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Federal Document Clearing House Congressional Testimony

April 12, 2000, Wednesday

SECTION: CAPITOL HILL HEARING TESTIMONY

LENGTH: 1347 words

HEADLINE: TESTIMONY April 12, 2000 JOHN D. DINGELL REPRESENTATIVE HOUSE COMMERCE telecommunications, trade and consumer protection BROADBAND TECHNOLOGIES

BODY:
STATEMENT OF THE HONORABLE JOHN D. DINGELL SUBCOMMITTEE HEARING ON THE STATUS OF BROADBAND DEPLOYMENT April11, 2000 Thank you, Mr. Chairman, for recognizing me. The subject of today's hearing is an important one; in fact, these issues are likely to drive the debate over telecommunications policy for many years to come. We will hear from witnesses about the critical role of broadband technology in building the nation's new economy, transforming our health care delivery systems, and reinventing the way our children are educated. The benefits to the American public will certainly be staggering, and I am sure the ones highlighted today are just the tip of the iceberg. The question, though, is not simply how we will benefit, but how quickly. What policies will encourage these new technologies to reach the public in the most expeditious manner? Four years ago Congress passed the most substantial rewrite of the nation's telecommunications laws since 1934. That Act was quite an achievement. After debating for almost two decades whether to deregulate the telecommunications industry, it was time to break down the barriers to competition once and for all. To be sure, the Telecom Act has benefited consumers and the economy greatly since its enactment, but like all legislation, it is not without blemishes. Not all of our hopes have yet materialized. And like all legislation, the Telecom Act simply reflected Congress's best policy judgments based on facts we knew or anticipated at a specific moment in time. But in the Information Age, these facts change more rapidly than ever before. And for those who operate on "Internet time," the last four years is more like an eternity. With the benefit of 20/20 hindsight, perhaps the most glaring oversight of the Telecom Act was its failure to create, with certainty, the proper environment for the Internet - one that allows all companies the freedom to innovate and invest in new, more robust ways to carry the vast potential of digital communications to every American home. As a result, even with its explosive growth the Internet is still, in many ways, grinding along in low gear. While we hear a great deal about the benefits of the "Information Superhighway," the truth is most Americans are relegated to the slow lane. Too many consumers remain stuck with low-speed, dial-up service. The consumer eagerly awaits faster access at reasonable prices, and the future growth of electronic commerce demands it. Unfortunately, the Telecom Act did little to create the proper environment for the deployment of broadband Internet services. Worse, it created uncertainty with regard to how different technologies are treated under the law when they compete to provide consumers with these advanced services. Do we treat one broadband technology as a cable service if it comes to the home over fiber optic and coaxial wires? Do we treat another technology like a telephone service simply because it travels over twisted copper pairs? What if Web pages are beamed to pizza-sized dishes from a satellite orbiting above the Earth? Even though the information service delivered to the consumer is the same, each method of delivery falls under a different regulatory scheme in current law. This problem should be resolved, and the sooner the better. The promise of electronic commerce has catapulted any dot-com stock into the stratosphere, but precious few have yet to show a profit. The values are staggering, but they are surviving on vapor. The New Economy will either sink or swim based on the speed with which broadband Internet services reach the public. In my view, all broadband technologies should be treated the same from a regulatory standpoint, regardless of the historical "mission" of the company offering the service. It should matter not whether the service is offered by a cable company, telephone provider or electric utility. Each should be free to offer the service according to the same rules. If we remove the regulatory disparity and uncertainty that accompanies it, I am confident we will see many competitive platforms flourish, and the consumer will be the immediate beneficiary. Thank you again, Mr. Chairman, for holding this hearing, and I look forward to working on a legislative initiative to bring these benefits to the American public at the earliest possible time.

LOAD-DATE: April 20, 2000, Thursday




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