[Federal Register Volume 60, Number 37 (Friday, February 24, 1995)]
[Notices]
[Pages 10359-10371]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4546]



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DEPARTMENT OF COMMERCE
National Telecommunications and Information Administration
[Docket No. 950217053-5053-01]


The Global Information Infrastructure: Agenda for Cooperation

AGENCY: National Telecommunications and Information Administration.

ACTION: Administration policy statement.

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SUMMARY: On February 15, 1995, the Administration released an ``Agenda 
for Cooperation'' for the Global Information Infrastructure. The Agenda 
for Cooperation sets forth the Administration's vision for developing a 
GII that meets the needs of the people around the world. The Global 
Information Infrastructure: Agenda for Cooperation incorporates and 
expands upon five principles Vice President Gore presented last year to 
the first World Telecommunication Development Conference: Encourage 
private investment; promote competition; provide open access to the 
network for all formation providers and users; create a flexible 
regulatory environment that can keep pace with rapid technological and 
market changes; and ensure universal service.
    The report addresses the policy issues critical to encouraging the 
use of the Global Information Infrastructure (GII), including 
information policy and content issues and measures by governments and 
industry to demonstrate the benefits of the GII. The report also is 
intended to serve as the basis for engaging other governments in a 
consultative, constructive, and cooperative process that will ensure 
the productive development of the GII.

DATES: Comments may be filed at any time.

ADDRESSES: Comments may be sent to: IITF Secretariat, NTIA, U.S. 
Department of Commerce, Room 4898, 14th Street and Constitution Avenue 
NW., Washington, DC. 20230.
    Comments may also be sent electronically by Internet e-mail to 
<a href="/cdn-cgi/l/email-protection#adcdcdc3c4c4edc3d9c4cc83c9c2ce83cac2db">``<span class="__cf_email__" data-cfemail="204e4949604e5449410e444f430e474f56">[email protected]</span></a>''. The GII: Agenda for Cooperation will be available 
over the Internet via ftp, telnet (login = gopher), gopher, or World-
Wide Web at the Internet address iitf.doc.gov or dialup via modem (202) 
501-1920. It will be located in the Documents and Papers directory. For 
hard copies, please write or call Openness Program, 1617 HCHB, 14th and 
Constitution Avenue NW., Washington, DC. 20230, (202) 482-3999 (voice) 
or (202) 501-6198 (fax).

FOR FURTHER INFORMATION CONTACT: NTIA Office of International Affairs, 
(202) 482-1304.

    Authority: 47 U.S.C. 901 et seq.

SUPPLEMENTARY INFORMATION:

The Global Information Infrastructure

Agenda for Cooperation

    Table of Contents:

Preface

I. Introduction

A. Technological Convergence and the New Information Age
B. New World Vision through Communications: The GII as a Product of 
Technological Convergence and Competition
C. Cornerstone of the GII: A Community of Global Interest

II. Building a Foundation for the GII--Five Basic Principles

A. Encouraging Private Investment
B. Promoting Competition
C. Providing Open Access
D. Creating a Flexible Regulatory Environment
E. Ensuring Universal Service

III. Encouraging the Use of the GII

A. Information Policy & Content Issues
B. Applications: Delivering the Benefits of the GII

IV. Implementing the GII

V. Conclusion

Preface

    Let us build a global community in which the people of neighboring 
countries view each other not as potential enemies, but as potential 
partners, as members of the same family in the vast, increasingly 
interconnected human family.
    With these words, Vice President Al Gore introduced the U.S. vision 
for the Global Information Infrastructure (GII) at the first World 
Telecommunication Development Conference in March 1994. The Conference, 
held in Buenos Aires, Argentina, signalled a new undertaking by the 
International Telecommunication Union (ITU). Vice President Gore called 
upon every nation to establish an ambitious agenda to build the GII, 
using the following five principles as the foundation:
    <bullet> Encouraging private sector investment;
    <bullet> Promoting competition;
    <bullet> Providing open access to the network for all information 
providers and users;
    <bullet> Creating a flexible regulatory environment that can keep 
pace with rapid technological and market changes; and
    <bullet> Ensuring universal service.
    Leaders from the world telecommunications community incorporated 
these five principles into the ITU's ``Buenos Aires Declaration on 
Global Telecommunication Development for the 21st Century.''
    The purpose of this ``GII: Agenda for Cooperation'' is to amplify 
these five principles and to identify the steps the United States, in 
concert with other nations, can take to make the vision of the GII a 
reality. We hope that it will also serve as the basis for engaging 
other governments in a consultative, constructive, and cooperative 
process that will ensure the development of the GII for the mutual 
benefit of all countries.
    In proposing this initiative, we recognize that market forces and 
technological advances have already begun to expand existing 
interconnections among our respective nations:
    <bullet> Current state-of-the-art fiber optic systems can now 
transmit the equivalent of 80,000 simultaneous telephone conversations 
over a single optical fiber and will soon carry 320,000 conversations 
over a fiber pair;
    <bullet> Advances in digital compression have vastly improved the 
performance and capacity of existing networks by allowing more volume, 
including data and video, to be transmitted;
    <bullet> Advances in computer technology will soon offer storage 
capacity so great that an individual using a hand-held device will be 
able to carry the informational equivalent of a small library and 
remotely access many times this amount; and
    <bullet> New digital wireless systems and proposed constellations 
of telecommunications satellites have the potential to provide 
telephone and data services to any point on the planet.
    A nascent GII already exists. What we seek is a superior GII, one 
that has higher capacity, is fully interactive, [[Page 10360]] faster, 
and more versatile. One that is less expensive to use than existing 
systems, and more accessible to all the people of the world. But our 
goal is not merely technological advancement--more bandwidth, faster 
switching, more powerful processing capability, and greater compression 
and storage capacity. We view technology not as an end in itself but as 
the means through which the GII can realize its potential to improve 
the well-being of all people on this planet.
    This ``Agenda for Cooperation'' sets forth the U.S. Government's 
vision for developing a GII that can yield the benefits described above 
and more. It identifies specific areas where intergovernmental, as well 
as government-private sector, cooperative efforts are needed. Also 
identified are proposals for concrete actions that the United States 
can take, by itself or with other nations, to accelerate the pace of 
development of the GII. While we believe the private sector will build, 
own, and operate the GII, governments have the power to take actions 
that can either accelerate or retard its development. We believe that a 
concerted and coordinated international effort can achieve the former 
and avoid the latter, and we invite other countries to join us in this 
cooperative venture.

I. Introduction

A. Technological Convergence and the New Information Age

    As we approach the end of the twentieth century, information is a 
critical force shaping the world's economic system. In the next 
century, the speed with which information is created, its 
accessibility, and its myriad uses will cause even more fundamental 
changes in each nation's economy.
    These changes will be the result of technological convergence of 
the previously distinct telecommunications, information, and mass media 
industries. Boundaries that once separated the types of networks used 
to deliver voice, data, and video services are increasingly blurred. In 
a digital world, these services can be combined and offered over the 
same transmission system.
    Multiple networks composed of different transmission media, such as 
fiber optic cable, coaxial cable, satellites, radio, and copper wire, 
will carry a broad range of telecommunications and information services 
and information technology applications into homes, businesses, 
schools, and hospitals. These networks will form the basis of evolving 
national and global information infrastructures, in turn creating a 
seamless web uniting the world in the emergent Information Age. The 
result will be a new information marketplace, providing opportunities 
and challenges for individuals, industry, and governments.

