In the Matter of
	                            CC Docket No. 96-45
Federal-State Joint Board on
Universal Service

COMMENTS OF HISPANIC INFORMATION AND TELECOMMUNICATIONS NETWORK, INC.

I. INTRODUCTION

Hispanic Information and Telecommunications Network, Inc. ("HITN), by its counsel, hereby submits its Comments with respect to the above-captioned rulemaking proceeding. In these comments we will address those issues raised by the NPRM regarding the provision of universal service to schools located in rural, insular, high-cost and low income areas with access to telecommunications and information services as required by Congress in the Telecommunications Act of 1996 ("the Act").

II. BACKGROUND

1. ITN is a publicly-funded nonprofit organization whose purpose is to provide Spanish-language educational programming to schools around the country. HITN is a Instructional Fixed Service ("ITFS") licensee having received close to forty ITFS licenses from the Commission. Other ITFS Licensees are providing instructional programming on a wide range of subjects to schools nationwide.

2. The Commission has recognized the contributions that ITFS licensees make to the educational goals of the nation by authorizing them to lease excess channel capacity to wireless cable companies as a method of making ITFS systems economically viable. It is important when designing the scope and mechanisms of universal service, that the Commission include ITFS as a eligible provider of service to schools whose needs for advanced telecommunications and informational services are to be met.

III. THE PRESENT

3. ITFS systems are already in place and transmitting educational programs to schools nationwide. Therefore, many of the nation's schools are already connected to a communications delivery system that provides instructional, educational information.

4. Many ITFS licensees have entered into lease arrangements with wireless cable operators. The wireless cable operators often build and pay for the ITFS system. The cost to the schools for ITFS service is minimal. For instance, a single drop ITFS receive site (serving a low rise school) can be constructed for a mere $300 to $400.

III. THE FUTURE OF TELECOMMUNICATION SERVICES WILL INCLUDE ITFS

5. Schools will utilize a vast array of advanced and traditional communication and information services. Students and teachers will interact with information providers and each other. Video, audio and data service will be available. Students will have a vast "library" to delve into by getting "on line." This extraordinary leap will be expensive. It will be necessary for schools to be connected to an interactive telecommunications system.

6. There will be many methods of providing schools with access to the information network. Schools, like people and businesses, will have access to wireline and wireless services. It is not possible to predict, with any certainty, what the nation's information network will look like years from now. People will elect to utilize the most efficient and cost effective methods that meet their needs. Schools will act similarly. They will be selective consumers. There is no reason to believe that schools will have generous budgets from which to purchase telecommunication services. There is every reason to believe that dollars will be scarce, and telecommunications services will have to compete with building funds and teacher salaries. Therefore, schools will continue to favor ITFS as a low cost method of obtaining instructional and educational programs.

7. ITFS licensees will be one of the suppliers of advanced telecommunication and information services. Digitalization will provide a multitude of channels even when the ITFS licensee has leased excess channel capacity to a wireless cable operator. Students will interact by using the currently underused frequencies of their school's ITFS response station.[1] They will be able to access a menu of programs and select particular programming at a time of their choosing. Students will be connected to the Internet, using the ITFS response station. Schools with ITFS in place will be able to gain access to the advanced services quicker and cheaper by using the existing infrastructure, than by converting to wire service.

IV. UNIVERSAL SERVICE AND ITFS

8. Congress mandated that universal service policies be technologically neutral. The NPRM stresses the Commission's intent to adhere to that directive. The marketplace will ultimately decide which technologies provide the best service at the best price. wireline and wireless providers will compete for customers where they can charge rates that provide an adequate return on investment. It is essential that universal service goals be met by whatever technologies can best do the job.

9. In order to meet the specific Congressional mandate that schools throughout the country be provided with access to advanced communication services, the universal service fund should be used to bring the most cost effective technology to those schools that need support. ITFS is a technology that can meet the telecommunications needs of those schools, and should

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1 See Sections 74.939 of the Commission's Rules.

not be excluded from the universal service program. In fact, a member representing ITFS licensees should be a member of the committee.

10. There is a compelling circumstance that argues in favor of not excluding ITFS as a technology that is available to attain universal service goals. An extensive ITFS system already exists and is meeting the needs of schools in areas that are in high cost locations and elsewhere. It is in the public interest to preserve those sources of instructional programming. If ITFS is deemed to be outside the scope of universal service, some schools that are currently being served by ITFS will have to select another technology if they want interactive capability. There is no reason to believe that these schools will be able to maintain their ITFS facility along with another technology and will find it necessary to abandon ITFS. This could threaten the viability of existing ITFS systems which would lose support as the number of receive sites dwindle. we realize that these fears are speculative. However, the possibility that exclusion of ITFS as a provider of universal service to schools may result in the disappearance of established ITFS systems is a compelling reason not to take that step.

