The Federal Networking and Information
Technology Research and Development
Program: Background, Funding, and Activities

Patricia Moloney Figliola
Specialist in Internet and Telecommunications Policy
March 22, 2011
Congressional Research Service
7-5700
www.crs.gov
RL33586
CRS Report for Congress
P
repared for Members and Committees of Congress

The Federal NITRD Program

Summary
In the early 1990s, Congress recognized that several federal agencies had ongoing high-
performance computing programs, but no central coordinating body existed to ensure long-term
coordination and planning. To provide such a framework, Congress passed the High-Performance
Computing and Communications Program Act of 1991 (P.L. 102-194) to enhance the
effectiveness of the various programs. In conjunction with the passage of the act, the White
House Office of Science and Technology Policy (OSTP) released Grand Challenges: High-
Performance Computing and Communications
. That document outlined a research and
development (R&D) strategy for high-performance computing and a framework for a
multiagency program, the High-Performance Computing and Communications (HPCC) Program.
The HPCC Program has evolved over time and is now called the Networking and Information
Technology Research and Development (NITRD) Program, to better reflect its expanded mission.
Current concerns are the role of the federal government in supporting IT R&D and the level of
funding to allot to it. Proponents of federal support of information technology (IT) R&D assert
that it has produced positive outcomes for the country and played a crucial role in supporting
long-term research into fundamental aspects of computing. Such fundamentals provide broad
practical benefits, but generally take years to realize. Additionally, the unanticipated results of
research are often as important as the anticipated results. Another aspect of government-funded IT
research is that it often leads to open standards, something that many perceive as beneficial,
encouraging deployment and further investment. Industry, on the other hand, is more inclined to
invest in proprietary products and will diverge from a common standard when there is a potential
competitive or financial advantage to do so. Proponents of government support believe that the
outcomes achieved through the various funding programs create a synergistic environment in
which both fundamental and application-driven research are conducted, benefitting government,
industry, academia, and the public. Supporters also believe that such outcomes justify
government’s role in funding IT R&D, as well as the growing budget for the NITRD Program.
Critics assert that the government, through its funding mechanisms, may be picking “winners and
losers” in technological development, a role more properly residing with the private sector. For
example, the size of the NITRD Program may encourage industry to follow the government’s
lead on research directions rather than selecting those directions itself.
Actual NITRD spending in FY2010 totaled $3.793 billion, $0.133 billion below the budget
request of $3.926 billion. The President’s FY2012 budget request for the NITRD Program is
$3.866 billion, an increase of $0.073 billion, approximately 1.9%, above FY2010 actual
expenditures. The overall change is due to both decreases and increases in individual agency
NITRD budgets. For purposes of this report, the FY2012 Budget request for the NITRD Program
is compared with FY2010 actual NITRD spending, since FY2011 spending levels remain
uncertain. The estimated FY2011 spending level of $3.652 billion reflect the annualized amounts
provided by the continuing resolution that extended through April 8, 2011.
No legislative action has been taken to this date in the 112th Congress.
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Contents
The Federal NITRD Program ...................................................................................................... 1
Structure ............................................................................................................................... 1
Funding and Spending........................................................................................................... 3
American Recovery and Reinvestment Act of 2009 ......................................................... 3
Recent Reports...................................................................................................................... 3
Designing a Digital Future: Federally Funded Research and Development in
Networking Information and Technology ..................................................................... 4
High-Confidence Medical Devices: Cyber-Physical Systems for 21st Century
Health Care.................................................................................................................. 4
Federal Technology Funding: Background and Context ............................................................... 5
Activity in the 112th and 111th Congresses.................................................................................... 7
112th Congress ...................................................................................................................... 7
111th Congress....................................................................................................................... 7
Potential Issues for Congress....................................................................................................... 7

Figures
Figure 1. Management Structure of the NITRD Program ............................................................. 2

Appendixes
Appendix. NITRD Enabling and Governing Legislation.............................................................. 9

Contacts
Author Contact Information ...................................................................................................... 10

