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Technology Governance: A Public Interest Vision for the Telecommunications Age
An Address by
Lawrence K. Grossman

The Webb Lecture, November 14, 1997, Washington, DC

Perhaps it is because we are on the cusp of the new millennium that we seem so preoccupied with technological change these days. Virtually every new technology development is touted as "revolutionary"; we're said to be living through the Telecommunications Revolution, the Digital Revolution, and the Information Revolution; take your choice. And as the century ends, we are also exiting and entering all manner of eras and ages, going from the Industrial Age to the Service Age, from the Mass Media Era to the Cyberspace and Internet Era.

Normally sober and sensible people have taken to hailing the Internet as "the greatest invention since Gutenberg gave us moveable type." And no less a venerable authority than banker Walter B. Wriston tells us, "We are now living in the midst of the third great revolution in history."1 After the Agricultural Revolution and the Industrial Revolution comes the Information Age, the third revolution, being ushered in, Wriston says, by "the marriage of computers and telecommunications," which "has demolished both time and distance." Truly, a marriage, that can demolish both time and distance, had to be made in heaven unless, of course, it was made in hell.
"Some fear that the electronic republic will bring too much democracy. Soon online, keypad balloting will be able to replace voting machines, just as voting machines replaced paper ballots. Imagine this: 'Press 1 to vote for candidate A. Press 2 to vote for candidate B. Press 3 if you think we should go to war. Press 4 if you think we should stay out. Press 5 if you want more information. Press 6 if you want to suggest which targets to bomb.'

"For the new digital electronic era, the nation has the potential to create an interactive, multimedia, public service freeway system on the telecommunications superhighway. It could be an electronic throughway that will reach into every home, school, university, library, museum, hospital, public health center, daycare center, prison and nursing home."

Excerpted from Technology Governance: A Public Interest Vision for the Telecommunications Age

Remarkable social and economic changes, prompted by computer and communications technology, are indeed coming upon us at a furious pace. Revolutionary or not, those changes are transforming the workplace, transforming global markets, and transforming the quality of our lives. Those technology changes are also transforming our centuries' old democratic political system, a fact largely overlooked amidst all the hype over the high tech glitz of the new electronic world.


Americans have always had faith that new technology will solve their problems. Radio and television, for example, weresupposed to reform democracy; make people "more contented citizens;" make government "a living thing instead of an abstract and unseen force," and make elected representatives "honor their responsibilities to those who put them in office." None of that has happened, of course, although thanks to TV news and CSPAN, the congressional floor and the White House, at least, are no longer unseen, which some do not regard as a totally unmixed blessing.

Notwithstanding this century's astonishing technological changes, people remain the same flawed beings they have always been, dealing with the same basic concerns they've always had making a living, bringing up children, staying healthy, living their lives from day to day, cursing government, and blaming elected officials for failing to honor their campaign promises. So at least some skepticism is in order about the inevitable cornucopia of improvements that technology is supposed to bring.

With that equivalent of an obligatory Surgeon General's warning out of the way, I propose to use the bully pulpit of this Webb Lecture to talk about the ways in which new digital telecommunications technology is transforming our nation's political system, our form of government, and to give you my own prescription for what should be done to insure the longevity of our democratic republic, so it will survive through the third century of its existence. After all, our federal system was designed late in the eighteenth century to govern a small, weak and remote new agricultural nation. Miraculously, it survived largely intact through the twentieth century to govern the world's greatest industrial superpower. Is there any reason to believe it won't continue to flourish in the Information Age through the century ahead?

The more access to information people have, the less they vote and the more they drop out of the political process.

Seen from today's perspective, though, the nation's political vital signs do not look so good. We enter the new millennium with a healthy economy but a desultory, disaffected body politic. The more access to information people have, the less they vote and the more they drop out of the political process. The last presidential election had seven million additional eligible voters, five million additional citizens who registered to vote, and nine million fewer voters than in the previous election. Polls show profound voter alienation and a high degree of public discontent with politics as it is now practiced.

For most of the middle class, who make up the backbone of the electorate, dropping out of politics is a perfectly sensible and rational response to the fact that who wins or loses on election day probably will make precious little difference to their lives and wellbeing. The focus of today's "me generation" has been selffulfillment and personal satisfaction, rather than concern for the common good and the general welfare. Politics has become largely irrelevant to most middle class lives.