B. New World Vision Through Communications: The GII as a Product of 
Technological Convergence and Competition

    The Clinton Administration has made the development of an advanced 
National Information Infrastructure (NII) and the GII top U.S. 
priorities. A major goal of the NII is to give our citizens access to a 
broad range of information and information services. Using innovative 
telecommunications and information technologies, the NII--through a 
partnership of business, labor, academia, consumers, and all levels of 
government--will help the United States achieve a broad range of 
economic and social goals.
    Similarly, other governments have come to recognize that the 
telecommunications, information services, and information technology 
sectors are not only dynamic growth sectors themselves, but are also 
engines of development and economic growth throughout the economy. With 
this realization, governments have sharply focused their public policy 
debates and initiatives on the capabilities of their underlying 
information infrastructures. The United States is but one of many 
countries currently pursuing national initiatives to capture the 
promise of the ``Information Revolution.'' Our initiative shares with 
others an important, common objective: to ensure that the full 
potential benefit of advances in information and telecommunications 
technologies are realized for all citizens.
    The GII is an outgrowth of that perspective, a vehicle for 
expanding the scope of these benefits on a global scale. By 
interconnecting local, national, regional, and global networks, the GII 
can increase economic growth, create jobs, and improve infrastructures. 
Taken as a whole, this worldwide ``network of networks'' will create a 
global information marketplace, encouraging broad-based social 
discourse within and among all countries.
    The GII will depend upon an ever-expanding range of technology and 
products, including telephones, fax machines, computers, switches, 
compact discs, video and audio tape, coaxial cable, wire, satellites, 
optical fiber transmission lines, microwave networks, televisions, 
scanners, cameras, and printers--as well as advances in computing, 
information, and networking technologies not yet envisioned.
    But the GII extends beyond hardware and software; it is also a 
system of applications, activities, and relationships. There is the 
information itself, whatever its purpose or form, e.g., video 
programming, scientific or business databases, images, sound 
recordings, library archives, or other media. There are also standards, 
interfaces, and transmission codes that facilitate interoperability 
between networks and ensure the privacy and security of the information 
carried over them, as well as the security and reliability of the 
networks themselves. Most importantly, the GII includes the people 
involved in the creation and use of information, development of 
applications and services, construction of the facilities, and training 
necessary to realize the potential of the GII. These individuals are 
primarily in the private sector, and include vendors, operators, 
service providers, and users.
    The GII will both stimulate and respond to global demand for new 
information technologies and services.<SUP>1 The GII can offer 
consumers in each country unprecedented access to information from a 
variety of sources on a global basis. With appropriate changes in 
regulatory structure, the GII can also help usher in an environment 
more responsive to user demands by providing companies opportunities to 
offer any information or telecommunications product or service to any 
customer, rendering obsolete past regulatory labels or technological 
niches.

    \1\In general throughout this report, references to 
``information services'' are meant to be broad and to include all 
services, content, and applications to be provided over the networks 
of the GII. However, for specific statistics cited from other 
sources, the definitions from those sources apply.
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    The business community has become the principal force for the pro-
competitive restructuring of telecommunications and information 
markets. Business users, whose commercial activities are becoming 
increasingly global, require access to advanced services at higher 
speeds and capabilities, and at lower costs, to manage their global 
operations effectively. When the national carriers cannot provide the 
unified international networks and services that companies need to 
conduct business and research, frustrated users develop their own 
international ``private'' networks, often leasing private lines from 
different national carriers. However, these private networks--even the 
most sophisticated--still suffer from the high cost of leased lines in 
most countries and the difficulties inherent in attempting to create 
global networks [[Page 10361]] based on a patchwork of services subject 
to widely varying capabilities and regulation.
    The scientific and academic communities also have stringent demands 
for access to information resources and powerful computing capacity 
around the world. The international research and academic community was 
instrumental in developing the Internet, an already global mass of 
interconnected computer networks. The astonishing growth rate of the 
Internet network--over ten per cent per month for more than five 
years--is just one indication of the growing demand for and supply of 
digital information.

C. Cornerstone of the GII: A Community of Global Interest

    The nations of the world are diverse in size, levels of economic 
development, political, economic and social structures, and language 
and culture. We believe, however, that despite these differences a 
broad community of interest exists among countries to better the lives 
of the citizens of the world--all citizens. Regardless of a country's 
overall level of technological development, active participation in the 
evolving GII can provide the tools to improve the quality of life.
    For example, the GII can facilitate health care delivery through 
telemedicine, linking rural physicians to major medical facilities for 
off-site consultations on difficult diagnoses. If only a computer and a 
wireless link are available, they can provide a data base search and 
on-line questioning of a consulting expert. If fiber optic networks are 
available, telemedicine services can include remote visual examination. 
Such services are a boon to rural physicians. Similarly, the GII can 
quicken response time for disaster relief. It can transform education 
with computer-based multimedia systems that teach with both sight and 
sound, greatly increasing retention rates and providing children access 
to greater educational opportunities. It can provide new tools to 
assist persons with disabilities. The GII can also make factories more 
efficient, speed the creation of new and better goods and services, cut 
the cost of business by improving efficiency, develop new jobs and 
markets, increase trade, and facilitate flows of information across 
borders.
    That is not all. A well-developed GII can enhance democratic 
principles and limit the spread of totalitarian forms of government. 
Representative democracy is founded on the premise that the best 
political processes are those in which each citizen has the knowledge 
to make an informed choice and the power to express his or her view. 
The GII will allow wider and greater citizen participation in decision-
making by providing the additional means for individuals to keep 
informed, as well as to express their opinions. Through the GII, the 
world's citizens will have the opportunity to share information and 
cultural values, fostering a greater sense of global community. By 
encouraging exchanges of ideas, goods, and services among all 
countries, the GII can contribute to a framework for lasting peace.
    Realizing these benefits will not be easy--our vision of the GII 
presents a challenge that cannot be undertaken by a single country, nor 
overcome by government fiat. Rather, its success will depend in large 
measure on innovation and investment by the private sector. As the 
principal source of expertise and capital, the private sector should, 
in response to marketplace demands, determine what technologies to 
pursue, set the pace of development, establish the appropriate 
standards, and develop new services and applications. For their part, 
governments can facilitate these activities by creating a legal and 
regulatory environment that supports efficient investment and 
innovation, and promotes full and fair competition. Governments can 
also provide leadership by supporting testbeds for new technologies, 
fostering the transfer of resulting technologies to the private sector, 
promoting the assimilation and use of applications and technology 
through government procurement, and developing applications that 
support government operations and dissemination of government 
information.

II. Building a Foundation for the GII--Five Basic Principles

    The United States believes that five basic principles--encouraging 
private investment, promoting competition, providing open access to 
networks and services for providers and users, creating a flexible 
regulatory environment to keep pace with technological and market 
developments, and ensuring universal service--should serve as the 
foundation for the development of the GII. In our view, this foundation 
will facilitate information infrastructure development in individual 
countries and the interconnection of networks on a global basis. It 
will also accelerate development of useful applications, and increase 
sharing of information among people around the world. We believe these 
principles apply equally to the telecommunications, information 
technology, and information services industries. In partnership with 
the private sector and all users, we believe that governments should 
take action to adopt, apply, and advance these principles at national, 
regional, and global levels.

A. Encouraging Private Investment

    Given the facts that the worldwide market for information 
technology, products, and services is currently valued at $853 billion, 
and that worldwide investment in telecommunications infrastructure 
alone is expected to exceed $200 billion by 2004, both developed and 
developing countries need to find ways to share in this growth and 
prosperity. Attracting private sector investment is the most effective 
way for countries to do so--as well as to improve their networks and 
services, promote technological innovation, and succeed within the 
competitive global economy. The reasons extend beyond the purely 
financial: In addition to providing inflows of capital, private 
investment also stimulates development of new technologies, equipment, 
services, new sources of information, and managerial skills--all of 
which help speed infrastructure growth and improvements, increase 
efficiency in the provision of services, and permit greater 
responsiveness to consumer needs.
    To attract greater investment from both domestic and foreign 
sources into their telecommunications sectors, nations are adopting a 
variety of approaches, ranging from revenue sharing initiatives and 
joint ventures to direct foreign investment, licensing of privately-
owned competitors, build-operate-own or -transfer schemes, and 
privatization of government-owned public telecommunications operators. 
Countries as diverse as Chile, India, Jamaica, Japan, Malaysia, New 
Zealand, the United Kingdom, the United States, and Venezuela have 
encouraged multiple private companies to provide telecommunications 
services, drawing in private investment to varying degrees and leading 
to lower service prices and improved communication.
    In other countries where privatization is not currently considered 
a politically viable option, governments have taken steps to attract 
foreign investment in the form of joint ventures for the provision of 
new services, such as cellular telephone and Very Small Aperture 
Terminal (VSAT)-based overlay networks for business users. Some 
countries have permitted lease and franchise arrangements that include 
private expansion of part of the [[Page 10362]] telecommunications 
infrastructure, often allowing the private equity share in the network 
operation to build up over time. Although providing fewer benefits than 
full privatization might, these approaches can also be attractive to 
private investors, and they provide quantifiable benefits--new lines, 
upgraded switching capabilities, new services and sources of 
information, and lower costs to consumers.
    The need for capital investment is particularly acute in countries 
with underdeveloped telecommunications infrastructures, where limited 
government resources often make private financing a necessary 
complement. To attract private capital, many countries that seek to 
improve their information infrastructures, which will improve 
interconnection to the evolving GII, are taking concrete steps to:
    <bullet> Create a stable operating environment supported by 
transparent regulation;
    <bullet> Establish fair and open bidding practices for all 
communications and information infrastructure projects;
    <bullet> Recognize the return on capital that potential investors 
require;
    <bullet> Establish sound repatriation policies; and
    <bullet> Demonstrate a political commitment to private investment 
through appropriate modifications in the legal framework.
    The information services sector, traditionally privately-owned, has 
experienced tremendous growth due to the largely open investment and 
competitive market environments in most countries around the world. In 
the United States, for example, the largely unregulated information 
services market is projected to have reached $135.9 billion in revenues 
in 1994.<SUP>2

