• The best schools, teachers, and courses would be available to all students, without regard to geography, distance, resources, or disability;

• Services that improve America's health care system and respond to other important social needs could be available on-line, without waiting in line, when and where you needed them.
 

• Extend the "universal service" concept to ensure that information resources are available to all at affordable prices. Because information means em-powerment--and employment--the government has a duty to ensure that all Americans have access to the resources and job creation potential of the Information Age.

• Act as a catalyst to promote technological innovation and new applications. Commit important government research programs and grants to help the private sector develop and demonstrate technologies needed for the NII, and develop the applications and services that will maximize its value to users.

• Promote seamless, interactive, user-driven operation of the NII. As the NII evolves into a "network of networks," government will ensure that users can transfer information across networks easily and efficiently. To increase the likelihood that the NII will be both interactive and, to a large extent, user- driven, government must reform regulations and policies that may inadver-tently hamper the development of interactive applications.

• Ensure information security and network reliability. The NII must be trust-worthy and secure, protecting the privacy of its users. Government action will also ensure that the overall system remains reliable, quickly repairable in the event of a failure and, perhaps most importantly, easy to use.

• Improve management of the radio frequency spectrum, an increasingly critical resource.

• Protect intellectual property rights. The Administration will investigate how to strengthen domestic copyright laws and international intellectual property treaties to prevent piracy and to protect the integrity of intellectual property.

• Coordinate with other levels of government and with other nations. Because information crosses state, regional, and national boundaries, coordination is critical to avoid needless obstacles and prevent unfair policies that handicap U.S. industry.

• Provide access to government information and improve government pro-curement. The Administration will seek to ensure that Federal agencies, in concert with state and local governments, use the NII to expand the infor-mation available to the public, ensuring that the immense reservoir of government information is available to the public easily and equitably. Additionally, Federal procurement policies for telecommunications and information services and equipment will be designed to promote important technical developments for the NII and to provide attractive incentives for the private sector to contribute to NII development.
 

• The vast resources of art, literature, and science were available every-where, not just in large institutions or big-city libraries and museums;

• Services that improve America's health care system and respond to other important social needs were available on-line, without waiting in line, when and where you needed them;

• You could live in many places without foregoing opportunities for useful and fulfilling employment, by "telecommuting" to your office through an electronic highway instead of by automobile, bus or train;

• Small manufacturers could get orders from all over the world electroni-cally -- with detailed specifications -- in a form that the machines could use to produce the necessary items;

• You could see the latest movies, play the hottest video games, or bank and shop from the comfort of your home whenever you chose;

• You could obtain government information directly or through local organi-zations like libraries, apply for and receive government benefits electroni-cally, and get in touch with government officials easily; and

• Individual government agencies, businesses and other entities all could exchange information electronically -- reducing paperwork and improving service.
 

• The NII will integrate and interconnect these physical components in a technologically neutral manner so that no one industry will be favored over any other. Most importantly, the NII requires building foundations for living in the Information Age and for making these technological advances useful to the public, business, libraries, and other nongovernmental entities. That is why, beyond the physical components of the infrastructure, the value of the National Information Infrastructure to users and the nation will depend in large part on the quality of its other elements:

• The information itself, which may be in the form of video programming, scientific or business databases, images, sound recordings, library archives, and other media. Vast quantities of that information exist today in govern-ment agencies and even more valuable information is produced every day in our laboratories, studios, publishing houses, and elsewhere.

• Applications and software that allow users to access, manipulate, organize, and digest the proliferating mass of information that the NII's facilities will put at their fingertips.

• The network standards and transmission codes that facilitate interconnec-tion and interoperation between networks, and ensure the privacy of persons and the security of the information carried, as well as the security and reliability of the networks .

• The people -- largely in the private sector -- who create the information, develop applications and services, construct the facilities, and train others to tap its potential. Many of these people will be vendors, operators, and service providers working for private industry.
 

2) Extend the "universal service" concept to ensure that information resources are available to all at affordable prices. Because information means em-powerment, the government has a duty to ensure that all Americans have access to the resources of the Information Age.

