a win win situation.  In exchange for their continued support for universal service, the long distance telephone carriers were given significant reduction in their cost through reduced access fees and deregulation.  That was part of the arrangement.   Unfortunately, after the plan was enacted, some of the long distance companies sought to change the way that it was funded, jeopardizing the e-rate.  Some Members of Congress have sought short term political gain by trying to pull the plug on the program.  Long distance companies added a surcharge to phone bills in order to recover the costs of the universal service, been going on for sixty years plus this small e-rate.  We argue that they have already been reimbursed through the reduced access fees and the benefits of deregulation.  They also fail to distinguish between all universal service charges and the e-rate.  One large long distance company put a 95 cent per month surcharge on telephone bills to cover these things, but only 19 cents of the 95 was (for) schools and libraries."

"If the e-rate is taken away or if it's reduced any further, students in schools, and citizens out there in the libraries who might not have other access to using the Internet and computers, all across the country are going to be left high and.  That is wrong in my judgment, and people, I think, need to speak out on the subject.  Let me tell you, in no uncertain terms, President Clinton, and Vice President Gore and I will continue to fight any efforts to dismantle the e-rate and widen this digital divide.   What good is it to be the richest nation in the world, with the greatest technological resources, when the ability to benefit from technology is dependent on whether a student goes to a particular school, or is well off. ... All of us need to think about this as a national matter.  And many who criticize the use of technology in our schools.  The the irony is that those who belittle the use of technology are those who already have access to computers in preparation to participate fully in today's information age.  This debate has never been about technology.  It has been about what our children have and the opportunity to use it.  It is about much more than just giving a young person a computer, or connecting that person to the Internet.   It is about connecting students to a whole new world."

"The majority in Congress has so far, been only negative, and opposed full investments, being used  for the initiatives that I have referred to.  I hope with the new school year approaching, that we will yet get into the education spirit.   We need to all work together in a bipartisan way.  We need to work together in our local communities with national leadership and assistance to make sure that all schools have the hardware, the software, the wiring, and the teacher training that they need."