Blumenfeld, Seth D.

English

Indiana University Bloomington Maurer School of Law

Federal Communications LawJournalVolume 47 | Issue 2 Article 912-1994Developing the Global Information InfrastructureSeth D. BlumenfeldMCI Communications CorporationFollow this and additional works at: http://www.repository.law.indiana.edu/fcljPart of the Antitrust and Trade Regulation Commons, Communications Law Commons, and theInternational Trade Law CommonsThis Essay is brought to you for free and open access by the Law SchoolJournals at Digital Repository @ Maurer Law. It has been accepted forinclusion in Federal Communications Law Journal by an authorizedadministrator of Digital Repository @ Maurer Law. For more information,please contact wattn@indiana.edu.Recommended CitationBlumenfeld, Seth D. (1994) "Developing the Global Information Infrastructure," Federal Communications Law Journal: Vol. 47: Iss. 2,Article 9.Available at: http://www.repository.law.indiana.edu/fclj/vol47/iss2/9Developing the Global InformationInfrastructureSeth D. Blumenfeld*The telecommunications industry is participating in a major dialoguethat has been launched by the Clinton administration's program for aNational Information Infrastructure (NII) and its concept of a GlobalInformation Infrastructure (GII). A GII is the logical next step in thedevelopment of the NII since U.S. consumers are international consumers,and our economy is inextricably linked to the economies of virtually everyother country.MCI is contributing to the development of the NII and GII in manyways. Through its networkMCI project, MCI will be investing more than$20 billion to expand the scope and capabilities of the informationsuperhighway. The networkMCI vision represents the largest commitmentby a U.S. long-distance company to invest in and create alliances to buildthe communications infrastructure for the twenty-first century. MCI is alsodeploying its broadband information superhighway, which uses SONETtechnology at speeds fifteen times faster than any commercially availablenetwork, throughout the MCI domestic network. This technology will beimplemented on international routes by 1995. Moreover, MCI will beinvesting more than $2 billion in fiber rings and local switching infrastruc-ture in major U.S. metropolitan markets.The administration has adopted five principles for developing the NII:encouraging private investment, promoting competition, creating a flexibleregulatory framework, providing open access, and ensuring universalservice. The implementation of these principles will encourage the privatesector to build the NII and stimulate the most productive uses of what willbecome a powerful economic tool. These same principles are also centralto the successful development by the private sector of an advanced,globally accessible and affordable GIL.* The Author is Group Executive of External Affairs for MCI CommunicationsCorporation, responsible for directing the company's legislative, regulatory, and internationalaffairs. J.D. Fordham University Law School, 1965.FEDERAL COMMUNICATIONS LA W JOURNALTo a significant degree, the backbone for a ubiquitous, seamlessglobal network already exists in the form of satellites and fiber-optic cablesthat interconnect countries. What is missing are the domestic networks inmany countries that permit affordable and instantaneous access to theadvanced services which can be carried through that backbone network, andlegal environments receptive to foreign investors and competitors.The U.S. government can play an important role in the developmentof the GII, but that role must be clearly delineated. That role should be toafford private industry the leeway it needs to develop creative, timely, andefficient solutions to customers' needs, while at the same time, workingwith and encouraging foreign countries to open their markets. The U.S.government should afford U.S. telecommunications companies both thestructural and regulatory flexibility to continually refine and expand theirglobal service offerings. U.S. telecommunications companies must be ableto develop, through relationships with other domestic and foreigncompanies, the service and technological synergies and complementary skillsets that are essential to satisfying the requirements of customers operatingon a global scale.The U.S. government can assist the efforts of companies in buildingthe NII and GII by: (1) not erecting regulatory barriers that increase costand risk; (2) permitting companies to engage in foreign commercialrelationships; and (3) working closely with the governments of othercountries to create environments that allow private telecommunications toinvest in, and deliver, information services to those countries.Perhaps the U.S. government's greatest challenge is to promotecooperation and collaboration among competing companies and countriesin a manner that advances the overall goal of opening markets to privateenterprise. This effort will require close coordination with U.S. industry. Itwill also require international diplomacy that facilitates change, respect forthe sovereignty of both the United States and other countries, and clarityabout GII objectives and