3) Act as catalyst to promote technological innovation and new applications. Commit important government research programs and grants to help the private sector develop and demonstrate technologies needed for the NII.

4) Promote seamless, interactive, user-driven operation of the NII. As the NII evolves into a "network of networks," government will ensure that users can transfer information across networks easily and efficiently.

5) Ensure information security and network reliability. The NII must be trustworthy and secure, protecting the privacy of its users. Government action will also aim to ensure that the overall system remains reliable, quickly repairable in the event of a failure and, perhaps most importantly, easy to use.

6) Improve management of the radio frequency spectrum, an increasingly critical resource.

7) Protect intellectual property rights. The Administration will investigate how to strengthen domestic copyright laws and international intellectual property treaties to prevent piracy and to protect the integrity of intellectual property.

8) Coordinate with other levels of government and with other nations. Becau-se information crosses state, regional, and national boundaries, coordination is important to avoid unnecessary obstacles and to prevent unfair policies that handicap U.S. industry.

9) Provide access to government information and improve government pro-curement. As described in the National Performance Review, the Administra-tion will seek to ensure that Federal agencies, in concert with state and local governments, use the NII to expand the information available to the public, so that the immense reservoir of government information is available to the public easily and equitably. Additionally, Federal procurement policies for telecommunications and information services and equipment will be designed to promote important technical developments for the NII and to provide attractive incentives for the private sector to contribute to NII development.

The President has convened a Federal inter-agency "Information Infrastruc-ture Task Force" (IITF) that will work with Congress and the private sector to propose the policies and initiatives needed to accelerate deployment of a National Information Infrastructure. Activities of the IITF include coordina-ting government efforts in NII applications, linking government applications to the private sector, resolving outstanding disputes, and implementing Admi-nistration policies. Chaired by Secretary of Commerce Ron Brown and composed of high- level Federal agency representatives, the IITF's three committees focus on telecommunications policy, information policy, and applications.

(2) Establish a private sector Advisory Council on the National Information Infrastructure

To facilitate meaningful private sector participation in the IITF's deliberations, the President will sign an Executive Order creating the "United States Advi-sory Council on the National Information Infrastructure" to advise the IITF on matters relating to the development of the NII. The Council will consist of 25 members, who will be named by the Secretary of Commerce by December 1993. Nominations will be solicited from a variety of NII constituencies and interested parties. The IITF and its committees also will use other mecha-nisms to solicit public comment to ensure that it hears the views of all interested parties.

(3) Strengthen and streamline Federal communications and information policy-making agencies

In order to implement the ambitious agenda outlined in this document, the federal agencies most directly responsible for the evolution of the NII (such as NTIA, the Office of Information and Regulatory Affairs at OMB, and the FCC) must be properly structured and adequately staffed to address many new and difficult policy issues. The Administration intends to ensure that these agencies have the intellectual and material resources they need. In addition, in accord with the Vice President's National Performance Review, these agen-cies will make the organizational and procedural changes needed to most effectively contribute to the NII initiative.

One of the most effective ways to promote investments in our nation's information infrastructure is to introduce or further expand competition in communications and information markets. Vibrant competition in these markets will spur economic growth, create new businesses and benefit U.S. consumers.

To realize this vision, however, policy changes will be necessary:

Action: Passage of communications reform legislation. The Adminis-tration will work with Congress to pass legislation by the end of 1994 that will increase competition and ensure universal access in communications markets -- particularly those, such as the cable television and local telephone markets, that have been dominated by monopolies. Such legislation will explicitly promote private sector infrastructure investment -- both by companies already in the market and those seeking entry.

Action: Revision of tax policies. Tax policies are important determinants of the amount of private sector investment in the NII. The President has signed into law tax incentives for private sector investment in R&D and new business formation, including a three-year extension of the R&D credit and a targeted capital gains reduction for investments in small businesses. Both of these tax incentives will help spur the private sector investment needed to develop the NII.

