Draft telecom bill released

Sen. Larry Pressler (R-SD) released a draft bill in late January that would reform telecommunications law, removing regulations and opening markets to greater competition.

The "Telecommunications Competition and Deregulation Act of 1995" would be implemented in three one-year phases, ultimately dismantling Modified Final Judgment restrictions and freeing cable, utility, long-distance and local telephone companies to cross over into each other's markets.

The draft was criticized by the Regional Bell Operating Companies (RBOCs), who expressed dissatisfaction with the timing of the reform. The draft only allows local telephone companies into the long-distance market during the final phases.

"True competition will come only when all players are allowed into all markets at the same time and under the same terms and conditions," said Gary McBee, chair of the Alliance for Competitive Communications, an ad hoc RBOC coalition.

"It opens the local telephone market but denies the American public the right to choose to receive long-distance and cable services from their local phone company at the same time or allow consumers to do business with us in the same way," McBee said.

Pressler, chair of the Commerce, Science and Transportation Committee, said, "Because of their monopoly status, local telephone companies and the Bell Operating Companies have been prevented from competing in certain markets. It is time to eliminate these restrictions. Nonetheless, transition rules designed to open monopoly markets to competition must be in place before certain restrictions are lifted."

Last year, Sen. Ernest Hollings (D-SC) introduced similar legislation but withdrew it during a similar dispute with the Bell companies over timing issues.