National Telecommunications and

Information Administration

Overview

Mission Statement

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.

Strategies and Activities

The telecommunications and information sector has become the driver for this country’s

economic growth. In this environment, NTIA’s continuing work through the Administration’s

series of reports, entitled Falling Through the Net reports highlighted the Digital Divide as a

major national and international issue. NTIA’s spectrum management and cutting-edge

research activities also promote the goal of universal telecommunication service for all

Americans by identifying innovative uses and resources for affordable, alternative

communications services. NTIA’s grant programs serve to demonstrate the effectiveness of

new communications and information technology applications in meeting the real needs of

community development programs, schools, libraries, and other nonprofit organizations.

NTIA’s grants also help maintain the reach of public broadcasting infrastructure and support

its transition to the digital age. Each of these program areas, though integrated domestic

and international policy and technical work, keeps promotion of the benefits of competition

and universal service as primary strategic planning goals. The combined technical and

policy expertise of the agency help enable the U.S. to continue its lead in this integral part of

global competitiveness.

FY 1999 Annual Program Performance Report 149
150 FY 1999 Annual Program Performance Report

Advocate international telecommunications policies to help

open international markets and promote U.S. interests 

Rationale for Performance Goal:

NTIA will open markets to competition leading to lower prices, increased innovation, more

options, and more competitive choices for telecommunications and information services for all

consumers. These efforts directly support the Secretary’s theme of building for the future and

promoting U.S. competitiveness in the global marketplace, by strengthening and safeguarding

the nation’s economic infrastructure. 

FY 1999 Performance

Measure 1.a:

Number of “lessons learned” packages completed

for foreign governments

Data Validation and Verification

Data collection:

Frequency: 

Data storage: ITA maintains and updates data storage.

Verification: ITA

FY 1999 Program Evaluation for NTIA Performance Goal 1

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 foreign counterparts such as the European

Union (EU) Commission, and various EU member countries, while advocating the

Administration’s telecommunications and information policies. 

In a continuing effort to assist developing countries with efforts in privatization, liberalization,

policy-making, and creation of competitive and open telecommunications markets, NTIA

assisted in interagency planning of a joint ITU-WTO seminar focused on these issues. In

 

 
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future WTO electronic commerce activities and in the upcoming GATS 2000 negotiations.

NTIA has provided technical and policy expertise to ongoing U.S.-Japan Telecommunications

Deregulation negotiations, starting in May 1998. In March 1999, the U.S. Trade Representative

(USTR) found Japan in violation of its WTO commitments to ensure a fair and competitive basic

telecommunications market. USTR leads interagency discussions focused on Japan’s

interconnection and rights-of-way policies. NTIA provided experts on all matters, and provided

liaison to state regulatory experts in response to Japan’s concerns that U.S. state-level

regulation hampers Japanese carriers’ access to the U.S. market. Talks continue into 2000.

FY 1999 Annual Program Performance Report 151
Ensure radio spectrum provides the greatest

benefit to all people

Rationale for Performance Goal:

Radio spectrum is a scarce resource supporting government communication, public safety, and

national defense, while private sector uses are burgeoning. Efficient management of these

resources, research into new and better spectrum uses, and participation in international

organizations help to assign radio spectrum to meet needed services. This goal directly

supports the Secretary’s theme to provide management and stewardship of our Nation’s

resources and assets to ensure sustainable economic opportunities. NTIA’s spectrum

management activities are currently funded by other Federal agencies at the 80% level.

FY 1999 Performance

Measure 2.a:

Number of authorized spectrum assignments

Data Validation and Verification

Data collection: Government Master File (GMF) maintained by NTIA; data is collected from federal agency requests

for spectrum assignment actions.

Frequency: Standard reports issued monthly.

Data storage: NTIA mission critical system; data available on CD-ROM.

Verification: GMF has built-in checks; also staff review outside of these checks.

Comment: Number of frequency spectrum assignments is a limited measure of effectiveness of these activities,

but the most quantifiable. Total assignments depend on number of requests from the Federal

agencies and may decrease with the adoption of more efficient devices and spectrum sharing

arrangements. Radio spectrum assignment effectiveness is ensured by the Interdepartmental Radio

Advisory Committee (IRAC) who administer quality advisory recommendations to the Assistant

Secretary’s office.

152 FY 1999 Annual Program Performance Report
FY 1999 Program Evaluation for NTIA Performance Goal 2

NTIA assigns spectrum frequencies for use by systems owned and operated by the Federal

government, in accordance with authority delegated by the President. To fulfill the Federal

government’s needs for access to the radio spectrum resources, NTIA’s Office of Spectrum

Management (OSM) has authorized 437,313 frequency assignments for Federal agencies’ use.

