In a recent issue of Educom Review, Peter Huber notes that "competition delivers abundance, but spreads it around unequally, at least in the beginning." While this is a correct analysis of competition theory, it fails to mention that most business endeavors must recover their investments within a 5-7 year period. Under such a scenario, would any of us invest in educating our children if we could not get a return on that investment within 5-7 years? Clearly, the answer is no.
The question we should consider is: Can America afford to wait until market forces by themselves create universal access to the new technologies and services that are vital in helping Americans prepare for the 21st Century economy? From an economic perspective, not for egalitarian reasons, universal service standards should be revised and adjusted so that American businesses can capitalize on the powerful transformations taking place in the communications and information technology sector. If the United States is successful in managing a transition to the Information Age that is equitable and efficient, the U.S. economy will be the primary beneficiary. Specifically, the U.S. business sector will draw from a well-trained and technologically sophisticated labor pool; health care costs will be reduced through use of telecommunications; and a more responsive and efficient government could be created that would save taxpayers billions of dollars.
By broadening the universal service definition to include connecting public institutions and providing them with affordable access to the information highway, traditionally unserved and underserved groups, including the poor, minorities, rural Americans and disabled individuals, will have greater opportunities to access and benefit from it as do the more affluent members of our society. In turn, the business sector will be rewarded as new generations of potential customers are introduced to the technologies and services.
U.S. businesses recognize the importance of investing in information technologies for gaining competitive advantage. In fact, 1991 was the first year in which U.S. companies invested larger sums on computing and communications equipment than on industrial, mining, farm and construction machines. But will businesses be able to acquire the talent necessary to run these systems if our schools do not have access to the technologies and services that are necessary for training our future workforce?
Many school systems across the country are now providing opportunities for distance learning so that children are able to communicate with teachers and students in other schools, as well as take courses that are not available in their communities. Linking schools to each other and to the nation's best educational resources will help the United States remain a preeminent economic power by providing American industry with a well-trained labor force. Public libraries can also play a vital role in assuring that advanced information services are universally available to all segments of the American population on an equitable basis. Just as libraries have traditionally made available the marvels and imagination of the human mind to all, the libraries of the future could allow everyone to participate in the electronic renaissance.
In 1994, the American public spent $1 trillion on health care, nearly 15 percent of the nation's Gross Domestic Product. According to the Office of Actuary at the Health Care Financing Administration, national health care expenditures have risen by 10.5 percent per year for the past eight years- more than double the rate of increase in the consumer price index. Capitalizing on opportunities for reducing health care costs will be vital to improving the nation's economic outlook. Recent studies show that America's health care expenditures can be reduced by more than $36 billion each year by applying selected telecommunications applications nationwide. These cost reductions in the health care industry will flow to patients, employers and the government.
Attaining these social goals depends on ensuring broad availability of access to technology and information across the U.S. Connecting public institutions to the information highway increases the likelihood that these institutions can provide Americans with the necessary education and training to compete in the 21st Century economy. By adjusting and expanding the universal service definition and by fostering the connection of public institutions to the information highway, even those who do not have access through their homes or workplaces can benefit from the Information Age.
Graham Greene once wrote that "there always comes a moment in time when a door opens and lets the future in." The door is now open; the question is who will be able to enter through it and benefit from what the future holds. The answer is that the door should be open to all regardless of geography and income.
Emilio Gonzalez is a telecommunications policy specialist with the National Telecommunications and Information Administration. [email protected]