[Congressional Record Volume 149, Number 59 (Friday, April 11, 2003)]
[Extensions of Remarks]
[Page E736]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E736]]
                       TELECOMMUNICATION INDUSTRY

                                 ______
                                 

                             HON. JOE BACA

                             of california

                    in the house of representatives

                        Thursday, April 10, 2003

  Mr. BACA. Mr. Speaker, I rise to emphasize the need to revitalize the 
telecommunications industry. In February, the FCC voted by a three to 
two margin to allow state regulators to decide how much competitors 
should pay for leasing networks.
  Is this fair? Should long-distance companies be allowed to piggyback 
on the hard work and investments of other companies? How will this 
ruling affect consumers? Phone companies will not have any additional 
incentive to invest in new networks. This ruling will stifle 
technological change and hurt an industry that already suffered an 11 
percent decrease in capital spending last year.
  When the FCC issued new regulations in mid February to promote 
competition, it failed miserably. It missed an opportunity to create 
jobs in the struggling telecommunications industry. The FCC also missed 
an opportunity set a national policy to promote facilities-based 
competition that would have encouraged investment.
  As evidence of the weak policy adopted by the FCC, on that day when 
the FCC issued its decision, the telecommunications industry lost $15 
billion in worth. The move to shift decision-making to the States 
regarding Unbundled Network Elements will only create a quagmire of 
regulations that will not encourage investment and the creation of 
jobs.
  The people who will suffer the most are the hardworking men and women 
who depend on this industry. As the Communications Workers of America 
state, there needs to be a Federal telecommunications policy that will 
boost the telecommunications industry and national economy.
  The FCC missed their opportunity. I hope my colleagues in Congress 
will revisit this issue in the future.
  Thank you Mr. Speaker, and I yield back the balance of my time.

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