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-
- TESTIMONY
-
- OF
-
- MITCHELL KAPOR
-
- PRESIDENT
- ELECTRONIC FRONTIER FOUNDATION
-
- BEFORE THE
-
- SUBCOMMITTEE ON
-
- TELECOMMUNICATIONS AND FINANCE
- HOUSE ENERGY AND COMMERCE COMMITTEE
-
- REGARDING
-
- TELECOMMUNICATIONS INFRASTRUCTURE LEGISLATION AND PROPOSALS
-
- OCTOBER 24, 1991
-
- MR. Chairman and Members of the Committee:
-
- I want to thank you for inviting me to testify today on the
- Telecommunications Act of 1991 (H.R. 3515) and the Telecommunications
- Competition and Services Act of 1991 (Committee Discussion Draft, August
- 1, 1991).
-
- For those who may not know me, I am the principal developer of the Lotus
- 1-2-3 spreadsheet program and served as the CEO of the Lotus Development
- Corporation between 1982 and 1986 during which time it grew into a $200
- million dollar a year software company.
-
- The Electronic Frontier Foundation
-
- I am a founder and President of the Electronic Frontier Foundation, a
- public interest organization established one year ago by pioneer
- developers of computer software and hardware and members of the computer
- networking community.
-
- We founded the Electronic Frontier Foundation (EFF) based on a shared
- conviction that a new public interest advocacy organization was needed
- to educate the public about the democratic potential of new computer and
- communications technologies and to work to develop and seek to implement
- public policies to maximize freedom, competitiveness, and civil liberty
- in the electronic social environments being created by new computer and
- communications technologies.
-
- While one of EFF's objectives is to secure First and Fourth Amendment
- protections for computer users and electronic bulletin board operators,
- our primary mission is to insure that the new electronic highways
- emerging from the convergence of telephone, cable, broadcast and other
- communications technologies are truly free and open. By building our
- membership base, cosponsoring the Communications Policy Forum with the
- Consumer Federation of America and the ACLU Information Technology
- Project, and developing and advocating specific communications policies,
- we hope to play a significant ongoing role in resolving critical
- communications issues. In this context, Mr. Chairman and Members of the
- Subcommittee, we again welcome the opportunity to appear here today.
-
- The Infrastructure Challenge
-
- Mr Chairman, I view the lifting of the information services restrictions
- by Judge Green as a pivotal moment for our nation's communications
- future. If Congress is to address these issues effectively, it must
- first re-frame the current debate. While the entry of the seven
- Regional Bell Operating Companies into the information services market
- poses serious dangers of anti-competitive behavior -- because of their
- bottleneck control over the local phone loop -- erecting appropriate
- safeguards must not be the overarching goal of communications policy.
- Neither should "lifting the restrictions" on information services or
- manufacturing be the goal of public policy as the RBOCs advocate.
-
- Congress has the opportunity---in fact the obligation---to assert its
- jurisdiction and define a national communications policy to govern the
- future development of our nation's communications infrastructure. Only
- Congress can do so and it must if we are to end the long standing
- communications policy gridlock and move toward achieving our
- communications goals.
-
- Public policy must be guided by an overarching social vision of what I
- call the National Public Network, a vibrant web of information links to
- serve as the main channels for commerce learning, education, politics,
- and entertainment in the future. This network will include the voice
- telephone service that we are already so familiar with, along with video
- images, sound, and hybrid forms of communication.
-
- To build the National Public Network will require more than safeguards,
- entry level tests or new telephone company investment in information
- services and fiber optics. It will require Congress to establish in
- legislation basic standards, requirements, regulatory mechanisms and
- incentives that will
-
- -- establish an open platform for information services by speedy
- deployment of ``Personal ISDN'' nation-wide;
-
- -- ensure competition in local exchange services;
-
- -- promote First Amendment free expression by reaffirming the
- principles of common carriage;
-
- -- foster innovations that make networks and information services easy
- to use;
-
- -- protect personal privacy; and
-
- -- preserve and enhance equitable access to communications media.