Nor have today's political practices made it very easy for sensible people to respect public office or its occupants. In 1996, 752,000 paid political commercials ran in the top 75 markets between April 1st and election day, at a cost of $400 million. As Russell Baker wrote recently, "We are"awash in political advertising, those floods of insincerity that pass for political discourse in America". Everybody down to the dimmest threeyearold recognizes these commercials as brazen nonsense."2 Political consultant Dick Morris, who hires himself out to all sides of the political spectrum, represents to me, the ultimate professional perversion and corruption of American politics today, in which the means of winning elections have become all consuming, obscuring the ends, the very purpose of getting elected.

Our election campaigns are nasty, negative, content free, staged affairs, filled with cynicism and double talk. The bloated cost of political campaigns imposes a stranglehold on the political agenda, demanding tribute from every candidate for major public office, whether incumbent or challenger. Will any of that change in the digital telecommunications age, where information flows with the speed of light, not just from the top down, from one to many as it has in the television and print eras, but now also from the bottom up, from everyone to everyone, everywhere from the people back to the government as well as from the government to the people?

Looking ahead, most people want a form of government in which their voice can be heard, in which they have a say in major policy decisions, and in which big money does not count for more than they do. We see many signs of that at the state level. In the states, the electorate has consistently voted for term limits to curb the power of entrenched incumbents. Increasingly, major government decisions are made by the electorate in the voting booth through ballot initiatives and referenda, rather than made in state legislatures by elected officials. And direct primaries have replaced party bosses and party delegates in choosing presidential candidates. Political power is being devolved back to the states, supposedly to bring government closer to the people and give them more control. (But are there any governments more remote, and about which people have less knowledge than their state governments? Print and electronic media coverage of what goes on in our outoftheway state capitals is virtually nonexistent.) And at every level of government federal, state and local public opinion polling holds center stage in the decisionmaking process.

All of that, I suggest, adds up to a rather new and unprecedented form of governance. And telecommunications technology is serving as the catalyst that is helping to bring it about. In my book, I called the new form of governance the "electronic republic,"3 a hybrid political system that is beginning to meld America's traditional representative republic with new elements of electronic direct democracy. The shape the electronic republic is taking is becoming increasingly clear.

For one thing, the new political system deprives government of most of its independent initiative in policymaking and decisionmaking. Officials have little choice but to react to, and accommodate public opinion, special interest groups, and organized segments of the population. Like an instant giant voting machine, daily public opinion polls record in real time the views of the electorate, no matter how illinformed or unformed their views may be. Incessant polling, email, 800 numbers, telephone banks, faxes, the internet, and callin shows have exponentially increased the daily exposure of public officials to their constituents. "Big brother" turns out not to be the Orwellian tyrant, who keeps every citizen under continuous electronic surveillance. Instead, "Big brother" turns out to be the ordinary citizen, who can now keep his or her elected leaders under continuous electronic surveillance; intruding on both their public and private lives.

Thomas Jefferson could cut a deal to buy the Louisiana Territory from France, doubling the size of the nation, without letting anyone know about it for a year or more.

Elected officials no longer go off in relative isolation to the swamps of Washington, D.C., or to remote state capitals like Sacramento, Albany, Lansing, Springfield, and Tallahassee to pass laws. For the first 150 years of the republic, legislators, once they were in session, had virtually no contact with their constituents. On most issues, they had no choice but to exercise their own independent judgment. The classic debate among political theorists over how much elected representatives should reflect the opinion of their constituents back home took place in a world in which many groups could not vote, news was scarce and hard to come by, and no one really knew how to measure public opinion other than by an election. The difficulty of travel and irregularity of mail delivery made communication between government officials and their constituents problematic in the extreme. Thomas Jefferson could cut a deal to buy the Louisiana Territory from France, doubling the size of the nation, without letting anyone know about it for a year or more.

Now, we are in the age of nonstop public opinion polling and focus group interviewing. No major political decisions are made without first taking the people's pulse to see what will be acceptable. No longer is democracy a leisurely system where the people vote every few years to elect a handful of representatives who are supposed to make all the important decisions for them. California has reached the point where the rising tide of ballot initiatives and referenda now are responsible for the majority of the state's major political decisions. In California, more money is now spent lobbying the general public than lobbying government officials, which is one reason the cost of politics has soared. And as California goes, so goes the nation.

