MISSION AND SCOPE

The National Telecommunications and Information Administration (NTIA): (a) serves through the Secretary of Commerce as the principal adviser to the President on domestic and international communications and information policy-making; (b) develops pro-competitive policies for presentation before the Congress and the Federal Communications Commission (FCC) and in bilateral and multilateral international fora; (c) manages all Federal use of the electromagnetic spectrum and generally promotes efficient use of spectrum; (d) in partnership with business and other federal agencies, conducts telecommunications technology research, including standards-setting; and (e) awards grants through the Public Telecommunications Facilities Program, and the National Information Infrastructure initiative.

NTIA is unique among Federal government agencies in that the work of the agency is focused exclusively on telecommunications and information. The agency's expertise encompasses every aspect of telecommunications, including community network applications, domestic policy, international policy, spectrum management, and telecommunications research and engineering.

With roughly $70 million available for its activities, NTIA's workforce of approximately 290 full-time equivalent (FTE) employees works to promote the efficient and effective use of telecommunications and information resources in a manner that creates job opportunities, enhances U.S. competitiveness, and raises the standard of living.

The Government Performance and Results Act (Public Law 103-62 of August 3, 1993), commonly referred to as GPRA, provided a guideline for the further development and refinement of NTIA's strategic plan in 1998. As an active participant in the Department of Commerce's strategic planning efforts, NTIA senior managers believe that the agency's strategic planning process allows them to improve the management and effectiveness of the agency.

Within the resources available to the agency, NTIA addresses the highest priority issues in telecommunications and information today and maximizes the return on those resources by utilizing this expertise throughout its programs. Our analysts bring to their work an appreciation of the complexities of developing national policies, as well as the ability to draw on technical expertise to understand how those policies will facilitate or hinder development, and application expertise to gauge the impact on communities and individuals. This internal synergy is critical to NTIA's credibility and respect in the community; the agency's influence and advocacy record is a direct result of this synergy. NTIA's unique talents as an agency are readily apparent in the current Administration's record of accomplishments on a wide range of telecommunications issues, including universal service, the Telecommunications Act of 1996, global electronic commerce, Internet development, and digital broadcasting.

NTIA appreciates the contributions of employees, customers, stakeholders, and external experts during the continuing development of the agency's strategic plan. Employees at all levels have had opportunities to participate and contribute to this process. These contributions continue to stimulate thinking about the future of telecommunications and information and the efforts and value of NTIA activities. As the agency continues to advance its strategic planning efforts, additional contributions from these individuals and others will be solicited on an on-going basis.

NTIA's vision, mission and the strategic goals and objectives that follow, guide the National Telecommunications and Information Administration in its unique role against the backdrop of an exciting, demanding, and promising future.
 

Vision:

NTIA envisions a world where telecommunications
and information technologies are used to protect and
improve the global quality of life.
 

Mission:

NTIA's mission is to promote the efficient and effective use of telecommunications and information resources in a manner that creates job opportunities, enhances U.S. competitiveness, and raises the standard of living.
 

GOALS AND OBJECTIVES 1999 -- 2004

NTIA's goals define the agency's priority efforts. The goals are not listed in any relative priority order. A further discussion of each goal and its objectives is presented below.

GOAL 1: Promote open markets and encourage competition.
GOAL 2: Ensure spectrum provides the greatest benefit to all people.
GOAL 3: Advance the public interest in telecommunications, mass media, and information.
GOAL 4: Promote the availability and sources of advanced telecommunications and information services.

The following is a report on the major activities and accomplishments associated with these goals in 1998.

GOAL 1: Promote open markets and encourage competition.

Activities under this goal include opening markets, increasing competitive choices, advocating more competition in the international satellite services market, advancing U.S. policy interests in bilateral, regional, and international forums, and assisting developing countries in strengthening their telecommunications infrastructures.

NTIA develops policies promoting greater competition in telecommunications and information markets. NTIA's policies in this area are necessarily intertwined with another important goal, that of promoting affordable access to services for all Americans. NTIA believes that opening markets to competition leads to lower prices and greater choices for consumers. Implementation of the Telecommunications Act of 1996 by the Federal Communications Commission again provided a venue for debate about competition in 1998.

Competition in Telecommunications Markets

NTIA staff completed a working paper on Section 271 of the Telecommunications Act of 1996 to further discussion of sensitive and difficult issues of major importance. Section 271 of the Telecommunications Act of 1996 establishes the rules and procedures whereby certain local telephone companies -- the Bell Operating Companies (BOCs) -- may seek entry into the "Inter-LATA" (long distance) market. The Federal Communications Commission (FCC) is charged with establishing rules to implement this provision of law. This working paper provided insight and suggestions on many sensitive and difficult issues that policymakers and regulators must address as they implement this provision of law. The paper emphasized that Section 271 should be seen as a crucial pillar in the procompetitive structure of the 1996 Act, particularly the desire to open local telecommunications markets to competition. The paper, therefore, urged the FCC to implement that provision in a way that would promote local competition and create incentives on the part of the BOCs to cooperate in that effort.

In addition, NTIA sent a letter to the FCC concerning implementation of Section 706 of the Telecommunications Act, which directs the FCC to take steps necessary to encourage deployment of advanced broadband services to all Americans. In the letter, NTIA stated that the best way to achieve the objectives of Section 706 would be for the FCC to promote vigorous competition in all telecommunications markets. The agency recommended that the FCC not grant any relief to incumbent telephone companies for their broadband services until those companies make available facilities and services needed by competitors to offer comparable services.
 

Bilateral, Regional and International Forums

NTIA formulates and articulates policy alternatives for Executive Branch position on major international telecommunications and information issues, and promotes U.S. policies to improve the competitiveness of the U.S. telecommunications and information industries in international markets. NTIA continued to advance the adoption of pro-competitive regulatory policies by other countries to facilitate liberalized access to foreign telecommunications and information markets. NTIA actively participated in bilateral consultations with such diverse foreign counterparts as the European Union (EU) Commission, various EU member countries, Russia, Canada, Italy, Spain, Mexico, Japan and others during which the Administration's policies supporting open access to telecommunications infrastructure and advanced information services were advocated. As part of an interagency team, NTIA has also assisted in the negotiation of bilateral agreements with several nations, including Australia, France, Ireland, Korea, Japan and the Netherlands, that will promote the further expansion of electronic commerce on a global basis.