-
- In essence, we need to meet the challenge posed by Chairman Markey:
-
- to make [information services] available swiftly to the largest
- number of Americans at costs which don't divide the society into
- information haves and have nots and in a manner which does not
- compromise our adherence to the long-cherished principles of
- diversity, competition and common carriage.
-
- The National Public Network
-
- Today, more and more information links are evolving from computer and
- telephone systems. By the end of the next decade, these links will
- connect nearly all homes and businesses in the U.S. They will serve as
- the main channels for commerce, learning, education, and entertainment
- in our society. The National Public Network will not be created in a
- single step: neither by a massive infusion of public funds, nor with the
- private capital of a few tycoons (today known as telecommunications
- companies) such as those who built the railroads. Rather the national,
- public broadband digital network will emerge from the "convergence" of
- the public telephone network, the cable television distribution system,
- and other networks such as the Internet.
-
- At its best, the National Public Network would be a source of immense
- social benefits. As a means of increasing social cohesiveness, while
- retaining the diversity that is an American strength, the network could
- help revitalize this country's business and culture. It will increase
- the amount of individual participation in common enterprise and
- politics. It could also galvanize a new set of relationships-- business
- and personal-- between Americans and the rest of the world.
-
- The names and particular visions of the emerging information
- infrastructure vary from one observer to another.
-
- Senator Gore calls it the "National Information Superhighway." Prof.
- Michael Dertouzos imagines a "National Information Infrastructure [that]
- would be a common resource of computer-communications services, as easy
- to use and as important as the telephone network, the electric power
- grid, and the interstate highways." We call it the National Public
- Network (NPN), in recognition of the vital role information technology
- has come to play in public life and all that it has to offer, if
- designed with the public good in mind.
-
- To what ends can we reasonably expect people to use a National Public
- Network? We don't know. Indeed, we probably can't know -- the users of
- the network will surprise us. That's exactly what happened in the early
- days of the personal computer industry, when the first spreadsheet
- program, VisiCalc, spurred sales of the Apple II computer. Apple
- founders Steve Jobs and Steve Wozniak did not design the spreadsheet;
- they did not even conceive of it. They created a platform which allowed
- someone else to bring the spreadsheet into being, and all the parties
- profited as a result, including the users.
-
- We know this much: Computer and communications technologies are
- transforming speech into electronic formats and shifting the locus of
- the marketplace of ideas from traditional public places to the new
- electronic public forums established over telephone, cable, and related
- electronic communications networks. To both local and long-distance
- communities, accessible digital communications will be increasingly
- important; by the end of this decade, the "body politic," the "body
- social," and the "body commercial" of this country will depend on a
- nervous system of fiber-optic lines and computer switches.
-
- Although we cannot anticipate the future uses of the telecommunications
- network, we can, and must, articulate goals that will shape the
- infrastructure as it develops. Just as it is necessary for an architect
- to know how to make a home suitable for human habitation, it is
- necessary to consider how human beings will actually use the network in
- order to design it.
-
- Policy Recommendations
-
- In that spirit, we offer a set of recommendations for the evolution of
- the National Public Network that need to be addressed in crafting the
- legislation before you. I first encountered many of the fundamental
- ideas underlying these proposals in the computer networking community.
- Some of these recommendations address immediate concerns; others are
- more long-term. The recommendations are organized here according to the
- main needs which they will serve: first, ensuring that the design and
- use of the telephone network remains open to diversity, second,
- safeguarding the freedom of users. The ultimate goal is to develop a
- habitable, usable, and sustainable system--a nation of electronic
- neighborhoods that people will feel comfortable living within.
-
- I. Create an Open Platform for Innovation in Information Services by
- Speedily Deploying a Nation-wide "Personal ISDN."
-
- By offering affordable, end-to-end digital capability capable of
- reaching into every home, business, and school in the U.S. Such a
- platform will unleash a new generation of information entrepreneurs to
- develop a wide range of valuable services.
-
- In the evolution of the NPN, information entrepreneurship can best be
- promoted by building with open standards and by making the network
- attractive to as many information service providers and developers as
- possible. The most valuable contribution of the computer industry in
- the past generation is not a machine, but an idea--the principle of open
- architecture. Typically, a hardware company (an Apple or IBM, for
- instance) neither designs its own applications software nor requires
- licenses of its application vendors. Both practices were the norm in
- the mainframe era of computing. Instead, in the personal computer
- market, the hardware company creates a "platform"--a common set of
- specifications, published openly so that other, often smaller,
- independent firms can develop their own products (like the spreadsheet
- program) to work with it. In this way, the host company takes advantage
- of the smaller companies' ingenuity and creativity.
