WASHINGTON,
D.C. – U.S. Representative Jan Schakowsky (D-IL) submitted this statement
during an Energy and Commerce Committee hearing on pending mergers in the
telecommunications industry:
Thank
you, Chairman Barton and Ranking Member Dingell. I would also like
to extend a special welcome to one of today’s witnesses, Mr. James Speta
from Northwestern University’s School of Law. Although the law school
campus is not “technically” in my district, the main campus of Northwestern
is – so I am going to claim you as one of my constituents. Welcome.
I
am glad we have an opportunity to discuss the questions that are raised
by the overlap of the incredible changes in technology since the 1996 Telecommunications
Act and the recent cascade of mergers in the telecom industry have brought
us here today, especially as they pertain to consumers and those who work
in the telecom industry.
Technological
developments have meant more choices for consumers. Industry now
offers consumers the choice between landlines, wireless, or Voice-Over-Internet-Protocol
phone services, just to name a few. However, as we witness the number
of companies offering the services drop significantly because of mergers
that create a limited number of mega-corporations, we have to ask if consumers
will see better prices, whether there will be more technological innovations,
and if service will improve. Before we praise what the mergers will
do for big business, we need to consider what they will mean for the consumers.
The potential for serious losses are great. Business interests too
frequently are not in the consumers’ best interest.
We
also must consider what mergers mean for the workers. Over the past
five years, the telecom industry has seen hundreds of thousands of jobs
eliminated. The pending mergers threaten tens of thousands more positions.
The companies readily admit to these “cost savings” cuts. Workers
are being talked about as disposable business liabilities rather than the
assets they are. We need to be less glib about people’s livelihood.
Congress
must ask the tough questions and we need answers to our concerns before
these mergers are approved. I believe that as the process moves
forward, we must not forget those who will feel the likely fallout of the
mergers the most – the employees and the consumers. Thank you. |