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Extensions of Remarks (PDF 17MB) 28696 EXTENSIONS OF REMARKS October 6, 1994 EXTENSIONS OF REMARKS A LOPSIDED TRADE POLICY MUST Friday. So apparently there won't be tele­ enough with the promise of competitive STOP communications reform this year. choices for seamless global connections We've supported the Hollings bill because through the world's public switched net­ it provides a logical approach to the expan­ works. HON. MICHAEL R. McNULlY sion of competition. That's impossible right now. Not because OF NEW YORK It anticipated the local exchange compa­ technology is lacking, but because competi­ IN THE HOUSE OF REPRESENTATIVES nies' eventual freedom to enter the already tion is lacking. And competition will remain Thursday, October 6, 1994 competitive long distance market. But not lacking as long as carriers from other coun­ until the introduction of real competition, in tries are allowed to compete in the U.S. at Mr. McNULTY. Mr. Speaker, during the past the local exchange market, where the local the same time they sharply restrict access to 2 years, the United States has witnessed an exchange companies still have a monopoly. their home markets. unprecedented level of investment in our long That arranagement strikes me as fair. And This just doesn't make sense for cus­ distance industry by foreign telephone compa­ hopefully, these principles will be part of any toil"ers. They are being denied the economic nies. In 1993, British Telecom announced it legislation proposed in Congress next year. benefits of facilities-based competition planned to acquire a 20-percent investment­ Meanwhile, the size and relative openness among carriers outside the United States. the limit allowed by law-in MCI, the Nation's of the U.S. market have attracted competi­ Permitting any country to operate this tion from all over the industrialized world. kind of a closed market while its own affili­ second largest long distance carrier. Now, less Unfortunately the open door policy of the ate competes on an equal footing in the than 1 year later, France Telecom and Deut­ U.S. market has not generated comparable United States is not in the best interests of sche Bundespost, France and Germany's progress in other countries. They want the full and fair competition. state telephone entities, say they plan to make freedom to compete for customers in the And the France Telecom/Deutsche a similar level of investment in our Nation's United States, but they haven't taken sig­ Bundespost Telekom/ Sprint deal as proposed third largest long distance carrier, Sprint Corp.· nificant steps to dismantle their monopoly now would not fit any reasonable definition Mr. Speaker, the United States has been control at home. of full and fair competition. willing to allow foreign entities to enter our ro­ I don't mean any disrespect to my fellow Not as long as France and Germany have bust domestic long distance telecommuni­ panelists or to their companies. And I cer­ recently made significant strides in bringing tainly don't want to suggest that anyone in international settlement rates down closer cations market. This is a cornerstone of our America should be telling another country to cost-a practice we'd like to see more competitive telecommunications policy. Unfor­ how to run its telecommunications system. countries emulate. tunately, when some of our largest tele­ France Telecom and the Deutsche American international callers pay out $4 communications companies attempt to break Bundespost have crested some of the best billion a year more than the U.S. takes in into lucrative foreign markets such as Ger­ technical infrastructure in the world. from all foreign governments. An estimated many, France, and Britain, they find the doors They've been serving their own populations $2.3 billion of that is pure subsidy. It to these markets are closed. for most of this century without any policy amounts to a tax on Americans. Robert E. Allen, chairman of AT&T, our Na­ advice from the United States, thank you And while they're collecting this premium tion's largest long distance company, recently very much. to complete calls from America, many coun­ But the problems created by closed mar­ tries use discriminatory rates to charge car­ addressed a networked economy conference kets transcend the borders of any one na­ riers from other parts of the world substan­ of Communications Week International here in tion. tially less for similar access. Washington. In his keynote speech, Mr. Allen The proposal of France Telecom and Deut­ High and discriminatory settlement rates explained with great clarity why this lopsided sche Bundespost Telekom to enter the U.S. are symptoms of uncompetitive markets. trade policy must stop. As Mr. Allen correctly network services market through their in­ They represent toll booths on the Global In­ pointed out to those gathered at the con­ vestment in Sprint goes well beyond the in­ formation Superhighway, and the tolls are ference, this policy is unfair and deprives U.S. ternal policies of any of the countries in­ still too high. customers of important competitive choices in volved. It underscores the question of wheth­ It's time for strong action by the U.S. gov­ the current global market. The growing pres­ er America can afford to open the door to ernment to demonstrate that comparable competitors from countries which offer very market access is not longer an abstract ence of foreign, state run competitors in our little in the way of comparable market ac­ hope. It's a principle, a standard for tele­ domestic long distance marketplace also has cess. communications trade between the U.S. and the distinct possibility of seriously reducing If I may be permitted to answer my own other countries, and a necessity for giving competition in the United States, where more question: The time for this lop-sided ar­ customers the level of services they want. than 500 long distance companies compete rangement is long past. Specifically, we are asking the Federal for the business of American consumers. Not just because it strikes many people as government to take action now. Mr. Speaker, I urge my colleagues to read unfair, but more important, it deprives U.S. We are requesting that the FCC act on the carefully the relevant portions of Mr. Allen's customers of competitive choices in the filing we made a year ago and develop uni­ speech, which I submit for the record. The is­ global market, and it poses the risk of reduc­ form rules that would make comparable ing the competition that's already the market access a standard for foreign carriers sues raised need to be examined carefully by strength of the U.S. market. to enter the U.S. telecom services market. the Federal Communications Commission, the Meanwhile, business and residential cus­ And we're asking the FCC to review the Department of Justice, the Department of tomers are looking for the best possible com­ France Telecom/Deutsche Bundespost/Sprint Commerce and the United States Trade Rep­ bination of price and service here and deal in the context of that standard. resentative before another state supported abroad. They want the option of buying ex­ We're calling on the commission to use its competitor gets easy access to our market actly the services they want from the carrier statutory authority to require foreign car­ while U.S. based competitors still do not re­ of their choice. And they want that carrier riers looking to do business in the U.S. to ceive comparable market access in other to meet their needs inside and across the first demonstrate that their home markets borders of other countries. are open to competition in basic services, countries. Even putting aside the new information and provide the kind of network interconnec­ LOPSIDED TRADE POLICY services that will be coming down the super­ tions that go with true competition. (Speech by Robert E. Allen, chairman of highway, competitive access is crucial for And, of course, we want the commission to AT&T) delivering the full benefits of the voice and insist that any foreign carrier looking to Congress has been debating the first major data services that make up most of the glob­ compete in this market offer cost-based, communications legislation in this country al market right now. non-discriminatory accounting rates to all in 60 years. The big multinational customers whose U.S. carriers. Unfortunately, events compelled with­ buying power drives that market are grow­ The Department of Justice is already re­ drawal of the Hollings bill in the Senate on ing impatient. They've been teased long viewing the antitrust issues raised by the e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. October 6, 1994 EXTENSIONS OF REMARKS 28697 France Telecom/Deutsche Bundespost Mota is a leader in the Portuguese community THE FAITH LUTHERAN CHURCH Telekom investment in Sprint. But I can't of Rhode Island and is renown for the signifi­ CELEBRATES ITS 70TH ANNIVER­ imagine any set of conditions imposed here cant contribution she has made in the admin­ SARY that would be more effective than the estab­ istration of educational programs for linguis­ lishment of real competition in France and Germany. tically and culturally diverse students. Ms. da HON. MARTIN R. HOKE With that in mind, we're requesting that Mota received both her bachelor of arts de­ OF OHIO the U.S. Trade representative begin negotia­ gree in education and a master of education IN THE HOUSE OF REPRESENTATIVES tions to achieve comparable access in France in bilingual and bicultural education from and Germany, and we're asking the U.S.
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