requisite actions.One of the most significant contributions the U.S. government canmake at this pivotal time is to help "internationalize" the way industriesand governments think about communications issues. It is worth bearing inmind that the U.S. government has had its greatest successes in facilitatingchange in other countries' communications markets when it has itself setan example. In order to succeed in this endeavor, the U.S. government mustdo four things.First, as other countries liberalize their markets, the U.S. governmentmust remain sensitive to the need for the United States to "retain the highground in its own market." Areas that deserve careful attention in this[Vol. 47DEVELOPING THE GIIregard include: laws and regulations that might make sense in a domesticcontext but could impede a GII when translated to the global arena; areasof the U.S. market that are more closed to foreign participation than thatwhich the U.S. government is advocating internationally; and domesticpolicies and regulations that inadvertently provide an excuse for closedmarkets or for more restrictive regulation abroad.Second, the U.S. government must be aware that because of differentcultures and traditions, no other market or regulatory scheme will be acarbon copy of what we have in the United States. To speed the develop-ment of the GII, U.S. policy must accommodate these variances.Third, the U.S. government must continue to push for fair treatmentof U.S. companies in foreign markets. There are a variety of means toaccomplish this, such as having the Federal Communications Commissionset benchmarks for determining whether markets are open and reserving theright to adopt other measures should the benchmarks not be met over time.Fourth, the U.S. government must pursue synchronized communica-tions and trade policies; all parts of the U.S. government must be seen, bothinternally and externally, as pursuing consistent policies.The U.S. government can expedite the development of a seamless,interoperable GII by continuing to work with other governments tostrengthen and streamline formal and informal international bodies, such asthe International Telecommunication Union (ITU). Such streamlining willpermit swift and internationally effective action on global standards. Forthese international customers, the U.S. government needs to promotestandards that support technological development and the worldwideintroduction of new services. However, to ensure that the standardsdeveloped represent the best interests of U.S. companies and consumers, itis essential that the government involve industry at all levels in theinteragency planning process.The rapid development of a GII depends not only on strengthening theinternational standards process, but also on the global extension ofprotection such as privacy and intellectual property. The U.S. governmentshould advance domestic interests in these areas. The government shouldwork to eliminate the artifacts of past monopoly structures and regulatoryregimes in other countries. Open markets and collection rates that approachcosts-both consistent with the principles of the GII-should be a highpriority. Moreover, as foreign markets become more hospitable tocompetition, the U.S. government should support industry's efforts to takeswift advantage of such opportunities.The U.S. government needs to continue its support of collection rateswhich approach cost through the following three-pronged program: (1)Number 2]FEDERAL COMMUNICATIONS LAW JOURNALsupporting U.S. industry efforts to negotiate lower accounting rates andthereby rebalance settlements between U.S. carriers and their foreigncorrespondents; (2) encouraging the introduction of competition into theinternational telecommunications market wherever and whenever possible;and (3) participating actively in bilateral and multilateral forums to developguidelines to facilitate lower rates.A healthy worldwide communications sector provides the surestguarantee that private industry can meet the challenges of building,operating, and providing services over a global information infrastructure.The U.S. government can encourage the growth of that sector by: (1)working to eliminate regulatory and political barriers to the internationaldiffusion of technology, including both tariff and non-tariff barriers suchas standards and quotas; (2) developing a focused and coordinated programof assistance for developing countries that draws on industry, internationalfinancial institutions, the U.S. Telecommunications and Training Institute,and U.S. aid programs; (3) promoting international privatization efforts; and(4) allowing U.S. companies the flexibility to attract capital from a varietyof sources so they may create the services necessary to compete success-fully on a global scale.In sum, the U.S. government can play a key role in promoting a GIIby ensuring, through the steps discussed above, that U.S. telecommunica-tions companies have the ability and flexibility to respond to the demandsand expectations of the international marketplace.[Vol. 47

Developing the Global Information Infrastructure

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