o       The network standards and transmission codes that                 facilitate interconnection and interoperation between                 networks, and ensure the privacy of persons and the                 security of the information carried, as well as the                 security and reliability of the networks .         o       The people -- largely in the private sector -- who                 create the information, develop applications and                 services, construct the facilities, and train others to                 tap its potential.  Many of these people will be                 vendors, operators, and service providers working for                 private industry.         Every component of the information infrastructure must bedeveloped and integrated if America is to capture the promise ofthe Information Age.           The Administration's NII initiative will promote and supportfull development of each component.  Regulatory and economicpolicies will be adopted that encourage private firms to createjobs and invest in the applications and physical facilities thatcomprise the infrastructure.  The Federal government will assistindustry, labor, academia, and state and local governments indeveloping the information resources and applications needed tomaximize the potential of those underlying facilities.  Moreover,and perhaps most importantly, the NII initiative will helpeducate and train our people so that they are prepared not onlyto contribute to the further growth of the NII, but also tounderstand and enjoy fully the services and capabilities that itwill make available.III.   Need for Government Action To Complement Private Sector       Leadership         The foregoing discussion of the transforming potential ofthe NII should not obscure a fundamental fact -- the privatesector is already developing and deploying such an infrastructuretoday.  The United States communications system -- the conduitthrough which most information is accessed or distributed -- issecond to none in speed, capacity, and reliability.  Each yearthe information resources, both hardware and software, availableto most Americans are substantially more extensive and morepowerful than the previous year.           The private sector will lead the deployment of the NII.  Inrecent years, U.S. companies have invested more than $50 billionannually in telecommunications infrastructure -- and that figuredoes not account for the vast investments made by firms inrelated industries, such as computers.  In contrast, theAdministration's ambitious agenda for investment in critical NIIprojects (including computing) amounts to $1-2 billion annually. Nonetheless, while the private sector role in NII developmentwill predominate, the government has an essential role to play. In particular, carefully crafted government action can complementand enhance the benefits of these private sector initiatives. Accordingly, the Administration's NII initiative will be guidedby the following nine principles and goals, which are discussedin more detail below:          1)  Promote private sector investment, through tax andregulatory policies that encourage innovation and promote long-term investment, as well as wise procurement of services.           2)  Extend the "universal service" concept to ensure thatinformation resources are available to all at affordable prices. Because information means empowerment, the government has a dutyto ensure that all Americans have access to the resources of theInformation Age.           3)  Act as catalyst to promote technological innovation andnew applications.  Commit important government research programsand grants to help the private sector develop and demonstratetechnologies needed for the NII.          4)  Promote seamless, interactive, user-driven operation ofthe NII.  As the NII evolves into a "network of networks,"government will ensure that users can transfer information acrossnetworks easily and efficiently.         5)  Ensure information security and network reliability. The NII must be trustworthy and secure, protecting the privacy ofits users.  Government action will also aim to ensure that theoverall system remains reliable, quickly repairable in the eventof a failure and, perhaps most importantly, easy to use.         6)  Improve management of the radio frequency spectrum, anincreasingly critical resource.          7)  Protect intellectual property rights.  TheAdministration will investigate how to strengthen domesticcopyright laws and international intellectual property treatiesto prevent piracy and to protect the integrity of intellectualproperty.         8)  Coordinate with other levels of government and withother nations.  Because information crosses state, regional, andnational boundaries, coordination is important to avoidunnecessary obstacles and to prevent unfair policies thathandicap U.S. industry.         9)  Provide access to government information and improvegovernment procurement.  As described in the National PerformanceReview, the Administration will seek to ensure that Federalagencies, in concert with state and local governments, use theNII to expand the information available to the public, so thatthe immense reservoir of government information is available tothe public easily and equitably.  Additionally, Federalprocurement policies for telecommunications and informationservices and equipment will be designed to promote importanttechnical developments for the NII and to provide attractiveincentives for the private sector to contribute to NIIdevelopment.         The time for action is now.  Every day brings news ofchange:  new technologies, like hand-held computerizedassistants; new ventures and mergers combining businesses thatnot long ago seemed discrete and insular; new legal decisionsthat challenge the separation of computer, cable and telephones. These changes promise substantial benefits for the Americanpeople, but only if government understands fully the implicationsof these changes and to work with the private sector and otherinterested parties to shape the evolution of the communicationsinfrastructure.IV.  