-
- In the early stages of development of an industry, low barriers to entry
- stimulate competition. It should be as easy to provide an information
- service as to order a business telephone. Large and small information
- providers will probably coexist as they do in book publishing, where the
- players range from multi-billion-dollar international conglomerates to
- firms whose head office is a kitchen table. Large and small publishers
- can coexist because everyone has access to production and distribution
- facilities--printing presses, typography, and the U.S. mails and
- delivery services--on a non-discriminatory basis.
-
- To achieve the information diversity currently available in print in the
- new electronic forum, we must guarantee widespread accessibility to a
- platform of basic services necessary for creating information services
- of all kinds. The platform of services offered must:
-
- (1) have a critical mass of features and capabilities;
-
- (2) be ubiquitous;
-
- (3) be affordable.
-
- Some suggest that the technology necessary to offer such a platform is
- far off and would require billions of dollars of investment in fiber
- optics.
-
- Actually, we have a platform that meets these criteria within our reach
- right now. Personal ISDN (Integrated Services Digital Network) could
- make voice, data, video, high-speed fax, video, and multimedia services
- available TODAY to telephone subscribers all around the country. ISDN
- as a key information services technology is well-known in the
- communications industry, but its potential as a universal platform is
- not properly appreciated, nor has it been properly positioned by the
- RBOCs as a service for everyone.
-
- The personal computer transformed the image of the computer from that of
- hulking mainframes imprisoned in glass-walled temples to friendly
- desktop machines capable of performing a wide variety of useful tasks.
- Just as the desktop personal computer represented the revolutionary
- platform for innovation of the 1980's, it is my belief that ubiquitous
- digital communications media, such as are enabled by ISDN, represent the
- hope of the 1990's. Personal ISDN can enable the citizen's access into
- the Information Age. The key attributes of a Personal ISDN are that, as
- a platform, it possess a critical mass of enabling features and
- capabilities for individual use; and, as a service, that it be
- positioned, priced, marketed to be of interest to and within the reach
- of everyone. ISDN must be re-positioned as a basic service, available
- to consumers and small businesses. This service can be the test bed for
- a whole new generation of information services which could benefit the
- American public.
-
- +Critical Mass of Features
-
- Many of the capabilities once thought to be possible only on an
- all-fiber network, such as interactive full-motion video can be achieved
- to a significant degree over Personal ISDN. This is due to continuing
- revolutions in microelectronics and software which enable compression of
- video signals by a factor of 100 without significant loss of quality.
- Given this, it is possible to use copper wire-based ISDN to carry video
- signals to their destination, at which point they are uncompressed
- through use of increasingly inexpensive processors, which are built-in
- to computers, televisions, and other consumer electronic equipment. If
- uncompressed, carriage of these video signals would require hundreds of
- billions of dollars of replacement of existing wiring in the local loop.
-
- I am sure that the researchers at Apple Computer and other pioneering
- high-technology firms in Silicon Valley and elsewhere in the country
- would be happy to come to Washington to demonstrate these capabilities
- for committee members. The Electronic Frontier Foundation would be
- happy to arrange for this.
-
- Ultimately, there is a crucial role for an end-to-end fiber optic
- network. While we have not yet reached the limits of what can be done
- with video compression, in the end there will be some services, such as
- high-definition television, which will require the bandwidth of fiber
- optics. It would be a huge mistake, however, to commit the enormous
- funds required to build such a network and to wait until the next
- century for its deployment without accumulating a generation of
- experience based on lessons of the marketplace which can be achieved
- through a Personal ISDN-based platform.
