FOR IMMEDIATE RELEASE Contact: Harvey Kahn September 23, 1994 STATEMENT OF HARVEY KAHN, ACCESS 2000 ON TELECOMMUNICATIONS REFORM LEGISLATION (Harvey Kahn issued the following statement today.) "Telecommunications reform legislation is needed to set the rules of the road for the Information Superhighway. Access 2000 -- an ad-hoc coalition of independent producers -- supports an open road, one characterized by competition and creativity, and we are disappointed that the Senate may not able to continue its work to meet these objectives. "Access 2000 believes that cable competition can create new opportunities for independent producers to expand the mix and diversity of programming available to consumers, and we asked members of the Senate to amend S. 1822 to help achieve these goals. "Even with these changes, independent producers would face challenges developing appropriate business structures and relationships with new competitors, including local telephone companies. "Nonetheless, Access 2000 urges the Senate to resume its work on S. 1822 and to support amendments which allow fair and open competition among all video program providers. We believe that in doing so Congress can ensure that the promise of the Information Superhighway will become a reality." For more information contact Harvey Kahn ACCESS 2000, 2656 29th Street, Santa Monica CA 90405 Phone (310) 581-0070 Fax: (310) 581-1533 # Statement on Withdrawal of S. 1822 By James B. Hubbard Director of Economics, The American Legion September 23, 1994 Legislation to lift certain business restrictions on the Regional Bell Holding Companies was pulled recently from consideration in the Senate of the United States. This legislation would have created private sector jobs in the telecommunications industry, jobs for which veterans are eminently qualified. The American Legion is extremely disappointed by the lost opportunity to create new jobs. Studies conducted by Wharton Econometric Forecasting Associates showed that up to 3.6 million jobs would have been created in the next decade by eliminating court-imposed restrictions from the Bell Companies. During a time in which productivity gains have held the creation of new jobs to a minimum, this legislation was particularly important. Thousands of people, including veterans, have been laid off. Thousands more very well qualified men and women have been released from the armed forces. The American Legion has been interested in and involved in the long debate about the telecommunications legislation because we have a history of supporting programs and legislation which place veterans in meaningful careers. We have been doing this since our organization was founded over 75 year ago. At the recent 76th annual National Convention in Minneapolis, the delegates reaffirmed The American Legion's policy of supporting free, fair and open competition in the telecommunications industry. For additional information contact: Jim Hubbard Work: (202) 861-2780 Home: (301) 926-8076 Phil Budahn Work: (202) 861-2790 Home: (703) 569-8337 STATEMENT OF PHILIP WOLF, TRAVEL INDUSTRY CONSULTANT 9/23/94 6:15 PM The following is a statement of Philip Wolf, travel industry consultant, on the death of telecommunications reform: "Today, Senator Ernest Hollings (D-S.C.) announced that he is withdrawing major telecommunications reform from consideration this year. While the travel industry desperately needs competitive telecommunications legislation, S. 1822 was not that bill. It is, therefore, fortunate for our industry that Senator Hollings did not force this flawed legislation through the Senate in the final days of the session. "Since the telecommunications debate intensified earlier this year, members of the travel industry have been outspoken about our need for competitive telecommunications legislation. Full and immediate telecommunications competition would result in lower costs and advanced services for the travel industry. "S. 1822 faced significant opposition from numerous consumer and business groups that did not consider the bill competitive enough. That resistance and the limited time left in the current legislative session forced Senator Hollings to concede that the American people would have to wait until next year for a more reasonable approach to telecommunications reform. "If, and when, telecommunications legislation is introduced into the next Congress, the travel industry will be involved, pushing for competitive legislation that will bring lower cost telecommunications services and advanced information networks to the travel industry sooner." Travel industry consultant Philip C. Wolf is former president and CEO of Travelmation Corporation and present chairman of the Independent Travel Technology Association. Mr. Wolf has been an ardent proponent of competitive telecommunications legislation that will benefit the travel industry. CONTACT: Philip C. Wolf of the Independent Travel Technology Association, 202-355-3469 or TELECOMMUNICATIONS REFORM DIES IN THE SENATE Statement Of Peter Marx, Information Industry Consultant WELLESLEY, Mass., Sept. 23 -- The following was issued by Peter Marx of The Marx Group: Senator Ernest F. Hollings (D-SC) today said he would not bring his telecommunications overhaul bill (S. 1822) to the Senate floor, delaying for another year reform that the information provider industry desperately needs. Had the Senate followed the lead of the House of Representatives and offered a pro-competitive reform package, information service providers that