Under the World Trade Organization's (WTO) Agreement on Basic Telecommunications Services, commitments made by seventy (70) members entered into force on February 5, 1998. NTIA helped negotiate this landmark telecommunications agreement that ensures that U.S. companies are able to compete against and invest in all existing carriers. The WTO members making these commitments account for 95 percent of world telecommunications revenue -- a $675 billion industry.

As part of an interagency team, NTIA continues to work on implementation of the agreement and assists in monitoring the compliance of countries under this agreement. NTIA worked with U.S. Agency for International Development (USAID), the State Department, the FCC, and the U.S. Telecommunications Training Institute (USTTI), to develop and implement training workshops for foreign telecommunications regulatory authorities. The three, three-day workshops, which were focused on implementing the WTO Basic Telecommunications Agreement, were held in Washington, D.C. and covered a range of issues, including interconnection, spectrum management and universal service. The workshops also offered participants from developed and developing countries around the world a chance to review and discuss case-studies relevant to a liberalized market.

NTIA also participated in interagency efforts that secured a year-long agreement on duty-free treatment for electronic transmissions, and will continue to work on issues pertaining to electronic commerce during 1999.

Additionally, via its work with other Executive Branch agencies, the FCC, and industry, NTIA has promoted competition and liberalization in various International Telecommunication Union (ITU) forums. In particular, NTIA's involvement in the ITU's World Telecommunication Development Conference, Plenipotentiary Conference, and Development Sector Study Groups, assisted in promoting U.S. objectives, especially with regard to developing countries. During the ITU Plenipotentiary Conference, NTIA led the U.S. negotiations with regard to the Internet and electronic commerce issues.

NTIA also engaged in multilateral consultations in a number of forums -- such as the Inter-American Telecommunications Commission (CITEL), Asia Pacific Economic Cooperation (APEC), the ITU, and the Organization for Economic Cooperation and Development (OECD) -- on a range of critical policy issues affecting the development of Internet-based services. At the OECD, NTIA played a leadership role in organizing a joint government-industry forum on content self-regulation in March. The forum demonstrated the range and scope of self-regulatory initiatives undertaken by industry representatives among the 29 OECD member states, and forged consensus on the practical merits of self-regulation and consumer empowerment. Working closely with other agencies and with industry, NTIA also played an active role in advancing U.S. policy objectives at the OECD Ministerial conference on electronic commerce held in Ottawa in October. The Ottawa Ministerial statement reflects consensus on several positions advanced by the United States: private sector leadership; the need for a predictable and minimalist legal environment for electronic commerce; the critical link between liberalized access to underlying telecommunications infrastructure and the expansion of electronic commerce; and the avoidance by governments of undue restrictions or regulations on Internet-based applications and services.

During 1998, NTIA continued its longstanding support for reform of the international accounting and settlements system. Working closely with other agencies and U.S. industry, NTIA helped negotiate resolutions at the World Telecommunications Policy Forum in March, which recognized the need for urgent reform based on the pressures of technological developments and increasingly competitive telecommunications markets. NTIA also facilitated the creation and work activities of an ITU Focus Group to assist developing countries in the transition to more competitive accounting rates. NTIA expects these efforts to continue throughout 1999.

NTIA has worked actively at the OECD to formulate international privacy policy. NTIA has helped to ensure that the OECD includes an emphasis on a multiplicity of privacy approaches, including private-sector-led approaches, and on the continued need for bridges between the different privacy approaches. NTIA has also participated in the critical effort of the United States and European Commission toward reaching an understanding on privacy protection with regard to personal data flows from EU countries to the United States.

NTIA participated in the Permanent Consultative Committee of the Inter-American Telecommunications Commission (CITEL) to discuss and make recommendations on regulatory and policy matters, including accounting rates, universal service best practices, interconnection best practices, electronic commerce, telemedicine/tele-education, and the negotiation of a telecommunications equipment Mutual Recognition Agreement in the 34 countries of the Free Trade Area of the Americas.

NTIA, the State Department, and the FCC successfully negotiated a Direct Broadcast Service (DBS) Agreement with Argentina and a Mobile Satellite Services Protocol with Mexico.

In conjunction with the International Trade Administration (ITA) and the Telecommunications Industry Association, NTIA coordinated and conducted the fourth Latin American Telecommunications Summit (LATS) in April in Argentina. Representatives from thirty U.S. telecommunications equipment manufacturers and service providers participated in LATS '98. Telecommunications Ministers and senior government officials from the largest markets in Latin America participated. LATS '98 provided industry representatives and senior government officials the opportunity to discuss key telecommunications issues facing the region. LATS also provided the opportunity for equipment manufacturers and service providers to promote their products in the Americas. LATS '98, like previous LATS events, successfully generated sales and market access benefits for U.S. industry.

In cooperation with ITA and other U.S. government agencies, NTIA is participating in and providing ongoing support for the Joint Government/Private Sector Experts of Committee on Electronic Commerce ("Joint Experts Committee"). The Joint Experts Committee is a non-negotiating committee of the Free Trade Agreement of the Americas process. The Joint Expert Committee is the one of the first region-wide forums undertaking a discussion of electronic commerce and will continue its work into 1999.

During 1998, NTIA committed to and began planning a second China-U.S. Telecommunications Summit scheduled to take place in March 1999. In conjunction with ITA and the Telecommunications Industry Association, this Summit will bring together senior Chinese and U.S. government telecommunications officials, Chinese provincial telecommunications officials, and U.S. companies seeking to improve access to the growing Chinese marketplace and to promote their products in China.
 

Privatization of Intelsat and Inmarsat

For the past several years, NTIA, has worked in conjunction with the FCC and State Department to bring about a procompetitive privatization of the two international governmental satellite communications entities -- Intelsat and Inmarsat (the ISOs).

During 1999, NTIA expects that the final steps of Inmarsat privatization will be taken. This follows the 1996 creation of an Inmarsat spin-off -- ICO Global. Similarly, in 1998 Intelsat created a spin-off, New Skies, and is now beginning a new round of negotiations to completely privatize itself within the next two to three years.

