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To: Frank A. Coluccio who wrote (1707)	7/28/1998 9:41:00 AM
From: Frank A. Coluccio	Respond to of 12823

[PR] Administration Proposal Says 'No' to Rural Americans Getting Access to High-Speed Internet and Data Services, Says U S WEST / Commerce Dept. NTIA Recommendations Would Prevent Investment in Rural July 28, 1998 DENVER, July 27 /PRNewswire/ via NewsEdge Corporation -- Rural Americans will be significantly harmed by a U.S. Commerce Department proposal that could force U S WEST (NYSE: USW) and other former Bell companies to abandon plans to invest millions of dollars to provide high-speed Internet access and other data communications services to millions of rural customers, a company executive said today. The agency proposal comes only weeks before the Federal Communications Commission (FCC) is expected to formally take up the issue of rural America's access to high-speed data networks. "U S WEST is currently investing more than $200 million to bring high-speed Internet and other data services to our more urban areas," said Mark Roellig, U S WEST vice president for Public Policy, Law and Human Resources. "We have publicly committed to investing millions more to bring high-speed Internet access to rural communities. But we must get the regulatory roadblocks removed that prevent us from making these investments in rural data networks. "That's what's so frustrating about this proposal from the National Telecommunications Information Administration. It opposes our efforts to bring high-speed Internet access to rural Americans, and supports our competitors -- who have made no similar commitment to invest in serving rural communities. "The people who stand to suffer the most, unfortunately, are rural Americans. What this Commerce Department agency is essentially saying is that rural hospitals or other health care facilities won't have high-speed connections to specialists at the Mayo Clinic. School children in rural communities won't have the same access to educational materials over the Internet as children in more urban areas. I don't understand that kind of logic," said Roellig, Earlier this year, U S WEST asked the FCC to use the authority granted it under Section 706 of the 1996 Telecommunications Act to let the company carry data communications traffic across artificial calling-area boundaries called LATAs -- a remnant of the break-up of the former Bell Telephone system nearly 15 years ago. By August 8, as required by this section of the Act, the FCC must begin evaluating the availability of high-speed data and information services for all Americans. In the first week of August, the FCC is expected to begin its formal evaluation on the issue of rural high-speed data networks, which must be completed within 180 days. FCC approval of U S WEST's Section 706 request would enable the company to transport data across LATA boundaries and invest in data networks serving rural communities across the 14 states where it provides phone service. "The Telecommunications Act encourages this kind of innovation and investment to bring the benefits of modern communications technology to all Americans -- including rural communities," Roellig said. But Administrator Larry Irving of the U.S. Commerce Department's National Telecommunications Information Administration (NTIA) has asked the FCC to reject requests from U S WEST and three other local phone companies to carry data traffic across LATA boundaries and "study" the longterm issues instead. "'Study' is bureaucratic code for maintaining the status quo," Roellig said. "And the status quo is denying high-speed data and Internet access to rural customers. That should be unacceptable. "We need to be able to send high-speed data across LATA boundaries because our investments in rural networks are only economically viable if we can deliver finished services anywhere and any place across our region. Our customers' lives and needs aren't restricted by these artificial boundaries. Neither should our ability to serve them be," said Roellig. U S WEST (NYSE: USW) provides a full range of telecommunications services -- including wireline, wireless PCS, data networking, directory and information services -- to more than 25 million customers nationally and in 14 western and midwestern states. More information about U S WEST can be found on the Internet at uswest.com. SOURCE U S WEST /CONTACT: David Beigie of U S WEST, 303-896-5528/ /Web site: uswest.com (USW)