-
- We have reached an effective limit to the usability of the current
- voice-grade telephone network for information services. Current
- bulletin boards and on-line services use existing voice-grade telephone
- lines for user access. These include 30,000 computer bulletin board
- systems (BBSes) with millions of users, in addition to the millions of
- Prodigy, Compuserve, and other commercial services. It's a healthy
- start, but expansion is hampered by inadequate infrastructure imposed by
- trying to overlay computer use on top of a network designed for voice
- telephony. Problems include lack of standardization; slow speeds;
- noisy, error-filled channels; and the difficulties of use and barriers
- created by these factors. As a result of these barriers, the vast
- benefits of new information technologies are denied to all but the
- computer-literate -- those who have the technical skills to navigate the
- complexities of today's information services.
-
- What is needed is to raise the floor by creating a new standard, minimum
- platform for information exchange. ISDN, repositioned as Personal ISDN,
- can provide a faster, cleaner digital platform for information users
- around the country. It will be easier to use, and allow information
- entrepreneurs to offer a vast array of services to a broader user base.
-
- +Ubiquity
-
- To create a market for information services, everyone must be able to
- reach the platform. We must build the new public network by making it
- easy for people to connect to it with a few simple decisions. Again, an
- analogy to the personal computer market is helpful. Minicomputers and
- mainframes were marketed to companies. Microcomputers (PC's) were
- marketed to individuals. We need to build a platform that can reach
- into individual households and small businesses in order to stimulate
- the development of information services that will meet the needs of
- those users.
-
- Personal ISDN -- which can be provided over the existing copper plant
- that comprises today's public switched network -- can reach into every
- home and every small business without laying a single mile of fiber
- optic cable. Telephone company data indicates that over the next three
- years majority of central office switches will be upgraded to requisite
- digital capability.
-
- +Affordability
-
- Platform services, even if they are ubiquitous, are useless unless they
- are also affordable to American consumers. Just as the voice telephone
- network would be of little value if only a small fraction of the country
- could afford to have a telephone in their home, a national information
- platform will only achieve its full potential when a large majority of
- Americans can buy access to it. We need an information platform that is
- priced as a basic service, on par with voice services, so that a choice
- to sign up is no more or less burdensome than subscribing to basic
- telephone service or cable television.
-
- All available information indicates that ISDN can be priced as a basic
- service. The cost of carrying a digital ISDN call from the customer to
- the local switch is just the same as an analog voice call in the digital
- switching regime that ISDN pre-supposes. There are some fixed
- investment costs still to be incurred to upgrade the nation's central
- office switches in order to handle ISDN traffic, but commitments to
- these investments are already largely made.
-
- For all of the reasons I have cited, ISDN would be an ideal platform for
- the creation of a variety of new information services. Yet it is not
- being made available to the American public. Today, even in Washington,
- DC -- a city that is one of the major information hubs of the country --
- it is impossible to order standard ISDN service from the local phone
- company.
-
- Progress towards realizing the vision of the National Public Network
- will best be achieved through a series of incremental steps as our
- society learns how to use digital media. No one can guarantee when an
- application as useful as the spreadsheet will emerge for the NPN (as it
- did for personal computers), but open architecture based on a Personal
- ISDN is the best way for it to happen and let it spread when it does.
-
- The next incremental step should be the deployment of a medium-speed
- digital infrastructure based on ISDN which can be readily adapted for
- use by information entrepreneurs today. It will not require large
- capital investment, which could drive up basic rates. It can be
- leveraged by use of computer technology of desktops, laptops, and
- palmtops. In years to come every home and office may be attached to the
- National Public Network with a fiber optic link. But this is hundred of
- billions of dollars and years away. We have to crawl before we can run
- to the field of dreams.
-
- Much of the current debate about the future of the telephone network is
- defined by the opposition of two sets of large forces - the local Bell
- Operating Companies, on one side, and other carriers and publishers on
- the other. But often as not, the creation and emergence of new
- industries depends more on outsiders and new entrants who rely more on
- ingenuity than capital to develop the breakthrough concepts and systems
- which result in explosive growth. The personal computer industry was
- sparked by the contributions of industry outsiders like Steve Jobs, Bill
- Gates, and myself to grow from nothing to $100 billion in just over a
- decade. A personal ISDN platform would give a new generation of
- information entrepreneurs a chance to show what they can do. To the
- extent we can open up the process from one dominated exclusively by
- well-fortified corporate interests to one in which entrepreneurs have a
- chance, we improve the chances of another entrepreneurial revolution.