Managing Change/ Forging Partnerships         We will help to build a partnership of business, labor,academia, the public, and government that is committed todeployment of an advanced, rapid, powerful infrastructureaccessible and accountable to all Americans.           Forging this partnership will require extensive inter-governmental coordination to ensure that Administration,Congressional, state and local government policy regarding theNII is consistent, coherent, and timely.  It also requires thedevelopment of strong working alliances among industry groups andbetween government and the businesses responsible for creatingand operating the NII.  Finally, close cooperation will be neededbetween government, users, service providers, and public interestgroups to ensure that the NII develops in a way that benefits theAmerican people.           Specifically, the Administration will:            (1)  Establish an interagency Information InfrastructureTask Force          The President has convened a Federal inter-agency"Information Infrastructure Task Force" (IITF) that will workwith Congress and the private sector to propose the policies andinitiatives needed to accelerate deployment of a NationalInformation Infrastructure.  Activities of the IITF includecoordinating government efforts in NII applications, linkinggovernment applications to the private sector, resolvingoutstanding disputes, and implementing Administration policies. Chaired by Secretary of Commerce Ron Brown and composed of high-level Federal agency representatives, the IITF's three committeesfocus on telecommunications policy, information policy, andapplications.           (2)  Establish a private sector Advisory Council on the         National Information Infrastructure         To facilitate meaningful private sector participation in theIITF's deliberations, the President will sign an Executive Ordercreating the "United States Advisory Council on the NationalInformation Infrastructure" to advise the IITF on mattersrelating to the development of the NII.  The Council will consistof 25 members, who will be named by the Secretary of Commerce byDecember 1993.  Nominations will be solicited from a variety ofNII constituencies and interested parties.  The IITF and itscommittees also will use other mechanisms to solicit publiccomment to ensure that it hears the views of all interestedparties.         (3)  Strengthen and streamline Federal communications and         information policy-making agencies          In order to implement the ambitious agenda outlined in thisdocument, the federal agencies most directly responsible for theevolution of the NII (such as NTIA, the Office of Information andRegulatory Affairs at OMB, and the FCC) must be properlystructured and adequately staffed to address many new anddifficult policy issues.  The Administration intends to ensurethat these agencies have the intellectual and material resourcesthey need.  In addition, in accord with the Vice President'sNational Performance Review, these agencies will make theorganizational and procedural changes needed to most effectivelycontribute to the NII initiative.  V.  Principles and Goals for Government Action          The Task Force currently is undertaking a wide-rangingexamination of all issues relevant to the timely development andgrowth of the National Information Infrastructure.  Specificprinciples and goals in areas where government action iswarranted have already been identified and work has begun on thefollowing matters:1.       Promote Private Sector Investment         One of the most effective ways to promote investments in ournation's information infrastructure is to introduce or furtherexpand competition in communications and information markets. Vibrant competition in these markets will spur economic growth,create new businesses and benefit U.S. consumers.          To realize this vision, however, policy changes will benecessary:           Action:  Passage of communications reform legislation.  The         Administration will work with Congress to pass legislation         by the end of 1994 that will increase competition and ensure         universal access in communications markets -- particularly         those, such as the cable television and local telephone         markets, that have been dominated by monopolies.  Such         legislation will explicitly promote private sector         infrastructure investment -- both by companies already in         the market and those seeking entry.         Action:  Revision of tax policies.  Tax policies are         important determinants of the amount of private sector         investment in the NII.  The President has signed into law         tax incentives for private sector investment in R&D and new         business formation, including a three-year extension of the         R&D credit and a targeted capital gains reduction for         investments in small businesses.  Both of these tax         incentives will help spur the private sector investment         needed to develop the NII.2.       Extend the "Universal Service" Concept to Ensure that         Information Resources Are Available to All at Affordable         Prices         The Communications Act of 1934 articulated in general termsa national goal of "Universal Service" for telephones --widespread availability of a basic communications service ataffordable rates.  A major objective in developing the NII willbe to extend the Universal Service concept to the informationneeds of the American people in the 21st Century.  As a matter offundamental fairness, this nation cannot accept a division of ourpeople among telecommunications or information "haves" and "have-nots."  The Administration is committed to developing a broad,modern concept of Universal Service -- one that would emphasizegiving all Americans who desire it easy, affordable access toadvanced communications and information services, regardless ofincome, disability, or location.          Devising and attaining a new goal for expanded UniversalService is consistent with efforts to spur infrastructuredevelopment by increasing competition in communications andinformation markets.  As noted above, competition can make low