will develop and provide the capabilities that will fill the much-heralded information superhighway might not have had to wait. Unfortunately, S. 1822 was overly regulatory, anti-competitive and would not have provided the lower rates and increased investment American telecommunications needs. The information service provider community will continue to push for competition in long distance, manufacturing, and information services. A survey late last year confirmed that more than 70 percent of information services executives favor allowing local Bell telephone companies to provide information services and cable television; and more than 65 percent favor allowing Bell company entry into long distance service and telecommunications equipment manufacturing. A real, pro-competition reform package will result in increased partnership opportunities and the development of more advanced and affordable technologies for information services providers. Although we are disappointed that S. 1822 did not give us the opportunity to achieve those goals this year, we are optimistic about passing favorable, competitive legislation in 1995. CONTACT: Peter Marx of the Marx Group, 617-576-5730 or MARXGROUP@aol.com Statement By NADO on the Senate's Failure To Act on S. 1822 FOR IMMEDIATE RELEASE For further information call September 23, 1994 Martha Lawson The following is a statement attributable to Aliceann Wohlbruck, executive director, National Association of Development Organizations: "We are very disappointed to hear that S. 1822, the Communications Act of 1994 will not be considered by the U.S. Senate this year. The action taken today to pull the bill represents a considerable set back for rural consumers. Although the proposed bill needed substantial corrections and clarifications, it represented a potential step forward in making advanced telecommunications available to rural America. We had hopes that the Senate could follow the leadership of the House of Representatives in passing a bill that was acceptable to all sides." "Critical provisions in the bill dealing with universal service and increased competition are still urgently needed for consumers residing in rural communities. With emerging developments in telecommunications technology and changes in the communications industry, Congress needs to take appropriate steps to ensure that rural America is not left out of the information revolution." "Timing for this action is critical. The information and communication needs of public institutions and private enterprise in rural America are growing. Without action, rural areas will fall even farther behind their urban counterparts. It is vital that America moves ahead quickly with developing and deploying advanced services as soon as possible." Contact: Martha Lawson at (202) 624-7806 For immediate release Contact: Richard Fitzpatrick September 24, 1994 202-546-1969 COALITION OF HOMELESS VETERANS SAYS "OPPORTUNITY MISSED" Washington, DC -- Richard Fitzpatrick, Executive Director of the National Coalition for Homeless Veterans (NCHV), expressed his disappointment today upon hearing that S. 1822 would not be considered by the Senate this year. He said, "NCHV exists to help the more than 270,000 homeless men and women who are veterans of our Armed Forces. The best answer is not a handout, but a hand up -- a job. Congress could have helped homeless veterans by stoking the economy's engine through enacting enlightened policy decisions that would create new jobs for veterans and all Americans. To make a long-range difference, we need new policy reform that will encourage competition and allow America to start to receive the true job-creation benefits of the Information Age. A sterling opportunity has been missed. We are having trouble understanding why HR 3626 was approved by an overwhelming majority, yet the Senate couldn't pass a similar bill. The rewrite of the 1934 Telecommunications Act was already long overdue... an example of regulation holding back progress. Now the process must start all over again and the Americans who needed jobs now will have to wait." # # # # Statement from J. Thomas Burch Chairman, National Vietnam Veterans Coalition September 23, 1994 The National Vietnam Veterans Coalition (NVCC) applauded when HR 3626 was overwhelmingly approved because it meant that veterans and all Americans would have increased job opportunities. We hoped that the Senate would pass a similar measure. We communicated to the Senate that changes were needed in S. 1822, that would open up the telecommunications marketplace quickly. We believed that a restructured bill could have given hope to our members that new jobs would be created which would strengthen our economy and help Vietnam veterans needing a job now. That hope and those jobs have been unnecessarily delayed. Statement of Frank Turk, President Telecommunications for the Deaf, Inc. Regarding Senator Hollings' Decision to Withdraw S. 1822 September 23, 1994 "Telecommunications for the Deaf, Inc. is very frustrated with Senator Hollings' decision not to bring S. 1822 to the floor for a vote in the Senate. This bill -- with the changes we were advocating for -- would have at long last broken down telecommunications barriers for people who are deaf and hard-of-hearing. "Telecommunications for the Deaf, Inc. took a lead role in advocating for an amendment to S. 1822 which would have established a disability access bureau within the Federal Communications Commission. This bureau would have positively impacted