[Congressional Record Volume 149, Number 76 (Wednesday, May 21, 2003)]
[Extensions of Remarks]
[Page E1004]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          THE TELECOM INDUSTRY

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                        HON. CHARLES A. GONZALEZ

                                of texas

                    in the house of representatives

                         Tuesday, May 20, 2003

  Mr. GONZALEZ. Mr. Speaker, the news for the Telecom industry is still 
not good. While there are certainly signs of recovery, there is also 
significant weakness in the industry.
  The Wall Street Journal reported on Monday, April 28, that capital 
spending by the six major telecom operators was down an average of 19 
percent in the first quarter, compared to the same quarter last year. 
This is 19 percent lower than already low capital spending.
  One reason for the lack of spending is regulatory uncertainty. The 
Federal Communications Commission ruled in February that some of its 
regulations on broadband should be eliminated. The only problem is that 
the FCC still has not issued its rules, so companies cannot make their 
capital spending plans.
  Cuts in capital spending mean fewer jobs for those workers who make 
telecommunications equipment, and those who install it. It means less 
broadband availability for under-served areas. It means less 
competition in broadband services. The FCC needs to work to reverse 
these trends, and should start by issuing the order it agreed on more 
than 3 months ago.

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