This is partly a response to some comments from Steve Kohn and partly an explanation of why the Internet gets mentioned again and again in discussions surrounding Universal Service subsidies for schools and libraries. The key to an understanding of why the Internet is such an important resource for schools and libraries is SCALABILITY. The Internet has a structure which allows it to accommodate increasing numbers of users at a given site or at multiple sites in a region without a wholesale re-engineering of the system and without costs which grow in strict proportion to the number of users. The reason for the Internet's scalability has to do with the manner in which it makes use of shared infrastructure, whether it be in terms of shared space on servers, shared use of a Local Area Network or shared infrastructure on the Wide Area Network or Internet proper. I don't believe that any other telecommunications services provide two-way communications with anything approaching the efficiency of the Internet. This is why Internet access for all schools and classrooms is an economic possibility. And this is why discussions of the implementation of Universal Service provisions for schools and libraries must ultimately involve the Internet. While other services may be very attractive, most of these services will always be very limited in their use, because they lack the scalability to make them affordable for implementation on a large scale. As technologies evolve we'll probably see other examples which equal the Internet in terms of scalability and affordability. This is why it's probably wise to develop language for Universal Service subsidies which is not too technology-specific. On the other hand it's important to keep in the mind the goals of the Telecommunications Act, which speak of access from every classroom and library, and which hence imply a scalable infrastructure underlying whatever services may be contemplated. Bob Carlitz Moderator