TELECOMMUNICATIONS ACT OF 1996 -- HON. HAROLD ROGERS (Extensions of Remarks - March 01, 2000)

[Page: E203]
---

HON. HAROLD ROGERS OF KENTUCKY IN THE HOUSE OF REPRESENTATIVES Wednesday, March 1, 2000

Mr. ROGERS. Mr. Speaker, February 8th marks the fourth anniversary of the historic Telecommunications Act of 1996. The purpose of the Act was to unleash competition in all telecommunications markets and thus achieve unprecedented investment and technological innovation. Businesses would enjoy substantial productivity gains and consumers would have access to new technologies that promised profound changes in the way we work, communicate and entertain. Schools, libraries and homes would have access to information that is revolutionizing the way we educate ourselves. Electronic commerce, distance learning, and telemedicine have all become realities. The progress we've seen in the four short years--in Kentucky and nationwide--has been remarkable and rapid. Consider the following:

The Explosion of the Internet. There were 50 million Internet users just two years ago and today there are more than 80 million Americans online and 200 million worldwide. Electronic commerce is projected to be a trillion-dollar activity in the next three to five years.

Ninety-nine percent of American households--in both urban and rural areas--can reach the Internet via a local telephone call. Substantial new network investment by Internet backbone providers has made this possible. In 1996, 14 such providers existed; by 1999, that number had more than tripled to 43. In four years, Internet backbone providers expanded their points of presence--where Internet Service Providers (ISP's) establish high-speed links to the backbone--from less than 70 to more than 1000.

The number of ISPs offering consumers Internet access has exploded--today there are more than 6,500 ISPs nationwide. Forty-six states have 100 or more ISPs, including my home state of Kentucky.

Independent rural telephone companies and cooperatives offer Internet connectivity--97 percent offer Internet dial-up at speeds of up to 56K, and 30 percent are offering broadband services (1999 NCTA survey).

The number of competitive carriers has increased dramatically. Today, over 600 long distance companies compete against one another in a dynamic market that has seen per-minute prices drop to 5 cents. In addition, the Act spurred the creation of more than 375 new entrepreneurial companies that are fighting to bring competition to local telephone markets.

These new local competitors, called ``CLECs,'' have grown significantly since 1996. They now employ 70,000 people and have invested $30 billion in new networks since passage of the Act. In four years, their market capitalization has increased from $3.1 billion to about $85 billion today.

In short Mr. Speaker, the Telecommunications Act is working. It has been a catalyst for almost unimaginable technological progress. Having said that, our work as a nation is not done--there are still some Americans who need access to better, faster and more affordable means of communication. However, we are heading in the right direction and the Telecommunications Act along with the millions of American men and women working in the industry are the driving force.
END