Telecommunications and the Internet

Satellite Competition

On November 9, 1999 the House passed, H.R. 1554, the Satellite Copyright, Competition, and Consumer Protection Act by a vote of 411 to 8. This new law -- which the President signed on November 29 -- allows satellite television companies to carry the same local-broadcast network affiliates (i.e., ABC, CBS, FOX, and NBC) that are routinely provided by their cable rivals.

This legislation became necessary because the 1988 Satellite Home Viewer Act permits satellite retransmission of distant network television programming only if a subscriber meets certain conditions. But under H.R. 1554, satellite companies will -- for the first time -- be permitted to carry the signals of local network stations to customers within that market. And by 2002, satellite companies will be required to carry all local stations in all markets, thus ensuring a full complement of stations to the customer.

I am glad Congress was able to address this important issue in a way that benefitted consumers while allowing satellite companies to compete with cable.

Telecommunications Act of 1996

In 1996, Congress enacted the Telecommunications Act, a sweeping bill that overhauled the laws regulating a wide range of telecommunications industries and technology by eliminating the legal barriers that prevented telephone, cable, and other companies from competing in each other's markets.

I had hoped the Telecommunications Act of 1996 would have brought competition and lower prices more quickly. In the near future, however, I believe we will see increased competition -- among Internet service providers, the cable industry, long distance companies, and the "Baby Bells" -- so that customers will have a choice of a number of providers offering high quality services at competitive prices.

Cable

I am concerned by the lack of competition in the cable industry. Included in the Telecommunications Act of 1996 was a provision deregulating the cable industry on March 31, 1999. I opposed this provision, and offered an amendment with Congressman Edward Markey (D-MA), to change the law so that the cable industry would only be deregulated once competition exists. Unfortunately, our amendment was defeated by a vote of 148 to 275 and the cable industry was deregulated last year -- before competition arrived.

The satellite bill described above will, however, allow the satellite industry to challenge the cable industry's dominance, and I am pleased Congress passed this bill.

The Internet

Nothing is more responsible for the growth in our nation's economy than the growth of the Internet. I strongly believe that, in order for this rate of growth to continue, Washington needs to take a "hands off" approach whenever possible.

A number of bills have been introduced to address the idea of "open access" and force cable companies to share their high-speed Internet lines with Internet Service Providers (ISPs) such as America Online.

I oppose such efforts and believe the recent merger between Time Warner and America Online underscores the ability of the marketplace to resolve issues of access without government intervention.

I also oppose efforts to permit the so-called Baby Bells to enter long-distance business for high-speed data services. In my judgment, before these companies are allowed to enter new markets, they need to comply with the Telecommunications Act of 1996 and open their regional networks to competitors.

Without competition at the local level, Baby Bells -- with the enormous capital they have accumulated from years of monopolizing local service -- would have an unfair advantage in providing Internet services. This, in turn, would hurt the many companies pouring billions of dollars into developing a broadband network.

Internet Access Charge Hoax
Information on the Internet Access Charge Hoax.

Internet Nondiscrimination Act