There were approximately 75,000 Federal agency requests for assignment actions in 1999. 

Spectrum support was certified for 62 planned Federal systems with a total investment cost of

almost $10 billion. Spectrum support certification is an Office of Management and Budget

requirement for agencies of the Federal government. NTIA engineering staff work with

sponsoring agencies to mitigate potential electromagnetic compatibility problems related to the

introduction of new Federal systems into the radio-frequency environment. Examples of major

systems receiving spectrum support certification in 1999 include the joint NOAA/DoD National

Polar Orbiting Environmental Satellite System, the next generation of Global Positioning System

satellites, the LANDSAT-7 Satellite System, a communications link for the Theater High Altitude

Area Defense (THAAD) System, communications equipment for the Space Shuttle and

International Space Station, the Mars Surveyor Orbiter mission, weapons control radars for the

Air Force’s F-15 fighter aircraft, and a data link used by the Navy’s F-18 aircraft for weapons

control of the Tomahawk missile.

FY 1999 Annual Program Performance Report 153
Advance the public interest in telecommunications, mass

media, and information 

Rationale for Performance Goal:

Affordable access to telecommunication technology is becoming a basic necessity for a

successful and productive life in all sectors of our society, including business, academia,

industry, banking, and government. 

FY 1999 Performance

Measure 3.a:

Maintain or increase telephone subscription rates

Data Validation and Verification

Data collection: Data is available via Census Bureau.

Frequency: Annual

Data storage: The Census Bureau maintains and tabulates the data.

Verification: The Census Bureau uses established statistical techniques.

Comment: Since telephone subscription rates are already at 96%, there is only room for marginal annual

improvement. In a dynamic economy, maintaining this subscription rate will constitute a significant

challenge, compounded by the many personal factors that can influence penetration.

154 FY 1999 Annual Program Performance Report
Increase Internet accessibility and use

Data Validation and Verification

Data collection: NTIA is making special arrangements with Census Bureau.

Frequency: Annual estimates 

Data storage: Bureau of the Census

Verification: Standard survey statistical techniques

Comment: Difficult to define and set data; unsure of resource for future data collection. NTIA uses this metric

only as a means to identify changes in Internet penetration and use among all users and in low

income and minority households.

FY 1999 Program Evaluation for NTIA Performance Goal 3

NTIA has been at the forefront of the Administration’s efforts to facilitate the development of

broadband networks and services. The agency has proposed and supported policies that would

make it easier for new competitors to enter the market and offer advanced broadband services.

NTIA has recommended regulatory changes that would enable incumbent local telephone

companies to provide such services on a less-regulated basis, subject to safeguards to protect

competition. NTIA has also explored whether and to what extent universal service policies may

need to be changed to ensure affordable access by all Americans to broadband services.

Throughout 1999, NTIA actively participated in Federal Communications Commission (FCC)

proceedings on broadband issues. NTIA presented its position in three letters filed with the FCC.

In one, NTIA favored an FCC ruling that would make it easier for local telephone companies to

sell digital subscriber line (DSL) services to Internet service providers (ISPs). In a second letter,

NTIA suggested conditions under which local telephone companies could be allowed to offer DSL

services on a less-regulated basis. The letter also proposed changes to the FCC’s co-location

practices that would allow new entrants to provide competitive DSL services more quickly and at

less cost. Finally, NTIA advocated an FCC ruling that when DSL services are used to access

ISPs and the Internet, those services are interstate offerings subject to exclusive FCC jurisdiction.

One of the top priorities of the Administration is to ensure that basic and advanced

telecommunications services are available to everyone and at affordable prices. The “digital

divide” separates those who have access to telecommunications - - through telephones,

computers and the Internet - - and those who do not. In July 1999, President Clinton and

Secretary Daley released Falling Through the Net III: Defining the Digital Divide. The Falling

Through the Net report series has been authored by NTIA and uses Census Bureau data to

determine which Americans have access to telephones, computers, and the Internet, broken

down by region, income, race, age, and other factors. These reports provide a principal

foundation and justification for the Administration’s telecommunications policies and a solid

empirical foundation for policymakers and others throughout government and the private sector.

As the United States takes steps to close the digital divide, there needs to be a measure of our

progress, and the reports in this series provide such a measure. The data collected is an

important metric that helps gauge the extent to which Americans are universally able to access

the fruits of the Information Age. The demand for this report series is evidenced by the worldwide

print, radio, and television coverage that accompanied the 1999 release. It has helped focus

attention on the Administration’s efforts to close the digital divide.

