US/ND-2: leverage vs. equity
leverage vs. equity
Bob Carlitz (bob@info-ren.pitt.edu)
Wed, 4 Sep 1996 14:27:21 -0400 (EDT)
This week's discussion on the scope of Universal Service subsidies
highlights a quandary that must be resolved as the Telecommunications
Act is implemented.
One can argue for narrowly focused subsidies on the basis that this
will leverage other funds. Thus, if the subsidies pay for connectivity
to a school or library, and if the school or library can supplement
this money with the funds to pay for internal wiring, user devices,
training and support, the subsidy can be said to have leveraged a
much larger investment.
There is some validity to this argument. I think that external connectivity
tends to involve the newest and most unfamiliar elements of technology,
so it does make sense to make a special effort in this area.
On the other hand, if schools and libraries lack the funds to cover
other necessary components of the infrastructure, there is a danger
that many sites will be left with subsidized lines coming into the
building and nothing inside to connect to them. And it's likely that
this situation will occur most frequently in precisely those schools
where the need is most urgent.
How acute is this problem likely to be - and what mechanisms can we
suggest to avoid it? This is not an easy question, but the answers
that we find for it may be crucial for developing a Universal Service
subsidy which can effectively meet the needs of all students and library
patrons.
Bob Carlitz
Moderator