[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]

 
NATIONAL COMMUNICATIONS COMPETITION AND INFORMATION INFRASTRUCTURE ACT 
                                OF 1994

                                 ______


                               speech of

                         HON. WILLIAM J. HUGHES

                             of new jersey

                    in the house of representatives

                         Tuesday, June 28, 1994

  Mr. HUGHES. Mr. Speaker, I rise in support of H.R. 3636, the 
Telephone/Cable Communications Competition and Infrastructure Act of 
1994. I would like to commend my colleagues, Chairman Dingell, Chairman 
Markey and Chairman Brooks for the excellent work they have done with 
respect to facilitating this measure being brought to the floor for a 
vote. As a result of their diligence, we have the opportunity--by 
passing H.R. 3636--to ensure that America remains on the path toward 
excellence in the international telecommunications marketplace.
  Undoubtedly, the technology that American telecommunications 
companies have developed to date--and have the potential to develop in 
the future--is tremendous. At this juncture our challenge is to create 
an environment in which these companies may flourish and achieve even 
more sophisticated technological advances leading to the establishment 
of the national information superhighway.
  H.R. 3636 will assist us in facing this challenge by promoting the 
creation of a national communications and information infrastructure. 
This measure will enable the American telecommunications industry to 
remain on the cutting edge of the technological advancements fueling 
this communications revolution by encouraging the development of state-
of-the-art communication services and technologies through competition. 
Of equal importance, this bill establishes provisions to safeguard 
ratepayers and competitors from potential anticompetitive abuses and 
preserves as well as enhances universal service.
  Essentially, H.R. 3636 will eliminate the line of business 
prohibitions that currently ban or limit the ability of telephone 
companies, cable companies as well as other telecommunication service 
providers from competing in each other's business.
  That is, H.R. 3636 will promote competition in the local telephone 
market by requiring that local telephone companies allow competitors 
equal access to their networks. Local telephone companies generally 
could be required to provide space at their facilities for competitors 
to place equipment with which to connect the telephone companies' 
networks.
  Moreover, the local telephone companies must ensure that such 
connections provide full interoperability between their phone system 
and their competitors' systems. The bill also requires long-distance 
networks and cellular companies to allow other parties to use their 
switches and transmission equipment for their competing businesses.
  It is important to note that this bill preserves State and local 
governments' rights to regulate telephone companies to the extent 
necessary for public safety, consumer protection and to ensure that 
intrastate rates are reasonable. However, these governing bodies would 
be prevented from imposing any franchise, license or other fee that 
discriminates against potential competitors.
  One of the most significant aspects of H.R. 3636 is the Federal-State 
Joint Review Board it establishes to recommend to the Federal 
Communications Commission [FCC] and the State utility commissions 
specific action necessary to preserve and enhance universal access for 
consumers. This joint-board will define the nature and extent of 
services encompassed within a telephone company's universal service 
obligation. Moreover, the board's review will ensure that as 
technological innovation and competition are introduced into the local 
telephone market, the policy of universal access to basic telephone 
service at affordable rates is preserved.
  As in the local telephone industry, H.R. 3636 will promote and 
accelerate competition to the cable television industry by permitting 
telephone companies to compete in the offering of video programming. 
Essentially, the bill eliminates the cross-ownership restrictions 
established in the 1984 Cable Act. Therefore, pursuant to H.R. 3636, 
local telephone companies--through separate affiliates--will be 
permitted to provide cable services in their own service areas. This 
increase in competition will, in turn, provide a strong incentive for 
the local telephone companies to invest in and upgrade their 
information networks.
  Another safeguard against the potential for anticompetitive behavior 
is the establishment of the video-platform. Pursuant to H.R. 3636, 
those telephone companies that offer cable services in their own 
service areas would be required to establish a video platform upon 
which to offer their video programming. Telephone companies, on a 
nondiscriminatory basis, must allow other providers to offer video 
programming to subscribers utilizing the same video platform.
  I urge my colleagues to support H.R. 3636. This measure is a 
procompetitive, proconsumer bill which will enable America to remain at 
the forefront of the rapidly developing information superhighway while 
ensuring quality and affordable services for American consumers.

                          ____________________