WPC] 2B J Z CourierCourierCourier ItalicCG Times@`7X@HP LaserJet 4HPLAS4.PRSx  @\gX@2 6XM6jf 3|x Italicl?xxx,Hx6X@`7X@I,G6Nhez7H?xxx,Mx6Nhez7XHR&HHH,M0,H6Nhez7hH",tB^ f ^;C]ddCCCdCCCCddddddddddCCY~~vCN~sk~CCCddCYdYdYCdd88d8ddddJN8ddddYYdYdCdddddCddddddddd8YYYYYY~Y~Y~Y~YC8C8C8C8ddddddddddYdddddsdXdXXXddx|X~d~d|XdddddddC8ddddCdoddd|8|H~d<|8dtddddHHdlLlLlLkd|H|8~ddddddddXXXd~ddkd~ddxCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCYQQddddddFddddFCChhd44ddzzdddvooChdF"dhd9dCCzCddoddCdYds]zUvdYYCCCCz~ozoY~NYdYC8YooYdYzsdzdd~YYzozzz~CdzYzzzzCCdddddddzCsdYC\   pxtll\tll@\@\`L2Z=F[l?xxx,Hx6X@`7X@I,G6Nhez7H?xxx,Mx6Nhez7XHR&HHH,M0,H6Nhez7hH6[8wC;,Xw PE37XP6V"G($,hG PE37hPy}L\  "i~'K2^$(8<><q*"xxxxWWxxxWWkkxxx B benefit us all. That is why I am committed to making sure that rural America remains wired to the promise  Y|2of the 21st century. Now, for many parts of our country, the fastest path to this goal is the quick opening up of markets to eager competitors. This is a model that works, but one that does not work absolutely everywhere. J&&H?   J&&H?  The telecom marketplace is a diverse one. It has different players in different places operating in different environments. We cannot have a onesizefitsall solution to a multifaceted problem. We have to realize that not all parts of the telecom marketplace will move at the same pace. And we should not force a timetable appropriate to one part of America to rural America, J&&HA B especially if it will jeopardize its access to the telecommunications of tomorrow. Realizing the challenge of reconciling our commitment to competition and our obligation to the millions of families who live in our nation's small towns and farms, Congress created a universal service joint board with representatives from the states, a consumer advocate and the FCC. This board has looked at both state and federal regulations and has given us a recommendation that takes both into account. By July, the FCC will adopt a new universal"(0*0*0*&" service mechanism for the nonrural companies. At the same time, the FCC will work with you to find a better way, perhaps a different way, J&&HF B for ensuring continuing universal service support for the rural companies. This FCC is committed to that. That' J&&HH= s why last year we revisited the controversy over the socalled 2575% rule and put that matter to rest. This FCC unanimously found that we will not draw an arbitrary line when it comes to funding universal service, J&&HJ B not if that would mean that some states would not be able to provide their consumers affordable telephone service. Nor will we establish an arbitrary date for reforming universal service for the rural companies. That' J&&HL= s why I also announced last year that if we do not have a universal service model that works for the rural companies by the year 2001, we are not going to force the issue. That' J&&HN= s why, quite frankly, I am puzzled why Harold FurchgottRoth came before you earlier this week and questioned this Commission' J&&HP= s commitment to ensuring affordable phone service in rural America. Well, Harold and I do not always agree. For instance, I will never agree that universal service should be block granted to the states. Or that we should freeze the amount of universal service funding. No. I believe that there is a continuing federal role,  J&&HV indeed a federal safety net, that we must have to protect Americans living in rural areas. We have a strong record on these issues. And I hope that you recognize that. And let me say a word about the FCC's implementation of the Telecom Act' J&&HZ= s mandate to bring technology to schools, libraries and rural health care clinics. Don' J&&H\= t fall into the trap of making a false choice between affordable phone service for rural Americans and providing our young people with the tools they need to compete in the Information Age. We can do both. We must do both. We will do both.  J&&H]   J&&H]  Last November, you came to me with concerns about changes in the rate of return and with the universal service program. We had a frank discussion. I heard your concerns and we will do more than listen. J&&H_So much so that I appointed Lisa Zaina, Deputy Bureau Chief of our Common Carrier Bureau to work with you on a daily basis to find solutions. She knows these issues backwards and forwards from her ten years working with small and rural phone companies. You came back to us with a set of principles to guide any changes to universal service. And I was happy to see that we are basically reading from the same page. As we reform the system, we must maintain quality rates and services. We must be sure that the small telecom companies don't