    \2\International Trade Administration, U.S. Department of 
Commerce, ``U.S. Industrial Outlook 1994'', at 25-1, January 1994.
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    Removing barriers to private investment--and providing incentives 
for the creation and dissemination of information services through 
effective protection of intellectual property rights--is the best means 
of sustaining this worldwide growth.
Recommended Action
    From the wide range of available options, governments can develop a 
strategy best suited to their particular needs. At the same time, they 
must institute the appropriate regulatory, legislative, and market 
reforms to create the conditions necessary to attract private 
investment in their telecommunications, information technology, and 
information services markets. To facilitate this process, the United 
States will join with other governments to:
    <bullet> Identify and seek to remove barriers to private 
investment, and develop policies and regulations that improve 
investment incentives in both growing and mature telecommunications and 
information markets;
    <bullet> Ensure that applicable laws, regulations, and other legal 
rules governing the provision of telecommunications and information 
services and equipment are reasonable, nondiscriminatory, and publicly 
available;
    <bullet> Engage in bilateral, regional, and multilateral 
discussions to exchange information on the various options that have 
been successfully pursued to attract private investment, including, but 
not limited to, privatization, liberalization, and market reforms;
    <bullet> Work with major international lending institutions, such 
as the World Bank and the regional development banks, and major private 
financial institutions to determine the best means of attracting both 
private and public capital, and establish workshops to train officials 
in the different liberalization approaches; and
    <bullet> Encourage international lending institutions to recognize 
the ways in which funded social projects, such as the delivery of 
education and health care services, can be advanced through improved 
information infrastructures.

B. Promoting Competition

    Nationally and internationally, the information technology and 
information services markets have flourished in the past decade. The 
highly competitive computer equipment, software and networking 
industries are among the most dynamic in global markets, providing 
users with steadily increasing computing power and functionality and 
stimulating further demand for more advanced, integrated capabilities. 
Similarly, the information services industry has expanded as barriers 
to cross-border trade and investment have been removed. In many 
countries there are few or no restraints on the services provided. In 
other markets there are varying, but fairly light, degrees of 
regulation. As a result, the world market for information services is 
expected to grow from $275 billion in 1993 to $465 billion in 1998, a 
growth rate of 11 percent annually.<SUP>3

    \3\U.S. Department of Commerce, International Trade 
Administration, Office of Service Industries, 1994.
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    One important exception has been a tendency in a few countries to 
erect barriers to foreign competition in entertainment programming 
services. There is no body of evidence that limiting foreign 
competition has been successful in achieving the desired effect of 
stimulating local entertainment programming industries. The effects of 
such measures in retarding the development of private investment in 
infrastructure also deserves greater attention.
    In contrast to the liberal market and regulatory environment for 
information technology and information services, the pace and scope of 
liberalization and privatization in the telecommunication sector is 
varied, ranging from competition in particular market segments to full 
liberalization. For example, there has been a discernable trend over 
the past decade toward increased competition in the provision of both 
value-added services and telecommunications terminal equipment. Some 
countries have liberalized further, taking steps to open their long 
distance, local fixed telephony, cellular, communications satellite, 
cable, and broadcast markets.
    Evidence of positive results from such increased competition is 
mounting: Networks have steadily incorporated innovative technologies, 
producing greater efficiencies; both residential and business users 
enjoy lower prices and greater choices in equipment and services; 
service providers are more responsive to user needs; and lower costs of 
service have stimulated increased network usage.
    However, in the largest and most profitable market segments--basic 
public voice telephone services and the underlying network 
infrastructure--both competition and foreign investment have been 
restricted. Maintaining barriers against potential new entrants in 
these markets will inhibit infrastructure deployment. Moreover, these 
barriers will retard the introduction of new information and 
telecommunications services that require competitive access to 
underlying networks in order to flourish.
    Competition in basic telecommunications services has been growing, 
however, in a number of key markets around the globe. In countries such 
as Australia, Canada, Chile, Japan, New Zealand, Sweden, the United 
Kingdom, and the United States, the introduction of alternative service 
providers and networks, which often deploy advanced technologies at 
lower costs, has reduced bottleneck control by the dominant facilities-
based providers. These results have spurred other countries to 
reconsider their policies. The member countries of the European 
[[Page 10363]] Union (EU), for example, have agreed to introduce 
competition in the provision of basic telecommunications services and 
infrastructure by 1998. The EU considers these steps to be critical to 
advancing the goals of their action plan to create a European 
Information Society.
    Increasingly, countries with national monopoly operators have begun 
to question whether they can compete effectively in the dynamic 
international telecommunications market. Difficulties in raising 
capital and in meeting users' demands for low cost, sophisticated 
network capabilities and services are forcing a reconsideration of the 
monopoly approach to telecommunications. A recent Organization for 
Economic Cooperation and Development (OECD) study comparing the 
relative cost of providing international service among OECD members 
found that the performance of countries with competitive international 
markets was superior to the average of all OECD members. Furthermore, 
the OECD study revealed that the quality of service had improved 
simultaneously with the implementation of competition.<SUP>4

    \4\``The Benefits of Telecommunications Infrastructure 
Competition,'' (DSTI/ICCP, TISP(93)/Rev 1), p. 23, February, 1994.
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    Competition within the communications satellite market has also 
burgeoned. The intergovernmental International Telecommunications 
Satellite (Intelsat) and International Mobile Satellite (Inmarsat) 
organizations now face competition from several separate satellite 
systems, including Astra, Columbia, AsiaSat, Orion, and PanAmSat. Due 
in part to competitive pressures from these separate satellite systems 
and from alternative technologies, serious consideration is being given 
to restructuring both Intelsat and Inmarsat. Each of these 
organizations is engaged in an internal effort to review a range of 
options for reorganization, from reform of the cooperative model, to 
corporatization, to full privatization.
    As governments liberalize particular market segments, regulators, 
operators, and new market entrants must grapple with evolving 
definitions of the boundary between those networks and services 
reserved to the monopoly operator and those open to competition. During 
the transition from monopolistic to competitive telecommunications 
markets, incumbent operators still play a dominant role as network 
infrastructure providers. Incumbent operators not only control 
underlying facilities and services that new entrants often need to 
deliver their services, but frequently compete directly with these new 
service providers in particular market segments. In these 
circumstances, effective competition cannot emerge and flourish unless 
incumbents are subject to competitive safeguards while they maintain 
market power over critical bottleneck facilities and services.
    Competitive safeguards serve two main purposes. Some are intended 
to eliminate or reduce barriers to entry for new service providers that 
are seeking to challenge the incumbent operator. Other safeguards serve 
to ensure that incumbent firms with market power do not employ 
anticompetitive means to prevent or hinder the development of truly 
competitive markets. Market entry opportunities are effective only if 
the incumbent service provider is required to compete fairly. For this 
reason, some administrations have required incumbent carriers to permit 
resale of their networks and services. Resale provides an important 
source of competition in markets in which telecommunications 
infrastructure costs are high. Similarly, market entrants that choose 
to provide facilities-based services in competition with the incumbent 
service provider typically will need to interconnect their facilities 
with a dominant service provider's network. In a pro-competitive 
environment, the terms and condition of interconnection would be 
reflected in published rates that include nondiscriminatory cost-based 
access charges and technological ``equal access'' to bottleneck 
facilities.
    Incumbent carriers may also be required to ``unbundle'' network 
facilities and services so that telecommunications and information 
service providers can order only those elements of the dominant 
provider's network they need to provide a service. Finally, 
establishment of a transparent regulatory scheme open to all interested 
parties, and administered by a regulatory authority independent of the 
incumbent service provider, helps ensure that rules governing 
competition are fair and that private investment is given a reasonable 
degree of security.
    While the political challenges posed by attempting to restructure 
the telecommunications market are significant, the increased 
opportunities provided by introducing competition far outweigh the 
potential difficulties of pro-competitive market reform. Further, the 
interconnection of competitive national information infrastructures can 
increase the pace of development of the GII. The more competitive an 
information and telecommunications market, the more productive will be 
its interaction with other markets participating in the development of 
the GII.
Recommended Action
    The most effective means of promoting a GII that delivers advanced 
products and services to all countries is through increased competition 
at local, national, regional, and global levels. To that end, the 
United States will join with other governments to:
    <bullet> Assess, through information exchanges and existing 
multilateral organizations, the positive experiences of different 
countries in introducing competition and progressively liberalizing 
their telecommunications, information technology, and information 
services markets;
    <bullet> Work constructively to remove barriers to competition in 
telecommunications, information technology, and information services 
markets;
    <bullet> Include timetables for increased competition in basic 
telecommunications infrastructure and services in national information 
infrastructure development plans, and, as an interim step, increase the 
pace of liberalization through the expansion of resale;
    <bullet> Encourage new entrants by adopting competitive safeguards 
to protect against anticompetitive behavior by firms with market power, 
including measures designed to prevent discrimination and cross-
subsidization;
    <bullet> Implement specific regulations to facilitate competitive 
entry in the telecommunications sector, including the following 
essential elements: (1) Interconnection among competing network and 
service providers; (2) ``unbundling'' of bottleneck facilities of 
dominant network providers; (3) transparency of regulations and 
charges; and (4) nondiscrimination among network facilities operators 
and between facilities operators and potential users, including 
resellers;
    <bullet> Ensure that government-sponsored technical training 
activities incorporate programs specifically related to the development 
of pro-competitive markets and regulations (including such issues as 
competitive safeguards and interconnection);
    <bullet> Pursue a successful conclusion to the General Agreement on 
Trade in Services (GATS) discussions on basic telecommunications to 
obtain the opening of markets for basic telecommunications services 
through facilities-based competition and the resale of services on 
existing networks [[Page 10364]] on nondiscriminatory terms and 
conditions; and
    <bullet> Consider the full range of options for promoting 
competition in Intelsat and Inmarsat, including: (1) Pursuing changes 
designed to increase the operational efficiency of Intelsat and 
Inmarsat, retaining their fundamental intergovernmental character, but 
substantially reducing the scope of the current intergovernmental 
agreements by removing provisions that convey unfair advantage and 
inhibit efficient functioning; (2) transforming the organizations into 
private corporations; and (3) transforming the organizations into 
multiple private service providers that compete with one another, as 
well as with others.
    In selecting among these options, the goal must be to enhance 
competition and not diminish it.