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The Federal NITRD Program
The federal government has long played a key role in the country’s information technology (IT)
research and development (R&D) activities. The government’s support of IT R&D began because
it had an important interest in creating computers and software that would be capable of
addressing the problems and issues the government needed to solve and study. One of the first
such problems was calculating the trajectories of artillery and bombs; more recently, such
problems include simulations of nuclear testing, cryptanalysis, and weather modeling. That
interest continues today. These complex issues have led to calls for coordination to ensure the
government’s evolving needs (e.g., homeland security) will continue to be met in the most
effective manner possible.
Structure
The Networking and Information Technology Research and Development (NITRD) Program is
the primary mechanism by which the federal government coordinates its unclassified networking
and information technology (NIT) research and development (R&D) investments. Fourteen
federal agencies, including all of the large science and technology agencies, are formal members
of the NITRD Program,1 with many other federal entities participating in NITRD activities. The
program aims to ensure that the nation effectively leverages its strengths, avoids duplication, and
increases interoperability in such critical areas as supercomputing, high-speed networking,
cybersecurity, software engineering, and information management. Figure 1 illustrates the
organizational structure of the NITRD Program.

1 Agency for Healthcare Research and Quality (AHRQ), http://www.ahrq.gov; Defense Advanced Research Projects
Agency (DARPA), http://www.darpa.mil; Department of Homeland Security (DHS), http://www.dhs.gov [Cyber
Security Program,
http://www.cyber.st.dhs.gov]; Department of Energy - National Nuclear Security Agency
(DOE/NNSA), http://www.nnsa.doe.gov; Department of Energy - Office of Science (DOE/SC), http://www.sc.doe.gov
[Office of Advanced Scientific Computing Research, http://www.sc.doe.gov/ascr/]; Environmental Protection Agency
(EPA), http://www.epa.gov [High Performance Computing and Scientific Visualization, http://www.epa.gov/nesc/
index.htm]; National Archives and Records Administration (NARA), http://www.nara.gov [Center for Advanced
Systems and Technologies,
http://www.archives.gov/ncast/]; National Aeronautics and Space Administration (NASA),
http://www.nasa.gov [High-End Computing Program, http://www.hec.nasa.gov]; National Institutes of Health (NIH),
http://www.nih.gov [Biomedical Information Science and Technology Initiative, http://www.bisti.nih.gov; Center for
Information Technology,
http://www.cit.nih.gov; National Cancer Institute, http://http://www.nci.nih.gov; National
Center for Research Resources,
http://www.ncrr.nih.gov; National Institutes of General Medical Sciences,
http://www.nih.gov/nigms; National Library of Medicine, http://www.nlm.nih.gov]; National Institute of Standards and
Technology (NIST), http://www.nist.gov [Information Technology Laboratory, http://www.itl.nist.gov; Manufacturing
Engineering Laboratory,
http://www.mel.nist.gov]; National Oceanic and Atmospheric Administration (NOAA),
http://www.noaa.gov [High Performance Computing and Communications, http://www.hpcc.noaa.gov]; National
Security Agency (NSA), http://www.nsa.gov [National Information Assurance Research Lab, http://www.nsa.gov/
niarl/index.cfm]; National Science Foundation (NSF), http://www.nsf.gov [Directorate for Computer and Information
Sciences and Engineering,
http://www.nsf.gov/home/cise/start.htm]; Office of the Secretary of Defense (OSD) and
Department of Defense (DoD) Service research organizations [Defense Research & Engineering,
http://www.acq.osd.mil/ddre; Deputy Under Secretary of Defense (Science and Technology), http://www.dod.mil/ddre/
org_SandT.html]. Source: http://www.nitrd.gov/Subcommittee/agency-web-sites.aspx.
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Figure 1. Management Structure of the NITRD Program
NITRD Program Coordination
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Source: NITRD Program website, http://www.nitrd.gov.
The National Coordinating Office (NCO) coordinates the activities of the NITRD Program. On
July 1, 2005, the NCO became the “National Coordination Office for Networking and
Information Technology Research and Development.” The Director of the NCO reports to the
Director of the White House Office on Science and Technology Policy (OSTP). The NCO
supports the National Science and Technology Council’s Subcommittee on NITRD (also called
the NITRD Subcommittee).2
The NITRD Subcommittee provides policy, program, and budget planning for the NITRD
Program and is composed of representatives from each of the participating agencies, OSTP,
Office of Management and Budget, and the NCO. Two Interagency Working Groups and five
Coordination Groups reporting to the NITRD Subcommittee focus their work in eight Program
Component Areas.3
The NITRD budget is an aggregation of the IT R&D components of the individual budgets of
NITRD-participating agencies. The NITRD budget is not a single, centralized source of funds
that is allocated to individual agencies. In fact, the agency IT R&D budgets are developed
internally as part of each agency’s overall budget development process. These budgets are
subjected to review, revision, and approval by the Office of Management and Budget and become
part of the President’s annual budget submission to Congress. The NITRD budget is then

