Telecommunications

In 1996, Congress passed the landmark Telecommunications Reform Act to modernize communications law and prepare the regulatory environment for new technologies while ushering in an era of competition and innovation. The Act had numerous successes. It paved the way for robust competition in the telephone market bringing about marked declines in long distance phone call costs. The legislation's insistence that wireless communications be left unregulated in order to allow the cell phone industry to gain a foothold helped to foster a veritable revolution in how people communicate with family, friends, and business associates.

The Telecommunications Reform Act had its failures as well. Drafted during the early years of the Internet's development, the Act didn't anticipate the growth, both in terms of impact and economic importance, of the Web. Almost immediately after the passage of the 1996 Act, Internet usage experienced explosive growth, and it is difficult to imagine a comprehensive telecommunications bill without a major focus on Internet policy.

Technology has continued to evolve, serving to illuminate gaps and overlaps in our regulatory framework. Various telecommunications issues will need to be addressed in the near future. Broadband Internet deployment will be a major issue as policymakers work to encourage the continuing access of fast Internet connections into rural and low-income areas where development has been slow. Potential regulation of Internet service providers may also be on the agenda, with some observers suggesting that the nation's leading providers have gained anticompetitive power over the Internet while others believe the issue is one in search of a problem.

Competition in the multichannel television market remains an issue. Direct broadcast satellite television has maintained and expanded its footprint as a competitor to cable systems, but ground based competition has been slow to develop. Consumers have long chafed at the lack of choice, and during the 109th Congress the House passed legislation to facilitate local cable competition through a national franchise mechanism. The Senate did not take up the issue, and it remains on Congress's agenda. It's impossible to consider television without considering the ongoing switch to an all digital system. Congress will need to monitor this transition carefully in order to ensure that no viewers are left behind.

The telephone service industry will also merit attention. For rural consumers and those in lower-income urban communities, the financial pressure on the Universal Service Fund raises questions about the availability of important communications services. Rising Universal Service Fees, an expanding menu of telecommunication services, and a growing list of providers seeking USF support combine to put the Fund's future near the top of the Telecom agenda.

Throughout this dynamic period of growth and development, Rep. Petri has been guided by the view that competition is a key element in providing lower prices and innovative services. There are times, however, when government must become involved in outlining ground rules to ensure that the benefits continue to accrue to the general public. The 111th Congress is expected to consider a variety of telecom issues, and Rep. Petri will continue to support policies that engender the development of new technologies while tending to spread their benefits throughout our society.