C. Providing Open Access

    Achieving the goal of a global information market will require 
government action to ensure that all information service providers have 
access to facilities, networks, and network services on a 
nondiscriminatory and low cost basis. By ensuring open access to 
facilities and networks, and thus promoting competition, governments 
can dramatically increase the availability of information services to 
all consumers.
    Maximizing consumer choice among diverse sources of information 
should be the primary objective. As the information needs among 
consumers will vary, both within and among nations, attempts to predict 
the information resource requirements of citizens should be avoided. 
Rather, governments should foster market and regulatory climates 
conducive to the broadest possible access to and distribution of 
information. As countries accelerate the development of their 
respective information infrastructures, more and more consumers will 
seek access to networks and services that cross national and 
international boundaries. Improving consumer access to diverse sources 
of information has direct social and economic benefits. The ability to 
generate, exchange, and use information, technology, and ideas is 
central to economic growth and development, increased competitiveness 
in a range of industries, and to the improvement of the quality of 
life.
    An essential technical element of the open access concept is 
interoperability, i.e., the ability to connect applications, services, 
and/or network components so that they can be used together to 
accomplish tasks. As the GII will be based on many different existing 
and emerging components at local, national, and global levels, it is 
imperative that these components be interoperable. The key to 
interoperability is the development of global standards. We believe 
such standards should be voluntary and developed through a process that 
is largely market-driven and that takes into account the views of both 
the large and well established and the smaller, newer market players.
    Three principal international standards organizations involved in 
the development of information technology and telecommunications 
standards are the International Organization for Standards (ISO), the 
International Electrotechnical Commission (IEC), and the International 
Telecommunication Union (ITU). The ISO and IEC develop information 
technology standards through the ISO/IEC Joint Technical Committee 1, 
while the ITU concentrates on telecommunications standards. Further, 
there has long been coordination and collaboration between the ISO/IEC 
Joint Technical Committee 1 and the ITU, which has helped minimize the 
duplication of standards development work and the possibility of 
conflicting information technology and telecommunication standards.
    The vast majority of countries adhere to the processes of 
developing international standards and the resulting recommendations 
from all three organizations. In the U.S., and increasingly in other 
countries, the private sector plays an essential role in these 
international standards development processes by providing the 
technical expertise and resources to develop standards at national and 
international levels.
    It may also be constructive to consider encouraging greater 
collaboration and cooperation both domestically and internationally 
among the different standards bodies, including less formal 
organizations. In recent years in the United States, a significant 
number of new standards consortia, whose principal focus is in the 
standards implementing arena, have been established outside of the 
traditional national standards development organizations. These new 
consortia have often sped up the widespread adoption of internationally 
generated standards, and their memberships have included small and 
medium-sized companies.
    Given the convergence of technologies and the rapid changes in 
national and international market structures, the development and 
acceptance of voluntary, international standards are critical to the 
development of the GII. The international standards organizations and 
their memberships must redouble their efforts to ensure that standards 
are developed that assist the rapid delivery of information. Moreover, 
the pace of the work in international bodies must continue to increase 
to better reflect marketplace needs for technological development, so 
as not to impede the realization of the GII. In the absence of timely 
development and implementation of standards on a global basis, the 
benefits of improved interoperability will be delayed.
Recommended Action
    In partnership with the private sector, governments can take action 
to improve access to facilities and networks, and promote the 
availability of a wide range of diverse services and information, 
including strong support for the development of international standards 
that promote interoperability. To achieve these goals, the United 
States will join with other governments to:
    <bullet> Develop appropriate policies that encourage increased 
access by citizens to diverse sources of information;
    <bullet> Provide unrestricted and equitable access to networks for 
providers and consumers of services and content, based on sound 
commercial practices;
    <bullet> Hold regular bilateral and multilateral dialogues on ways 
of increasing the flow of information across borders to facilitate 
greater access to content by consumers;
    <bullet> Encourage an open, voluntary standards-setting process 
that does not denigrate intellectual property rights and which includes 
the participation of a broad group of interests, including the private 
sector, consumers, and, as appropriate, government agencies;
    <bullet> Work through regional and international bodies to increase 
the pace of consensus-based, voluntary, and transparent standards 
development and adoption, and to promote the broad dissemination of 
standards-related information;
    <bullet> Work together and with national, regional, and 
international standards bodies to identify priority areas for increased 
coordination among different private national and international bodies 
in support of interoperability of networks and services on the GII.