The underlying issue in addressing privatization is ensuring open and competitive market access for all U.S. satellite service providers. Heretofore, the ISOs have had a clear advantage in securing market access -- sometimes through use of a state-owned monopoly operator. A procompetitive privatization of the ISOs should materially help level this playing field. NTIA expects that Congress will continue its strong interest in this issue during the 106th Congress, and we look forward to a continued solid partnership in seeking a mutually agreeable outcome.

International Special Committee on Radio Interference (CISPR)

NTIA participates primarily in the CISPR subcommittee dealing with emission limits for industrial, scientific, and medical equipment. In this work, NTIA has provided leadership to the U.S. preparatory process and has led U.S. delegations to international meetings.
 

GOAL 2: Ensure Spectrum provides the greatest benefit to all people.

The activities under this goal include developing spectrum plans and policies for both government and private sector users, satisfying the spectrum needs of Federal government agencies, advance spectrally efficient technologies and improving the management of Federal and non-Federal spectrum to maximize the value of spectrum to society.

Managing the spectrum and making future spectrum plans requires technical engineering expertise. This expertise is used to ensure that the spectrum policies and rules and regulations required for proper spectrum management nationally and internationally are technically valid; to derive the necessary technical facts that will lead to resolution of spectrum issues and problems; to provide a technical and engineering basis for future spectrum planning and standards; and to provide new ways to adopt new spectrum efficient technologies so the Federal government can use the spectrum efficiently and effectively.
 

Frequency Assignments

To fulfill the Federal government's needs for radio spectrum, NTIA's Office of Spectrum Management (OSM) maintains the Government Master File (GMF) of approximately 436,000 frequency assignments. There were about 193,300 Federal agency requests for assignment actions in 1998. Also, working through the Interdepartment Radio Advisory Committee, NTIA provided spectrum support for 62 planned government systems representing an investment over $6 billion.

Automated Federal Spectrum Management System

NTIA began a program in 1993 to develop an automated federal spectrum management system to provide a standard computerized method for the Federal agencies to select spectrum that is interference free, submit applications for spectrum support, and validate that the spectrum requested is within the rules and regulations governing spectrum authorization. NTIA released seven versions of this system to the Federal agencies, culminating in Version 3.0 in September. Sixteen classes trained almost 200 frequency management personnel from 15 government agencies. Work continues to not only improve this product but also to prepare NTIA and the agencies for a follow-on system. The FCC, the railroad assignment agency, Maryland state assigners and Federal standard setting committees have expressed interest and are being supported in their use of the system.

Interdepartment Radio Advisory Committee (IRAC)

The IRAC is comprised of representatives from the 20 Federal agencies that are major spectrum users and is an integral part of the spectrum management process. This committee provides advice to NTIA on spectrum management, resolution of various spectrum issues and problems among Federal agencies, between the government and non-government sectors through the FCC, and internationally through forums such as the ITU. The IRAC is chaired and administered by NTIA. The IRAC and its subcommittees and ad hoc groups conducted approximately 133 meetings and addressed over 3,262 documents in 1998. These documents dealt with various Federal, non-Federal, and international spectrum management, policy, and planning issues and problems.

Public Safety Wireless Advisory Committee

The predominant public spectrum issues addressed this year dealt with direct support to the Public Safety Wireless Network, the Vice President's National Partnership for Reinventing Government Initiative, and efforts to address recommendations of the Final Report of the Public Safety Wireless Advisory Committee (PSWAC). The ability of the United States to deal with crime and disasters now and in the future may well rest on our ability to communicate and interoperate at all governmental levels. To that end, NTIA is developing a national plan to implement the three main recommendations of the PSWAC: (1) more spectrum for public safety voice, data, and advanced technology, (2) increased interoperability between Federal, State, and local agencies, and (3) identifying alternative funding sources for State and local public safety agencies. As a means of accomplishing this, NTIA and the FCC formed a Joint Public Safety Working Group to coordinate and align Federal, State, and local plans and policies.

The primary means of coordinating these plans among Federal agencies is through the IRAC. An IRAC subcommittee, consisting of representatives from Federal public safety departments and agencies, is addressing two main issues: (1) development of rules and regulations dealing with implementation of shared and joint-use telecommunications systems among Federal, State, and local agencies, and (2) implementation of a National Public Safety interoperability plan. Early success includes the establishment of a partnership with the State of Wisconsin to implement a state-wide communications system to be used by all levels of government using Federally allocated frequencies.

Federal Law Enforcement Wireless Group

NTIA has played an integral role in the planning and development of the vision of the Federal Law Enforcement Wireless Users Group (FLEWUG) and the Public Safety Wireless Network (PSWN) during this time. Our joint long-range goals include a National Plan for seamless, ubiquitous communications for all public safety agencies, involving significant regulatory and technical support to the program office. In addition, NTIA has provided advice and guidance in the implementation of PSWN program objectives, including principal involvement in research, planning, and outreach.

Public Safety Funding

NTIA also was a principal advisor on the Attorney General's Interagency Working Group on Public Safety Funding issues, exploring innovative ways of advancing Administration goals of an integrated National network while providing funding assistance to State and local public safety agencies. The group published a report and provided a tri-parte (Commerce, Justice, Treasury) budget initiative for FY 2000, proposing a Federal assistance program for State-level planning and local-level pilot projects.

Private Sector Coordination (PSC) Program

The PSC program provides industry the opportunity to (1) present its views on Federal radiocommunication issues, (2) receive advice on spectrum allocation matters and requirements, and (3) obtain information on Federal use of the spectrum directly from NTIA personnel and the IRAC, or through the Internet from NTIA's web page. The PSC program, initiated in June 1991, is designed to facilitate the timely and efficient exchange of information between Federal government agencies and the public on a wide variety of subjects related to communications and information issues.

Strategic Spectrum Planning (SSP) Program

In 1998, the SSP program continued its long-range spectrum planning effort by publishing the Radio Astronomy Spectrum Planning Options report, coordinating with the FCC regarding spectrum use above 30 GHz, and publishing a draft of the U.S. Spectrum Plan.

This program reviewed several FCC rulemakings and provided recommendations to the IRAC. Among other things, it recommended a reallocation of 1100 MHz of spectrum to improve sharing between Federal agencies and commercial users. The FCC has responded positively on these requests.