The Communications Act of 1934 articulated in general terms a national goal of "Universal Service" for telephones -- widespread availability of a basic communications service at affordable rates. A major objective in developing the NII will be to extend the Universal Service concept to the information needs of the American people in the 21st Century. As a matter of fundamen-tal fairness, this nation cannot accept a division of our people among tele-communications or information "haves" and "have-nots." The Administration is committed to developing a broad, modern concept of Universal Service -- one that would emphasize giving all Americans who desire it easy, affordable access to advanced communications and information services, regardless of income, disability, or location.

Devising and attaining a new goal for expanded Universal Service is con-sistent with efforts to spur infrastructure development by increasing competi-tion in communications and information markets. As noted above, competi-tion can make low cost, high quality services and equipment widely avai-lable. Policies promoting greater competition in combination with targeted support for disadvantaged users or especially high cost or rural areas would advance both rapid infrastructure modernization and expanded Universal Service.

Action: Develop a New Concept of Universal Service. To gather infor-mation on the best characteristics of an expanded concept of Universal Service, the Commerce Department's National Telecommunications and Information Administration (NTIA) will hold a series of public hearings on Universal Service and the NII, beginning by December 1993. The Administration will make a special effort to hear from public interest groups. Building on the knowledge gained from these activities, the IITF will work with the Advisory Council on the National Information Infrastructure, as well as with state regulatory commissions, to determine how the Universal Service concept should be applied in the 21st Century.

Government regulatory, antitrust, tax, and intellectual property policies all affect the level and timing of new offerings in services and equipment -- including the technology base that generates innovations for the marketplace. But technological innovations ultimately depend upon purposeful investment in research and development, by both the private sector and government. R&D investment helps firms to create better products and services at lower costs.

As noted in the Administration's February 22, 1993 technology policy statement: "We are moving to accelerate the development of technologies critical for long-term growth but not receiving adequate support from private firms, either because the returns are too distant or because the level of fund-ing required is too great for individual firms to bear." Government research support already has helped create basic information technologies in compu-ting, networking and electronics. We will support further NII-related resear-ch and technology development through research partnerships and other mechanisms to accelerate technologies where market mechanisms do not adequately reflect the nation's return on investment. In particular, these go-vernment research and funding programs will focus on the development of beneficial public applications in the fields of education, health care, manufac-turing, and provision of government services.

Action: Continue the High-Performance Computing and Communications Program. Established by the High-Performance Computing Act of 1991, the HPCC Program funds R&D designed to create more powerful compu-ters, faster computer networks, and more sophisticated software. In addi-tion, the HPCC Program is providing scientists and engineers with the tools and training they need to solve "Grand Challenges," research pro-blems -- like designing new drugs -- that cannot be solved without the most powerful computers. The Administration has requested $1 billion for the HPCC Program in fiscal year 1994, and is in the process of forming a "High-Performance Computing Advisory Committee," to provide private sector input on the Program.

We have also requested an additional $96 million in the FY 1994 budget to create a new component of the HPCC Program -- Information Infrastructure Technologies and Applications (IITA). The Administration is working with Congress to obtain authorization to fund this effort, which will develop and apply high-performance computing and high-speed net-working technologies for use in the fields of health care, education, libra-ries, manufacturing, and provision of government information.

Action: Implement the NII Pilot Projects Program. In its FY 94 budget, the Administration has requested funding from the Congress for NII net-working pilot and demonstration projects. Under NTIA's direction, this pilot program will provide matching grants to state and local governments, health care providers, school districts, libraries, universities, and other non-profit entities. The grants will be awarded after a competitive merit review process and will be used to fund projects to connect institutions to existing networks, enhance communications networks that are currently operational, and permit users to interconnect among different networks. Funded projects will demonstrate the potential of the NII and provide tangible benefits to their communities. Equally important, they will help leverage the resources and creativity of the private sector to devise new applications and uses of the NII. The successes of the these pilot projects will create an iterative process that will generate more innovative approaches each year.

Action: Inventory NII Applications Projects. Many insights can be gain-ed by sharing information about how government can effectively use the NII. By the end of January 1994, the IITF will complete an inventory of current and planned government activities and will widely disseminate the results through electronic and printed means. An electronic forum is being established to encourage government and private sector contributions and comments about government applications projects.

