THE WHITE HOUSE

Office of the Press Secretary

                   THE PRESIDENT'S NEW MARKETS TRIP:
               FROM DIGITAL DIVIDE TO DIGITAL OPPORTUNITY

         Expanding High-Speed Internet Access in Rural America

                             April 26, 2000

TODAY, PRESIDENT CLINTON WILL CONTINUE HIS DIGITAL DIVIDE NEW MARKETS TRIP WITH A VISIT TO WHITEVILLE, NORTH CAROLINA TO HIGHLIGHT THE IMPORTANCE OF BROADBAND INTERNET ACCESS TO RURAL COMMUNITIES. President Clinton will spend today in Whiteville, NC, where he will highlight the importance of high-speed (broadband) Internet access to rural economic prosperity. In order to fully participate in the emerging digital economy, rural communities like Whiteville need access to the infrastructure of the 21st century -- advanced telecommunications services.

The President will begin his trip with a visit to Remote Data Systems, an environmental monitoring firm, where he will host a roundtable discussion with CEOs from leading technology and communication companies, North Carolina small business owners, Members of Congress, North Carolina Governor Jim Hunt, and former SBA Administrator and White House Chief of Staff Erskine Bowles. President Clinton will then speak to the people of Whiteville about expanding "digital opportunity" to rural communities.

                 PRESIDENT CLINTON WILL FOCUS ATTENTION
                ON DIGITAL OPPORTUNITY FOR RURAL AMERICA

The President recently issued a National Call to Action with the goals of 1) Providing 21st century learning tools for every child in every school, and 2) creating digital opportunity for every American family and community. Last week he visited East Palo Alto, CA and Shiprock, NM and addressed the COMDEX/Spring conference in Chicago, to highlight the importance of these goals. His visit to Whiteville, NC will focus on the challenges faced by rural America in the Information Age.

Despite the rapid expansion of the digital economy, rural America still faces significant barriers to fully utilizing information technology as a tool for economic development and life-long learning. Many rural areas lack access to advanced telecommunications services at affordable rates:

• Lack of High-Speed Service. Regional Bell Operating Companies deploy DSL (high-speed Internet access using copper phone lines) primarily in urban areas. 56 percent of cities over 100,000 had DSL service available compared to less than 5 percent of towns with populations of less than 10,000 (Department of Commerce and Department of Agriculture, Advanced Telecommunications in Rural America, April 2000).

In February 2000, the North Carolina Rural Prosperity Task Force, created by Governor Jim Hunt and chaired by Erskine Bowles, identified broadband Internet access and IT skills as engines of economic growth in rural North Carolina. Whiteville, which is located in Columbus County, vividly illustrates the challenges identified in the Report:

• High Unemployment. Columbus County has an unemployment rate of 12.1 percent - one of the highest in the state (Employment Security Commission, State of North Carolina, February 2000).
• High Costs of Internet Service. The advanced telecommunications service used by business for high-speed Internet access costs $21000 per year in Columbus County, compared to $3000 per year in urban areas like Raleigh, NC -- a sevenfold difference in annual costs (Rural Prosperity Task Force Report, February 2000).

     PRESIDENT CLINTON WILL ANNOUNCE KEY PUBLIC AND PRIVATE SECTOR
       INITIATIVES TO BRING DIGITAL OPPORTUNITY TO RURAL AMERICA:

• Telecommunications Companies Agree to Provide High-Speed Internet Access to All Businesses and Citizens of North Carolina Within Three Years
• For the First Time, the Rural Utilities Service (RUS) Will Expand Its $670 Million Telecommunications Loan Program to Companies that Provide High-Speed Internet Access to Rural America
• QUALCOMM Will Announce a $1 Million Investment in High-Speed Internet in Whiteville, NC and 7 Additional Rural Communities, Working with Other Telecommunications Carriers
• MCI/WorldCom Will Announce a $2 Million Multi-Year Commitment to Rural America for Wireless Broadband Access
• The National Science Foundation Will Announce a $10 Million Commitment in R&D for Next Generation Broadband Technologies in Rural America
• Red Hat Will Pledge $225,000 to Provide Software and Training to 100 Small Businesses in Rural North Carolina
• AT&T Will Pledge $1.2 Million to Develop IT Curricula in North Carolina Universities
• The Department of Commerce and The Department of Agriculture Will Release a New Report on the Challenges of Broadband Access in Rural America

