According to the Executive Summary of the NII: Agenda for Action, the NII is a "seamless web of communications networks, computers, databases and consumer electronics that will put vast amounts of information at users' fingertips." But what does that mean for local governments? What's in store for them, or more exactly, what's at stake? Undoubtedly, the NII will bring vast changes to the way local governments operate today.
In order for local governments to hold their own in relation to the telecommunications, cable and telephone industries they must understand the potential impacts of the NII on their jurisdictions and become proactive participants rather than reactive ones.
In April 1994, the International City/County Management Association (ICMA), the National League of Cities (NLC), the National Association of Counties (NACo) and Public Technology Inc. (PTI), joined together to launch a national awareness campaign on the local information infrastructure. The goal of the awareness campaign - which was funded by PTI - was to educate local government leaders about the impact of telecommunication issues in their communities. The campaign was also designed to help leaders become more involved in the NII on their own and through the leadership of the organizations involved.
The campaign called for three stages of action: a national survey, the production of a variety of publications on the topic, and a national teleconference, which took place last September. The teleconference, which had over 750 participants located in more than 42 sites across the country, featured national telecommunications leaders and local government executives in innovative jurisdictions across the country who are leading the way in the field of telecommunications. The teleconference showed local government leaders what changes have already taken place and what changes are in store with the advent of the NII.
IMPACT OF THE NII
On a positive note, the NII will provide communities with increased opportunities for jobs, economic development, and education. It will allow jurisdictions the opportunity to use technology that would not otherwise be available to them. For instance, a hospital in a rural area will be able to use the information superhighway to get the technical assistance it needs from a hospital thousands of miles away when diagnosing a patient.
Furthermore, the information superhighway will bring change to the way employees and citizens interact with all levels of local government. There will be access, most often 24 hours a day, to local, state and federal databases. From their desks, employees will be able to tap into data that, in the past, required significant research. Citizens will be able to apply for permits, pay their bills, and look up community activities via their home computer. Mayors and managers will be able to receive instant feedback from their citizens via community bulletin boards.
RISKS TO LOCAL GOVERNMENT
But many risks and potential losses await local governments as they begin their journey onto the information superhighway. The first and most prominent risk is the potential loss of franchise fees through the loss of regulatory authority of public rights-of-way. According to Nicholas Miller, author of Local Government: The Silent Investor in Wireline Telecommunications Networks, "Public rights-of-ways are the most valuable property rights now in the hands of any level of government." The loss of franchise fees by local government and the loss of regulatory authority for public rights-of-way means more than financial loss, it means a loss of empowerment for local government. Local governments will no longer be allowed to look out for their own - and their citizens' - best interests in terms of what types of telecommunications systems are brought into their communities.
Other issues that surround the NII include privacy and universal access. How will sensitive information be handled and protected? How will local governments guarantee their employees and their citizens that information will not fall into the wrong hands or be broadcast for public knowledge? Problems exist now over confidentiality on the Internet. "Hackers" have become rampant in all areas of the existing infrastructure. Local governments will have to address this issue in the beginning, not after it has become a problem.
Universal access leads to another area of concern. Will the information superhighway become an avenue for the elite in the community? A strong division between the "haves" and "have nots" could form; the citizens in lower income brackets, citizens who are less educated and those who lack the technical skills to "hook up" could be left on the wayside. Local governments will need to devise a way for all citizens to have access to the information highway.
The key for dealing with these problems is for local governments to become actively involved with the NII so as not to be left behind by the telecommunications, telephone and cable industries. Whether this involvement is through promoting economic development or using what powers they still have (e.g., regulatory authority), local governments need to become active participants in the NII now.
Because many local governments are already using various technologies to share information and deliver services, the organizations involved in the awareness campaign wanted to learn more about local government activities. The telecommunications survey, conducted by ICMA, NLC, NACo and PTI, was used to develop an inventory of information technology at the local level.
SURVEY METHODOLOGY
The survey was mailed in June 1994 to all cities and counties in the United States with populations of 2,500 and over and to all ICMA-recognized cities with populations under 2,500. A total of 10,177 surveys were mailed and 1,119 were returned, generating a response rate of 9 percent. The responses are statistically representative of the population that was surveyed.
KEY FINDINGS
The survey covered a wide range of telecommunications topics from economic development to regulatory issues. There were three major areas in which key findings emerged:
+ Development of telecommunications plans
+ Online services,
+ Use of new technologies and their effects on local government revenues.
The survey indicated that only about 5 percent of local governments responding to the survey have a written telecommunications plan. Communities that have a plan were most likely to have populations between 250,000-499,999, where 42.9 percent of the 21 respondents indicated having a blueprint for telecommunications planning. Communities with populations of 10,000 or less were the least likely, with less than 2 percent having a plan.