2 The NITRD Subcommittee was previously called the Interagency Working Group for IT R&D (IWG/IT R&D).
3 Cyber Security and Information Assurance (CSIA), Health Information Technology Research and Development
(Health IT R&D), Human Computer Interaction and Information Management (HCI&IM), High Confidence Software
and Systems (HCSS), High End Computing (HEC), Large Scale Networking (LSN), Software Design and Productivity
(SDP), and Social, Economic, and Workforce Implications of IT and IT Workforce Development (SEW).
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calculated by aggregating the IT R&D components of the appropriations provided by Congress to
each federal agency.
The NITRD Program has undergone a series of structural changes since its inception in 1991 and
both it and the NCO have had a number of different names over the years. When the Program was
created in December 1991, it was named the High Performance Computing and Communications
(HPCC) Program, and when the NCO was created in September 1992, it was named the NCO for
HPCC. The name was changed to the National Coordination Office for Computing, Information,
and Communications per the FY1997 Supplement to the President’s Budget (also known at that
time as the “Blue Book”). The name was changed to the National Coordination Office for
Information Technology Research and Development per the FY2001 Blue Book.4 Most recently,
on July 1, 2005, the name was changed to the National Coordination Office for Networking and
Information Technology Research and Development. These changes were made to reflect the
evolution of the program as it came to encompass a broader range of related topics.
Funding and Spending
Actual NITRD spending in FY2010 totaled $3.793 billion, $0.133 billion below the FY2010
budget request of $3.926 billion. The President’s FY2012 budget request for the NITRD Program
is $3.866 billion, an increase of $0.073 billion, approximately 2%, above FY2010 actual
expenditures. The overall change is due to both decreases and increases in individual agency
NITRD budgets. The estimated FY2011 spending level of $3.652 billion reflect the annualized
amounts provided by the continuing resolution that extended federal agency funding through
April 8, 2011.
American Recovery and Reinvestment Act of 2009
Under the American Recovery and Reinvestment Act (ARRA) of 2009, five federal agencies
reported preliminary allocations of $706 million to investments in NITRD research areas (these
figures may change). The NITRD agencies are using their ARRA funds to modernize, expand,
and upgrade networking and high-end computing infrastructures and facilities for advanced
scientific research; expand R&D in cyber security, human-computer interaction and information
management, high-confidence software and systems, and software design; and increase
investments in education and training for a diverse, highly skilled IT workforce.
Recent Reports
As explained earlier, the NCO provides technical and administrative support to the NITRD
Program and the NITRD Subcommittee. This includes supporting meetings and workshops and
preparing reports. The NCO interacts with OSTP and Office of Management and Budget (OMB)
on NITRD Program matters. Additionally, in accordance with a Presidential executive order and
law, the NITRD Program is reviewed biannually. Two reports published in 2009 and 2010 about
the NITRD Program and by the NITRD NCO are discussed in this report. Older documents can
be found on the NITRD NCO website.5

4 That change was effective October 2000.
5 http://www.nitrd.gov.
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Designing a Digital Future: Federally Funded Research and Development in
Networking Information and Technology