D. Creating a Flexible Regulatory Environment

    Policymakers worldwide face a daunting challenge: Creating an 
appropriate regulatory regime that minimizes regulation and fosters 
competition through transparent rules and processes and is sufficiently 
flexible to be responsive to changing technologies and markets. As the 
pace [[Page 10365]] of technological innovation quickens, this will 
become increasingly difficult and yet increasingly necessary.
    With the U.S. experience as our guide, we offer the following 
observations about the characteristics of telecommunications 
legislation that are necessary to respond to changes in this dynamic 
sector. The optimal regulatory and legislative frameworks will:
    <bullet> Identify the goals and objectives of the law, including 
the promotion of competition;
    <bullet> Be sufficiently flexible to permit the introduction of new 
services and technologies without requiring amendments to the 
legislation;
    <bullet> Delegate broad powers to a regulatory authority 
independent of a national operator and charge that independent 
authority with keeping abreast of technological and market 
developments;
    <bullet> Establish a transparent and open process whereby the 
public and interested parties are informed and can participate in 
rulemaking and adjudicatory proceedings; and
    <bullet> Aim towards open market access based on nondiscrimination 
principles.
    We recognize that regulatory reform can take many paths. Some 
countries have established a regulatory entity responsible for both 
formulating and implementing telecommunications and mass media policy, 
as well as overseeing the activities of these sectors. Others have 
relied on the separation of operational and regulatory functions of the 
government-owned and/or franchised national operator, with government 
bodies assuming responsibility for regulatory decisions. Still others 
rely more heavily on national competition law and policy for oversight.
    Regardless of the regulatory model that countries adopt, 
regulations should clarify the respective rights and obligations of 
incumbent operators and new entrants. New market entrants need 
assurances that incumbent operators will not be allowed to use their 
dominant market positions to hinder the evolution of successful 
competition. Similarly, public and transparent regulatory processes 
create stable commercial environments, which are necessary to attract 
private investment. As such, rules and regulations should clearly 
indicate:
    <bullet> The scope of permissible competition, e.g., the particular 
market segments open to new entrants;
    <bullet> The means by which new entrants can gain market access, 
e.g., private investment, licensing requirements, and cross-border 
services;
    <bullet> The nondiscriminatory terms and conditions of 
interconnection to an incumbent operator's network and of supplying 
information services over the network; and
    <bullet> The procedures by which new entrants and users can bring 
complaints and obtain redress from the regulator, e.g., enforcement 
mechanisms. Additionally, it is critical that a pro-competitive 
regulatory regime ensure:
    <bullet> The establishment of other structural or nonstructural 
safeguards to protect against the anticompetitive exploitation of 
market power by the incumbent service provider to the detriment of the 
new entrants;
    <bullet> The appropriate balancing of public service obligations 
among operators/carriers;
    <bullet> Charging and pricing policies that are based on the costs 
of providing service; and
    <bullet> The efficient, effective, and pro-competitive management 
of scarce resources, especially the radio frequency spectrum.
    In light of the increasing demands on the radio spectrum for the 
introduction of new wireless communications systems and services, the 
last point merits particular emphasis. Among these new technologies, 
none better embodies the need for an open regulatory model embracing 
competition and careful management of the spectrum than the nascent 
hand-held mobile satellite services. If these services are to achieve 
their global potential, cooperation among national spectrum regulators 
will be required, as will a willingness to permit multiple market 
entrants to ensure that new satellite services do not become the 
exclusive property of a sole provider.
    Governments should avoid burdensome regulation that stifles 
innovation and new service offerings. Governments must guard against 
the expansion of regulation into market segments that have not 
traditionally been subject to regulations and that have functioned 
extremely well on an unregulated basis. The examples of Australia, 
Canada, and the United States in computer and business information 
services are illustrative. They are among the leading nations in 
personal computer penetration rates among consumers. Not 
coincidentally, they also provide an open, dynamic, and almost totally 
unregulated market for information technology and services. Equally 
important, while some government regulation is necessary as a 
marketplace transitions from a monopoly to a competitive structure, 
once competition is achieved, continued regulation can be unnecessary 
or even counterproductive in promoting efficiency, innovation, and 
customer responsiveness. In short, governments must be prepared, and 
must invest their regulatory agencies with the authority, to adjust 
regulatory structures as the demands of the marketplace and technology 
require.
    Just as national regulatory environments need to be responsive to 
emerging market and technological developments, so too must the 
overarching international environment continually adapt to new 
developments. The successful efforts of governments and industry to 
improve global interconnectivity and liberalize international 
telecommunications demonstrate the value of working together in various 
international fora to promote progressive and flexible national 
regulations. These efforts must continue.
Recommended Action
    Although national regulatory environments necessarily reflect the 
specific social, economic, and political needs of each individual 
country, the essentially global nature of the markets for 
telecommunications, information technologies, and information services 
require that national regulations be responsive to global developments. 
The United States will join with other governments to:
    <bullet> Re-examine and adapt regulations and legislation to 
accommodate market and technological developments at national and 
global levels in support of the five GII principles;
    <bullet> Create, through regulatory and/or legislative reform, a 
pro-competitive, technology-neutral regulatory environment to maximize 
consumer choice, to provide fair access to networks, and to stimulate 
infrastructure development, the introduction of new services, and the 
wider dissemination of information;
    <bullet> Exchange views and information on national regulatory and 
legislative initiatives and seek to identify common challenges and 
options for developing flexible and transparent regulations in support 
of the development of the GII;
    <bullet> Work collectively in regional and international 
organizations to convene meetings devoted specifically to encouraging 
the adoption of regulatory policies that will promote the GII; and
    <bullet> Encourage creation of independent national regulatory 
authorities for telecommunications separate from the operator that 
shall promote the interest of consumers and ensure effective and 
efficient competition. Such authorities should have sufficient powers 
to carry out their missions and should operate [[Page 10366]] with 
transparent decisionmaking processes that are open to all interested 
parties.

E. Ensuring Universal Service

    The goal of providing access and affordable service to all members 
of society is fundamental to the development of the GII. The definition 
of universal service, however, necessarily varies from country to 
countryranging from the provision of high quality telephone service to 
every home and business in most industrialized countries to access to a 
public telephone in many developing countries.
    The ability to provide universal service on a national basis 
depends upon a number of factors, including the level of infrastructure 
development, the reach and technological capabilities of national 
networks, and the cost of access to the network and services. Other 
factors to be considered include the availability and use of advanced 
methods of network planning and maintenance, and explicit performance 
and service quality goals.
    The definition of universal service is also being expanded by the 
advent of digital technologies. In many countries, including the United 
States, policymakers face increasing pressure to expand universal 
service beyond ``plain old telephone service'' to include a broader 
array of new telecommunications and information services. In fact, 
universal service has always been an evolutionary concept, expanding as 
the capabilities of the network and the types of service demanded by 
the great majority of users have increased. For example, in the United 
States fifty years ago, a party-line was deemed sufficient for 
universal service purposes; now an individual line for each subscriber 
is generally viewed as a component of universal service, together with 
such features as direct dialing for long distance calls and 911 
emergency service.
    In both developed and less developed countries, wireless 
technologies can help meet the needs for both basic and more advanced 
services. For example, by augmenting terrestrial-based facilities with 
satellite facilities and services, national networks can maximize their 
potential. The point-to-multipoint and mobile communications 
capabilities of satellites, which are global in reach, permit the 
extension of services to even the most remote regions.
    Moreover, in helping meet universal service goals, one option for 
governments to consider is the establishment of community ``access 
points.'' For example, institutions such as schools, libraries, or 
hospitals could be equipped with basic and advanced information and 
communications technologies for use by members of the public. Such 
community access points would facilitate the efficient provision of 
broader public access to a core set of services.
    Although several countries have raised concerns that competition 
diverts revenues from the public operator and undermines its ability to 
provide universal service, experience shows that access to the 
telephone has been improved in the most liberal national markets. In 
the United Kingdom, for example, many customers are ordering a 
telephone for the first time largely because increased competition--
cable television companies are now offering telephone service--has made 
it more affordable. In the United States, concerns were raised a decade 
ago that increased competition in the provision of long distance 
services, which had traditionally subsidized basic local rates, would 
threaten universal service. These concerns abated as competition 
spurred innovation and price reductions, which in turn have expanded 
universal service. Further, studies by the OECD indicate that telephone 
penetration has not been eroded in any member country that has 
introduced infrastructure competition. The OECD concluded, ``Universal 
service has not been impaired by market liberalization; (rather) 
facilities competition can be applied to complement and enhance 
universal service.''<SUP>5 Indeed, many now argue that full and open 
facilities-based competition, by reducing prices, is the most effective 
way to promote universal service.

    \5\Ibid, p.3.
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    As together we strive to expand the worldwide telecommunications 
infrastructure and build the GII, we must all keep the goal of 
universal service constantly in mind. With significant decreases in the 
costs of information transmission and processing, the creation of the 
Information Society has the potential to improve the quality of life of 
all citizens. Recognizing that information leads to empowerment, the 
nations of the world must work together to ensure that as many citizens 
as possible in all societies have access to the resources of the 
Information Age.
Recommended Action
    Although the provision of universal service varies from country to 
country, the goal of providing all people with greater access to both 
basic and advanced services is a crucial element of the GII. The United 
States will join with other governments to:
    <bullet> Consider, at the local and national levels, the benefits 
afforded by the introduction of competition and private investment in 
meeting and expanding universal service;
    <bullet> Exchange information at the bilateral and multilateral 
level to address the range of available options to meet universal 
service goals; and
    <bullet> Consider, at the national and international levels, ways 
to promote universal access as a means of providing service to 
currently underserved and geographically remote areas.

