Mr. Chairman, NTIA shares your concern that the schools and libraries program be administered expertly, efficiently, and impartially. However, we see no need for new legislation to change the E-rate program in order to bring the full promise of the Information Age to our children. H.R. 1746, the Schools and Libraries Internet Access Act, would establish NTIA as the administrator of the universal service program for schools and libraries as well as rural health care providers. NTIA believes that it is premature to consider such a drastic measure. While the USAC may have experienced some start-up difficulties, we believe that they have taken the appropriate corrective actions.
More time is needed to allow the system to work.
Second, in the new competitive environment, many believe that the fund administrator must not advocate telecommunications policy positions, a role that would be totally antithetical to, and incongruous with, NTIA's existing statutory mandate. In its current operating mode, NTIA does not possess the resources or infrastructure to run the proposed E-rate grant program. While we feel confident that we could administer the fund on an impartial basis and do so in an accountable manner, these factors would not offset the above disadvantages. In addition, the Administration, through a letter from the Office of Management and Budget to Chairman Tauzin, as well as to Senator Burns, also raised significant budget issues on similar legislation before this subcommittee last year. Aside from these issues, our greatest concern is that any fundamental change in the administration of the E-rate program will delay and forfeit opportunities for our children.