In the words of Canadian media guru Marshall McLuhan, "As the speed of information increases, the tendency for politics is to move away from representation and delegation of constituents, toward immediate involvement of the entire community in the central acts of decision." Whig Congressman Daniel Bernard said it best a centuryandahalf ago, "Perhaps the severest trial to which the virtue of any people can be subjected is when everyman has a share in the government; for when everyone governs, few indeed are willing to submit to be governed; when everyone commands, nobody likes to obey."

All of which may help explain today's gridlock government and the spread of single issue politics. Because electronic signals do not respect geographical boundary lines, the electronic republic is redefining the meaning of community itself, and is at least partly responsible for the decline of sectional politics and the emergence of single interest politics. Geography still provides the structural foundation of our political system: We vote where we live; the work of government is rooted in election districts, wards, counties, and states. Yet all over the country people sitting in their kitchens, dens and living rooms with laptop or desktop PCs, are generating small political upheavals. Using the internet, they overcome barriers of time and geography to communicate, conspire, and organize with distant fellow citizens who share their passion for abortion rights, prayer in schools, immigration restrictions, welfare reform, home education, or health insurance expansion.

That has its problems. In the words of new Carnegie Corporation president Vartan Gregorian, "The popular prediction that electronic communication would create a global village is wrong. What is being created," Gregorian said, "is less like a village than an entity that reproduces the worst aspects of urban life: The ability to retreat to small communities of the likeminded, where we are safe not only from unnecessary interactions with those whose ideas and attitudes are not like our own, but also from having to relate our interests and results to other communities."

We long for the oldtime civic spirit, the warmhearted community atmosphere when people turned out together to fill the town square for election rallies, picnics and torch light parades, brass bands and fireworks, and listen to hours of political speechifying. Politics then was the centerpiece of the nation's social and community life. It was the public's primary source of free entertainment. Today, however, politics can't begin to compete with the torrent of professional entertainment and sport that now fills everyone's television screens all hours of the day and night.

Still, the convergence of satellite, computer, television, telephone, radio, print and the Internet in the digital age makes it possible for the public to participate in the political process in extraordinary new ways. Gutenberg made everybody a reader. Xerox made everybody a publisher. Interactive telecommunications is making everybody a potential lobbyist. We see the most dramatic evidence of that in today's global markets. Traders throughout the world sit at their computer consoles issuing buy and sell orders, making instant judgments on governments' policy decisions, forcing even the most powerful nations to react instantly in turn. Witness the recent Asian currency meltdown.

A remarkable metaphor for the electronic republic's new hybrid political system can be found in, of all places, the apocalyptic Book of Daniel, the Old Testament's parable of the Dream of King Nebuchadnezzar. Nebuchadnezzar dreamt that his kingdom of gold would be replaced by a kingdom of silver, then by a kingdom of bronze, and finally, by a fourth kingdom, "strong as iron," the Bible says, but mixed with common clay. The fourth kingdom, the Bible predicts, "shall be partly strong and partly brittle." But it "shall not be stable," for iron does not mix well with clay. We are entering an era in which the iron of our representative republic, where officials make all the key decisions, is being mixed with the common clay of new style electronic direct democracy. And, so far, if not instability, gridlock seems to be the main result.

The electronic republic holds much promise. It offers more democracy, giving the public a seat at the table where major political decisions are made, and the opportunity for more firsthand participation in the life and death decisions that directly affect people's lives and future. People, no matter how far from the centers of power, now have the capacity to act, in effect, as a fourth branch of government.

Some fear that the electronic republic will bring too much democracy. Soon online, keypad balloting will be able to replace voting machines, just as voting machines replaced paper ballots. Imagine this: "Press 1 to vote for candidate A. Press 2 to vote for candidate B. Press 3 if you think we should go to war. Press 4 if you think we should stay out. Press 5 if you want more information. Press 6 if you want to suggest which targets to bomb."

We can vote wherever we are, at any time, whenever public feedback is useful, as often as any elected official wants to know what the public thinks.

Will it come to that? With the keypad ballot, we will no longer need to wait until election day to vote. We can vote wherever we are, at any time, whenever public feedback is useful, as often as any elected official wants to know what the public thinks. In effect, that is exactly what is happening now unofficially, with continuous electronic polling and focus group interviewing.

