November 16, 1994 FOR IMMEDIATE RELEASE Commissioner Chong Addresses Chinese Telecommunication Delegation November 15, 1994 Washington D.C. FCC Commissioner Rachelle B. Chong addressed a reception for a Chinese telecommunications delegation sponsored by the Center for Strategic and International Studies and the Telecommunications Industry Association. Remarks of Commissioner Rachelle B. Chong to a Reception for the China Telecommunications Delegation sponsored by the Center for Strategic and International Studies and the Telecommunications Industry Association Washington, D.C. November 15, 1994 Introduction Good evening. It is a great honor to welcome you to the United States on behalf of the Federal Communications Commission. It is a special pleasure for me to greet you because I am a third generation Chinese-American. One hundred and forty years ago, my Chinese ancestors came to California from Guangdong. In 1981, I spent a summer touring China with a group of Chinese-American students. This visit to China was one of the most memorable experiences of my life. The beauty of the countryside and the richness of the Chinese culture was very impressive. It gave me a better understanding of what it means to have a Chinese heritage. Both before when I was a telecommunications attorney and now as an FCC Commissioner, I have watched with great interest the rapid development of telecommunications technology in China. The statistics are impressive. For example, in 1993, I understand that China spent the equivalent of more than 6 billion U.S. dollars to upgrade its telecommunications network and added 12 million new telephone lines. I understand that China plans to invest about 7 billion dollars in telecommunications infrastructure in each of the next five years. China also has 1.3 million mobile phones in operation. By the year 2000, China will have 8 million mobile phones, more than any other country in the world. China also is exporting its telecommunications technology. Last year, 17 per cent of all of the applications for FCC equipment authorizations were from Chinese companies. I am very excited about these developments, because it signals a telecommunications revolution which in turn will fuel the growth of the Chinese economy. We see the telecommunications network in your country as part of a Global Information Infrastructure that we in this country like to call the Information Superhighway. Background Before I turn to discussion of the Information Superhighway, I thought I would give you a short history of the Federal Communications Commission. The FCC is the world's oldest communications regulatory body. In 1927, the United States Congress, our legislative branch of government, created a regulatory body called the Federal Radio Commission. At that time, the biggest problem in radio was interference. There were a lot of people who wanted to use the new radio technology. Unfortunately, some of them were not very courteous and the result was interference, or plain chaos on the airwaves. The Federal Radio Commission was created to end the chaos and promote an orderly and efficient use of the scarce radio spectrum. I remember reading a story once about one early broadcaster -- an evangelist named Aimee Semple McPherson. When Aimee felt that her message was not being heard because of interference from other broadcasters, she simply increased the power of her radio signal to blast them off the air. When the Federal Radio Commission took action to stop her, Aimee fired off a scathing protest, calling the Radio Commissioners "a brood of vipers doing the devil's work." Some things never change -- I think that there are people who might think the same thing about the present Commission! The Federal Radio Commission was only responsible for regulation of radio. In 1934, Congress combined that responsibility over radio with a duty to regulate the telephone industry and created the Federal Communications Commission -- the same Commission that I sit on today. In the Communications Act of 1934, Congress charged the FCC with a duty to regulate "interstate and foreign commerce by wire and radio" to promote rapid, efficient communications for all the people of the United States. And this is my job today, although our jurisdiction now covers many technologies not even thought of in 1934, such as mobile telephones, television and satellites. Information Superhighway Right now, just about everyone in the United States is talking about the Information Superhighway. The Information Superhighway primarily is a concept. The term refers to a linkage of computer networks and information systems in the Information Age that we are entering. The Information Superhighway is a short hand way of talking about the concept of connectivity between people using technology -- the collective expectations we have for what information technology can deliver in the 21st century. It goes beyond the physical wires and radio waves, and includes the information and ideas that will be exchanged. The Information Superhighway will permit a global exchange of information and ideas that will enrich all of our lives. The sharing of information between businesses, between scientists, between educators, and between citizens will help countries solve international problems, promote the global marketplace, and encourage scholarship between the great minds of our time. Every nation has the potential to benefit from the Information Superhighway. For industrialized nations, the integration of computer and information networks will increase productivity, make companies more competitive and adaptable to changing conditions, and promote new global markets. For developing nations, the Information Superhighway will be a means of accessing problem-solving knowledge -- for example, helping to develop their economies, and improving the delivery of vital governmental services. For example, distance learning can bring the best teachers in a nation to all students via interactive television systems. A student no longer will learn about whales by reading a dry chapter out of a textbook. Instead, using the Information Superhighway, a student will view videos showing whales swimming, or listen to sound recordings of whale song. The student will use an interactive computer program to electronically dissect a whale and study its anatomy. Think of how this will inspire your child to learn. The Information Superhighway can connect every school and library to create a Global Digital Library so every child in the world has the riches of the world's library at the click of a computer mouse. Telemedicine can reduce health care costs by allowing a patient to be examined from afar by a medical specialist via interactive television. X-rays and other medical test results can be delivered to the doctor via high speed data lines. For remote areas, the Information Superhighway means a person may finally have access to a telephone. That means that a parent can call a doctor to get information that could save the life of a sick baby. How do we build the Information Superhighway? The United States has suggested five basic principles that will lead us to the full promise of the Information Superhighway: First, we should encourage private investment. Private enterprise can build the networks to link us to a global community. In fact, the Internet already is a vibrant computer "network of networks" that is providing an important linkage between scientists, scholars and businesspersons. Because of our experience in the United States, we are encouraging other countries to adopt regulatory structures that encourage private investment by private companies. Second, we should encourage competition. It has been our experience that competition promotes reasonable rates and increases efficiency and innovation. It encourages the entry of the most modern technologies and thus, increases a country's competitiveness in the world market. The U.S. has been moving with great success towards introducing competition into every aspect of our telecommunications market. For example, the introduction of competition into our long distance telephone market has lowered long distance rates, increased the number of service plan choices and improved the quality of service. Third, we must put into place flexible regulatory frameworks that will keep pace with the dizzying pace of technological advances and market changes. I see a regulator's role as ensuring fair competition, fostering private investment and protecting consumer interests. The goals of regulation should be set such that competition is enhanced. Regulation should be streamlined such that it does not overburden the operator. Fourth, we should provide open access to the network for all information providers. We must strive for ways that any person may have access to the Information Superhighway to enjoy the thousands of sources of information available around the world. Our national systems must also be interoperable so they work together in harmony. Fifth, we should ensure that the principle of universal service is considered as we build the Information Superhighway. In the past, the concept of universal service has been a system of subsidies to ensure telephone service for all Americans. We must rethink this system as advanced telecommunications systems are introduced. The promise of information technology is especially great when it comes to ensuring basic communications for all. Global satellite telephone systems can bring communications to the most remote village on the planet, without costly terrestrial infrastructure having to be built. In closing, I want to emphasize that we in the United States are very excited about the Information Superhighway. We hope this idea takes root in the U.S. and grows outwards to create an exciting network of networks. Thank you very much for your attention.