As a first step in producing a comprehensive spectrum plan, the SSP program has published a draft U.S. Spectrum Plan that contains a forward-looking National Table of Frequency Allocations, and tables of current and planned spectrum use for both the Federal government and the private sector. The Plan covers the spectrum range from 30 MHz to 300 GHz. The Plan was distributed to the IRAC members and NTIA staff for review and comment.

Program staff met for bi-lateral sessions with European spectrum managers twice during the year to exchange views on spectrum planning matters, and participated in the annual European Conference of Postal and Telecommunications Administrations (CEPT) Radio Conference.

Efficient Spectrum Technologies

To advance the development of spectrally efficient technologies, NTIA's Institute for Telecommunication Sciences (ITS) undertook research and engineering studies in coordination with NTIA's OSM to further expand applied knowledge of the radio frequency spectrum. Important results of this research were spectrum use concepts and models that led to more efficient industry and government use of the radio frequency spectrum. ITS performed spectrum resource studies as required to ascertain current and future Federal use of the spectrum and determine where significant improvements in utilization appear possible. Additionally, ITS operated a mobile capability, the Radio Spectrum Measurement System (RSMS), to measure and analyze the actual use of the spectrum. This system is used to perform measurements in the land mobile and radar bands at selected sites, and make other specialized measurements as necessary to ensure compliance with frequency assignment rules and regulations. ITS completed selected site measurements in coordination with OSM, at locations in Dallas; Columbia, MD; Savannah; and New Orleans -- looking at such issues as digital TV emission spectrum characteristics, maritime mobile interference issues, and ultra-wideband device emission spectrum measurements -- all intended to support more efficient use of the scarce spectrum and to aid in improved spectrum planning and policy.

ITS also undertook research and engineering to support the development of wireless technologies such as personal communication services (PCS) and wireless local loop, including local multipoint distribution services (LMDS). Measurements and modeling of the propagation of radio waves on short paths in selected environments are crucial for the planning, development, and deployment of commercially viable systems. ITS supported the development of wireless local area networks in the NII band through models supported by measurements that enable the accurate prediction of broadband communication link performance. ITS used simulation techniques to assess the effects of intra-system and inter-system interference on wireless network performance. These related activities provide a basis for system planning as well as spectrum regulation. Results also assisted companies in assessing the value of the radio spectrum in preparation for FCC auctioning. Finally, ITS developed fundamental data and more accurate modeling of radio propagation that will lead to improved methods of planning spectrum sharing for various services including advanced television (ATV) systems.

United States Telecommunications Training Institute (USTTI)

NTIA spectrum management experts, in conjunction with Motorola and ComSearch, successfully conducted a radio frequency spectrum management training seminar for 20 spectrum managers from 18 developing countries. The seminar was two weeks long, and is conducted annually in Washington under the auspices of the USTTI. The seminar is an industry and government joint venture that provides free training to spectrum professionals and regulators from developing nations. The seminar covered basic spectrum management and computer-aided techniques, development of commercial enterprises, and special topics in communications satellites and land mobile communications.

Federal Spectrum Management Seminar

NTIA successfully conducted two radio frequency spectrum management training seminars for 60 Federal government employees in 1998, many of whom were from outside the Washington area. The seminars are taught by NTIA and experts from other Federal agencies. An important benefit of the annual training seminars are that they permit the students to discuss and confer with NTIA senior officials resulting in NTIA providing guidance on problem resolution, and it also enables NTIA to obtain a good understanding of the spectrum management problems being experienced out in the field areas. NTIA can then make changes to its spectrum management processes to eliminate or minimize the problems and difficulties.

Emergency Readiness Plan (ERP)

In 1994, NTIA completed and published a revision of its ERP for Use of the Radio Spectrum. In 1997-98, NTIA and the IRAC Emergency Planning Subcommittee completed a draft revision and expansion of the ERP and forwarded it to the National Communications System (NCS) Committee of Principals (COP). Subsequently, in August, the NCS COP concurred with forwarding it to the Executive Office of the President for final approval. Upon final approval, NTIA will issue a CD-ROM containing the complete ERP, including the certified database of wartime spectrum priority data. This plan and its associated database will be the basis for NTIA and the Federal government to exercise spectrum responsibilities during all types of emergency situations.

Additionally, in 1997-98, NTIA completed the review of all spectrum-dependent systems projected for use in a wartime emergency environment. In these reviews, which included all systems certified by the IRAC's Spectrum Planning Subcommittee prior to October 1998, EPS members validated the missions that the systems support, the frequencies the systems are authorized to use, and the priorities of those missions, systems, and frequencies to be used in a wartime emergency as well as other pertinent data. Upon their validation, they were entered into the first-ever, prototype electronic database that addresses prioritized emergency requirements for radio frequency electromagnetic spectrum use by Federal agencies in support of a national emergency.

Response to Title III of the BalancedBudget Act of 1997 (BBA97)

This Act called for the reallocation and auction of 234 MHz of spectrum, nearly 40% of which directly impacts Federal government use of the spectrum. During 1998, NTIA prepared and released three major reports responding to various requirements of the 1997 Budget Act. In February, the Secretary of Commerce released the NTIA Spectrum Reallocation Reportwhich identified 20 MHz of Federal spectrum to be reallocated to the private sector to help meet spectrum needs for new emerging telecommunications technologies. In November 1998, the Reallocation Impact Study of the 1990-2110 MHz Band described the extensive Federal use and over $87 billion current and planned investment in this band to support the U.S. space program. This band was designated in the 1997 Budget Act for reallocation and auction by the FCC. As a consequence of this impact study, a follow-up report, Identification of Alternative Bands, was prepared to identify alternative bands to the 2025-2110 MHz band for auction that meet the criteria specified in the 1997 Budget Act. This report was forwarded to Congress and the FCC by the NTIA Administrator on behalf of the President to exercise the option to substitute alternative bands that better serve the public interest and are expected to generate comparable spectrum auction receipts.
 

GOAL 3: Advance the Public Interest in telecommunications, mass media, and information.

