[Congressional Record Volume 145, Number 165 (Friday, November 19, 1999)]
[Extensions of Remarks]
[Pages E2501-E2502]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        THE TELECOMMUNICATIONS DEVELOPMENT FUND IMPROVEMENT ACT

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                          HON. EDOLPHUS TOWNS

                              of new york

                    in the house of representatives

                      Thursday, November 18, 1999

  Mr. TOWNS. Mr. Speaker, I rise today to introduce, along with my 
colleagues, Representatives Tauzin, Dingell, Markey, and Oxley, the 
Telecommunications Development Fund Improvement Act.
  This bill will resolve technical deficiencies that are affecting the 
operation of the Telecommunications Development Fund (TDF), enacted as 
part of the Telecommunications

[[Page E2502]]

Act of 1996. It will address the following issues: (1) the need to 
maximize the interest earning potential of all FCC spectrum auction 
bidders' deposits; and (2) lack of specific language authorizing TDF's 
participation in government-sponsored capitalization programs.
  Specifically, this bill:
  Directs the FCC to place all spectrum auction bidders' deposits in 
interest-bearing accounts; and
  Provides explicit instructions that the TDF may participate in the 
SBA's SBIC program to assist it in generating additional capital.
  Implementing these two items will effectuate my original intent as 
the author of the 1996 provision. The TDE provision was intended to 
maximize the availability of investment capital to entrepreneurs 
seeking to provide telecommunications services to underserved 
communities. These technical oversights are depriving the TDF of 
millions of dollars of additional revenue.
  Despite numerous obstacles over the last two years, the TDF continues 
to remain operational. I am pleased to convey that TDF has reviewed 
over 300 telecommunications business proposals with a staff of less 
than five people, confined operational overhead expenses to 5.2 percent 
of its total budget, and recently announced funding for small business 
entrepreneurs who will provide telecommunications services to 
undeserved communities. Remedying the technical deficiencies outlined 
in the previous paragraphs will ensure the continued viability of the 
TDF.
  Mr. Speaker, I urge you and my House colleagues to join me in 
ensuring that the Telecommunications Development Fund is a viable 
entity in today's ever-evolving telecommunications frontier.

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