In December 2010, the President’s Council of Advisors on Science and Technology (PCAST)6
released, “Designing a Digital Future: Federally Funded Research and Development in
Networking and Information Technology.”7 This report fulfilled PCAST’s responsibility to report
on the status of the NITRD Program under Executive Order 13539 and the High-Performance
Computing Act of 1991 (P.L. 102-194).8 PCAST appointed an expert 14-member Working Group,
which consulted with more than 50 individuals, including government officials, industry
representatives, and experts from academia, to develop a comprehensive review of the program.
PCAST found that NITRD is well coordinated and that the U.S. computing research community,
coupled with a vibrant NIT industry, has made seminal discoveries and advanced new
technologies that are helping to meet many societal challenges. Importantly, however, PCAST
also found that:
a substantial fraction of the NITRD multi-agency spending summary represents spending
that supports R&D in other fields, rather than spending on R&D in the field of NIT itself. As
a result, the United States is actually investing far less in NIT R&D than the $4 billion-plus
indicated in the Federal budget. To achieve America’s priorities and advance key research
frontiers to support economic competitiveness in NIT, this report calls for a more accurate
accounting of this national investment and recommended additional investments in NIT
R&D, including research in networking and information technology for health, energy and
transportation, and cyber-infrastructure.9
The PCAST stated its belief that NIT has yielded enormous benefits for the nation’s economic
competitiveness, national security, and quality of life. It stressed the importance of maintaining
the country’s leadership in NIT in an ever more competitive global environment, encouraging the
federal government to be bold in its investments, including funding of high risk/high reward
research with the potential to move NIT in unanticipated directions.
High-Confidence Medical Devices: Cyber-Physical Systems for 21st Century
Health Care

This report, published in February 2009, presents the perspectives of the senior scientists of the
NITRD Program’s High Confidence Software and Systems (HCSS) Coordinating Group (CG),
with input from experts from other federal agencies, on the R&D challenges, needs, and strategies
for developing and deploying the next generations of high-confidence medical devices, software,
and systems.10 HCSS agencies whose missions are not medical device-specific have found it
beneficial to partner in this area because medical device research challenges are similar, if not
identical, to those within their purview. Digital technologies are increasingly being assigned high-
level control over the monitoring, sensing, actuation, and communications of medical devices—

6 The PCAST was acting in its role as the President’s Innovation and Technology Advisory Council (PITAC).
7 This report is available online at http://www.nitrd.gov/pcast-2010/report/nitrd-program/pcast-nitrd-report-2010.pdf.
8 As amended by the Next Generation Internet Research Act of 1998 (P.L. 105-305) and by the America COMPETES
Act of 2007 (P.L. 110-69).
9 Designing a Digital Future: Federally Funded Research and Development in Networking and Information
Technology, p. v.
10 This report is available online at http://www.nitrd.gov/About/MedDevice-FINAL1-web.pdf.
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often with human life in the balance. Through this report and associated HCSS-sponsored
national workshops, the HCSS agencies are seeking to illuminate fundamental scientific and
technical challenges that they believe must be addressed before high-confidence devices,
software, and systems that operate flawlessly from end to end can be designed and built. The
report authors sought to paint the landscape of the evolution of medical device technology and the
federal investments that have benefitted medical device R&D over time.
Federal Technology Funding: Background and
Context

In the early 1990s, Congress recognized that several federal agencies had ongoing high-
performance computing programs,11 but no central coordinating body existed to ensure long-term
coordination and planning. To provide such a framework, Congress passed the High-Performance
Computing Program Act of 1991 to improve the interagency coordination, cooperation, and
planning of agencies with high performance computing programs.
In conjunction with the passage of the act, OSTP released, “Grand Challenges: High-Performance
Computing and Communications.” That document outlined an R&D strategy for high-
performance computing and communications and a framework for a multi-agency program, the
HPCC Program.
The NITRD Program is part of the larger federal effort to promote fundamental and applied IT
R&D. The government sponsors such research through a number of channels, including
• federally funded research and development laboratories, such as Lawrence
Livermore National Laboratory;
• single-agency programs;
• multi-agency programs, including the NITRD Program, but also programs
focusing on nanotechnology R&D and combating terrorism;
• funding grants to academic institutions; and
• funding grants to industry.
In general, supporters of federal funding of IT R&D contend that it has produced positive results.
In 2003, the Computer Science and Telecommunications Board (CSTB) of the National Research
Council (NRC) released a “synthesis report” based on eight previously released reports that
examined “how innovation occurs in IT, what the most promising research directions are, and
what impacts such innovation might have on society.”12 The CSTB’s observation was that the

