ALAWON v6n50 (June 29, 1997) URL = http://hegel.lib.ncsu.edu/stacks/serials/alawon/alawon-v6n50 ================================================================= ALAWON Volume 6, Number 50 ISSN 1069-7799 June 29, 1997 American Library Association Washington Office Newsline In this issue: (108 lines) AMERICAN LIBRARY ASSOCIATION RESPONDS TO SBC COMMUNICATIONS, INC. LAWSUIT ON LIBRARY/SCHOOL DISCOUNTS _________________________________________________________________ AMERICAN LIBRARY ASSOCIATION RESPONDS TO SBC COMMUNICATIONS, INC. LAWSUIT ON LIBRARY/SCHOOL DISCOUNTS The American Library Association (ALA) expressed strong opposition to a lawsuit filed June 18 by SBC Communications, Inc., to overturn a recent Federal Communications Commission (FCC) ruling that mandates discounted telecommunications rates for libraries and schools. ALA encouraged the courts to not let the lawsuit delay this universal service provision. "It is extremely disappointing to see a company such as SBC, which owns Southwestern Bell and Pacific Telesis -- and has huge profits -- oppose these library and school rates that could benefit so many children and adults through libraries and schools," said Mary R. Somerville, president of the American Library Association. "Rather than fight over what amounts to pennies for a company like SBC, we would welcome the opportunity to work with SBC to ensure that every American has access to electronic information." Somerville noted that under the FCC ruling, the $2.25 billion annual program for libraries and schools only funds telecommunications services and some communications equipment, not programs or training and equipment as claimed by SBC. "According to SBC's statement, it appears that they do not understand these discounts are intended for the ongoing costs of connections to get library users and students online. No one ever intended the discounts for training or programs," she added. "The companies got a lot of what they wanted in the Telecommunications Act. Now SBC wants more -- and it's already one of the most profitable companies in the most profitable industry in the United States. As competition grows in the telecommunications arena, our members will look to work with those who act in good faith," added Barbara Ford,president-elect of the American Library Association. "We applaud those companies that are working with the library and education communities on implementing telecommunications services." Several of the other local telephone companies -- including Bell Atlantic, NYNEX and U.S. West -- have indicated they will not join the lawsuit. SBC filed suit in the 8th Circuit Court of Appeals in St. Louis to overturn parts of the FCC's order on universal service, alleging that discount services for libraries and schools are a new tax. Libraries and schools were designated as eligible for discounted telecommunications rates in the Snowe-Rockefeller-Kerrey-Exon amendment to the Telecommunications Act of 1996. The FCC ruling in May mandated discounts ranging from 20 to 90 percent with deeper discounts for libraries and schools in rural, high-cost and low-income communities. The program is scheduled to begin January 1, 1998. Many public library and school administrators have already begun work to ready local institutions for the discounts. SBC owns Southwestern Bell which serves Arkansas, Kansas, Missouri, Oklahoma, and Texas. It also owns Pacific Telesis, which serves California and Nevada. It has also been reported that SBC recently earned a 31% return on equity and between the end of 1989 and April 1997 had a total rate of return of 136%. ALA, the oldest and largest library organization in the world with more than 57,000 members, has been at the forefront of the campaign for discounted rates and has worked closely with EdLiNC, the Education and Library Networks Coalition, in support of this new policy. ALA will continue to monitor the lawsuit and intervene as necessary. _________________________________________________________________ ALAWON is a free, irregular publication of the American Library Association Washington Office. To subscribe, send the message: subscribe ala-wo [your_firstname] [your_lastname] to listproc @ala.org. ALAWON archives at http://www.ala.org/washoff/alawon. Visit our Web site at http://www.alawash.org. ALA Washington Office 202.628.8410 (V) 1301 Pennsylvania Ave., NW, #403 202.628.8419 (F) Washington, DC 20004-1701 800.941.8478 (V) Lynne E. Bradley, Editor Deirdre Herman, Managing Editor Contributors: Carol C. Henderson Claudette Tennant All materials subject to copyright by the American Library Association may be reprinted or redistributed for noncommercial purposes with appropriate credits. =================================================================