There are serious dangers to all this, of course:

  • Those with the most money and greatest access to the media are in a unique position to manipulate public opinion.
  • Without some system of checks and balances, in the electronic republic a runaway majority can trample on the rights of an unpopular minority. Thus, it's one thing for judges to declare unconstitutional a law passed by a legislature. But imagine the overwhelming pressure on judges who decide to overturn ballot initiatives or referenda that directly reflect the expressed will of the majority, especially in states where judges are elected.
  • An increased dose of direct democracy certainly makes strong leadership more difficult to achieve. As Winston Churchill once said, "The leader who constantly keeps his ear to the ground is hardly in a position to be looked up to by his constituents." Yet in the electronic republic no leader can afford not to keep an ear to the ground at all times.

The founding fathers sought to avoid any hint of direct democracy with their elaborately contrived system of constitutional checks and balances and separation of powers. Their chief motivation in writing the Constitution was to replace the populist, too democratic Confederation of States with a federal republic that would protect the new nation from an excess of democracy, from rule by a passionate, illinformed and, worst of all, ignorant and poor majority.

Now that the people have the power to participate directly in major political decisionmaking, obviously, it is essential . . .[To] . . . equip them with whatever level of civic information and education they need.

Can today's citizens of the new electronic republic be trusted to make sound, sensible, subtle public policy decisions, when according to every survey, their ignorance of so many key issues is so profound? In the oftquoted words of Thomas Jefferson, "If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be."5 Now that the people have the power to participate directly in major political decisionmaking, obviously, it is essential that something be done to lower their level of ignorance and equip them with whatever level of civic information and education they need. Interactive telecommunications technology has given us the tools, if only we can put them to good use.

It is ironic, though, that one of those tools, television, is held responsible for much of the public's ignorance, for our impoverished civic life, for the current crisis of political disaffiliation, for the nation's cynicism about government, for people turning their back on the public sphere. And that blame is well placed. But I suggest that in this media age, we have highly unrealistic expectations of the media; we rely heavily on the press, especially TV, to provide all the civic information we need, and to deliver it in fairminded, thoughtful, and interesting fashion. We expect the press to operate in the public interest and to stimulate people's informed engagement in civic life. So, why then does television, our chief source of information about what is happening in the world, do such a rotten job? With people in this digital age having access to so much more information than ever before, why do they show so little interest in the democratic process? What has gone wrong?

A good deal of the fault, I suggest, lies with our national telecommunications policy, which these days does virtually nothing to stimulate and encourage the electronic media to operate in the public interest, except to require several hours a week of educational programming for kids. By contrast, 75 years ago, the first broadcasting era was shaped by the conviction that the foremost mission of the powerful new medium of radio should be to serve the national and the public interest. In every country except the United States, public interest or state broadcasters dominated radio and then television service, and held national monopolies. The BBC in England, NHK in Japan, RAI in Italy, Gostal Radio in the former Soviet Union and their governmentsponsored counterparts in other nations dominated the broadcasting era throughout most of the world. Most countries took many decades before commercial radio and television were even allowed on the scene. While those public systems professed to serve the national and public interest, too many existed essentially to serve the government in power.

Even in the United States, the one nation that began with commercial broadcasting largely free of government content control, and where public TV and radio have been a weak, underfunded afterthought, it was the public interest standard that drove broadcast policy. Broadcasters were viewed as public trustees, charged with special public interest obligations under the law in order to get and retain their radio station licenses. That meant airing news, education, religious and children's programming, and covering controversial issues of concern to the community in a fair and balanced manner. License renewals were supposed to depend on how well stations fulfilled that role. The FCC's public interest regulatory scheme was always more rhetoric than reality and was never effectively enforced. But it nevertheless spawned an honorable broadcast network news and journalistic tradition in an era when the three radio and television networks dominated the industry.

People even rank local TV newscasts higher in importance than network news, newspapers, newsmagazines or any other source. And that is really scary.

By contrast, local news, which barely existed during broadcasting's first 50 years, was never so highminded. Local news came to prominence only after the public interest doctrine was seen to be a paper tiger and the FCC a weak and docile agency that for most of its history protected broadcaster interests more than the public's interest. Local newscasts, which have blossomed into largescale station profit centers, never developed any such highminded journalistic tradition. Crime stories, feelgood features, anchor chatter, sports and weather fill local news shows from one end of the nation to the other. And that is scary because today, local TV newscasts are the public's number one source of news, the place most people turn to for most of their information about what is happening in the world. People even rank local TV newscasts higher in importance than network news, newspapers, newsmagazines or any other source. And that is really scary.

