THIRD ANNIVERSARY OF THE TELECOMMUNICATIONS ACT OF '96 -- (Senate - February 23, 1999)

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   Mr. LOTT. Mr. President, the Telecommunications Act of 1996 is another year older and another year stronger. As Congress recognizes the third anniversary this month, it now becomes appropriate to reflect on some of the Act's goals and on some of its accomplishments.

   First, let me remind my colleagues that the Telecommunications Act was 10 years in the making. It took time for Congress to understand exactly what was needed to reach consensus and balance among all sectors of the industry and to update America's telecommunications public policy. Congress took a deliberate path to make sure that, at the end of the day, consumers would have new and real choices. Time is still needed before passing final judgment, but clearly the Act has produced positive, tangible results.

   I am proud to say that I worked closely with Senator Pressler, then the Chairman of the Commerce Committee, Senator STEVENS, Senator HOLLINGS, and others on the act. It took time, it took patience, it took compromise. But in the end, the act boldly embodied Congress' vision for competition and for choice. More choices and better choices in a new age of communication.

   When the act was drafted, a number of delicate balances were struck to transform our monopolistic market into many competitive ones. The bottom line for Congress was based on a simple principle: consumers benefit from competition. As simple as this sounds, creating competition in the local telephone market is a fairly complicated process. Competitive carriers require things like collocation, dialing parity and unbundled network elements. Congress knew it would not be easy. That is why the act was structured to provide a centerpiece, a set of instructions on ways for opening the local markets to force competition.

   Mr. President, the act is working. Americans are beginning to see the fruits of the seeds sown three years ago.

   Many critics point to the lack of local competition or the absence of incumbent local carriers in long distance as the only way to measure or grade the bill. This is wrong. Consumer choices, new choices, and new technologies are the true tests of success.

   As far as local competition goes, several state public utility commissions are working closely and collaboratively with incumbents and new entrants. A multitude of competitors have gained authority to provide local telephone service. This choice is a reality for businesses nationwide, and it will be a reality for residents too--not

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just for basic dial tone but for advanced services such as broadband access to the Internet. It takes significant capital and commitment to build the necessary infrastructure, but numerous companies and Wall Street are answering the challenge by investing billions of dollars to build this foundation for competition. This level of resource deployment does not happen overnight, but it is happening, and in ways Congress intended--with cable television companies revamping their networks to provide two-way telephone service and with utilities and fixed wireless companies getting into the business. In fact, I would say this shifting of assets in under three years is a fitting testament to the act's ability to move America's telecommunications policy forward--a true commitment and investment by Wall Street.

   Mr. President, I firmly believe the act's goals of local competition and consumer choices will be fulfilled, and America will be better off. The best way to ensure that investment continues is to keep the law in full force.

   When the act passed in 1996, Congress also knew that it would take a while to sort out the rules to produce local competition. More importantly, Congress knew that whatever rules the FCC adopted would be challenged in court. Congress was correct on both counts. This does not mean the law is flawed. To the contrary, this reflects the complexity of the issues and the intensity of the competition. Remember, it took a decade to write the law, and it will take time to implement it. I believe, though, that the majority of Members who worked on the act understand its success cannot be measured over a one or two year period. Courtroom battles did cloud the course toward local competition. This litigation did slow the pace for customer choice, but I am pleased to report that just 2 weeks ago the Supreme Court upheld most of the FCC's local telephone interconnection rules and affirmed that the local phone companies must open their markets in a meaningful way. It is my hope that opportunities for competition will now move forward swiftly and be afforded a proper chance to flourish in the marketplace.

   Mr. President, Americans today are witnessing a convergence of technologies that was but a dream in 1996. Cable lines will provide American households with local telephone service and high speed Internet access. This is good. Traditional telephone companies will offer cable video service. This is good. More Americans are using wireless phones for personal and professional convenience. This is good. More Americans have personal computers with an ever-growing range of capabilities. This is good. The Internet is exploding as a means of commerce, research, or for just saying hello to a far-away friend. This is good. Television viewing will become an interactive experience with digital transmission, enabling consumers to personalize their own video programming or to go directly to a web site. This is good.

   Mr. President, all of these significant and solid activities tells me something--Congress got it right 3 years ago. Patience will lead to other applications in the future that I, and some of my other colleagues, cannot even imagine right now. Mr. President, this is the kind of communications marketplace Americans deserve.

   During this continued period of transition, it will be important for Congress to make sure that the Federal Communications Commission is properly structured. That it has the right tools to foster and further the ongoing evolution. Chairman Kennard's analogy--old regulatory models are a thing of the past, much like the old, black rotary phones--rings true. The FCC indeed must change, and Congress should start empowering the FCC rather than criticizing its individual decisions.

   Mr. President, the Telecommunications Act is beginning to deliver the benefits of competition to the American consumer. The process of achieving the act's central goals is well on its way. I do not believe any of us want to turn back the clock to 1996 and take away all the new technologies, new companies, and new choices that have emerged and are now coming our way. Let's not put stumbling blocks on this path to progress. Let's keep America moving forward.

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