[Congressional Record Volume 147, Number 42 (Tuesday, March 27, 2001)]
[Extensions of Remarks]
[Pages E450-E451]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    INDEPENDENT TELECOMMUNICATIONS CONSUMER ENHANCEMENT ACT OF 2001

                                 ______
                                 

                               speech of

                          HON. EVA M. CLAYTON

                           of north carolina

                    in the house of representatives

                       Wednesday, March 21, 2001

  Mrs. CLAYTON. Mr. Speaker, I rise in support of the Independent 
Telecommunications Consumer Enhancement Act of 2001. This bill would 
provide regulatory relief to small and mid-sized telephone companies 
that generally serve small town and rural communities. The current 
regulatory burdens on these small companies are the same as those 
placed on large companies; but, because of their size, these 
regulations are very costly and time-consuming.
  These regulatory burdens tend to discourage competition in rural 
communities by impeding the entry of new companies into these markets. 
These burdens also pose obstacles to the development in rural 
communities of advanced services such as broadband Internet access.
  The Telecommunications Act of 1996 provided for reduced regulations 
and greater competition in our country. This has fostered many new 
telecommunications and information services including advanced 
services. However, the benefits of these technological advances have 
been enjoyed by urban and suburban communities much more than by 
persons who live in small towns and rural communities. Large telephone 
companies and other entities tend to have the resources required to 
develop these advanced services and find the urban and suburban markets 
more attractive. The deployment of advanced services in urban areas 
contrasted with the difficulty of small companies offering these 
services in rural areas has exacerbated the digital
  We must find ways to bridge this divide. Relieving certain regulatory 
burdens may help achieve this objective. The proponents of this bill 
and many small telephone companies promise that they will use the 
savings resulting from the elimination of these regulatory burdens to 
extend advanced services. Some question whether the savings resulting 
from this measure would simply increase profits of the small telephone 
companies with no corresponding increase in services. Some note that 
this bill does not impose a reciprocal obligation to extend services 
following the relaxation of current regulatory requirements, and does 
not include any enforcement mechanisms. We hope that the small 
telephone companies which benefit from the adoption of this bill will 
do the right thing and act in the best interest of the communities in 
which they operate. That is the intent of this measure and the

[[Page E451]]

basis for my support. It is proper for the federal government to foster 
a regulatory framework that stimulates competition and encourages 
deployment of advanced services to people who live in small towns and 
rural communities.

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