Activities under the Public Interest goal include promoting universal service and access, assistance in maintaining and extending the services of public broadcasting and telecommunications facilities, promoting a diversity of choices in the mass media, encouraging private sector initiatives to give citizens the ability to protect their children from indecent material, facilitating private sector determination of the public interest obligations of broadcasters, establishing principles for the protection of personal privacy, and working to maintain the U.S. telecommunications and information infrastructure in time of crisis.

NTIA develops policies in many areas that promote the public interest. One is in telecommunications services, where NTIA's policies promote universal, available and affordable services for all Americans. Another is in considering policies for the development of the Internet and other advanced services. NTIA also works to promote the public interest in the nation's mass media, including that for new digital television.

E-Rate (Education Rate) and Universal Service

NTIA facilitated development and implementation of the E-Rate, which provides assistance to schools, libraries and other non-profit entities seeking to gain access to advanced telecommunications technologies. This work, completed through a serious of written analyses and personal meetings, had a significant effect on the design and implementation of the program.

Falling Through the Net II, New Data on the Digital Divide

This is the second report in a series of reports on affordable access to services and technologies. Released in August 1998, this report analyzes the results of a survey conducted by the Census Bureau at NTIA's request, concerning penetration rates for telephone and computer technologies in the U.S. It demonstrates rapid acceptance of computer technology among Americans, but notes a continuation of deep disparities in penetration of technologies among some economic, demographic and racial groups. The report supports the Administration's E-rate efforts and underscores the need for "community access centers" along the lines of many projects funded by NTIA's grant programs.

Policy Forums

NTIA sponsored a series of public forums focused on emerging telecommunications issues, including Internet telephony, wireless local loop, and the Telecommunications Act of 1996. This Forum series was an important policy tool that served to help inform NTIA's policies regarding implementation of the Telecommunications Act and emerging telecommunications technologies. The forums also served to educate both industry and the wider policy community inside and outside of Washington D.C.

Connecting All Americans Conference

Early in the year, NTIA and the Public Utility Law Project co-hosted a conference that focused on programs and policies designed to ensure connectivity to advanced information technology for those in low income and rural communities. Among other issues, the conference addressed immediate opportunities to take full advantage of Telephone Lifeline service and improve access to new telecommunications technology for low income and rural communities. Vice President Gore gave the keynote address to the audience of approximately 500 people, who included officials from Federal, state and local governments, and grass roots organizations. The conference also included the interactive demonstrations of highly successful projects serving low income and rural communities. A post-conference workshop addressed the details of developing and funding a community advanced technology business plan.

1998 Networks for People Conference, "Society and Information Infrastructure: The Next Generation"

NTIA held this conference as a forum for public service organizations to discuss the connections of people, information technology, and services across a broad spectrum of American life. NTIA will produce a report in 1999 based on the discussions held during this conference.

Internet Content Summit

With respect to the development of children-friendly Internet content, the Commerce Department and NTIA co-hosted the Digital Media Content for Children and Teens conference, held in Los Angeles, California, June 11-12. The conference focused on the creation of quality online content for children and teens, and also addressed the issue of online marketing and advertising to children. Vice President Gore, FTC Commissioner Thompson, and Commerce Assistant Secretary Irving participated in the conference. At the conference, Vice President Gore announced the Administration's proposed legislation that would provide $450 million to help public broadcasting enter the digital era. One of the outcomes of the conference is a commitment by the private sector to explore the development of "greenspaces in cyberspace." The Commerce Department and NTIA are facilitating activities of private sector groups that are interested in this initiative.

Privacy

NTIA released a Notice on Internet Privacy, which sought public comment on various aspects of Internet privacy issues, including the effectiveness of self regulation. NTIA also sponsored a public Internet Privacy Summit. As a result of these efforts, over 50 of the largest businesses and 15 trade associations have formed an alliance to promote privacy online. The Online Privacy Alliance (OPA) members have committed to implement the fair information practices described in the Framework involving notice, choice, access, and enforcement.

President's Advisory Committee on the Public Interest Obligations of Digital Television Broadcasters

This Committee delivered its final report on December 18, 1998, as required by law. Since the Committee members were appointed in 1997, NTIA has served as Secretariat for this Committee and provided administrative and technical support for the many meetings of the Committee and in the report writing process.

Minority Broadcast Ownership Report

An annual survey of minority ownership of broadcast media, NTIA's Ownership Report is unique and eagerly awaited by the industry. The results of this year's report have led to further emphasis by the Federal Communications Commission and NTIA on the barriers to minority ownership of telecommunication facilities and possible government actions.

Critical Infrastructure Protection

The Secretary of Commerce has assigned NTIA to fulfill the lead agency responsibilities for the information and communications sector under the Critical Infrastructure Protection Program (CIP). CIP was formally initiated when the President issued Presidential Decision Directive 63 (PDD-63) in May 1998. In addition to its lead agency responsibilities, NTIA will also be performing telecommunications research activities specifically designed to further CIP objectives. Both the CIP lead agency and research form a major new body of work that may grow substantially in future years. Organizationally, this work will be done through NTIA's Office of Spectrum Management and Institute for Telecommunication Sciences.
 

GOAL 4: Promote the Availability and Sources of Advanced Telecommunications and Information Services.

Activities under this goal include demonstrating advanced, innovative applications of telecommunications and information technology in the non-profit and public sectors, promoting the growth of electronic commerce and Internet use domestically and internationally, meeting the compelling telecommunications research needs of other Federal agencies and industry through cooperative research and development, promoting international acceptance of U.S. spectrum proposals, and participating in ITU and domestic standards development to benefit U.S. industry and user interests.

Telecommunications and Information Infrastructure Assistance Program (TIIAP)

The objective of NTIA's TIIAP is to promote the application of telecommunications and information technology to benefit all Americans. This program supports the Administration's efforts, through the National Information Infrastructure (NII), to use new telecommunications and information technologies to connect our citizens to one another, to services, and to information. While the private sector is building the NII, Federal government actions are necessary as a catalyst to facilitate and encourage private development of the NII.

TIIAP provides matching grants to non-profit organizations and state and local governments across the United States to demonstrate advanced, innovative applications of telecommunications and information technology. These grants provide critical seed money to help forge partnerships in local communities across the country ensuring that telecommunications technologies live up to their potential by enhancing community services, heath care delivery, public safety, and education and lifelong learning.