Local governments located on the Pacific Coast were the most likely to have a plan (10.9 percent) and those located in the East South Central division were the least likely (2.2 percent).
Local governments that did not have a plan were asked if they would be developing one within the next two years. Surprisingly, only 22.9 percent of respondents indicated that they would be undertaking this activity. Almost 50 percent of the communities with populations greater than 50,000 intended to develop one within the next two years.
Online services are becoming increasingly popular among local governments. Almost 42 percent of survey respondents indicated they used an online service such as the Internet. The larger the community's population, the more likely they were to use online services - over 50 percent of jurisdictions with populations greater than 25,000 use online services.
Of the national online services being used by the survey respondents, the Internet was the most popular (29.3 percent), followed by CompuServe (23.0 percent), Prodigy (10.4 percent), America Online (5.4 percent), and GEnie (.7 percent). Although the Internet was the most popular service selected, some respondents may have selected this option because they use the e-mail function through a commercial provider such as CompuServe
THE SATELLITE CHALLENGE
A new 9-inch satellite dish that costs less than $700 to purchase and can access 150 channels for a monthly fee of $35 is now available and will significantly impact the role of cable television. Over 600,000 units have been sold nationwide and a significant back-order exists in many states. Over 21 percent of survey respondents have citizens who are using this service now. Local governments located in the West South Central (30.0 percent) are most likely to have citizens using this service and jurisdictions located in New England (11.9 percent) are least likely.
The satellite service is a perfect example of the threats that are looming for local government because of the potential loss of franchise fees. Satellite companies that distribute the signal are not required to enter into franchise agreements with local governments, a situation that could lead to a loss of revenue. The survey asked respondents who currently have this service what impact it is having on franchise agreements. About 5 percent of the respondents said revenue decreased, another 10 percent said their franchise arrangements with cable companies could become irrelevant depending on the number of dish users, and almost 70 percent are not sure of the impact at this time.
The majority of survey respondents feel local governments should play a role in regulating cable and television companies (67.6 percent) in some capacity as they soon will be providing similar services. Communities located in the Western half of the country were more likely to favor regulation than those located in the Eastern half.
TELECOMMUNICATIONS PATHWAYS AND FCC CERTIFICATION
Knowing the location and type of telephone, cable, fiber optic and other types of communication equipment within a jurisdiction is important for future information technology planning. The majority of survey respondents (91.0 percent) have not surveyed the locations of this equipment. The 9 percent that have are located in larger jurisdictions, with populations over 1,000,000 being most likely to inventory (50 percent) and jurisdictions with populations between 10,000- 24,999 being least likely (4.9 percent).
Many survey respondents (46.2 percent) have filed with the FCC to be certified as the local cable rate authority. Geographic location seems to play a factor, with local governments located in the Pacific Coast (61.2 percent) and the South Atlantic (58.4 percent) being most likely and communities located in New England (21.2 percent) and Mid-Atlantic being least likely.
CONCLUSION
The decisions that local governments make today about information technology will significantly affect their future as early as three years from now. As one survey respondent noted, "If you do not become involved now, you will not have the chance in five years." It is important for local governments to take the time now to foster their telecommunications plans and initiatives in order to get involved with the NII. After all, "Investing in technology is investing in America's future: a growing economy with more high-skill, high wage jobs for American workers ... an educational system where every student is challenged; and an inspired scientific and technological research community focused on the future."
For additional information on this study, contact Woody Talcove, at the International City/County Management Association, 777 North Capitol Street, N.E., Suite 500, Washington, DC, 20002-4201, 202-962-3589 or via Internet at icma@capcon.net
IMPACT OF THE NII ON LOCAL GOVERNMENT SERVICES
The information superhighway will affect local governments in many ways. Survey respondents were asked how it will affect the following: efficiency of service delivery, citizen involvement, and economic development.
Efficiency of Service Delivery:
Over 80 percent of survey respondents feel the information superhighway will have a positive impact on the efficiency of service delivery in their community. Generally, communities with larger populations were more positive than smaller ones.
Positive Slightly Positive No impact Slightly Negative Negative
37.1% 43.2% 18.9% .7% .1%
Citizen Involvement:
Over 72 percent of respondents feel the information superhighway will increase citizen involvement in their communities. Compared with efficiency of service delivery, more respondents feel the information superhighway will have no impact on citizen involvement.
Positive Slightly Positive No impact Slightly Negative
Negative
25.9% 46.2% 25.7% 2.0% .2%
Economic Development:
Over 70 percent of the survey respondents feel the information superhighway will have a positive impact on economic development in their community, regardless of size.
Positive Slightly Positive No impact Slightly Negative negative
29.4% 42.7% 26.6% 1.2% .1%