- If we build the right platform and we lower the barriers to entry to
- invite in all who want to play, I am convinced the entrepreneurs will
- find it, and, with the sure invisible hand of market feedback will help
- realize the vision of the information age.
-
- II. Ensure Competition in Local Exchange Services
-
- In the context of the post MFJ restrictions environment, Congress must
- act now to ensure competition in local exchange services. Competition
- will promote innovation in these services on which information providers
- rely, and help guarantee equal access to all local exchange facilities.
-
- Many consumer and industry groups are concerned that as the MFJ
- restrictions are lifted, the RBOCs will come to dominate the design of
- the emerging National Public Network, shaping it more to accommodate
- their business goals than the public interest. There is evidence that
- the RBOCs are resisting attempts to transform the public telephone
- system into a truly open public network notwithstanding the FCC's stated
- intention to implement Open Network Architecture.
-
- The Communications Policy Forum, a coalition of public interest and
- industry groups, is working hard to study whether some mix of safeguards
- drawn from Rep. Cooper's bill, H.R. 3515, and Chairman Markey's August
- 1, 1991 Discussion draft, could maintain a competitive information
- services market that allows RBOC participation.
-
- Some suggest that an entry level test is necessary to guarantee that
- alternative infrastructure is developed for information services
- delivery. But rather than relying on alternative pathways, we might
- first investigate ways to open up the existing public switched network.
- The post-divestiture phone system offers us a valuable lesson: a
- telecommunications network can be managed effectively by separate
- companies --even including bitter opponents like AT&T and MCI-- as long
- as they can connect equitably and seamlessly from the user's standpoint.
-
- The bottleneck that RBOCs have on local exchange services critical to
- information providers can be minimized by unbundling these services and
- allowing non-BOC providers to offer them in competition with BOC local
- exchange companies. The RBOC's response to the FCC inquiry on open
- architecture in the public switched network was not sufficient because
- it does not allow for full competition in services that have
- traditionally been identified as part of the local switch. Bellcore's
- proposal for an Advanced Intelligent Network (AIN) offers many useful
- services, but centralizes them in BOC-controlled facilities, leaving no
- room for competition from other providers. Unbundling and expanded
- competition is a key to ensuring equitable access to local exchange
- services needed for information service delivery.
-
- III. Promote First Amendment Free Expression by Affirming the
- Principles of Common Carriage
-
- In a society which relies more and more on electronic communications
- media as its primary conduit for expression, full support for First
- Amendment values requires extension of the common carrier principle to
- all of these new media.
-
- Common carriers are companies which provide conduit services for the
- general public. They include railroads, trucking companies, and
- airlines as well as telecommunications firms. A communications common
- carrier, such as a telephone company, is required to provide its
- services on a non-discriminatory basis. It has no liability for the
- content of any transmission. A telephone company does not concern itself
- with the content of a phone call. Neither can it arbitrarily deny
- service to anyone.
-
- The common carrier's duties have evolved over hundreds of years in the
- common law and later statutory provisions. The rules governing their
- conduct can be roughly distilled in a few basic principles.
-
- Common carriers have a duty to:
-
- +provide services in a non-discriminatory manner at a fair price
-
- +interconnect with other carriers
-
- +provide adequate services
-
- The common carriers who make up the critical elements of the public
- switched network -- local exchange companies and inter-exchange
- companies -- should be subject to comprehensive common carriage duties
- as described above. However, all communications carriers are not
- necessarily common carriers. As part of the larger telecommunications
- infrastructure there will be private networks which perform specialized
- functions or only serve certain groups of users. These private networks
- may be interconnected with the National Public Network, but not
- dedicated to carrying all traffic, as the local and long distance
- exchange carriers are now. However, on these private networks, it may
- be desirable to create public ``right of ways'' to facilitate the most
- efficient, free flow of information.
-
- Unlike arrangements found in many countries, our communications
- infrastructure is owned by private corporations instead of by the
- government. Therefore, a legislatively imposed expanded duty of common
- carriage on public switched telephone carriers is necessary to protect
- free expression effectively.
