[Congressional Record Volume 145, Number 165 (Friday, November 19, 1999)]
[Extensions of Remarks]
[Page E2457]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

[[Page E2457]]



 REFORM OF THE COMMUNICATIONS SATELLITE COMPETITION AND PRIVATIZATION 
                                  ACT

                                 ______
                                 

                        HON. W.J. (BILLY) TAUZIN

                              of louisiana

                    in the house of representatives

                      Thursday, November 18, 1999

  Mr. TAUZIN. Mr. Speaker, when I last addressed the House concerning 
H.R. 3261, at Chairman Bliley's request, I read his statement into the 
Congressional Record. Due to my long legislative history in issues 
relating to the satellite industry, I believe it is necessary for me to 
provide some additional views as the House and Senate prepare to begin 
a conference aimed at reconciling differences between their respective 
bills.
  The Communications Satellite Competition and Privatization Act of 
1999 is an important step forward in Congress' efforts to update the 
Communications Satellite Act of 1962 (1962 Act). I wish to acknowledge 
the efforts of Chairman Bliley in reaching out to members of the 
Telecommunications Subcommittee to address important issues and advance 
the legislative process.
  Mr. Speaker, reform of the 1962 Act is vitally necessary, as 
technological innovation and marketplace competition has dramatically 
changed the satellite industry over the past 30 years. Indeed, the 
arrival and rapid advance of undersea and underground fiber-optic cable 
systems has forced the industry to move beyond what many policymakers 
have thought to be its only role: universally providing 
telecommunications services to broad audiences. While the industry will 
certainly continue to lead efforts to develop new markets, satellites 
are now highly sought after to provide the capacity and redundancy 
necessary to continue the explosion in telecommunications usage, data 
transmission, and e-commerce. In other words, we have now learned that 
not only are cable systems unable and, in some cases, unwilling to 
reach everyone, they may not be able to service everyone.
  As the landscape of the marketplace continues to change more cable 
and satellite systems find themselves in direct competition for 
customers, and we have been forced to reconsider our assumptions 
regarding the average satellite services user. No longer are these 
users simply interested in access to services; satellite customers want 
exactly what other telecommunications customers want. They want choice 
in the marketplace. They want the option of different transmission 
systems. They want broadband services over the Internet. They want high 
quality and highly dependable services. And they want it now.
  This change in consumer demand, coupled with the exponential increase 
in Internet usage, interactive data and direct-to-home satellite 
services fuels much of the growth in the satellite services industry 
today. The result is a dynamic and highly competitive marketplace. How 
competitive? One need look no further than the chapter 11 filings of 
Iridium and ICO to understand that you won't be around long in this 
business if you're only resting on your laurels.
  Mr. Speaker, I believe we can make this market even better for 
consumers. As the conference committee moves forward, we need to ensure 
that legislation intending to direct the future of the satellite 
industry is consistent with current economics, and that it recognizes 
the enormous strides toward full, free and private competition that are 
already underway. We need to ensure that a wide range of issues are 
addressed in a manner that fosters even more competition, and that 
Congress enacts balanced legislation which offers all companies in the 
satellite services industry a level playing field.
  I want to specifically commend Chairman Bliley for working to improve 
upon H.R. 1872 in several important areas. I am particularly gratified 
that the House legislation has effectively ensured that private 
contracts negotiated between entities are safeguarded and not subject 
to manipulation as a result of new legislation.
  We also need to be sensitive to the fact that this bill is necessary 
to accommodate a commercial transaction between two companies that have 
already received regulatory approval for their merger. In this regard 
we should work to ensure that any action of the Congress should not 
diminish the value of current investments or ongoing business 
activities.
  We should also ensure that no single competitor in the satellite 
services industry is advantaged or disadvantaged by our actions. In our 
effort to create a more dynamic marketplace, we should endeavor 
ourselves to provide even more consumer choice. Any limitation on 
services that any one company would offer should be seen as an outcome 
that reduces consumer choice. As I said previously, at a time when 
demand for Internet and other broadband services are driving growth 
across the telecommunications industry, it would be terribly ironic if 
an action of the Congress actually limited choice in the satellite 
market.
  I am optimistic that we will produce legislation in the conference 
committee that is genuinely pro-competitive and offers customers around 
the world more choices. I look forward to working with Chairman Bliley 
and Senator Burns to produce legislation that meets these objectives.

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