As we enter the new century, and begin the global race into the second era of electronic communications, the Information and Telecommunications Era, the conventional wisdom is that the public's access to civic information and education are bound to increase. Is the conventional wisdom accurate? Unlike the start of the Broadcasting Era, the race into the Telecommunications Age is being driven entirely by marketplace imperatives, and the race is being led by a handful of global multimedia giants, mostly American companies DisneyABC, TimeWarner, GENBC, Rupert Murdoch's News Corp., WestinghouseCBS, TCI and Viacom. Their singleminded mission is to create commercial value and make money. Performing public service, serving the public interest, and doing good works are not their prime priorities and, in fact, are basically irrelevant to their multimedia business. They are in business to generate cash flow, raise their stock price and produce a bigger profit than last year for their owners and managers. That is how their success or failure is judged. That is how the markets expect them to perform. That is their reason for being. These companies choose programs to attract audiences and advertisers, not to improve the human condition. And if a media conglomerate decides that replacing global news with light features or crime stories will attract more viewers and make more money, or if it decides that reducing program standards will increase audience appeal, that's exactly what it will do.

Public service and public interest telecommunications do not make money; they lose money. As governments all over the world shrink and privatize, as budgets for public service broadcasting diminish, and as deregulation largely frees multimedia companies from even their token public interest responsibilities, the public interest invariably gets redefined to be "whatever interests the public." Today, U.S. radio and television stations merely send the FCC a post card to get their licenses renewed. The people receive a full diet of what they want, and a wholly inadequate diet of what they need. The result is too much sizzle, too little substance. The dilemma is that in this new digital telecommunications era, there's no way that any government agency can, or should regulate the thousands of radio and TV channels and digital outlets that send out their signals via cable, global satellite, overtheair broadcast, cassette, computer and even telephone. In a free society, we should actually welcome the end of the era of government regulation of electronic communications, a regulatory scheme that gave radio and television second class status in First Amendment matters and never worked properly in the first place. But the total marketplace approach to telecommunications policy does not supply all the answers either.

The marketplace approach has meant, realistically, the end of the public interest standard. It has also produced the most phenomenal outpouring of entertainment, sports, and electronic commerce imaginable , simply because entertainment, sports, and electronic commerce produce virtually all the money and profits the industry makes. When Disney chairman Michael Eisner was asked why Disney bought ABC, he attributed the acquisition to ABC's potential to exploit the world's insatiable appetite for "nonpolitical entertainment and sports."

Eisner was right. Even today's prime time network news offerings, popular and profitable newsmagazine shows like NBC's -Dateline,- CBS' -48Hours,- and ABC's -Prime Time- and -20/20,- do not bring us news in the traditional sense, but nonfiction entertainment. That helps explain the -dumbing down,- the tabloidization, the focus on crime and sex, happy talk, soft features and heartwarming stories about pets, instead of reporting on government, international affairs and important public issues. It is diversion and amusement entertainment that attracts the biggest audiences and the most advertisers, and that makes the most money.

News, once the proud centerpiece of all three nationwide broadcasting companies, now represents a relatively insignificant financial blip on the balance sheets of the major telecommunications conglomerates. Corporate investment in global news coverage, foreign news bureaus, documentaries on critical issues, civic information and public affairs is actually shrinking, even while the same multimedia companies pour increasing billions into the fabulously lucrative businesses of entertainment and sports. Billions for basketball, a pittance for serious reporting. Yes, we have an explosion of 24hour cable and online headline news services. But, ironically, what is most remarkable about the mainstream multimedia entertainment companies today is how little, not how much they spend on what used to be viewed as vital, serious news reporting and public affairs.

We are in the paradoxical position today of relying on a handful of global multimedia entertainment companies to bring us virtually all the information most Americans receive about what is going on in the world. For Disney, TimeWarner, Fox, NBC, Westinghouse, Viacom are all essentially entertainment companies. So, notwithstanding the conventional wisdom, that we are heading into the Information Age, I suggest it is more accurate to say that we are heading into the Entertainment Age and the age of electronic commerce. Those are enormously important services. But what is missing, as we rush headlong into the new digital telecommunications era, are the vital categories of civic information, education, public affairs, culture and quality children's fare. All are essential for the health and stability of our democratic society but none will ever be funded sufficiently in the marketplace because there's no profit to be made in any of them.

