*Pages 1--7 from Microsoft Word - 35989* Remarks of Michael K. Powell Chairman, Federal Communications Commission At the Kansas Rural Broadband and Telemedicine Summit University of Kansas Lawrence, Kansas February 20, 2004 (As prepared for delivery) RURAL LANDS OF OPPORTUNITY: BROADBAND DEPLOYMENT IN AMERICA’S HEARTLAND Thank you for the opportunity to join you today to discuss the challenges and opportunities facing rural America in meeting the telecommunications needs of the 21 st Century. I appreciate Representative Tom Sloan’s tireless efforts to put together this forum of distinguished legislative, regulatory, and industry experts from all over the state. I also applaud Senator Brownback’s leadership in advancing broadband deployment issues in the U. S. Senate. As a co- founder of the Congressional Wireless Caucus, he is one of the foremost supporters of new technologies which benefit Kansas and all Americans. I look forward to continuing the dialogue at all levels – with federal, state, and local government leaders – to ensure that broadband services are deployed expeditiously to rural areas. Importance of Broadband Deployment in Rural America Across America, the availability of ubiquitous, reliable, high- speed broadband access is changing the way we work and live. Computer ownership and Internet access have grown remarkably. According to the Pew Internet & American Life Project, nearly two- thirds (63%) of American adults use the Internet and that figure climbs to nearly 75 percent of those between 12 and 17. High speed broadband connections are growing quickly as well. Nielsen Net Ratings recently reported that 50 million Americans now access the Internet from home using high speed connections. When I became Chairman, that number was a mere 12 million. And, if we need any further evidence that high speed Internet connections are approaching a tipping point, consider that during the six months between last May through November, 10 million people were added to the broadband ranks. The Internet also is increasingly becoming a critical source of information. Between 2000 and 2002, the online news population grew by 50 percent; those seeking health information online grew by 59%; the number who used government web sites grew by 56%; the number using e- commerce grew by 63%; and online banking grew 127 percent. 1 4 danger, to the ability of small police and sheriff’s departments to have immediate access to databases previously available to larger departments in urban settings, broadband deployment is a critical tool for the maintenance of a secure homeland. Distance Learning Applications Through the FCC’s schools and libraries program, universal service funding is bringing educational opportunities to more classrooms than ever before. Broadband access is enabling students to obtain real time educational instruction from qualified educators in many subjects, where that instruction might not be currently available in the local community. Students can communicate with and learn from people and communities hundreds and even thousands of miles away. The FCC recently had the opportunity to see how distance learning applications are making a difference in the education of students in rural Alaska. Through broadband connections, students are able to communicate with classrooms in neighboring villages, participate in language and cultural preservation programs, and tap into educational resources located hundreds of miles from home. But we need not travel thousands of miles to see first- hand how broadband makes a difference in educational opportunities. In your own state, through the KanEd initiative, significant strides are being made in connecting almost 900 schools and libraries throughout Kansas to take advantage of these important distance learning opportunities. I applaud these efforts and encourage their further expansion across this nation. While the benefits of broadband deployment in rural America are innumerable, the Commission also recognizes that there are unique funding and technological challenges in bringing basic and advanced telecommunications services to rural communities. Through the universal service programs that the FCC oversees, the Commission provides support to offset the high cost of providing service in rural areas. I also commend Administrator Hilda Legg and her team at the Rural Utilities Service for their efforts in administering the loan and grant programs to fund broadband deployment in rural America. Last September, for example, RUS funded more than $11.3 million in broadband grants, including a grant to Pixius Communications to provide Internet access in Walton, Kansas. Recognizing RUS’ significant funding role, last year, we announced a joint effort to facilitate the availability of wireless services in rural areas. Through this partnership, we seek to coordinate our activities and outreach on programs and financial assistance for rural communities, to encourage greater access and deployment of wireless services throughout rural America. For example, we are working to harmonize our rules and regulations, to combine our outreach efforts and develop a joint Model Wireless Broadband Community Project. I know Administrator Legg shares my passion for ensuring that broadband reaches all Americans by the most efficient means possible – be it wireline or wireless, 4 5 satellite or cable – the most important thing is that the personal empowerment that comes from access to the Internet is a part of every American child’s experience. We are searching for the broadband infrastructure that gets the most broadband deployed per your tax dollar spent. And we are looking for more partnering opportunities to get this done – with our sister federal agencies; state, local and tribal governments; and industry. Working together, through these types of partnerships, we can and will continue to make a difference in addressing the funding challenges in bringing 21 st Century telecommunications services to rural communities. Similarly, we must continue to work together to address the technology obstacles that many rural areas face in bringing broadband services to their communities. Broadband applications can be delivered over a variety of technology platforms. The challenge for rural America is to identify technology and service options and tailor solutions to meet the specific needs of the community. It is not the Commission’s role to select technology winners or losers, but to create a competitive landscape that allows innovation to flourish. Through the proceedings we opened just last week the Commission will continue to examine policies to advance cutting- edge broadband technologies and services. For example, broadband over powerline technology (BPL) has the potential to speed access to every home already on the power grid using existing lines. BPL could also improve the provision and management of electric power systems, enhance homeland security, and protect vital elements of our Nation’s critical infrastructure. Similarly, IP- enabled technology may provide an excellent opportunity to leverage broadband deployment to bring competition and advanced features to voice services. Last week, the Commission took the first steps towards building a minimally regulated regime for these new services that will ensure they spend their money on deployment, not filling out forms for bureaucrats in Washington. These new providers can spur demand for broadband connections and new services and increase U. S. competitiveness in the global marketplace as well as in rural America. Working together, the Commission will ensure the promise these new innovative technologies and services is realized for all Americans. The FCC’s Rural Action Plan Although I believe many of our policies help build connectivity for rural America, we have also established a more targeted set of programs designed specifically to assist with rural deployments. This Commission has put a high priority on making sure that Americans living and working in rural communities have access to the same kind of high quality infrastructure that is available in urban and suburban America. Last August, I announced an action plan to spur the deployment of advanced telecommunications services in rural America. The Rural Action Plan: 5 7 partnerships with consumers, industry and government leaders in rural areas to tackle the technology issues facing rural America. I am eager to continue our discussion this afternoon to explore on a more “granular” level how we can work together – through federal, state, and private partnerships – to further broadband deployment throughout Kansas and elsewhere in rural America. The digital migration is for all Americans. I look forward to working together to insure that your State’s citizens realize its promise and have tomorrow’s technologies for consumers today. 7