[Congressional Record Volume 143, Number 105 (Wednesday, July 23, 1997)]
[Senate]
[Page S7886]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       CONGRATULATIONS TO THE FCC

  Mr. KERREY. Mr. President, during the last several weeks, I have 
taken the floor to discuss my concerns about the approach the 
Department of Justice has taken on mergers among and between large 
telecommunications companies.
  I was particularly disappointed with the decision of the Department 
of Justice to approve the Bell Atlantic/NYNEX merger without any 
conditions.
  Today, I take the floor to congratulate the Federal Communications 
Commission for doing what the Department of Justice was unwilling to 
do. This weekend the FCC announced that it had concluded an 11-page 
letter of agreement with Bell Atlantic and NYNEX on pro-competitive 
conditions for its merger.
  While I continue to question the underlying competitive merit of the 
Bell Atlantic/NYNEX combination, the efforts of the FCC certainly 
mitigate the decision of the Department of Justice to approve the 
merger. It is only unfortunate that the Department of Justice had not 
demonstrated the same commitment to competition.
  The FCC negotiated a 4 year pro-competitive agreement with Bell 
Atlantic and NYNEX which includes the use of forward looking costs for 
competitive interconnection agreements, the use of uniform interfaces 
for interconnection, greater reporting requirements, access for 
competitors to efficient operating support systems, and performance 
guarantees. These commitments hold the promise of giving competition a 
chance to take root.
  The use of forward looking costs within the 13 States which make up 
the Bell Atlantic/NYNEX region is especially significant in light of 
the Friday decision of the Eighth Circuit Court of Appeals to bar the 
FCC from setting interconnection prices. A nation grew from 13 
colonies, perhaps a telecommunications revolution can grow from 13 
States.
  I applaud the FCC and Chairman Hundt for showing independence and a 
commitment to competition. The course of action chosen by the 
Commission highlights the importance of the FCC's political 
independence. As an independent regulatory body, the Commission was 
able to use its authority to protect the public interest to win pro-
competitive concessions from Bell Atlantic and NYNEX, notwithstanding 
the failure of the Department of Justice to do so.
  I urge my colleagues to give this case careful study as the Congress 
considers telecommunications policy. In the coming weeks and months, 
the Congress will consider confirming four new members of the Federal 
Communications Commission. At stake is whether the Congressional vision 
of competition and universal service which brings more choice, more 
investment, more jobs, and lower prices to the telecommunications 
market is fulfilled or not.
  The success or failure of the Telecommunications Act of 1996 depends 
almost entirely on a new team of regulators at the Department of 
Justice and the FCC.
  To succeed, they must have an unrelenting commitment to competition 
and universal service. Without that commitment, the act is doomed to 
failure. The result will be higher prices, greater consolidation and 
fewer choices.
  Mr. President, I applaud the FCC for its action in this case. The 
Congress must assure that the new members of the FCC have the same 
courage to exercise their independence, as this Commission has done to 
protect the public interest.
  Thank you, Mr. President.
  Mr. GRAMS addressed the Chair.
  The PRESIDING OFFICER. The Senator from Minnesota.
  Mr. GRAMS. Thank you very much, Mr. President.

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