III. Encouraging the Use of the GII

    While we believe that the adoption, application, and advancement of 
the five core principles are necessary to create an environment in 
which the GII can realize its full potential, such actions alone are 
insufficient to guarantee it. Regardless of the sophistication of the 
technology or services being offered, users must be assured that they 
can allow the GII entry into their homes, offices, and lives to access 
and share information safely and without forfeiting any of their 
rights. Governments, companies, and public-interest groups, by working 
together on information policy and content issues, must address these 
concerns.
    An equally important task for governments and private sectors is to 
demonstrate the potential benefits of the GII to citizens. It is only 
when people see tangible results of applications that they will begin 
to appreciate how it can be used to improve their lives. This 
appreciation is the key to stimulating demand for the services and 
content of the GII, which in turn will provide the impetus to remove 
institutional and regulatory barriers to its full utilization.

A. Information Policy and Content Issues

    Developing an effective information policy will provide governments 
with perhaps their greatest challenge. The central objectives of 
information policy include ensuring that: (1) The privacy of 
individuals and organizations using the GII is protected; (2) the 
security and reliability of the networks and the information that 
passes over them are preserved; and (3) the intellectual property 
rights of those who create the information, education, and 
entertainment content are protected. To assure the growth of an 
information infrastructure accessible and accountable to the citizens 
of the world, governments must develop and implement these objectives 
in close [[Page 10367]] partnerships with each other and with 
representatives from business, labor, academia, and the public.
1. Privacy Protection
    By bringing news and information to people on a global basis, and 
thereby allowing them to communicate more freely with each other, 
communications technologies serve a democratizing function. These same 
technologies also permit both governments and the private sector to 
transmit, process, and store vast amounts of information about 
individuals. While these capabilities are increasingly essential for 
governments to function effectively and for businesses to operate 
efficiently, questions continue to grow about an individual's right to 
privacy and the accompanying responsibilities of holders and 
transmitters of this information to safeguard this right.
    In many nations, the past two decades have seen the primary 
gatherers and users of personal data shift from government entities to 
private sector firms. In the 1970's and 1980's, businesses were quick 
to exploit the explosive growth in low cost, high performance 
computers, adapting this technology to a wide range of economic, 
financial, and marketing applications. As electronic commerce spread 
during the 1980's, there was growing recognition that the electronic 
transfer of data across national boundaries required an international 
consensus on individual privacy protection.
    In 1980, the OECD developed and adopted a set of voluntary privacy 
guidelines that were accepted by its 24 member countries. In 1981, the 
Council of Europe, whose membership consists of the European Union 
Member States and other European countries, adopted ``fair information 
practices'' similar to those of the OECD to regulate the collection, 
storage, and automated processing of personal data, and transborder 
data flow. Both the OECD and Council of Europe privacy guidelines, 
which generally recognize that the free flow of information is critical 
to transborder economic activity, provide a framework for domestic 
legislation that has been used by both member and non-member nations. 
They also recognize diverse means of protecting information privacy, 
including self-regulation and industry codes of conduct. The North 
American Free Trade Agreement (NAFTA) and the General Agreement on 
Trade in Services (GATS) Annex on Telecommunications also contain 
provisions that recognize national privacy protection regulations.
    The United States and other countries around the world are re-
examining existing privacy policies to ensure that they apply 
comprehensively to the transfer of personal data over global networks. 
A balanced privacy policy--preserving the individual's right to privacy 
while maintaining the free flow of information across national 
borders--is important to the development of global networks and 
services. Working together, nations should ensure that the transport of 
personal data adequately takes into account the following agreed-upon 
international privacy principles:
    <bullet> Personal data should be collected only for specified, 
legitimate purposes;
    <bullet> The dissemination, sharing, and reuse of information 
should be compatible with the purposes for which it was originally 
collected;
    <bullet> Personal data should be accurate, relevant, and up-to-
date;
    <bullet> Individuals should be informed how personal data will be 
used and should be allowed to examine and correct this information; and
    <bullet> Transmission of personal data should not be unduly 
restricted or subject to burdensome authorization procedures.
Recommended Action
    In order to foster consumer confidence in the GII and to encourage 
the growth of interconnected global networks, users must feel that they 
are afforded adequate privacy protection. To this end, the United 
States will join with other governments to:
    <bullet> Identify key privacy issues that need to be addressed in 
relation to the development of national and global information 
infrastructures;
    <bullet> Work with both the public and private sectors to achieve 
consensus on a set of fair information principles for the collection, 
transfer, storage, and subsequent use of data over national and global 
information infrastructures;
    <bullet> Ensure that privacy protection does not unduly impede the 
free flow of information across national borders;
    <bullet> Share information on new privacy protection policy 
developments and on new technologies and standards for privacy 
protection; and
    <bullet> Encourage the use of voluntary guidelines developed by 
international bodies, such as the OECD, as the best means of ensuring 
the protection of privacy on an international basis.
2. Security and Reliability
    A network as vast and complex as the GII will pose difficult 
security challenges for all nations. The same modern technology that 
makes communication faster and easier also makes communications systems 
vulnerable to ever greater security risks. These risks are not newmost 
are well-known among security managers. What is new is that these risks 
are much more widespread, are potentially much more serious, and affect 
a population of users who do not have the information or training to 
deal with them.
    The anonymous and impersonal nature of computer crime, for example, 
makes this problem particularly unsettling, for legal systems depend 
upon their ability to identify the malfeasors. Yet serious violation of 
privacy or property rights can be accomplished by destruction or 
alteration of information by anonymous individuals in remote locations, 
with not a fingerprint in sight. The technical challenges of protecting 
the privacy and integrity of information stored in computer systems are 
even greater than those that apply to information transmitted by 
telephone. And as was true with the telephone, legal as well as 
technological solutions are needed.
    Security includes the integrity, confidentiality, and reliability 
of the networks and of the information they carry. If users do not 
believe that an information infrastructure is a trustworthy, reliable 
system, they will be reluctant to use it, thereby diminishing its 
value. To gain maximum benefit from global networks, users must be 
confident that the messages they receive are authentic, that sensitive 
information is available only for authorized use, and that unauthorized 
users cannot access, alter, or destroy information.
    In addition to protecting the security of information that is 
transported over the GII, governments and industry must guarantee the 
reliability of the network itself. In the event of breakage or service 
interruption, network operators must work quickly and cooperatively to 
repair damage and provide backup systems to minimize the duration of 
any such interruptions. To have a truly global infrastructure, greater 
emphasis must be placed on resolving reliability concerns, including 
such issues as network performance, network connections and 
interoperability, the development of new technology, and regional and 
demographic differences in reliability.
Recommended Action
    To promote the development of a secure and reliable GII, the United 
States will join with other countries to:
    <bullet> Work collectively to increase the reliability and security 
of national and international information infrastructures;
    <bullet> Initiate a broad international dialogue among users, 
providers, and all [[Page 10368]] other participants in the GII on 
issues related to protecting the confidentiality and integrity of 
information transmitted and stored on global networks;
    <bullet> Exchange information and encourage further cooperation 
within regional and international organizations such as the ITU and the 
OECD on measures to ensure network security and reliability, including 
the sharing of outage information;
    <bullet> Share information regarding the best means available to 
advance security goals while not impeding progress on other GII 
principles, such as the promotion of competition and open access; and
    <bullet> Exchange information about, and accelerate efforts to 
develop new technologies needed to improve the security of the GII 
(e.g., encryption, digital signatures, and firewalls.)
3. Intellectual Property Protection
    Protection of intellectual property rights is essential to the 
development of a successful GII. In order to promote creativity and 
provide the broadest possible access to the world's media and 
information sectors under viable commercial conditions, countries will 
need to protect the creative content of the GII--text, images, computer 
programs, databases, video and sound recordings, as well as multimedia 
products.
    Providing for adequate and effective protection of intellectual 
property in the digital environment requires complex legal and 
technical solutions. Some of these solutions may be viewed as 
controversial by some users of the system. However, the cost to society 
of inadequate intellectual property protection far outweighs these 
concerns. Inadequate protection of intellectual property discourages 
the creation of copyrighted works, creates barriers to innovation, 
stifles the use of new applications, and diminishes foreign investment. 
It jeopardizes the work of researchers, creative artists, and a wide 
variety of entrepreneurs.
    It goes without saying that if creative works are not adequately 
protected, their creators will be reluctant to permit them to be 
distributed over the GII. For this reason, rightsholders must not be 
compelled to license rights to their works. Instead, GII participants 
should cooperate to find legal, market-based alternatives to compulsory 
licensing. Reliable and efficient means of transferring intellectual 
property rights must also be assured. They might, for example, adopt 
various licensing arrangements, such as on-line and off-line licensing, 
direct licensing, and voluntary collective licensing. More sensitive 
issues, however, may have to be addressed on an individual basis. For 
example, licensing of rights may be done on a per-use, per-work, or 
other basis. Licensing of rights for multimedia works, which involve a 
number of copyrights--not all of them with obvious attributions--could 
be facilitated by special licensing arrangements.
Recommended Action
    The GII cannot achieve its promise if authors, producers, and other 
content creators are not guaranteed adequate protection of their 
intellectual property rights. To achieve this protection, the United 
States will join with other governments to:
    <bullet> Cooperate in national, bilateral, regional and 
international fora (such as the World Intellectual Property 
Organization) to achieve high levels of intellectual property and 
technical protection in order to guarantee to rightsholders the 
technical and legal means to control the use of their property over the 
GII;
    <bullet> Ensure that voluntary licensing regimes provide 
rightsholders and potential users of copyrighted works maximum 
flexibility in negotiating the conditions governing the use of 
copyrighted works, eliminate compulsory licensing, and guard against 
the imposition of standards that would impede the free-flow of 
information;
    <bullet> Provide effective enforcement against the unauthorized use 
of a copyrighted work (infringement), including severe legal penalties 
and vigilant monitoring. Enforcement is particularly critical as 
technological innovations jeopardize the existing ability of rights 
holders to protect their works;
    <bullet> Encourage the development and use of technological 
capabilities and safeguards, such as software envelopes, headers, 
assurances of authenticity, and encryption methods to complement 
existing copyright management techniques and prevent infringement at 
all levels. Cooperative efforts to develop testbeds, define standards, 
and construct infrastructure components for these safeguards should be 
encouraged, as should measures to prevent or render illegal the use of 
devices to overcome these safeguards; and
    <bullet> Work in collaboration with intellectual property-based 
industries towards greater efforts to educate others about the 
importance of intellectual property protection.