FY 1999 Annual Program Performance Report 155
Promote the availability and sources of advanced

telecommunication and information services

Rationale for Performance Goal:

NTIA administers a substantive grant program designed to demonstrate the benefits and

applications of the Internet. This is part of the Secretary’s focus on the digital economy.

FY 1999 Performance

Measure 4.a:

Number of models/grants available for non-profit or publicsector organizations 

Data Validation and Verification

Data collection: Formal evaluation contracts

Frequency: Annual report

Data storage: Reports printed and circulated posted on Web site.

Verification: NTIA staff and grantees review data.

Comment: NTIA continues to make progress at incorporating evaluation methods in its grant program where

appropriate. Models demonstrate how to use the information infrastructure to benefit communities

and individuals. 

156 FY 1999 Annual Program Performance Report
In 1999, forty-three public and non-profit institutions, competitively selected from more than 700

applicants, were awarded $17.6 million in federal grants by NTIA’s Telecommunications

Opportunities Program (TOP). Projects were selected on the basis of their ability to serve as

models that can be replicated by similar organizations across the country. The grants were

awarded in five categories; some examples of the awards include:

■ Education, Culture and Lifelong Learning. The New Hampshire Community Technical

College will use computers to establish two-way links between educators and local

businesses in order to offer remedial education as well as computer classes to people

who are considered the “working poor”.

■ Public Services. Second Harvest, a project in Chicago, Illinois, will use a nationwide

computer network of local food banks to more effectively distribute food to areas with the

greatest need. 

■ Health. The Shepherd Center in Atlanta, Georgia will use a high-speed Internet test bed

to provide rehabilitation services to patients who have sustained catastrophic spinal cord

and brain injuries.

■ Public Safety. The Fund for the City of New York will create a shared network among

juvenile offenders, their parents, caseworkers, and social service providers to promote

youth development.

■ Community-Wide Networking. The Philadelphia Enterprise Center in Pennsylvania will

develop an Interactive Business Network to increase enterprise development and

entrepreneurship in inner-city West Philadelphia.

Since the TOP program was initiated in 1994, NTIA has awarded more than $135 million in

matching funds that has spurred nearly $330 million in total investments.

NTIA contracted with Westat, a research and consulting firm, to survey the 206 TOP projects

awarded in 1994 and 1995. Westat also did in-depth case studies on a sample of 24 projects

from 1994-1995. The study, conducted during the summer of 1998, is the first evaluation report

in NTIA’s ongoing effort to collect and share the lessons learned by the TOP grant recipients.

The study’s key findings, which were reported in February 1999, are highlighted below:

■ Ninety percent of the projects are still in operation. The majority of projects reported

meeting or exceeding nearly all of their objectives. Most important, the projects are

sustaining themselves beyond the Federal grant period.

■ Each grant dollar generated another four dollars to support information infrastructure. In

addition to non-Federal matching funds, the grants led to investments that expanded their

services beyond the original scope and further investments to support spin-off activities.

■ Model projects and extensive outreach are effectively encouraging the use of innovative

information technology. The 206 organizations alone reported responding to 79,000

unsolicited requests for information and hosted visitors representing over 5,000

organizations. 

■ The grants are bringing communities together. On average, each grant recipient worked

with 3.4 partners. Sixty percent of the projects collaborated with private sector

organizations. In addition, a number of projects reported new joint ventures that were

direct outcomes or spinoffs of their TOP grants.

■ The projects focused on underserved communities. Sixty-five percent of projects involved

end users in rural areas, while 48 percent of projects reported involving end users in the

FY 1999 Annual Program Performance Report 157
■ The grant funds made the difference. Seventy-five percent of grant recipients reported

that their projects never would have happened without the TOP funds. Of the remaining

25 percent, 90 percent indicated that, without TOP support, the projects would have either

reached significantly fewer people, or have been substantially delayed, or dramatically

reduced their range of services. 

Twenty-four case studies and a summary of findings also were published.

In October 1999, Westat completed additional case studies of twelve TOP projects funded in

1996. The case studies were selected in part to study three particular subjects: 1) issues

particular to rural communities; 2) issues particular to urban communities; and 3) challenges in

sustaining information technology-based projects. The case study report gives evidence of the

special challenges that these twelve TOP projects faced and provides information for a better

understanding of factors that can facilitate the success of such projects.

158 FY 1999 Annual Program Performance Report