-
- As Prof. Eli Noam, a former New York State Public Utility Commissioner,
- explains:
-
- [C]ommon carriage is the practical analog to [the] First Amendment
- for electronic speech over privately-owned networks, where the First
- Amendment does not necessarily govern directly.
-
- A telecommunications provider under a common carrier obligation would
- have to carry any legal message regardless of its content whether it is
- voice, data, images, or sound. For example, if full common-carrier
- protections were in place for all of the conduit services offered by the
- phone company, the terminations of "controversial" 900 services such as
- political fundraising would not be allowed, just as the phone company is
- now prohibited by the Communications Act from discriminating in the
- provision of basic telephone services.
-
- In a letter to this committee from non-profit organizations who use 900
- number services which was also signed by EFF, we noted that:
-
- Non-profit charitable and political organizations are at the
- forefront of innovative uses of audiotext services. The flexibility
- of this medium enables political advocacy groups to put up 900 number
- programs in response to changing political events....Since regulation
- of this medium is likely to set the pattern for other information
- services in the future, we believe that Congress should take careful
- steps and consider long-term goals. To guarantee that this medium
- continues to fulfill its potential as a forum for political debate
- and the free flow of ideas to the public, Congress could adopt
- legislation that would extend common carriage non-discrimination
- duties to all enhanced service providers.
-
- Neither BOCs nor IXCs would be allowed to terminate service
- because of anticipated harm to their "corporate image."
- Though providers of 900 information services did have their
- freedom of expression abridged by the BOC/IXC action, First
- Amendment protection is probably not legally available to them
- because there was no state action underlying the termination.
-
- If efforts to encourage the development of the National Public Network
- are successful, more and more expressive and communicative activity will
- rely on new information media. As the locus of communication shifts,
- fundamental principles which protect free expression and free press must
- be adapted so that the same level of protection applies to all
- communication, regardless of the medium.
-
- IV. Make the Network Simple to Use
-
- Today's public switched telephone network is easy to use and adaptable
- for use by people with special needs. Information services that become
- part of this network should reflect this same ease-of-use and
- accessibility.
-
- "Transparency" is the Holy Grail of software designers. When a program
- is perfectly transparent, people forget about the fact that they are
- using a computer. The mechanics of the program no longer intrude on
- their thoughts. The most successful computer programs are nearly always
- transparent: a spreadsheet, for instance, is as self-evident as a ledger
- page. Once users grasp a few concepts (like rows, cells, and formula
- relationships), they can say to themselves, "What's in cell A-6?"
- without feeling that they are using an alien language.
-
- One of the great virtues of the public switched telephone network, from
- a user's perspective, is that it operates according to patterns and
- principles that are now intuitively obvious to almost everyone. As this
- network grows beyond just voice services to digital information
- exchange, the same kind of ease and user comfort should be maintained.
-
- For example, information services will need standards for presenting
- textual information in formats that are pleasing to the eye and easily
- manipulable by users. Today, though, the only common standard for
- computer text is the American Standard Code for Information Interchange
- (ASCII). But ASCII is inadequate; it ignores fonts, type styles (like
- boldface and italics), footnotes, headers, and other formats which
- people regularly use. Each word processing program codes these formats
- differently, and there is still no intermediary language that can
- accommodate all of them. The National Public Network will need such a
- language to transcend the visual poverty and monotony of today's
- telecommunicated information. It will also need additional standards
- beyond what have been developed for message addresses and headers, a
- common set of directories (the equivalent of the familiar white pages
- and yellow pages directories), common specifications for coding and
- decoding images, and standards for other major services.
-
- Since current standards are inadequate to the demands of users:
-
- We ... need to endow the NII [National Information Infrastructure]
- with a set of widely understood common communication conventions.
- Moreover, these conventions should be based on concepts that make
- life easier for us humans, rather than for our computer servants.
-
- The development of standards is vital, not just because it helps makes
- the network easier to use, but also because it ensures an open platform
- for information providers. In shaping the standards development
- process, we can draw guidance from the voluntary, cooperative style of
- standards setting that has help the Internet to flourish. The technical
- and management standards that govern the Internet have evolved over more
- than twenty years to the mutual benefit of all members of the network.