11 “High-performance” computing is a term that encompasses both “supercomputing” and “grid computing.” In general,
high-performance computers are defined as stand-alone or networked computers that can perform “very complex
computations very quickly.” Supercomputing involves a single, stand-alone computer located in a single location. Grid
computing involves a group of computers, in either the same location or spread over a number of locations, that are
networked together (e.g., via the Internet or a local network). House of Representatives, Committee on Science,
Supercomputing: Is the United States on the Right Path (Hearing Transcript), http://commdocs.house.gov/committees/
science/hsy88231.000/hsy88231_0f.htm, 2003, pp. 5-6.
12 National Research Council, Innovation in Information Technology, 2003, p. 1. This report discusses all federal
funding for R&D, not only the NITRD Program.
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unanticipated results of research are often as important as the anticipated results. For example,
electronic mail and instant messaging were by-products of [government-funded] research in the
1960s that was aimed at making it possible to share expensive computing resources among
multiple simultaneous interactive users. Additionally, the report noted that federally funded
programs have played a crucial role in supporting long-term research into fundamental aspects of
computing. Such “fundamentals” provide broad practical benefits, but generally take years to
realize. Furthermore, supporters state that the nature and underlying importance of fundamental
research makes it less likely that industry would invest in and conduct more fundamental research
on its own. As noted by the CSTB, “companies have little incentive to invest significantly in
activities whose benefits will spread quickly to their rivals.”13 Further, in the Board’s opinion:
government sponsorship of research, especially in universities, helps develop the IT talent
used by industry, universities, and other parts of the economy. When companies create
products using the ideas and workforce that result from Federally-sponsored research, they
repay the nation in jobs, tax revenues, productivity increases, and world leadership.14
Another aspect of government-funded IT R&D is that it often leads to open standards, something
that many perceive as beneficial, encouraging deployment and further investment. Industry, on
the other hand, is more likely to invest in proprietary products and will typically diverge from a
common standard if it sees a potential competitive or financial advantage; this happened, for
example, with standards for instant messaging.15
Finally, proponents of government R&D support believe that the outcomes achieved through the
various funding programs create a synergistic environment in which both fundamental and
application-driven research are conducted, benefitting government, industry, academia, and the
public. Supporters also believe that such outcomes justify government’s role in funding IT R&D,
as well as the growing budget for the NITRD Program.
Critics have asserted that the government, through its funding mechanisms, may set itself up to
pick “winners and losers” in technological development, a role more properly residing with the
private sector.16 For example, the size of the NITRD Program could encourage industry to follow
the government’s lead on research directions rather than selecting those directions itself.
Overall, CSTB stated that government funding appears to have allowed research on a larger scale
and with greater diversity, vision, and flexibility than would have been possible without
government involvement.17