V. THE HISPANIC COMMUNITY WOULD GREATLY BENEFIT FROM ITFS' INCLUSION IN THE UNIVERSAL SERVICE SUPPORT MECHANISM

11. As the world surges into the 21st Century, technological proficiency and access to information services will be the key elements necessary for individuals to advance economically as businesses compete not merely on a national, but a global scale. the Act aims to create a relatively equal playing field with an ambitious goal of providing access to telecommunications and information services to consumers "in all regions of the Nation, including low-income consumers and those in rural, insular and high cost areas."[2]

12. The Hispanic community comprise one the fastest growing segments of American society, but have the limited access to computer technology at home, school and work.[3] Currently, one in ten U.S. residents is Hispanic and by the year 2010 one out of every 8 U.S. residents will be Hispanic.[4] Hispanics are the second largest cultural group which is rapidly growing. They are the youngest ethnic group, with a median age of only 26.7 years compared to 33.6 years for non-Hispanics.[5] These demographics demonstrate the importance of exposing Hispanics to advanced telecommunications services in school. 13. Hispanics use of computers at work is significantly lower than of the average worker, and in fact, the gap became greater [6] between the years 1984 and 1993.[6] It is not surprising,

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2 Latinos & Technology, Anthony Wilhelm

3 Id.

4 Latinos & Technology Findings, Anthony Wilhelm

5 The Tomas Rivera Center Policy Brief, September 1994, Latinos and the Information Superhighway, Anne Larson & Anthony Wilhelm, citing, The Hispanic Population in the United States, March 1993, U.S. Bureau of the Census.

6 Latinos and Information Technology Findings, Anthony Wilhelm.

therefore, that the median income for Hispanics is only $24,000, with 29.3 percent living below the poverty line.[7] In order to prepare young Hispanics to be viable and contributing members of our technology and information based economy, it is essential for Hispanics to have access to advanced telecommunications services in schools. The young age of the Hispanic community, and its relative inaccessibility to computers at home, make it extremely important for Hispanics to have access to computers and advanced telecommunications services at school. If the current trend continues, the U.S. economy could be faced with its largest cultural group under-educated, under-trained and ill-prepared to qualify for the 6.5 million new jobs Hispanics are expected to fill between 1992 and 2005 requiring high levels of education and training.[8]

14. HITN's use of the ITFS spectrum to educate Hispanic students throughout the country by providing educational and cultural programming would make an excellent contribution to universal service. It would provide schools with a cost effective telecommunications service with which to choose from in a pro-competitive technology-neutral environment in accordance with the spirit of the Act.

VI. THE TELECOMMUNICATIONS ACT DOES NOT EXCLUDE ITFS AS A PROVIDER OF UNIVERSAL SERVICE TO SCHOOLS

15. Section 214, as amended by the Act, limits the field of

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7 Id.

8 Id.

providers of universal service to common carriers. HITN and other ITFS licensees are not common carriers. HITN is not suggesting that the Commission interpret Section 214 as including ITFS within the scope of providers who will be eligible to participate generally in achieving universal service goals. However, there are special provisions that apply when service to schools, libraries and health care providers is concerned. Congress specifically provided that the Commission may designate additional services as support mechanisms available to bring universal service to schools, libraries and health care providers.[9]

16. The Commission, in recognition of the special services which are currently provided by ITFS licensees and can be provided in the future, should conclude that ITFS licensees are eligible telecommunications providers of universal service to schools. The Act permits the Commission to exercise its discretion in this area. Inclusion of ITFS does not mandate its use: it merely allows educational institutions to use ITFS to achieve universal service goals. 17. Should the Commission conclude that the Act does not provide it with discretion to allow a non-common carrier to participate in a universal service program, we believe that it would be in the public interest for the Commission to seek an amendment to the Act so ITFS will be utilized to provide universal service to schools.

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9 See, Section 254(c)3 of the Act.

WHEREFORE, for the foregoing reasons, HITN respectfully requests that the Commission adopt HITN's recommendations by determining that ITFS licensees are among the authorized providers of universal service to schools.

Respectfully Submitted,
HISPANIC INFORMATION AND
TELECOMMUNICATIONS NETWORK, INC.

By Benjamin Perez, Its Attorney
Gerald M. Zuckerman, Esq.
Mark J. Becker, Esq.

Abacus Communications Company
1801 Columbia Rd. NW
Suite 101
Washington, DC 20009
(202) 462-3680

Dated: April 12, 1996