- Furthermore, the TCP/IP standards at the heart of the Internet, have
- contributed much to our general understanding of network architecture
- principles and practice.
-
- Congress and government regulatory bodies may need to set out the ground
- rules for standards planning in order to ensure that all interested
- parties have an equal voice, and the resulting standards should be
- closely analyzed to make sure that they reflect public needs. But,
- direct government involvement in the process should be as limited as
- possible.
-
- V. Protect Personal Privacy
-
- The infrastructure of the NPN should include mechanisms that support the
- privacy of personal information and personal communication.
-
- As the NPN develops there are two main threats to privacy. First,
- electronic communications meant to be private can be intercepted with
- the consent or even knowledge of the communicating parties. The
- Electronic Communications Privacy Act addresses these concerns, but some
- modifications in its approach may be necessary.
-
- Second, as the public switched telephone network is used for
- an increasing variety of transactions, it will hold a more
- personal information about consumers. This includes not only
- financial data, but also buying patterns and preference that
- can reveal a great deal about a person's habits and lifestyle.
-
- The privacy of telephone conversations and electronic mail is already
- protected by the Electronic Communications Privacy Act. Without a valid
- court order, for example, wiretaps of phone conversations are illegal
- and private messages are inadmissible in court. Legal guarantees are not
- enough, however. Although it is technically illegal to listen in on
- cellular telephone conversations, as a practical matter the law is
- unenforceable against private parties. Imported scanners capable of
- receiving all 850 cellular channels are widely available through the
- gray market.
-
- Cellular telephone transmissions are carried on radio waves which travel
- through the open-air. The ECPA provision which makes it illegal to
- eavesdrop on a cellular call is an inadequate means to achieving the
- correct end. Privacy protection would be greatly enhanced if public-key
- encryption technology were built into the entire range of digital
- devices, from telephones to computers. The best way to secure the
- privacy and confidentiality Americans say they want is through a
- combination of legal and technical methods.
-
- With respect to privacy of personal information, we need to give
- citizens greater control over information collected, stored, and
- disseminated by telephone companies and information providers. As the
- public outcry over Caller ID demonstrates, citizens want and deserve to
- have adequate notice about what information is being collected and
- disseminated by communications firms and must be able to exercise
- informed consent before information collected for one purpose can be
- used for any other purpose. To accomplish this, we need to build on the
- provisions in the legislation before you. We can also incorporate and
- build upon the baseline privacy rules that were established for the
- cable industry in the Cable Deregulation Act of 1984.
-
- VI. Preserve and Enhance Equitable Access to Communications Media
-
- The principle of equitable access to basic services is an integral part
- of nation's public switched telephone network. We must ensure that all
- Americans have access to the growing information services market.
-
- Finally, Mr. Chairman, we need to ensure that all citizens have
- equitable access to enhanced information services that serve the public
- interest. As you know, telephone companies and others paint a vision of
- the future in which all citizens have access to education services such
- as distance learning or on-line health care services. Neither market
- competition nor lifting restrictions on telephone companies alone will
- deliver these services. It is time for those who propose serving the
- "information have nots" to admit that equity can not be achieved except
- by legislative mandate and public funding. The Electronic Frontier
- Foundation is prepared to work with the Congress and consumer groups to
- achieve these important goals.
-
- Conclusion
-
- The chance to influence the shape of a new medium usually arrives when
- it is too late: when the medium is frozen in place. Today, because of
- the gradual evolution of the National Public Network, and the unusual
- awareness people have of its possibilities, there is a rare opportunity
- to shape this new medium in the public interest, without sacrificing
- diversity or financial return. As with personal computers, the public
- interest is also the route to maximum profitability for nearly all
- participants in the long run.
-
- The major obstacle is obscurity: technical telecommunications issues are
- so complex that people don't realize their importance to human and
- political relationships. But be this as it may, these issues are of
- paramount importance to the future of this society. Decisions and plans
- for the NPN are too crucial to be left to special interests. If we act
- now to be inclusive rather than exclusive in the design of the NPN we
- can create an open and free electronic community in America. To fail to
- do so, and to lose this opportunity, would be tragic.
-