So the critical question remains: How do we use our marvelous new interactive, digital multimedia technologies not only for entertainment and amusement, and not only for electronic commerce but also to enrich people's lives with lifelong education, civic information, the dissemination of arts and culture and the delivery of quality children's fare? How, in such an environment, can we fulfill the essential information and education needs that the marketplace by itself does not provide for us?

That will require an entirely new model, a new paradigm, a new vision; a new public interest telecommunications policy for the digital age. In the digital, interactive telecommunications era, all media will be integrated. Through the convergence of computers, satellites, television, radio, telephone and even the printing press, citizens could have free access not just to informative and interesting public radio and television programs but also to educational offerings in every medium, including telecourses, audio and videocassettes, texts, CD Roms, printouts on demand, Internet web sites, electronic town meetings, group discussions, you name it. The next generation of TV sets with digital and interactive capacity will provide everyone with high speed access to twoway Internet and other multimedia services, as well as to television programs. And the recent FCC decision to convert TV stations from the analog to digital standard means that eventually everyone will have to acquire new digital TV sets or converters in order to watch any television at all.

. . . the nation needs to allocate sufficient funds to create and produce the multimedia, interactive content that will be carried on the electronic public freeway.

For the new digital electronic era, the nation has the potential to create an interactive, multimedia, public service freeway system on the telecommunications superhighway. It could be an electronic throughway that will reach into every home, school, university, library, museum, hospital, public health center, daycare center, prison and nursing home. Equally important, if not more important, the nation needs to allocate sufficient funds to create and produce the multimedia, interactive content that will be carried on the electronic public freeway. Without the money for quality content, the public freeway itself will be merely a wasted resource, the way public access channels today are wasted resources in most cable areas. The new telecommunications content should address the nation's priority needs for lifelong education, civic information, free political time, quality children's fare and the like.

I list lifelong education first because one of the most remarkable achievements of this century has been the addition of the equivalent of an entire generation, almost three decades, to the average American's life span. In 1900, the average person lived to age 47; in 1997 the average person is living to age 76. And people are healthier, more energetic and more active than people in their 40's a century ago. So the critical need has been extended beyond the traditional frontloading of education for children, to include job retraining and lifelong learning.

The new public policy I have in mind would bring about a great interactive, multimedia, public telecommunications network designed to serve all the people; a public network run not by the government, but run by a grand alliance of the nation's research universities, its public library systems, museums, arts and science academies, as well as notforprofit public institutions such as the Library of Congress, the Smithsonian and the public broadcasters. The goal of our new public telecommunications policy should be to have these notforprofit institutions come together in a broadbased public telecommunications alliance and operate the new information system devoted to the public interest locally, regionally and nationally.

The resources and talents that are capable of creating, distributing and validating all the educational and informational content the public needs already exist throughout the United States.

The good news is that we do not have to start from scratch to build such a model. The resources and talents that are capable of creating, distributing and validating all the educational and informational content the public needs already exist throughout the United States. Today, our notforprofit research universities, public library systems, museums, and science and arts academies educate and inform millions of Americans who come through their doors. The trick now is to give these public institutions and public broadcasters the resources they need to take full advantage of the new interactive telecommunications delivery systems that will enable them to operate outside their walls and enrich the lives of all Americans. America's libraries, museums and universities were completely bypassed by the television and radio age. It would be incredibly wasteful and destructive to allow them also to be bypassed in the telecommunications age.

Fortunately, the job of building this new broadbased public telecommunications grand alliance should not be all that difficult or expensive. It can be accomplished simply by taking a thin slice off the top of the many billions of dollars in new revenues the government should collect from spectrum use fees and spectrum auctions. Right now, most commercial telecommunications companies pay the government absolutely nothing for their incredibly lucrative broadcast and other licenses to exploit the nation's publicly owned frequencies. Senate Commerce Committee Chairman John McCain has called this telecommunications giveaway, "one of the great scams in American history," a financial windfall that is a prime example of corporate welfare.

It's time for the nation to earn a public dividend from the commercial use of its publicly owned electronic spectrum.

It's time for the nation to earn a public dividend from the commercial use of its publicly owned electronic spectrum. With a small fraction of the money collected, Congress can create a substantial public telecommunications trust fund, an endowment that would finance the broadbased, high tech, multimedia information consortium to operate for the benefit of all the people. The entire project will cost only a small fraction of the many billions that the digital spectrum is worth to its commercial broadcast and other users. The new notforprofit electronic alliance would be a boon to the entire nation, delivering quality programs, children's and adult education, job retraining, civic information, free political time, public health services and arts and culture to all the people all the time.

