IP: FARNET WASHINGTON UPDATE --- AUGUST 15, 1997

[David Farber <farber () cis upenn edu>]

FARNET'S WASHINGTON UPDATE --- AUGUST 15, 1997




IN THIS ISSUE:


NGI PLAN GETS MAKEOVER - BUT IS IT ENOUGH TO CONVINCE CONGRESS TO PROVIDE
FUNDING?


LATEST NEWS ON THE UNIVERSAL SERVICE FUND COURT CHALLENGES


FARNET NEEDS YOUR FEEDBACK!


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NGI PLAN GETS MAKEOVER - BUT IS IT ENOUGH TO CONVINCE CONGRESS TO PROVIDE
FUNDING?


July 31 - After being sent back to the proverbial drawing board by the
Congress, the Clinton Administration released its revised plan for the Next
Generation Internet (NGI) initiative.  The major critique of the first plan
cited a lack of detail in defining the objectives of NGI and in how the six
government agencies slated to receive funding would coordinate their
research activities. 


Lauded as being more detailed than its precursor, the most notable aspect
of the new NGI plan is the reordering of priorities.  Where the old version
focused on increasing the speed of the network infrastructure, the new plan
puts "experimental research for advanced network technologies" as its
number one goal.  By emphasizing research above network infrastructure, the
NGI team appears to be promoting the practical applications Congress (and
the private sector) can understand.  


Technical challenges aside, the major issue facing NGI right now is whether
Congress will appropriate the funds necessary to support the program.
Currently, the House has appropriated twice the amount of funding as the
Senate to the NGI program.  Exactly how much each agency will receive
varies depending on whom you ask. (For the latest FARNET information
on NGI funding: http://www.farnet.org/updates/NGI-Funding.htm ) There
appears to be no consensus as to how each agency will fare.  Due to the
wide appropriation discrepancies between houses, it is likely the
Congressional Conferences scheduled for this fall will provide less money
than the $100 million originally requested by the Clinton Administration.
Despite the new NGI plan and additional $5 million committed to the program
by the National Library of Medicine, it is doubtful that NGI proponents can
recoup all of the funds lost after their first plan's lukewarm reception.
However, the new plan has generated interest in Congress.  House Science
Committee Chairman Jim Sensenbrenner (R-Wis) has tentatively scheduled a
hearing on NGI for September 10.  If NGI supporters can convince some
influential congressmen that the NGI initiative has practical applications
that will benefit their respective states, then perhaps some funding may be
reinstated.


To see the new NGI plan:  http://www.ngi.gov




LATEST NEWS ON THE UNIVERSAL SERVICE FUND COURT CHALLENGES


With the FCC's focus on the search for a Universal Service Fund
Administrator and producing a application sometime before the USF
provisions are to go into effect, there is still the question of whether
all of this work will be for naught.  Heartened by their victory in the 8th
Circuit Court of Appeals' decision ruling that the FCC had no authority to
set prices for localexchange carriers, petitioners against the Universal
Service Fund sought to have their cases transferred over from the 5th
Circuit to this seemingly more friendly venue.  The request for transfer
was denied, leaving the status of Universal Service in the hands of the 5th
Circuit Court of Appeals.  


Sources at the 5th Circuit believe that it may be months before the
first case is heard.  Currently, 26 motions to intervene have been granted,
with 5 pending. Because of the high-profile nature of the case, it is
possible that the case might receive quicker attention.  Until the case is
heard, however, the implementation of the FCC order on Universal Service
will continue. 


Whether the 5th Circuit will grant a stay of the FCC order is a matter of
conjecture.  Some believe that the 8th Circuit's recent decision against
the FCC order serves as a powerful precedent for overturning a federal
agency's attempt to pass rules implementing legislation. The primary
argument against the FCC order is that it is unfairly applied within the
telecom industry, exempting non-traditional telecom services, such as
Internet service providers, from paying into the fund.  The issue of
universal service, however, may be perceived an issue of community
interest, rather than the federal government attempting to impose rules
upon the telecommunications industry. Whether this has any influence upon
the 5th Circuit judges remains to be seen. Whatever the outcome, it is
certain these cases will be in the courts for a long time.  Therefore,
schools and libraries have no reason not to follow through on applying for
USF discounts. 
    


FARNET NEEDS YOUR FEEDBACK!


FARNET's is still requesting feedback from our members and Update readers.
Please take a moment to fill out our survey. Your opinions are important to
us and will assist in ensuring our services meet your needs.  Results will
be posted within the next two issues of FARNET's Washington Update.  Please
note that any information provided will be for FARNET use only and will not
be distributed to any third party.


To access the survey: http://www.farnet.org/updates/survey.html




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