B. Applications: Delivering the Benefits of the GII

    Given that the value of the GII will be determined by how people 
benefit from it, governments must cultivate active participation by 
consumers and businesses in the application of new technologies. By 
working together in creative partnerships, the public and private 
sectors can apply information and telecommunications technology to a 
variety of critical and complex issues: improving productivity and 
economic growth in an increasingly competitive and interdependent 
global economy; providing adequate health care; ensuring the 
development of workforce skills through education and training; 
providing equitable access to information through public institutions, 
such as libraries; enhancing leisure-time activities; protecting 
natural resources and the environment; and ensuring the delivery of 
government services and information.
    Many governments are already examining ways to promote the 
development of the information infrastructure and to demonstrate, 
through pilot projects and testbeds, the myriad benefits of new 
technologies. In the United States, the National Information 
Infrastructure (NII) initiative includes a Federal matching grant 
program that provides support for planning and demonstration projects 
initiated by state and local governments and non-profit entities in 
such fields as health care and education.<SUP>6 The U.S. NII initiative 
also includes a number of other federally supported applications in the 
areas of environmental monitoring, digital libraries, international 
transportation and trade, and the electronic dissemination of 
government information.<SUP>7

    \6\Administered by the National Telecommunications and 
Information Administration, the basic objective of the 
Telecommunications and Information Infrastructure Assistance Program 
(TIIAP) is to provide clear and visible demonstrations to people at 
the local level of the advantages that can be accrued in their daily 
lives as a result of having access to a modern, interactive 
information infrastructure.
    \7\Additional information on how information infrastructure 
applications can benefit people can be found in two reports from the 
U.S. Information Infrastructure Task Force's Committee on 
Applications and Technology: ``Putting the Information 
Infrastructure to Work,'' National Institute of Standards and 
Technology Special Publication 857, Gaithersburg, MD., 1994; and 
``The Information Infrastructure: Reaching Society's Goals,'' 
National Institute of Standards and Technology Special Publication 
868, Gaithersburg, MD., 1994.
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    The reach of applications being developed around the world can be 
expanded internationally through collaborative projects among 
[[Page 10369]] commercial entities, academic institutions, and private, 
voluntary, and multilateral organizations. International applications 
have the unique potential to permit countries not only to bring diverse 
global resources to bear upon local problems and needs, but also to 
find solutions to needs that transcend national boundaries, such as 
environmental monitoring and global trade and commerce.
    These applications can transform the possibilities of the GII into 
realities for citizens around the world. What follows is an 
illustrative, but not exhaustive, list of examples that demonstrate the 
value of expanding collaborative efforts in the development of 
international applications:
    <bullet> Distance learning projects can make available a wealth of 
educational resources to improve local educational and training 
capabilities, offering cost-saving, effective alternatives to overseas 
studies;
    <bullet> Computer networks linking medical school libraries and 
remote sites can improve the delivery of health care services, 
particularly to rural communities, by expanding access to demographic, 
epidemiological, and medical reference materials. In Zambia, district 
hospitals are being linked for clinical consultation, distance 
learning, health literature dissemination, and epidemiological data 
exchange. African medical libraries are linking up with libraries 
overseas for research and document delivery services;
    <bullet> Satellite and radio-based systems that collect and 
disseminate health statistics can be used to identify underserved 
segments of the population and to target those areas for expanded 
delivery of family health services;
    <bullet> Remote sensing can be used to identify and protect 
important ecological systems. The Administration is promoting an 
international partnership, known as Global Learning and Observation to 
Benefit the Environment (GLOBE), that will allow children all over the 
world to collect and share environmental data. Students will work with 
teachers and environmental scientists to expand knowledge about 
weather, air and water chemistry and quality, biodiversity, and other 
``vital signs'' of the Earth. The combined data will be transformed 
into striking ``pictures'' of the entire planet, allowing each student 
to see how their school's observation is an important part of the 
global environment;
    <bullet> Computer and satellite networks can provide monitoring 
and, in some cases, early warning of natural disasters, allowing for 
better coordination of humanitarian assistance efforts between host and 
donor countries, speeding the delivery of aid and assistance. In the 
South Pacific, the PEACESAT satellite network has been used to 
coordinate emergency assistance after typhoons and earthquakes, and to 
summon medical teams during outbreaks of cholera and dengue fever;
    <bullet> Computerized market price data for agricultural and 
horticultural products can provide new agribusiness opportunities and 
can facilitate direct links between exporters and clients;
    <bullet> Access to international markets, particularly for small 
and medium sized businesses, can be created by providing electronic 
access to information such as transportation schedules and costs, 
insurance and customs data. The United Nations Conference on Trade and 
Development (UNCTAD) trade points system uses electronic data 
interchange and other technologies to establish a network of trade 
points around the globe. In Algeria, for example, the introduction of a 
computer-mediated trade point has stimulated an increase in the number 
of companies involved in international trade from twenty to 2,500;
    <bullet> Electronic data interchange technologies, which can reduce 
the administrative cost of international trade transactions by as much 
as twenty per cent, can help companies increase productivity by 
streamlining manufacturing and service delivery. Through industry-led 
consortia such as CommerceNet, companies can explore collaborative 
engineering, on-line catalogs of products and services, and mechanisms 
for electronic payments;
    <bullet> Scientists can continue to explore the use of 
``collaboratories,'' tools and virtual environments that allow 
scientists to work together without regard to space or time. Scientists 
need the ability to share data and the tools for data analysis, 
visualization, and modeling, to control remote instruments, and to 
communicate with their colleagues;
    <bullet> Using the World Wide Web, individuals and institutions all 
over the globe have begun to create distributed ``virtual libraries'' 
on specific subjects. As these opportunities continue to grow, tools 
for information discovery and retrieval and protection of intellectual 
property rights will become increasingly important.
    In our view, public-private sponsorship of GII pilot projects and 
testbeds is worthwhile. It will help identify and address a number of 
technical, policy, and regulatory barriers to the realization of the 
GII. These include issues of privacy, security, interoperability, and 
intellectual property protection, as well as artificially high prices 
for telecommunications services and outdated rules and regulations 
designed for paper-based transactions. A strategy that concentrates on 
``learning by doing'' is far more likely to resolve these barriers.
    The roles played by governments, the private sector, academic 
institutions, and non-profit organizations will vary depending on the 
nature of the application. In some cases, such as global electronic 
commerce and entertainment services, the private sector should take the 
lead, while in other areas, such as international public health, 
cooperation between public health agencies, hospitals, clinics, and 
universities would be appropriate. Whatever the application, 
governments must recognize that while they can play an important 
catalytic role in fostering international collaboration, they should 
not attempt ``top-down'' management of this process. The Administration 
hopes and expects that many of the best ideas for global cooperation 
will bubble up from the grassroots with little or no government 
involvement.
    Successful applications will set in motion a continuous cycle of 
demand that will encourage future development of the GII. Demonstrating 
the power of the GII to successfully address pressing problems will 
stimulate consumer demand for a variety of products and services at 
affordable prices. This demand will provide the necessary incentive for 
the private sector to broaden the reach and expand the capabilities of 
the GII, enhancing its ability to deliver benefits to people and again 
increasing demand. As a ``network of networks'' linking people and 
information, the GII can leverage the collaborative potential of 
existing efforts and provide real solutions to existing and emerging 
global issues.
Recommended Action
    International applications are the best way to demonstrate the 
potential power of the GII to affect lives all over the world. The 
United States will join with other countries to:
    <bullet> Support, along with the private sector, the initiation of 
pilot projects and testbeds that demonstrate the benefits of the GII, 
in areas such as electronic commerce, health care, digital libraries, 
environmental monitoring, and life-long learning, with opportunities 
for participation by both developed and developing countries;
    <bullet> Cooperate in the facilitation of electronic information 
exchanges in support of global trade and commerce;
    <bullet> Facilitate the sharing of information in the public domain 
with other [[Page 10370]] countries on government-funded and private 
sector applications projects to promote a broader understanding of the 
diversity of technology that can be applied to meet various public 
needs;
    <bullet> Encourage the assignment of a higher priority for 
innovative applications of information technology, which will encourage 
increased use of the GII;
    <bullet> Encourage private sector-led efforts to develop 
application-level standards (e.g. data interchange formats, application 
program interfaces) to ensure interoperability at the application 
level; and
    <bullet> Work constructively to assess and eliminate the barriers 
to the development and deployment of GII applications.<SUP>8

