[Congressional Record Volume 141, Number 99 (Friday, June 16, 1995)]
[Senate]
[Pages S8526-S8527]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   THE TELECOMMUNICATIONS ACT OF 1995

  Mr. McCAIN. Mr. President, yesterday the Senate passed S. 652, the 
Telecommunications Reform Act of 1995. This is historic legislation 
that will substantially change the communications industry in this 
country.
  Although the legislation alters the status quo, I was not able to 
support it due to the fact that the bill fundamentally reregulated, not 
deregulated the telecommunications industry.
  I strongly support passing telecommunications reform. For too long 
this issue has been dictated by the courts. This is an abrogation of 
congressional authority, and the Congress is now compelled to play 
catch-up. It is imperative that the Congress implement a comprehensive, 
complete policy that will encourage free market competition and breed 
industry innovation that will ultimately benefit the consumer. 
Legislation that will accomplish this must contain provisions that 
deregulate and fosters true competition.
  Unfortunately, the bill passed by the Senate, S. 652, does exactly 
the opposite. Regulation is increased and congressional, and Federal 
Communications Commission micromanagement is advanced. This bill 
establishes a regulatory regime that reallocates existing markets, 
controls and limits future growth, and effects changes to the 
communications industry through a series of complex, excessive 
regulation.
  The best way to truly help the consumer is to allow industry the 
maximum flexibility to grow and prosper. 

[[Page S8527]]
That can be accomplished through deregulation. History shows us that 
deregulation of industry benefits the consumer. We should be working to 
pass legislation that deregulates.
  S. 652 contains a prescription for a larger and more intrusive 
Government in Washington.
  The bill mandates over 80 new regulatory proceedings that the 
Congressional Budget Office estimates will cost over $81 million to 
implement. Moreover, it is squarely at odds with nearly a quarter 
century of well-considered, soundly crafted, and broadly successful 
regulatory reform initiatives which commanded strong bipartisan support 
and, in the final analysis, yielded substantial consumer dividends for 
the American public. Back in 1970, the Senate Commerce Committee began 
work to deregulate a number of key, infrastructure industries. Airline, 
truck and rail, broadcast, maritime, cable, and freight regulatory 
reforms were initiated and successfully carried forward. These reforms 
paralleled changes which were occurring in the world at large, as the 
notion of pervasive, central economic planning by Government--embodied 
in the now-bankrupt Communist teaching and doctrine--faltered and 
competitive free enterprise concepts were adopted and embraced.
  Senator Packwood and I offered a series of amendments to S. 652 to 
make the bill more deregulatory. One amendment would have eliminated 
from the bill provisions which give the FCC excessive and unnecessary 
policymaking power. Another would have struck the community users 
provisions in the bill. A third amendment would have replaced the 
bill's universal service scheme with a voucher system that would have 
truly empowered consumers.
  Unfortunately, all of those amendments were defeated.
  I do want to thank the Commerce Committee chairman and ranking member 
for accepting some other amendments. I had sought to change the 
definition of the universal service contained in the bill. The 
universal service definition was far too broad and would have 
potentially cost consumers and companies hundreds of millions of 
dollars. The committee adopted the definition of universal service that 
I proposed as part of the manager's package of amendments.
  Also included in the manager's package was an amendment I intended to 
offer to strike the DBS tax provisions in the bill. The legislation 
contained language that would have authorized the States to order DBS 
television providers to act as State tax collectors. This was an ill-
conceived concept and I am very pleased that it was struck from the 
bill.
  I was also very pleased that the committee accepted my amendment 
mandating that the FCC report any increases in the fees charged to 
communications companies as part of their universal service obligation 
and another amendment to means test the community users section of the 
bill. Both improved the bill.
  Last, although I could not support this legislation, I want to thank 
Chairman Pressler. He did a masterful job of shepherding this bill 
through the Senate. He deserves specific praise for his efforts.
  I also want to thank ranking Member Hollings, Senator Rockefeller, 
Senator Snowe, and Senator Packwood.
  Their staff also deserve considerable praise for their efforts and 
hard work. I also want to thank Adam Thier of the Heritage Foundation, 
Bob Corn-Revere of Hogan & Hartson, and Jeffrey Blumenfeld and Christy 
Kunin of Blumenfeld & Cohen for their input and advocacy regarding the 
telecommunications voucher program.
  I appreciate their help, and I thank them for their efforts.

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