In 1998, forty-six public institutions, competitively selected from more than 750 applicants, were awarded $18.5 million in federal grants. Projects were selected on the basis of their ability to serve as models that can be replicated across the country. The grants were awarded in five categories; some examples of the awards include:

Education, Culture and Lifelong Learning: a project in Vermont will use network technology to connect artists as mentors to provide arts education to rural schools;

Public Services: a project in Minot, North Dakota, will provide Internet resource tools to adults with mental retardation to help them locate employment and training opportunities;

Health: the University of South Florida will create a state-wide database of health information to track health indicators and allocate resources more effectively;

Public Safety: the Western Identification Network will assist law enforcement officials in Wyoming, Idaho, Montana, Nevada, Oregon, Utah, Washington and Alaska in tracking down suspects by sharing digitized photos; and

Community-Wide Networking: the State of Indiana will engage young people in the democratic process through network technology. The Indiana Youth Services Association (E-YAC) will gather input on youth-related issues from thousands of youth via the Internet and make it available to local and state government officials and lawmakers.

Since the TIIAP program was initiated in 1994, NTIA has awarded over $118 million in matching funds that has spurred nearly $280 million in total investments.

Public Safety Report

In 1998, NTIA released Safety Nets: Protecting Lives and Property in the Information Age, the third in a series of reports that tracks the impact of telecommunications and information technology on Americans today. The report describes how new technologies are changing the face of public safety. At a time when public safety resources are scarce, these technologies can enhance existing law enforcement efforts.

Grant Evaluations

Westat, an independent research and consulting firm, completed an assessment of projects funded by the TIIAP program. The report consists of an in-depth analysis of 206 organizations that received seed funding during TIIAP's first two years. Westat found that the program is having a wide-reaching impact, particularly in rural and underserved areas. The report concluded that:

TIIAP has demonstrated the value of investing modest amounts of Federal seed money in innovative technology applications. Evidence from the mail survey suggests that most of the projects needed TIIAP's support to proceed beyond the conceptual phase. The high success rate among the 1994 and 1995 recipients (as measured by the range of impacts and the proportion of projects still in operation after the Federal funding expired) suggests that TIIAP invested wisely.

With a modest Federal investment, TIIAP grant recipients are spurring further development and having a tremendous effect on communities across the nation.

Westat also worked with NTIA on the development of an online reporting system for TIIAP grant recipients. The system will allow NTIA to collect and analyze performance data, innovate grants management, and reduce paperwork burden on TIIAP's grant recipients.

Public Telecommunications Facilities Program (PTFP)

NTIA's PTFP assists in maintaining and extending the services of public broadcasting and telecommunications facilities, including digital broadcasting applications in the public interest. The program annually awards grants public broadcasting and to other noncommercial entities for the purchase of, or in some cases to plan for the eventual purchase of telecommunications equipment. In 1998, PTFP issued grants totaling approximately $19.8 million to 115 recipient organizations in 41 states. The grants enable public broadcasting organizations, as well as many nonbroadcast operations, to buy equipment to activate new services, to extend the range of present services, and to improve existing broadcast facilities.

In 1998, PTFP awarded 47 public radio grants, 55 public television grants, 12 distance learning grants, and one grant to the University of Hawaii for the Pan-Pacific Educational and Cultural Experiments by Satellite (PEACESAT) Project. The awards will extend a public radio signal to approximately 453,000 persons who presently do not receive any signal. In addition, the awards will assist public television stations with the purchase of digital-ready or digitally compatible equipment. Two of these awards will allow stations KCTS-TV, Seattle, and KQED-TV, San Francisco, to complete their conversion to digital broadcasting.

PTFP has been the sole source of federal funding for catastrophic loss and urgently needed replacement equipment. Communities hit by recent hurricanes, fire, wind storms, and earthquakes would be without public television and radio if it were not for the program. In 1998 for example, NTIA awarded a grant to replace the radio antenna and transmission line of KBSA-FM, Shreveport, Louisiana, that were destroyed when the station's tower collapsed during a severe storm.

Other examples of this year's awards include a grant to establish the first public radio service to the Outer Banks area of North Carolina. Another grant will help the Mississippi Authority for Educational Television buy a new tower, antenna, and transmission system after the collapse of a commercial tower on which its Jackson station, WMPN-TV, transmitted service. Another award will extend the video-based, interactive distance learning services of Northern Arizona University to sites on the Hualapai, Navajo, and White Mountain Apache Indian Reservations.

Global Electronic Commerce

NTIA has played an active role in development and implementation on the Administration's Global Electronic Commerce initiatives.

Domain Names: NTIA took the lead on implementing President Clinton's directive to privatize the Internet domain name system (DNS) in a manner that increases competition and facilitates international participation in its management. NTIA began by soliciting public comment on DNS administration and developing, on the basis of that public input, a statement of Administration policy on DNS management. NTIA issued the policy statement, known as the "White Paper," on June 5, 1998, identifying key DNS functions requiring coordinated management and establishing principles under which the U.S. government will recognize a new, not-for-profit corporation formed by the private sector to administer policy for the Internet name and address system. On November 25, 1998, NTIA entered into a Memorandum of Understanding (MOU) with the Internet Corporation for Assigned Names and Numbers (ICANN), a California based not-for-profit corporation, under which NTIA and ICANN will collaborate on the design, development and testing of mechanisms, methods, and procedures that must be in place and the steps necessary to transition management responsibility for DNS functions now performed by, or on behalf of, the U.S. government to a private-sector, not-for-profit entity.

In 1999, NTIA will continue this work, with the goal of completing the transition to private sector management by October 1, 2000. NTIA's role, during this transition, will be to collaborate with ICANN to implement the White Paper's principles of stability, competition, private, bottom-up coordination, and global representation. NTIA will also continue to work with Network Solutions, Inc. (NSI) to make competitive registrar services in .com, .net., and .org available by the summer of 1999. Finally, NTIA will continue to consult with Congress, with the public, and with the international community, including other interested governments, throughout the transition period.