    \8\ A report of the Conference on Breaking the Barriers to the 
National Information Infrastructure can be obtained from the Council 
on Competitiveness in Washington, D.C. The conference was co-
sponsored by the Council and the Clinton Administration's 
Information Infrastructure Task Force.
---------------------------------------------------------------------------

IV. Implementing the GII

    The various approaches governments have taken in response to the 
technological convergence of telecommunications and information 
industries have resulted in the development of asymmetric markets and 
regulatory environments around the world. These asymmetries often 
impede the cross-border transfer of services and information among 
business users, entertainment providers, and consumers. The United 
States believes that these differences can be overcome, in part through 
the work of market forces and technological developments, but also in 
part through collective agreement among all countries to adopt, 
advance, and apply the core principles of the GII. By working through 
existing international and regional organizations, and engaging in 
bilateral efforts, government and industry can remove obstacles 
blocking the effective development of the GII.
    Multilateral organizations will play a vital role in this effort. 
In particular, the International Telecommunication Union (ITU), the 
Organization for Economic Cooperation and Development (OECD), the 
International Organization for Standardization (ISO), and the World 
Intellectual Property Organization (WIPO) are uniquely able to 
contribute practical solutions to problems affecting the development of 
the GII.
    As the preeminent international organization dealing with 
telecommunications issues, the United Nations' ITU was the first 
multilateral forum in which the GII was discussed. With its broad 
membership of 185 developed and developing countries, the consensus-
based ITU serves as a global forum for technical discussions ranging 
from voluntary standards development and frequency allocation 
activities to network development. Accomplishments already achieved 
under ITU auspices in technical telecommunications and development 
issues suggest that the ITU can play a significant role in the GII 
development process.
    The OECD, an international think tank which undertakes economic 
research on various aspects of its members' economies and policy 
concerns, has been constructively addressing telecommunications and 
information policy issues for several years. Its policy and statistical 
analyses have contributed to a broader understanding of the economic 
benefits of liberalization in the information and telecommunications 
sectors.
    Organizations such as the ISO and the WIPO, which deal with 
specific cross-sectoral issues, can serve as important fora to discuss 
and advance issues of open access and information policy. For example, 
any changes made to bilateral or regional intellectual property regimes 
may ultimately become issues in the WIPO.
    In addition, both Intelsat and Inmarsat, the treaty-based satellite 
communications organizations that have played a significant role in 
advancing global telecommunications, are now contemplating options for 
restructuring. Because of these organizations' broad international 
memberships, they could serve as useful fora for review of 
commercialization alternatives.
    The General Agreement on Tariffs and Trade (GATT) is a multilateral 
agreement setting out the rules and principles by which countries 
trade, primarily in the area of goods. The Uruguay Round of GATT 
negotiations led to the establishment of the World Trade Organization 
(WTO), which deals with services, investment, and intellectual 
property--areas that substantively affect telecommunications trade. The 
General Agreement on Trade in Services (GATS), under the new WTO, 
includes an Annex on--access to and use of--the telecommunications 
networks of WTO members, and includes substantive commitments from a 
number of parties on value-added telecommunications services. More 
generally, the GATS--access to and use of--telecommunications annex 
applies to all services for which countries have scheduled market 
access commitments. Now that it is in effect for the U.S. and most of 
its major trading partners, the GATS can substantially reinforce the 
principles of the GII. In addition, there are on-going negotiations, to 
be concluded by April 1996, to liberalize basic telecommunications 
services through the Negotiating Group on Basic Telecommunications.
    Regional organizations also have important roles in achieving 
regional consensus on issues pertaining to telecommunications and 
information markets. Organizations such as the Inter-American 
Telecommunication Commission (CITEL) of the Organization of American 
States (OAS), the Asia Pacific Economic Cooperation (APEC), the 
Southern Africa Transportation and Communications Commission (SATCC) 
and the European Conference on Postal and Telecommunications 
Administration (CEPT), among others, frequently serve as fora for the 
exchange of valuable information and as test sites for implementation 
of the most expedient and beneficial policies. These bodies also serve 
as effective vehicles for improving and enhancing network development 
and technical cooperation among participants on a regional basis.
    Finally, plurilateral and bilateral dialogues can be arranged among 
and between nations to focus on particular issues. In addition to the 
deliberations in regional and international organizations, these 
discussions can become building blocks for cooperation as together we 
seek to construct a truly global GII. For example, the G-7 Ministerial 
Conference scheduled for February 1995 is one of several such 
opportunities for focused, high-level discussion of the Global 
Information Infrastructure.
    As important as these international governmental organizations are, 
perhaps even more important are the numerous formal and informal groups 
within the private sector. These groups, which range from international 
trade organizations to professional associations to advocacy groups to 
industry-led standard-setting bodies, provide communication channels 
between the people who will actually build and use the GII. Such 
private sector groups facilitate the international teaming and 
strategic alliances that will ensure the development of a truly 
seamless ``network of networks,'' rather than a patchwork of 
incompatible systems and services.

V. Conclusion

    As Vice President Gore noted in Buenos Aires, it is possible to 
create a global information network that transmits messages and images 
with the speed of light from the largest city to the smallest village. 
Through the [[Page 10371]] interconnection of disparate but 
interoperable networks, these information highways will allow us to 
communicate as a global communitygiving individuals, businesses, and 
economies greater access to each other and to a wider range of 
information. Equally important, the GII will offer governments an 
unprecedented opportunity to equalize global disparity in 
telecommunications and maximize the economic and social benefits of the 
Information Age for their citizens.

    Harnessing the global potential of information and communications 
technologies to this end will require collaboration among the 
industries that will build, operate, provide, and use services and 
information available over the evolving national networks. It will also 
require cooperative efforts among countries, working together 
bilaterally, regionally, and through multilateral organizations, to 
facilitate the interconnection of their respective networks and the 
sharing of information among nations.

    In our interdependent world, technological and regulatory choices 
made in one country can affect those made in neighboring countries, 
creating a multiplier effect for the GII's development. To help guide 
this development, the Administration proposes five core 
principlesprivate investment, competition, open access, a flexible 
regulatory environment, and universal service. These principles, we 
believe, along with effective information policies, will provide a 
foundation upon which the GII can be built.

    The overarching goal of the ``Agenda for Cooperation'' is to foster 
the cooperation that will be needed to spur the transformation of a 
thousand discrete networks into a connected, interoperable global 
information infrastructure. As all nations take steps to develop and 
upgrade national information infrastructures, we invite you to join 
with us in ensuring that the benefits of the GII will be available 
throughout the world.

Larry Irving,

Assistant Secretary for Communications and Information.

[FR Doc. 95-4546 Filed 2-23-95; 8:45 am]

BILLING CODE 3510-60-P

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