Because the NII will be a network of networks, information must be trans-ferable over the disparate networks easily, accurately, and without compro-mising the content of the messages. Moreover, the NII will be of maximum value to users if it is sufficiently "open" and interactive so that users can develop new services and applications or exchange information among them-selves, without waiting for services to be offered by the firms that operate the NII. In this way, users will develop new "electronic communities" and share knowledge and experiences that can improve the way that they learn, work, play, and participate in the American democracy.

To assure interoperability and openness of the many components of an efficient, high-capacity NII, standards for voice, video, data, and multi-media services must be developed. Those standards also must be compatible with the large installed base of communications technologies, and flexible and adaptable enough to meet user needs at affordable costs. The United States has long relied on a consensus-based, voluntary standards-setting process in communications. Particularly in the area of information and communications technology, where product cycles are often measured in months, not years, the standards process is critical and has not always worked to speed technological innovation and serve end-users well. Government can catalyze this industry-driven process by participating more actively in private-sector standards-writing bodies and by working with industry to address strategic technical barriers to interoperability and adoption of new technologies.

To increase the likelihood that the NII will be both interactive and, to a large extent, user-driven, government also must reform regulations and policies that may inadvertently hamper the development of interactive applications. For example, government regulations concerning the lack of reimbursement of health care procedures may deter the growth of distance medicine applications.

Action: Review and clarify the standards process to speed NII applica-tions. By October 15, 1993 the Commerce Department's National Institute for Standards and Technology (NIST) will establish a panel and work with other appropriate agencies to review the government's involvement in establishing network requirements and standards with domestic and inter-national partners. The panel, with input from the private sector and other levels of government, will consider the role of the government in the stan-dards process and will identify opportunities for accelerating the deploy-ment of the NII.

Action: Review and reform government regulations that impede develop-ment of interactive services and applications. The Administration will work closely with the private sector, as well as state and local govern-ments, to identify government policies and regulations that may hinder the growth of interactive services and applications. The IITF will determine how those regulations should be changed.

The trustworthiness and security of communications channels and networks are essential to the success of the NII. Users must be assured that informa-tion transmitted over the infrastructure will go when and where it is intended to go. Electronic information systems can create new vulnerabilities. For example, electronic files can be broken into and copied from remote locations, and cellular phone conversations can be monitored easily. Yet these same sys-tems, if properly designed, can offer greater security than less advanced communications channels.

Through the use of information systems, gathering, sending, and receiving a wide variety of personal information is now simple, quick, and relatively inexpensive. The use of information technologies to access, modify, revise, repackage, and resell information can benefit individuals, but unauthorized use can encroach on their privacy. While media reports often emphasize the role of modern information technology in invading privacy, technology advances and enhanced management oversight also offer the opportunity for privacy protection. This protection is especially important to businesses that increasingly transmit sensitive proprietary data through electronic means. In a climate of tough global competitiveness to gain market advantage, the confi-dentiality of this information can spell the difference between business suc-cess or failure.

In addition, it is essential that the Federal government work with the com-munications industry to reduce the vulnerability of the nation's information infrastructure. The NII must be designed and managed in a way that mini-mizes the impact of accident or sabotage. The system must also continue to function in the event of attack or catastrophic natural disaster.

Action: Review privacy concerns of the NII. The IITF has developed a work plan to investigate what policies are necessary to ensure individual privacy, while recognizing the legitimate societal needs for information, including those of law enforcement. The IITF has also developed a work plan to investigate how the government will ensure that the infrastructure's operations are compatible with the legitimate privacy interests of its users.

Action: Review of encryption technology. In April, the President announced a thorough review of Federal policies on encryption techno-logy. In addition, Federal agencies are working with industry to develop new technologies that protect the privacy of citizens, while enabling law enforcement agencies to continue to use court-authorized wiretaps to fight terrorism, drug rings, organized crime, and corruption. Federal agencies are working with industry to develop encryption hardware and software that can be used for this application.

