[Congressional Record Volume 142, Number 18 (Friday, February 9, 1996)]
[Extensions of Remarks]
[Page E192]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      CONFERENCE REPORT ON S. 652, TELECOMMUNICATIONS ACT OF 1996

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                               speech of

                         HON. MICHAEL G. OXLEY

                                of ohio

                    in the house of representatives

                       Thursday, February 1, 1996

  Mr. OXLEY. Mr. Speaker, I would like to take a minute to talk about 
section 275 of the telecommunications conference report concerning 
alarm monitoring services. Section 275 generally restricts Bell 
operating companies and their affiliates from providing alarm 
monitoring services for 5 years from the date of enactment. It does, 
however, allow BOC's that were lawfully engaged in the alarm monitoring 
business on or before November 30, 1995, to continue to provide such 
services. There are no prohibitions under current law barring Bell 
operating companies from providing alarm monitoring, and those 
companies that have chosen to enter this business in reliance on 
current law should not be unduly penalized after such lawful entry. 
Moreover, such companies should be permitted to operate and expand 
their business just like any other company in our free market system. 
Restrictions on growth deny consumers the benefits that additional 
competition will bring.
  The only restriction on grandfathered BOC's contained in the 
conference report is that such companies may not acquire any equity 
interest in or obtain financial control of an unaffiliated alarm 
monitoring company. Let me be perfectly clear, as is the language of 
the conference report: This restriction does not encompass customer or 
asset acquisitions. There is no restriction on acquisitions of customer 
accounts or the assets of unaffiliated alarm companies by a Bell 
operating company that was offering alarm monitoring services on or 
before November 30, 1995. After 5 years, the limited restriction on 
acquiring an equity interest or obtaining financial control will be 
lifted and there will be no entry, equity, or financial control 
restrictions whatsoever on Bell operating company provision of alarm 
monitoring services.

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