[Congressional Record Volume 147, Number 139 (Tuesday, October 16, 2001)]
[Extensions of Remarks]
[Page E1900]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                RURAL EXEMPTION ENHANCEMENT ACT OF 2001

                                 ______
                                 

                         HON. GEORGE RADANOVICH

                             of california

                    in the house of representatives

                       Tuesday, October 16, 2001

  Mr. RADANOVICH. Mr. Speaker, I rise today to introduce the ``Rural 
Exemption Enhancement Act of 2001'' (REEA). This modest proposal would 
ensure greater regulatory certainty for many of our nation's rural 
telephone companies as they continue their efforts to bring quality and 
affordable advanced telecommunications services to our communities. I 
am pleased that this legislation has been endorsed by the Organization 
for the Promotion and Advancement of Small Telecommunications Companies 
as well as Sierra Telephone Company in my home district.
  More than five years ago, Congress passed comprehensive legislation 
to reform our nation's telecommunications laws--the Telecommunications 
Act of 1996. In crafting this legislation, Congress wisely included 
provisions which exempt rural telephone companies from the collocation, 
unbundling and resale obligations imposed upon incumbent local exchange 
carriers. Congress understood that these obligations would not serve 
the best interests of rural consumers and would deter investment in 
high-cost areas that are already challenging to serve due to a lack of 
economies of scale.
  Mr. Speaker, it is important to note that the rural exemption 
accorded to rural telephone companies is not permanent and can be 
lifted by a State commission. Under section 251(f) of the 
Telecommunications Act, a new entrant may make a bona fide request to a 
State commission to lift a rural ILEC's exemption. Following a 120 day 
evaluation of the request, a State commission may lift the exemption if 
the request from the competing carrier is not found to be unduly 
economically burdensome, is technically feasible, and is consistent 
with the universal service provisions of the Act.
  I am very concerned, however, that the lifting of a rural telephone 
company exemption by a State commission currently applies to both voice 
grade and advanced services. The current process for evaluating a 
petition to lift a rural exemption provides disincentive for small, 
rural carriers to make costly investment in advanced telecommunications 
service infrastructure. For these reasons, I am introducing the ``Rural 
Exemption Enhancement Act.
  My legislation should not in any way be interpreted to be a competing 
proposal to H.R. 1542, the ``Internet Freedom and Broadband Deployment 
Act of 2001'' passed by the House Energy and Commerce Committee. I am 
proud to be a cosponsor and active supporter of that proposal. The bill 
that I am introducing today would simply make it clear that a request 
to lift the voice grade exemption should be made and evaluated 
separately from the advanced services exemption.
  Mr. Speaker, this Congress and the President will spend the remainder 
of this session developing legislation that is vital to our nation's 
economy and national security. I look forward to working with my 
colleagues to move this legislation forward next year before the 107th 
Congress adjourns sine die.

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