New NTIA Chief Discusses Goals

(December 3, 1999) Greg Rhode, the newly appointed head of the NTIA, stated that two of his priorities for the coming year include narrowing the "digital divide" and implementing high cost reform under universal service.

Rhode was confirmed by the Senate to be Assistant Secretary for Communications and Information and Administrator of National Telecommunications and Information Agency (NTIA) on November 10. He was sworn in by Commerce Secretary William Daley on November 22. He replaced Larry Irving.

Greg Rhode met with journalists and writers in his new office at the Commerce Department on Thursday, December 2.

He stated that the NTIA will have three areas of general focus next year: "access, innovation, and consumer protection."

By access, Rhode means several things, including narrowing the "digital divide," implementing "high cost reform under universal service," and administering Telecommunications and Information Infrastructure Assistance Program (TIIAP) grants.

The NTIA conducts an annual survey of use of telecommunications and Internet services. In recent years the NTIA has used this data to argue that there is a problem which it calls the "digital divide."

We have segments of our society that are falling behind" in computer ownership and Internet access, said Rhode. He cited "racial minorities", "low income families", and "rural areas".

Rhode also added that the rollout of broadband Internet access is a part of the "digital divide" problem. The government must become involved, because "the market is only going to go so far."

Rhode is from North Dakota. He also just completed a ten year stint on the staff of Sen. Byron Dorgan (D-ND). This is a state where the population is widely dispersed, and the cost of laying cable or wires is high. Many in the state fear that high speed Internet access will not become as widely available there as it will be in urban areas.

However, Rhode offered no specific policies or proposals. He added that on December 9 Secretary Daley will host a "digital divide summit."

"This is a very high priority for Secretary Daley," said Rhode. "We will be announcing a number of initiatives."

As for the TIAAP grants, which the NTIA administers, Rhode said that the NTIA would be looking for "broadband applications" that serve "segments of our society that are falling behind."

"This is going to be a very busy year in which key decisions will be made," said Rhode. However, he acknowledged that many of those decisions will be made by bodies other than the NTIA. His role will be to advocate before the Federal Communications Commission, Federal Trade Commission, and other bodies on behalf of the Clinton administration.

For example, the primary federal agency with responsibilty for consumer protection is the Federal Trade Commission. Rhode says that at NTIA, "we play the role more of an advocate," on issues such as online privacy.

Rhode stated that the current FTC and administration policy of encouraging industry self-regulation of online privacy is "the right approach."

"I think we have a responsibility to inform consumers," he added. "There is a role that we can play -- that is a non-regulatory role -- that uses the prestige of the Secretary of Commerce."

Rhode also answered questions from reporters.

He was asked about Internet taxation. He responded that the administration's role has been to help broker consensus. Andrew Pincus, General Counsel at the Department of Commerce, is working on that issue.

He was asked about a House proposal to sell off the NTIA's research facility in Boulder. Rhode stated merely that he would work with the Congress on the issue.

He was asked about AT&T and the open/forced access debate. He stated that "I still have an open mind about that." He added: "It might be too early to come to a conclusion on that."

He was asked about universal service fund support for ILECs. He made no policy statements, other than that "universal service needs to be portable and available."

He was asked whether universal service should be expanded to include broadband Internet access in rural areas. Rhode took issue with the question; he insisted that "broadband is covered under universal service" already.

He continued that the Congress had a clear intent in enacting Section 254 of the Telecom Act of 1996!

"With the Act being very forward looking, it is inconsistent to look at only what technologies are available today," said Rhode. "The mandate of the Act is that all Americans must have access to the services, and at reasonable rates."

He was next asked if the Telecom Act of 1996 is outdated. "No, I don't think that it is outdated at all." He added that the definition of "telecommunications" is "extremely broad" and "forward looking."

He also said that local phone competition "has taken longer than most of us expected," but it is developing.

He was also asked what pending legislation he supports, what legislation concerns him, and what legislation is likely to pass next year. He responded that having worked on the Hill for 10 years, "the last thing I am going to do is predict it."

The final question was about information technology workforce issues. He said that the IT workforce issue "is really one of the more important issues that is facing this country."

"We have a lot of work to do with our education system," he concluded.