Other sources of money are also available to be tapped, including voluntary public contributions (now public broadcasting's single biggest source of revenue); foundation and corporate underwriting; even paid advertising and modest tuition and admission fees earned from telecourses and electronic information services.

There's a remarkable precedent for this notforprofit public telecommunications model the farsighted Land Grant Colleges Act of 1862, passed incidentally by a Republican Congress. That law revolutionized higher education, opening universities for the first time to all qualified Americans regardless of income. The law granted every state 30,000 acres of public land for each of its senators and representatives. It authorized the states to sell off that public land and use the proceeds to finance state universities.

Today's equivalent of the 19th century's public land is the publicly owned telecommunications spectrum electronic real estate worth tens or hundreds of billions of dollars. Congress should take a leaf from its wise initiative of 135 years ago and authorize the FCC to sell off, and/or lease out the electronic spectrum. Spectrum license licensees should pay a modest annual fee based on the revenues that they reap from its use. A small portion of the billions that will be collected from those sales and fees should be earmarked to create a vibrant new electronic civic and educational public network for the American people that, in the century ahead, can serve the essential needs of a civilized society and an informed democracy.

It is clear that we cannot leave the future of the electronic republic entirely to chance or even entirely to the marketplace, as is the fashion now. The stakes are far too high. A century ago, educator Horace Mann said, "With universal suffrage, there must be universal elevation of character, intellectual and moral, or there will be universal mismanagement and calamity. Men are not born into that capability to govern on behalf of the public good."

It is essential that we devote at least a modest portion of our valuable telecommunications resources to the job of making citizens wellinformed, engaged participants in a free democratic society. Fortunately, the opportunity to do so exists now. We should take advantage of it before it's too late.


Lawrence K. Grossman's career in print and electronic communications spans almost five decades. He is currently president of PBS Horizons Cable, a future cultural and educational network now in development. From 1984 to 1988 Grossman was president of NBC News. Prior to that he was president and chief executive officer of the Public Broadcasting Service (PBS).

Grossman served for eight years as president of Forum Communications, Inc., and has also held positions in charge of advertising at NBC, and in promotion at CBS and Look Magazine, as well as president of his own media and public affairs production firm, Lawrence K. Grossman, Inc. A scholar and prolific writer on media and political issues, Grossman was a senior fellow at the Gannett Center for Media Studies at Columbia University and held the Frank Stanton Chair on the First Amendment at the Kennedy School of Government at Harvard University. He was a Distinguished Visitor at the National Humanities Center in North Carolina; Distinguished Visiting Professor at the University of Miami, and recipient of the Ralph Lowell Award for Public Service to Public Broadcasting and the John Jay Award for Distinguished Public Service from Columbia University, his alma mater.

He is author of The Electronic Republic: Reshaping Democracy in the Information Age, published by Viking/Penguin Press in 1995 and 1996; writes a regular column for the Columbia Journalism Review called, "In the Public Interest," and has contributed numerous articles to journals, magazines and newspapers.

Mr. Grossman serves on various nonprofit boards including the International Longevity Center, USA; the International Council on Global Public Health Progress, Paris; Connecticut Public Television and Radio; and the American Heart Association Research Council in New York City.

Mr. Grossman and his wife Alberta reside in Westport, Connecticut, and Greenwich Village, New York City. They have three children and six grandchildren.

About the Webb Lecture
The Webb Lecture Program honors James E. Webb, whose distinguished in the public career included service as director of the Bureau of the Budget and first administrator of the National Aeronautics and Space Administration. His legacy is inspiration to others committed to strengthening the capacities and performance of government.

The annual lecture is sponsored by the Academy's Fund for Excellence in Public Administration with generous support from the Kerr Foundation. The annual lecture is presented by a distinguished public administrator on an important issue of American governance.
The Webb Lecturers
1997 Lawrence K. Grossman
1996 William Ruckelshaus
1995 Daniel Goldin
1994 Robert Reischauer
1993 William Winter
1992 John Gardner
1991 Alice Rivlin
1990 James Watkins
1989 Frank Press
1988 Charles Bowsher
1987 Elmer Staats
1986 Samuel Phillips
1985 Allen Neuharth
1984 Alexander Trowbridge
1983 James Beggs

About the Academy
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