Action: Work with industry to increase network reliability. The National Communications System brings together 23 Federal agencies with industry to reduce the vulnerability of the nation's telecommunications systems to accident, sabotage, natural disaster, or military attack. And the Federal Communications Commission has an industry and user Network Reliabi-lity Council to advise it on ensuring the reliability of the nation's commer-cial telecommunications networks. These efforts are increasingly impor-tant as the threat posed by terrorism and computing hacking grows. The NCS will continue its work and will coordinate with the IITF. In addition, the National Security Telecommunications Advisory Committee, which advises the President in coordination with the NCS, as well as the FCC's Network Reliability Council, will coordinate with and complement the work of the Advisory Council on the National Information Infrastructure.

Many of the dramatic changes expected from the development of the informa-tion infrastructure will grow out of advances in wireless technologies. The ability to access the resources of the NII at any time, from anywhere in the country, will be constrained, however, if there is inadequate spectrum availa-ble. To ensure that spectrum scarcity does not impede the development of the NII, the Administration places a high priority on streamlining its procedures for the allocation and use of this valuable resource.

Action: Streamline allocation and use of spectrum. The Administration is working with Congress to fully implement the spectrum management provisions of the Omnibus Budget and Reconciliation Act of 1993, to streamline government use of spectrum and to get spectrum to the public efficiently. These provisions will provide greater flexibility in spectrum allocation, including increased sharing of spectrum between private sector and government users, increased flexibility in technical and service stan-dards, and increased choices for licensees in employing their assigned spectrum.

Action: Promote market principles in spectrum distribution. Further, the Administration will continue to support policies that place a greater reliance on market principles in distributing spectrum, particularly in the assignment process, as a superior way to apportion this scarce resource among the widely differing wireless services that will be a part of the NII. At the same time, the Administration will develop policies to ensure that entrepreneurs and small, rural, minority- and women-owned businesses are able to participate in spectrum auctions.

Development of an advanced information infrastructure will create unprece-dented market opportunities and new challenges for our world-preeminent media and information industries. The broad public interest in promoting the dissemination of information to our citizens must be balanced with the need to ensure the integrity of intellectual property rights and copyrights in informa-tion and entertainment products. This protection is crucial if these products -- whether in the form of text, images, computer programs, databases, video or sound recordings, or multimedia formats -- are to move in commerce using the full capability of the NII.

Action: Examine the adequacy of copyright laws. The IITF will investi-gate how to strengthen domestic copyright laws and international intellec-tual property treaties to prevent piracy and to protect the integrity of intellectual property. To ensure broad access to information via the NII, the IITF will study how traditional concepts of fair use should apply with respect to new media and new works.

Action: Explore ways to identify and reimburse copyright owners. The IITF will explore the need for standards for the identification of copyright ownership of information products in electronic systems (e.g., electronic headers, labels or signature techniques). The Task Force will also evaluate the need to develop an efficient system for the identification, licensing, and use of work, and for the payment of royalties for copyrighted products delivered or made available over electronic information systems.
 

Domestic: Many of the firms that will likely participate in the NII are now subject to regulation by Federal, state, and local government agencies. If the information infrastructure is to develop quickly and coherently, there must be close coordination among the various government entities, particularly with respect to regulatory policy. It is crucial that all government bodies -- parti-cularly Congress, the FCC, the Administration, and state and local govern-ments -- work cooperatively to forge regulatory principles that will promote deployment of the NII.

Action: Seek ways to improve coordination with state and local officials. The IITF will meet with state and local officials to discuss policy issues related to development of the NII. The Task Force will also seek input from the private sector and non-federal agencies as it devises proposals for regulatory reform. The Administration is committed to working closely with state and local governments in developing its telecommunications policies.

Action: Open up overseas markets. The Administration has shown its willingness to work directly on behalf of U.S. firms to ensure that they have an equal opportunity to export telecommunications-related goods and services to potential overseas customers. For example, the Commerce Department is developing new export control policies governing compu-ters and telecommunications equipment manufactured by U.S. firms. These changes will remove export restrictions on many of these products and permit U.S. manufacturers to enter new markets not previously avai-lable to them. The Administration will continue to work to open overseas markets for U.S. services and products.