Promoting Sound Internet and E-Commerce Policy around the World. The Administration's approach to electronic commerce is based on principles that emphasize the importance of private sector leadership and minimal government intervention in the online marketplace. We believe that these principles account for the spectacular growth of the Internet in recent years. As the Internet emerges as a global marketplace, however, over-regulatory or bureaucratic approaches to electronic commerce in one country can have a profound, negative impact on the growth of e-commerce around the world. Accordingly, NTIA has reached out to the international community -- both the private sector and governments -- to promote a non-regulatory approach to electronic commerce. We have advocated non-regulatory approaches in bilateral meetings with our trading partners, including the European Union and individual EU member states, Japan, Australia, Canada, Mexico, Russia, Italy, Spain and other countries. NTIA has brought this message to a number of international and multi-lateral fora including the OECD, the ITU, CITEL, APEC, and the Free Trade Area of the Americas (FTAA) where e-commerce work is ongoing. NTIA has worked with the private sector through overseas offices of the American Chamber of Commerce, the United States Council for International Business (USCIB), as well as through the Trans-Atlantic Business Dialogue and the U.S.-Japan Business Council.

Building Trust in the Internet: The potential of the Internet and electronic commerce to enhance the quality of life and to ensure continued strong economic growth will be hampered unless Internet users know that their personal information is secure on the Internet and that, as consumers, they will get what they pay for online. In 1998, NTIA worked closely with U.S. industry, consumer and privacy advocates, and the international community to build trust in the Internet, consistent with the Administration's commitment to private sector leadership and minimal government intervention in e-commerce. NTIA has focused principally on self-regulatory tools and technological solutions, rather than regulatory regimes, to build consumer trust and confidence in the online medium. We believe that the private sector accepted the challenge of private sector leadership in 1998, as evidenced by the creation of the Online Privacy Alliance, the BBBOnline program and TRUSTe's work in privacy protection. Our challenge in 1999 is to work with the private sector to promote effective self-regulatory programs more broadly among Internet businesses, to bring private sector leadership to bear on the problem of developing easy to use mechanisms for resolving consumer complaints about electronic transactions, and to foster the development of effective consumer protection in cyberspace.

Cooperative Research and Development

Under other agency reimbursable work agreements, NTIA's Institute for Telecommunication Sciences (ITS) provided telecommunications planning assistance to a variety of Federal agencies. For example, ITS completed an initial inventory of telecommunications assets for the Department of Commerce in support of the development of a Strategic Telecommunications Plan that will address the telecommunications needs of the Department well into the next century. ITS also completed a national plan that is currently being implemented for the augmented Global Positioning System (GPS) to meet the navigational and positional needs of all modes of surface transportation. ITS also provided support to the Federal Highway Administration in the development of Intelligent Transportation Systems (ITS), formerly the Intelligent Vehicle Highway System (IVHS). In addition, ITS provided leadership of the IEEE Vehicular Radar Standards subcommittee for developing collision avoidance radar standards for the Nation's highways.

ITS provided key technical support to the work of the Federal Railway Administration in improving railway traffic management and safety, to the National Communications System in enhancing communications survivability during national emergencies, and to other Department of Defense and Security agencies in improving their strategic and tactical communications capabilities. These efforts support a key NTIA responsibility of making available its laboratory's telecommunications expertise to other Federal agencies in a centralized, cost-effective manner.

The Federal Technology Transfer Act of 1986 (FTTA) allows Federal laboratories to enter into cooperative research agreements with private industry, universities, and other interested parties. The law was passed in order to provide labs with legal authority to enter into these arrangements and thus encourage technology transfer from Federal labs to the private sector. ITS established a core telecommunications research expertise that is accessible to both the public and private sectors and is actively engaged in technology transfer and commercialization efforts by fostering cooperative telecommunications research with industry where benefits can directly facilitate U.S. competitiveness and market opportunities. Through cooperative research and development agreements (CRADAs) with industry, ITS applies its expertise to practical problems in telecommunications today.

ITS completed several CRADAs with the private sector (e.g., U S WEST Advanced Technologies, Inc., Hewlett-Packard, American Automobile Manufacturers Association, GTE Laboratories, Integrator Corporation, Industrial Technologies, Inc.) to design, develop, test, and evaluate advanced telecommunications concepts in direct support of the NII and GII. Data derived from these CRADAs provided a foundation for domestic and international standards development and efficient allocation of radio frequency spectrum resources. To date, major contributions to personal communication services (PCS) and Local Multipoint Distribution Systems (LMDS) technologies have been and will continue to be carried out under these CRADAs to aid U.S. efforts to rapidly introduce new communications technologies for the benefit of society.

ITS continued its efforts to expand technology results to the larger user community. One way is through our Telecommunication Analysis Services (TA Services) program, an on-line dial-up service that currently reaches over 200 government and private sector users across the nation and makes available the latest models and tools developed by ITS in the telecommunications field. ITS expanded availability of the services through the introduction of web-based online electronic CRADAs, greater outreach, e.g., NAB conference demonstrations, and by making available the latest models (e.g., PCS propagation) that will be useful to telecommunications systems planners and designers. ITS will continue these efforts in 1999 and beyond.

International Standards Work

During 1998, ITS provided leadership of the U.S. ITU-T Study Group responsible for coordinating U.S. contributions to international standards on Broadband-ISDN and the GII at the request of the Department of State. ITS also provided leadership of the international working parties responsible for B-ISDN/GII performance standards, and contributed to related multimedia performance work. ITS continued these important leadership activities, and conducted focused research supporting the development, demonstration, and implementation of B-ISDN/GII performance standards promoting U.S. domestic competition and international trade objectives. ITS also provided national and international leadership of the ITU-R Study Group and a Working Group responsible for propagation modeling standards. ITS contributed to the development of the U.S. position on spectrum requirements and other technology issues for the International Mobile Telecommunications (IMT)-2000 Conference dealing with the third generation of wireless communications. ITS continued its role in broadening and strengthening U.S. industry participation in international standards development through seminars and workshops, conference presentations, technical publications, and the provision of standards information services.

