May 9, 2002

Clinton Announces New Broadband Bill Targeted At Upstate

Legislation Builds on Clinton Economic Development Package

Washington, DC -- Senator Clinton today announced the introduction of the Broadband Telecommunications Deployment Act of 2002 targeted at enhancing broadband access and services in upstate New York. Clinton and Senator Hollings, Chairman of the Senate Commerce Committee are the bill's lead sponsors. The bill advances several proposals from Senator Clinton's Upstate Economic Development package and would make significant investments to enhance deployment and adoption of broadband services in rural and underserved areas.

"I am very pleased to join the Chairman of the Senate Commerce Committee, my colleague Senator Hollings, in introducing this bill aimed at bringing better jobs and services to Upstate New York and underserved areas throughout the country. In our modern world, communication is the key to progress and economic revitalization. High speed Internet access is becoming as vital to businesses struggling to compete in the 21st century marketplace as phone service was in the early 20th century. I will be fighting every step of the way to make sure that Upstate New Yorkers are not left out of this technological revolution," said Senator Clinton. "Broadband is like a field of high tech dreams for businesses: if you build it, they will grow."

The telecommunications and high-tech industry has been one of the sectors hardest hit during the recent economic downturn. In upstate New York, however, the obstacles to full engagement in the knowledge-based economy extend far beyond the last year. The overall job growth rate in the region has lagged behind the national average as many of Upstate's finest young people leave the State for jobs elsewhere. Increased broadband deployment and enhanced understanding of its uses will bring jobs and better services to spur growth in rural America. The bill that Senator Clinton helped to craft includes proposals set forth in her Upstate Economic Package such as funding for deployment in rural areas and research for broadband uses and feasibility.

"As evidenced after the devastating terrorist attacks last year, communications technologies are important not only for economic reasons. On September 11, emergency calls, communications between loved ones and demand for reliable information demonstrated clearly our dependence on telecommunications technologies. The tremendous efforts of New York's rescue personnel, utilities, and others to restore the communications infrastructure that were so damaged by the attacks underscored the importance of redundant telecommunications systems to stay connected in times of national emergency," said Senator Clinton.

"That's why this bill directs resources for a study to assess and enhance the use of broadband deployment for emergency response systems in rural areas, and would provide $25 million in community grants to improve homeland security and public safety capabilities."

For each of fiscal years 2003 through 2007, the bill would also provide:

$2.5 billion in loans for broadband service and to upgrade remote terminals in rural and underserved areas $1 billion in block grants to States to spur deployment and adoption of broadband technologies and services, and to improve government services, in rural and underserved areas $60 million in grants to non-profits for planning and feasibility studies on broadband deployment Seven pilot projects ($2 million each) for wireless and non-wireline broadband in rural and underserved areas, including one project for fiber-to-the-home technology Over $100 million to research broadband technology feasibility for individual, private sector, government and other uses $750 million in grants to connect eligible communities for homeland security and other needs, for colleges and universities to develop computer and internet applications, to help libraries and museums digitize their collections, and to connect underrepresented colleges "We were delighted with Sen. Clinton's proposal for funding rural fiber-to-the-home projects," said Stan Fendley, Director of Legislative Policy at Corning, Incorporated. "Optical technologies are the way of the future in telecom, and Upstate New York is the home of optical technologies. So that kind of proposal is good for the nation and good for New York."

The National Telecommunications Cooperative Association (NTCA) Vice President Shirley Bloomfield said that these "initiatives will help deploy advanced services to those customers who will be the most difficult to reach - from both an economic and geographic perspective. Senator Clinton's long-term interest in ensuring rural telecommunications providers have adequate tools to provide these services will go a long way toward advancing the nation's movement toward advanced telecommunications services changing the nature of economic growth in rural America."

The bill does not address regulatory issues for broadband providers, which Sen. Clinton expects to pursue with the Commerce Committee and the Federal Communications Commission.

On March 1, 2001, Senator Clinton introduced her first legislation - a package of seven bills designed to spur job growth in upstate New York and around the nation. Included in Senator Clinton's seven-part New Jobs for New York plan is legislation to accelerate private-sector deployment of broadband to underserved rural communities using grants and loan guarantees.


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