Federal News Service - Hearing of the Telecommunications and the Internet Subcom. of the House Energy and Commerce Committee on H.R. 3717 - Transcript
Federal News Service February 4, 2004 Wednesday
Copyright 2004 Federal News Service, Inc.
Federal News Service
February 4, 2004 Wednesday
SECTION: CAPITOL HILL HEARING
HEADLINE: HEARING OF TELECOMMUNICATIONS AND THE INTERNET SUBCOMMITTEE OF THE HOUSE COMMITTEE ON ENERGY AND COMMERCE
SUBJECT: THE CURRENT STATE OF COMPETITION IN THE COMMUNICATIONS MARKETPLACE
CHAIRED BY: REPRESENTATIVE FRED UPTON (R-MI)
LOCATION: 2322 RAYBURN HOUSE OFFICE BUILDING, WASHINGTON, D.C.
WITNESSES:
MICHAEL J. BALHOFF, MANAGING DIRECTOR, TELECOMMUNICATIONS GROUP, LEGG MASON INC.;
FRANK LOUTHAN, VICE PRESIDENT, EQUITY RESEARCH RAYMOND JAMES FINANCIAL, INC.,
ADAM QUINTON, MANAGING DIRECTOR & FIRST VICE PRESIDENT, CO-HEAD OF GLOBAL TELECOM SERVICES RESEARCH, MERRILL LYNCH & CO.;
NED P. ZACHAR, CFA, FOUNDING PARTNER, WEISEL PARTNERS, DIRECTOR OF TELECOM SERVICES RESEARCH, LEVER HOUSE
BODY:
REP. FRED UPTON (R-MI): Well, good afternoon. Today is the first in a series of hearings this year in which the subcommittee will examine the state of competition in the communications marketplace. And what I think we'll hear today from our witnesses is that the marketplace has evolved dramatically since congressional debate on and passage of the Telecommunications Act of 1996.
BREAK IN TRANSCRIPT
REP. CHARLES W. "CHIP" PICKERING (R-MS): Thank you, Mr. Chairman, for having this hearing and I look forward over the next few months to working with you as we address the critical issues and the next steps that we need to take.
To my friend Mr. Shimkus from Illinois, you'll be glad to know that in my view timing is everything. And whereas before I believed it was very important to have the full implementation of the act so that we could have the broadest degree of competition and as many forms as possible emerge and establish-and I think that's where we are today. I think we've had the full implementation of the act. We not only have competition from CLECs, both in combination with their own networks or in resale, but we have, more importantly, wireless, cable and we have this exciting emergence of voice-over Internet. And it is now time, in my view, to take the next step of major telecom reform of adding into our policy and building onto what we did in 1996.
I think voice-over Internet is going to be quickly emerging, and it is the technology and the application that forces us as policymakers to create a new structure because as you have voice-over Internet explode, the underpinnings of universal service collapse, so you have-it is a driver in trying to make sure that you have a predictable, sustainable universal service fund in the future. And as you have that form of competition and multiple platforms of competition, then we should be able to begin deregulating everything else. We need to make sure that as voice-over Internet goes forward that we don't have 50 states trying to regulate in different ways voice-over Internet.
I think that this is the catalyst that will cause the consensus, the stars to align for us to be able to have major reform, probably not in this Congress, but what we do in this Congress will shape the foundation for what we do in the next Congress and I'm looking forward to what that looks like.
I do think the recommendations that Mr. Zachar mentioned, spectrum reform, universal service-I don't know if you mentioned universal service reform-but some type of rational and sustainable universal service approach. What, if any, preemption should we have to protect voice-over Internet as we go forward? And what process do we need to address carrier-access reform and the deregulation of local incumbent on a going-forward basis?
I've talked more than I asked any questions. But I do look forward, Mr. Chairman. I think that the stars are aligning and this is the right time and the right place to begin a major reform of telecom.
With that, I yield back my time.
BREAK IN TRANSCRIPT
REP. PICKERING: Thank you, Mr. Chairman.
END