      COMPLETE LIST OF CLINTON-GORE AND PRIVATE SECTOR INITIATIVES
             TO BRING DIGITAL OPPORTUNITY TO RURAL AMERICA

• Telecommunications Companies Agree to Provide High-Speed Internet Access to All Businesses and Citizens of North Carolina Within Three Years. The three major North Carolina local phone companies (Bell South, Sprint, GTE) have reached a major new agreement with the State of North Carolina to provide high-speed, affordable Internet access to all of the state's businesses and citizens within three years. The carriers have agreed to provide this service with no significant difference in price between urban and rural areas. This agreement meets one of the goals of Governor Hunt's Rural Prosperity Task Force, which set as a top priority providing affordable, high-speed Internet access to all regions of the state.
• For the First Time, the Rural Utilities Service (RUS) Will Expand its $670 Million Telecommunications Loan Program to Companies that Provide High-Speed Internet Access to Rural America. Currently, the RUS can only lend to companies providing basic phone service in rural America. Today, for the first time, the RUS will propose policy changes that will expand its $670 million loan program to companies that are providing high-speed Internet access in rural America. The RUS will be able to accomplish this through a change in its regulations.
• QUALCOMM Will Announce a $1 Million Investment in High-Speed Internet in Whiteville, NC and 7 Additional Rural Communities, Working with Other Telecommunications Carriers. QUALCOMM Inc., will invest $1 million in efforts to provide rural and underserved areas with access to the Internet, using wireless technology called High Data Rate (HDR). HDR provides economical high-speed Internet access over the existing wireless phone network and can work in existing cellular and digital networks. Working with other telecommunications carriers, QUALCOMM will deploy its new HDR wireless broadband Internet technology in Whiteville, NC and seven other rural and underserved communities. Each deployment will serve a minimum of 10 square miles and provide broadband wireless access for a minimum of 100 PCs.
• MCI/WorldCom Will Announce a $2 Million Multi-Year Commitment to Rural America. MCI/WorldCom will announce a $2 million investment to expand wireless high-speed Internet access in Raleigh, NC and three rural communities; Hattiesburg, MS; Houma, LA; and Dothan, AL -- and to provide free access for 5 to 7 schools, libraries and community technology centers in each area.
• The National Science Foundation Will Announce a $10 Million Commitment for Research in Next Generation Broadband Technologies for Rural America. The National Science Foundation (NSF) will increase its FY2001 research investment in broadband technologies by $10 million, with particular focus on the needs of rural America. Since NSF supports university-based research, this initiative will also increase the supply of undergraduate and graduate students in technical fields with insights into the challenges of providing broadband telecommunications to rural areas.
• Red Hat Will Pledge to Provide Software and Training to 100 Small Businesses in Rural North Carolina. Software provider Red Hat will donate 500 copies of Red Hat Linux to rural North Carolina small businesses and non-profit organizations. Red Hat will also provide Red Hat Certified Engineers training and certification to employees of 100 rural small businesses.
• AT&T Will Pledge $1.2 Million to the Education Alliance. AT&T will announce a $1.2 million multi-year investment to develop information technology and network management training for higher education students at North Carolina State University, North Carolina AT&T University, Ohio State University, Miami University of Ohio, and Steven's Institute of Technology.
• The Department of Commerce and the Department of Agriculture Will Release a New Report on the Challenges of Broadband Access in Rural America. The Department of Commerce (National Telecommunications and Information Administration) and the Department of Agriculture (Rural Utilities Service) will release their latest report, Advanced Telecommunications in Rural America, which analyzes the current state of deployment of broadband services in rural areas, and the strengths and weaknesses of different broadband technologies. The report also recommends steps that could accelerate the deployment of advanced services to rural communities. This report was requested by Senators Daschle Harkin, Johnson, Wyden, Conrad, Kerrey, Wellstone, Murray, Baucus, and Dorgan.
• Technology For All Will Pledge Broadband Access to 100 HUD Neighborhood Network Centers. Technology For All (TFA), a national non-profit technology organization, will provide broadband Internet access for 100 computer learning centers affiliated with the Department of Housing and Urban Development (HUD). TFA will connect up to 25 HUD Neighborhood Network sites located in rural communities.
• The New Markets Equity Fund Will Be Launched with $4 Million in Commitments. The New Markets Equity Fund (NMEF) will announce a $2 million capital commitment from the Pequot Indian Tribe and a $2 million capital commitment from AT&T. AT&T has proposed over $1 billion in contracts to technology companies located primarily in underserved urban and rural communities. AT&T will work closely with the NMEF to invest in these companies, helping them to take on AT&T projects and other large-scale efforts. In addition, AT&T has committed to serve on the NMEF advisory board and provide $30 million in investment referrals. Working with AT&T and other strategic partners, NMEF has committed to making its first investment in Arrowhead Space and Telecommunications, Inc. and its subsidiary, ATLATL Enterprises, a Native-American owned technology industry firm located in rural North Carolina.

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