get squeezed out of the marketplace by the large multinationals. We must make sure that all Americans, especially those in our smaller communities, J&&Hc B have access to the same topquality, hightech services at affordable prices. And we must undertake these reforms in a coordinated way that does not lose sight of the "big picture" for small phone companies. I believe that these are sound principles. The next step is to work with you on how to implement them as we move ahead. "(0*0*0*&"ԌYou know, we also can't afford to waste a minute in solving the Y2K problem. The problem is real and it is upon us right now! I need you to work with me and my colleague, FCC Commissioner Michael Powell, to make sure that this problem gets the attention it deserves.  Y2As we work on devising a smarter system, on updating it for the 21st century, we cannot be blind to the changes going on in our industry today. It is possible today to use the copper wires laid down decades ago to deliver advanced broadband services with DSL technology, giving customers a highspeed onramp onto the Information Superhighway. It is possible today to use alternative wireless networks to link remote areas into our national network at low cost. It is possible today to have faster Internet access for all Americans. Our obligation is to provide all of rural America with the same quality of communications services available to citydwellers, and do so in the most efficient way possible. Just as you brought your customers the basic phone service necessary to live in this century, you must bring them the highspeed Internet access necessary to live in the next. Make no mistake about it: linking the communities you serve to the networks of tomorrow is crucial to this nation's livelihood and even survival. Think back to how the networks of another era so shaped the prospects of hundreds of small towns around the country. J&&Hdmarglsxnmargrsxn About 150 years ago in this country there was a frontier town of about 30,000 people. This town had a good location. It was mildly prosperous. But by no means was it significant to the country or the world. J&&He   J&&He  At the beginning of 1850, this town had one railroad. It had one vital connection to the railroad the 19th century network that was transforming the nation and the world. Then,  Y2over the next two years, the town got the 19th century equivalent of broadband access, J&&Hg B it got more railroad lines. By 1852, it had five. By 1856, it had ten. The cost of shipping the staples of the economy plummeted. Businesses and hotels sprung up like the wheat filling the town's warehouses. People and capital flowed in. And by 1860, this town, Chicago, Illinois,J&&Hk B had tripled in size, and by 1870, it tripled again. The rest, of course, is history. The "broad shoulders" of Chicago were built by its connections to the railroad network. Indeed, all over the nation, linking up to the railroad turned settlements into towns, and where it bypassed them, turned communities into ghost towns. In fact, right here in Texas, in the northeast corner of the state right in the panhandle, there is a town named Follett. This town actually began its existence as Ivanhoe, Oklahoma, six miles to the north. But in 1917, when the town fathers saw that the railroad was going to pass them by, they picked up the town, buildings and all, and moved it across the border. Thankfully, towns don't have to move to access the networks that are shaping our future. We have the technology to bring these technologies to all Americans wherever they live. All that is needed is the will. And I assure you that I have it. And it will take hard work to craft the right policies to make sure that these networks really reach everywhere. That I am willing to give. But I need your help. We need to work together. "(0*0*0*&"ԌWe must work as partners. We share the same goals of ensuring that all Americans have access to advanced telecommunications services. With this common goal in mind, I'm sure that we'll find a solution that both promotes competition and maintains our obligation to rural America. The networks of opportunity of tomorrow are the networks that you are building today. And I pledge to you that I will make sure that they are open to all Americans. That advanced technologies reach every corner of our nation. From the suburbs of San Antonio to the wheat farms of North Dakota. From the neighborhoods of Boston to the small towns of Oregon. This is our challenge. This is our duty. This is the work that rural phone cooperatives and companies have been doing for decades. This is the work that we must continue into the next century.  Y 2Thank you.#x6Nhez7MXH#ѐ