[Congressional Record Volume 140, Number 86 (Thursday, June 30, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: June 30, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
               THE COMMUNICATIONS OPPORTUNITY ACT OF 1994

                                 ______


                          HON. CARDISS COLLINS

                              of illinois

                    in the house of representatives

                        Wednesday, June 29, 1994

  Mrs. COLLINS of Illinois. Mr. Speaker, I am proud to join my 
distinguished colleagues, Mr. Richardson and Mrs. Schroeder, in 
introducing the Communications Opportunity Act of 1994. This 
legislation represents an important step in guaranteeing increased 
marketplace penetration by small businesses, women, minority-owned and 
rural firms, or so-called designated entities, in emerging 
telecommunications technologies.
  Today the Federal Communications Commission [FCC] formally announced 
its final rules for designated entity participation in auctions of 
broadband radio spectrum for a new generation of wireless technologies 
known as personal communications services or PCS. These technologies 
will allow a type of two-way, location independent communication among 
individuals that was viewed as mere fantasy as little as a few decades 
ago.
  I, along with my colleagues, have been thoroughly engaged in efforts 
to ensure that the preferences given designated entities in these 
auctions will be effective and we are heartened by the FCC's actions 
today. It remains imperative that women, minorities, and small 
businesses become PCS license holders rather than mere auction 
participants.
  The 1993 budget act gave the FCC a congressional mandate to 
disseminate licenses for spectrum-based telecommunications services 
among broad segments of the population which historically have faced 
barriers to market entry. While the FCC has formulated workable 
licensing preferences for designated entities, we intend to keep the 
pressure on the Commission to substantively carry out the 
responsibilities with which it has been charged both now and into the 
future through our legislation.
  Underrepresentation of women and minorities in the telecommunications 
field is well documented. A perfect example can be found in the 
cellular telephone industry, which generates in excess of $10 billion a 
year, yet a comprehensive 1991 study by the U.S. Minority Business 
Development Agency found that only 11 minority firms were offering 
services in this market. Even more distressing, this same study clearly 
indicated that less than 1 percent of all telecommunications companies 
were minority-owned.
  For women-owned firms, the statistics are similar. As reported in 
1993, the Census Bureau's survey of women-owned businesses found that 
only 1.9 percent of these firms were involved in the communications 
field. Given estimates stating the possibility of PCS becoming a $100 
billion-a-year industry, it is absolutely imperative that we seize the 
moment to ensure that designated entities are players in this vital 
arena.
  The Communications Opportunity Act of 1994 will strengthen the 
mandate given the FCC in the 1993 budget act and codify specific ways, 
such as targeted set-asides, in which the Commission could guarantee 
licenses to designated entities. Our aim in drafting this legislation 
has been to ensure that designated entities are not simply bystanders 
on the shoulder of the superhighway on-ramp but rather drivers in its 
express lanes.
  It is widely recognized that emerging telecommunications technologies 
are key to both the present and future stability and strength of the 
U.S. economy. Today's evolving industries will provide thousands of 
jobs for our citizens and bolster American competitiveness.
  Because of this fact, we cannot allow those individuals, 
institutions, and business interests that are now on the fringe or are 
traditionally the last to benefit from technological changes to be left 
behind, given the enormous opportunities these technological changes 
present. The inclusion or exclusion of designated entities in emerging 
technologies will dictate the fate of women, minorities, and small 
businesses owners and the communities in which they live and work as we 
head into the 21st century.
  The Communications Opportunity Act of 1994 will ensure effective 
inclusion of designated entities in cutting-edge telecommunications 
industries. I urge my colleagues to join us in supporting and moving 
this vital legislation forward.

                          ____________________