Action: Eliminate barriers caused by incompatible standards. Equally important is the need to avoid trade barriers raised by incompatible U.S. and foreign standards or -- more subtly -- between the methods used to test conformance to standards. Through its participation in international standards committees, the Administration is working to eliminate or avert such barriers.

Action: Examine international and U.S. trade regulations. The IITF will coordinate the Administration's examination of policy issues related to the delivery of telecommunications services to and from the U.S., including claims by some U.S. companies that regulatory practices in foreign coun-tries -- including denial of market access for U.S. carriers and the imposi-tion of excessive charges for completing calls from the United States -- are harming the competitiveness of the industry and the costs charged to U.S. customers for service. The IITF also will reexamine U.S. regulation of international telecommunications services.
 

Thomas Jefferson said that information is the currency of democracy. Federal agencies are among the most prolific collectors and generators of information that is useful and valuable to citizens and business. Improvement of the na-tion's information infrastructure provides a tremendous opportunity to im-prove the delivery of government information to the taxpayers who paid for its collection; to provide it equitably, at a fair price, as efficiently as possible.

The Federal government is improving every step of the process of infor-mation collection, manipulation, and dissemination. The Administration is funding research programs that will improve the software used for browsing, searching, describing, organizing, and managing information. But it is committed as well to applying those tools to the distribution of information that can be useful to the public in their various roles as teachers, researchers, business people, consumers, etc.

The key questions that must be addressed are: What information does the public want? What information is in electronic form? By what means can it be distributed? How can all Americans have access to it? A secondary question is: How can government itself improve through better information manage-ment?

Action: Improve the accessibility of government information. IITF work-ing groups will carefully consider the problems associated with making government information broadly accessible to the public electronically. Additionally, several inter-agency efforts have been started to ensure that the right information is stored and available. Finally, to help the public find government information, an inter-agency project has been formed to develop a virtual card catalogue that will indicate the availability of go-vernment information in whatever form it takes.

Action: Upgrade the infrastructure for the delivery of government infor-mation. The Federal government has already taken a number of steps to promote wider distribution of its public reports. Legislation has been enacted to improve electronic dissemination of government documents by the Government Printing Office. A number of Federal agencies have moved aggressively to convert their public information into electronic form and disseminate it over the Internet, where it will be available to many more people than have previously had access to such information. In the future, substantial improvements will be made to "FedWorld," an electronic bulletin board established by the Department of Commerce's National Technical Information Service (NTIS), which links the public with more than 100 Federal bulletin boards and information centers. These improvements will enhance FedWorld's ability to distribute to the public scientific, technical, and business-related information generated by the U.S. Government and other sources. Finally, a conference will be held in the Fall of 1993 to begin teaching Federal employees how they can use these distribution mechanisms.

Action: Enhance citizen access to government information. In June 1993, OMB prescribed new polices pertaining to the acquisition, use, and distri-bution of government information by Federal agencies. Among other things, the policies mandate that, in distributing information to the public, Federal agencies should recoup only those costs associated with the dis-semination of that information, not with its creation or collection. More-over, a number of inter-agency efforts are under way to afford greater pu-blic access to government information. One project seeks to turn thou-sands of local and field offices of various Federal agencies into Interactive Citizen Participation Centers, at which citizens can communicate with the public affairs departments of all Federal agencies.

Action: Strengthen inter-agency coordination through the use of elec-tronic mail. To implement the National Performance Review's recom-mendation on expanded use of electronic mail within the Federal govern-ment, an inter- agency coordinating body has been established to inco-porate electronic mail into the daily work environment of Federal workers. The group is also sponsoring three pilot projects to expand connectivity that will build a body of experience that other Federal agencies can draw on when they begin to use electronic mail.

Action: Reform the Federal procurement process to make government a leading-edge technology adopter. The Federal government is the largest single buyer of high technology products. The government has played a key role in developing emerging markets for advanced technologies of military significance; it can be similarly effective for civilian technologies. The Administration will implement the procurement policy reforms set forth in the National Performance Review report.