13 Ibid, p. 4.
14 Ibid, p. 4.
15 Ibid, p. 18.
16 Cato Institute, Encouraging Research: Taking Politics Out of R&D, September 13, 1999, http://www.cato.org/pubs/
wtpapers/990913catord.html.
17 National Research Council, Innovation in Information Technology, 2003, p. 22.
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Activity in the 112th and 111th Congresses
112th Congress
No legislative action has been taken to this date in the 112th Congress.
111th Congress
Five bills were introduced in the 111th Congress that affected, or had an effect, on the NITRD
Program.
H.R. 1, the American Recovery and Reinvestment Act of 2009 (P.L. 111-5), was signed into law
on February 17, 2009. Prior to being signed by the President, H.R. 1 was amended to include two
NITRD-related related bills, H.R. 598, “To provide for a portion of the economic recovery
package relating to revenue measures, unemployment, and health,” and H.R. 629, the Energy and
Commerce Recovery and Reinvestment Act .
H.R. 4061, the Cybersecurity Enhancement Act of 2009, was passed by the House on February 8,
2010, and referred to the Senate Committee on Commerce, Science, and Transportation, but was
not passed by the Senate. The bill was intended to improve the security of cyberspace by ensuring
federal investments in cybersecurity were better focused, more effective, and that research into
innovative, transformative technologies would be supported. It also addressed recommendations
from the Administration’s Cyberspace Policy Review and included input from four hearings held
on cybersecurity during the first session of the 111th Congress. H.R. 4061 would have also
reauthorized and expanded the Cyber Security Research and Development Act (P.L. 107-305). In
addition to promoting cybersecurity R&D by the member agencies of the NITRD, the legislation
addressed cybersecurity workforce concerns and the continued advancement of the development
of cybersecurity technical standards.
H.R. 2020, the Networking and Information Technology Research and Development Act of 2009,
was introduced on April 22, 2009; it was passed by the House of Representatives and referred to
the Senate Committee on Commerce, Science, and Transportation on May 13, 2009 (see H.Rept.
111-102). It died in Committee. The purpose of this bill was to strengthen the planning and
coordination mechanisms of the NITRD Program and to update the research content of the
program.
Potential Issues for Congress
Federal IT R&D is a multi-dimensional issue, involving many government agencies working
together towards shared, complementary, and disparate goals. Many observers believe that
success in this arena requires ongoing coordination among government, academia, and industry.
Issues related to U.S. competitiveness in high-performance computing and the direction the IT
R&D community has been taking have remained salient over the last five to ten years and
include:
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• the United States’ status as the global leader in high-performance computing
research;
• the apparent ongoing bifurcation of the federal IT R&D research agenda between
grid computing and supercomputing capabilities;
• possible over-reliance on commercially available hardware to satisfy U.S.
research needs; and
• the potential impact of deficit cutting on IT R&D funding.

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Appendix. NITRD Enabling and Governing
Legislation

The NITRD Program is governed by two laws. The first, the High-Performance Computing Act
of 1991, P.L. 102-194,18 expanded federal support for high-performance computing R&D and
called for increased interagency planning and coordination. The second, the Next Generation
Internet Research Act of 1998, P.L. 105-305,19 amended the original law to expand the mission of
the NITRD Program to cover Internet-related research, among other goals.
High-Performance Computing Act of 1991
This law was the original enabling legislation for what is now the NITRD Program. Among other
requirements, it called for the following:
• Setting goals and priorities for federal high-performance computing research,
development, and networking.
• Providing for the technical support and research and development of high-
performance computing software and hardware needed to address fundamental
problems in science and engineering.
• Educating undergraduate and graduate students.
• Fostering and maintaining competition and private sector investment in high-
speed data networking within the telecommunications industry.
• Promoting the development of commercial data communications and
telecommunications standards.
• Providing security, including protecting intellectual property rights.
• Developing accounting mechanisms allowing users to be charged for the use of
copyrighted materials.
This law also requires an annual report to Congress on grants and cooperative R&D agreements
and procurements involving foreign entities.20
Next Generation Internet Research Act of 1998
This law amended the High-Performance Computing Act of 1991. The act had two overarching
purposes. The first was to authorize research programs related to high-end computing and
computation, human-centered systems, high confidence systems, and education, training, and

18 High Performance Computing Act of 1991, P.L. 102-194, 15 U.S.C. 5501, 105 Stat. 1595, December 9, 1991. The
full text of this law is available at http://www.nitrd.gov/congressional/laws/pl_102-194.html.
19 Next Generation Internet Research Act of 1998, P.L. 105-305, 15 U.S.C. 5501, 112 Stat. 2919, October 28, 1998.
The full text of this law is available at http://www.nitrd.gov/congressional/laws/pl_h_105-305.html.
20 The first report mandated information on the “Supercomputer Agreement” between the United States and Japan be
included in this report. A separate one-time only report was required on network funding, including user fees, industry
support, and federal investment.
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human resources. The second was to provide for the development and coordination of a
comprehensive and integrated U.S. research program to focus on (1) computer network
infrastructure that would promote interoperability among advanced federal computer networks,
(2) economic high-speed data access that does not impose a “geographic penalty.” and (3) flexible
and extensible networking technology.

Author Contact Information

Patricia Moloney Figliola

Specialist in Internet and Telecommunications
Policy
pfigliola@crs.loc.gov, 7-2508


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