ITS' international standards activities were complemented by active involvement in the development of U.S. standards for B-ISDN and advanced packet-switching networks within the American Standards Institute (ANSI)-accredited T1 (Telecommunications) Standards Committee. ITS continued to play a key leadership role in Subcommittee T1A1, which is responsible for developing performance standards for U.S. digital networks, including B-ISDN. ITS also developed formal contributions to national and international standards committees proposing technical solutions to some of the most compelling issues facing U.S. telecommunications planners. Examples included interoperation of multi-vendor systems employing various transmission media (cable, microwave, fiber, satellite) in a competitive environment, and the key B-ISDN/ATM and Internet Protocol (IP) network implementation problems of economical resource sharing among integrated services. ITS' results promoted competition and innovation in the provision of integrated broadband digital services and helped ensure that emerging U.S. broadband network standards are consistent with a competitive market environment, with the Administration's NII and GII objectives, and with applicable NTIA and FCC policy guidelines.

In addition, ITS undertook telecommunications research and engineering activities directed toward the development, implementation, and promulgation of user-oriented performance measures for integrated data, audio (including voice), video, and multimedia communication equipment and services. ITS continued to apply its state-of-the-art B-ISDN/ATM performance measurement laboratory in validating and optimizing telecommunication performance standards. This research is aimed at developing user-oriented, technology-independent performance parameters and measurement methods for digital audio and high-speed data communication services. ITS continued related research in digital video communication performance supporting such emerging and future applications as video telephony and teleconferencing, computer-aided design and manufacturing, and interactive video distribution, and is continuing to integrate its prototype data, audio, and video performance measures to provide multimedia test capabilities. These user-oriented test capabilities are extremely valuable in implementing and optimizing the NII and GII.

International Telecommunication Union

Through its participation in international forums, NTIA ensures that U.S. spectrum requirements are satisfied on an international basis. These forums include the International Telecommunication Union (ITU), the Commission on Inter-American Telecommunications (CITEL), and the International Special Committee on Radio Interference (CISPR).

The ITU, a specialized agency of the United Nations, has 188 Member States, including the United States. NTIA, the State Department and the FCC participate in the ITU via plenipotentiary conferences, radio conferences, technical study groups, and other forums.

1998 Plenipotentiary Conference. NTIA played a key role in the preparations for this conference and in the work of the U.S delegation at the conference. NTIA, with the advice of the Radio Conference Subcommittee (RCS) of the Interdepartment Radio Advisory Committee (IRAC) developed coordinated federal agency views on a variety of issues including the structure, budget and strategic plan of the ITU.

World Radiocommunication Conference 2000 (WRC-2000). NTIA began its preparations for this conference immediately after the close of WRC-97. NTIA and the FCC are continuing their previously established joint processes for the development of draft U.S. proposals for world radiocommunications conferences. NTIA, through the RCS, has approved preliminary views on most of the agenda items for the conference. This represents the first time that the U.S. has put forth its views in an official form so early in the conference preparation process. Furthermore, NTIA sent two initial draft proposals to the FCC for coordination and approval. Key issues for this conference includes spectrum for 3^rd generation wireless, protection of Global Positioning System (GPS) operations, and sharing between nongeostationary and geostationary fixed satellite service systems.

Technical Study Groups. NTIA contributes to the work of the ITU Radiocommunications Sector study groups by participating in U.S. preparation activities of the State Department International Telecommunication Advisory Committee (ITAC), which is organized to "mirror" the ITU, and through participation on the U.S. delegations to study group and sub-group meetings. During 1998, NTIA provided chairmen and led U.S. delegations for Study Group 1 (spectrum management), Working Party 1A (spectrum engineering), WP1B (spectrum sharing), Task Group 1/5 (unwanted emissions), Task Group 1/6 (coordination areas around satellite earth stations), Study Group 3 (radio propagation), and Joint Rapporteur Group 8A-9B (fixed wireless access). Furthermore, NTIA coordinated many of the preparations and led the U.S. delegation to Working Party 8D (mobile-satellite and radio-navigation satellite). These study groups are essential to laying the technical ground work for radio conference agenda items as well has developing recommendations to solve important technical issues of concern to the international community.
 

NTIA Gold and Silver Medalists

The Department of Commerce Gold and Silver Medal awards provide an opportunity for the Department to acknowledge those employees whose accomplishments warrant special recognition. The following are NTIA recipients of the Department's Gold and Silver Medals:

GOLD

Personal and Professional Excellence Category
E-Rate program -- James McConnaughey (OPAD)

SILVER

Leadership Category
Land mobile radio standards -- William Pomper (ITS)

Leadership Category
Digital television broadcasting and cable services -- Eldon Haakinson (ITS)

Personal and Professional Excellence Category
CATS Team -- Elizabeth Echols (OIA), Roanne Robinson (OAS), Diane Steinour (OIA), Eric Rosenberg (OIA) and Paige Darden (OPA)

Personal and Professional Excellence Category
1997 WRC -- Karl Nebbia, James Vorhies, Darlene Drazenovich and Edward Davison (OSM)

Leadership Category
Federal radio spectrum reallocation -- Edward Drocella, William Druhan, Steven Jones, Michael Doolan and Robert Wilson (OSM), Kathy Smith (OCC)
 

NTIA on the World-Wide Web

To expand electronic access to public information, NTIA established one of the first Federal government World-Wide Web (WWW) servers (http://www.ntia.doc.gov). All of NTIA's publicly available documents are posted on this web site. The following general principles guide NTIA's managers on electronic information dissemination; these principles apply to all NTIA electronic information dissemination efforts, regardless of specific form.

NTIA On-Line Information will be:

1. Designed for the external user; i.e., constituent ease of use, interactivity, and usefulness of the information will be the overriding priority.
2. Accurate, Timely, Complete, and Relevant.
3. Information should be available on-line no later than when it is available in hard copy and preferably before the hard copy is available.
4. Limited to organizational and programmatic information.

Year 2000

NTIA has made significant progress in ensuring that our computer systems and proprietary software will be operational after the turn of the century. Most of NTIA's PCs have been tested for Year 2000 compliance. NTIA is requiring that all new PCs be certified to be Year 2000 compliant. All of the vendors of our "industry standard" off-the-shelf hardware and software are now, or are planning to be, Year 2000 compatible in their next upgrade.

Comments

NTIA welcomes comments on its activities and programs. To offer suggestions or obtain further information, please contact Sarah Maloney or Charles Franz at 202-482-1835 or send e-mail to <smaloney@ntia.doc.gov> or <cfranz@ntia.doc.gov>.

Copies of documents cited in this report are for sale by the National Technical Information Service, Springfield, VA (703) 487-4650.