telecommunications access for millions of Americans. We will continue to work on this effort." Contact: Frank Turk 919-733-5930 # # # STATEMENT OF GARY FRINK, PRESIDENT, TELEVISION VIEWERS OF AMERICA September 23, 1994 The following is a statement by Gary Frink, president of Television Viewers of America, on S. 1822: "It's unfortunate that the clock has run out on telecommunications reform this year. I reluctantly agree with Senator Hollings' decision to postpone action on S. 1822, but only because, as written, the bill fails to provide true cable TV competition. Had S. 1822 reflected a more pro-consumer, pro-competition vision, I believe we would have seen it pass in this session. "While we are disappointed that consumers must wait even longer to see their cable TV rates come down and their service improve, the wait is much preferable to rushing a bill through Congress that does not ensure true competition in cable now. Television Viewers of America looks forward to continuing to work with the next Congress to ensure true, wide-open cable competition in the best interests of the American consumer." CONTACT: Gary Frink of Television Viewers of America, 703-743-4137 Statement from Dr. Ray L. Steele Chairman-Emeritus, U.S. Distance Learning Association September 23, 1994 "The education community looked to this year's telecommunications reform legislation to promote the development and deployment of the National Information Infrastructure. A visionary rewrite of the 1934 Telecommunications Act would have done that. The House rose to the occasion and a large majority voted for HR 3626. We are disappointed that the Senate bill was pulled before further negotiations could have taken place that would have ensured our students and educators could have benefited fully and immediately from fair and open competition in the telecommunications marketplace. So this nation is one year further away from sorely-needed reform." September 23, 1994 STATEMENT OF JORDAN CLARK, PRESIDENT UNITED HOMEOWNERS ASSOCIATION (Jordan Clark, President of the United Homeowners Association, issued the following statement today in response to the announcement that Ernest Hollings (D-SC) has pulled telecommunications reform from the Senate calendar.) "As a result of today's decision to pull S. 1822 from the Senate calendar, America's 65 million homeowners will again be denied the benefits of telecommunications competition. Antiquated laws and regulations that are the product of a bygone era will continue to limit consumer choices and inflate prices. "Unfortunately, Senator Hollings' decision will further diminish congressional credibility in the eyes of the American people. Attempts to cast blame on industry representatives will not alter one simple fact: After the House of Representatives overwhelmingly passed telecommunications reform legislation, the Senate simply dropped the ball. "Senator Hollings' insistence on his bill or no bill represents the type of legislative gridlock that the people of this country are tired of. America's homeowners deserve better, and our elected officials should be more responsive. "The United Homeowners Association recently wrote to members of the Senate in support of changes to provisions of S. 1822. Perhaps we, too, are culpable in Senator Hollings' mind. But passage of compromise legislation by the House, legislation which drew widespread support from industry, consumer and public interest groups, is testimony to the fact that it can be done." Contact: Dee Kuhn Statement of Donald Vial Senior Advisor, California Foundation on the Environment and Economy and Dr. Barbara O'Connor Director, Institute for the Study of Politics and Media California State University, Sacramento Regarding Senator Hollings' Decision to Withdraw S. 1822 September 23, 1994 "Today's decision by Senator Hollings to abandon S. 1822 "The Telecommunications Act of 1994," is disappointing and frustrating for those of us who labor in the public interest. Eliminating the possibility of telecommunications reform this year further delays the consumer benefits to be realized through widespread deployment of advanced telecommunications networks in areas such as education, job training and the delivery of social services." "We commend the tireless work of Chairman Hollings, the Commerce, Science and Transportation Committee and its staff. Inclusion of a strong universal service goal was a welcome step in the right direction. It is unfortunate, however, that consensus could not be reached on other issues as it was in the House." "The changing dynamics of the marketplace and advances in communications technology necessitate legislative reform that will benefit all segments of our society. Consumers will lose ultimately, if we allow telecommunications policy to be decided on the basis of serial court decisions driven only by anti-trust law." "We look forward to working with Senator Hollings and Representative Markey to develop legislation in the next Congress that will ensure equitable access for all Americans in a competitive environment." For more information contact: Donald Vial 415-788-0812 Barbara O'Connor 915-278-6415 SENATE REPUBLICAN LEADER BOB DOLE STATEMENT ON HOLLINGS-DANFORTH TELECOMMUNICATIONS BILL (S. 1822) SEPTEMBER 23, 1994 MR. PRESIDENT, IT IS UNFORTUNATE THAT SENATOR HOLLINGS DECLARED THE TELECOMMUNICATIONS ISSUE DEAD FOR THIS YEAR. MANY OF MY COLLEAGUES KNOW THAT IN RECENT WEEKS BOTH MY STAFF AND SENATOR HOLLINGS' STAFF HAVE TRIED TO IRON OUT MANY CONTENTIOUS ISSUES. YESTERDAY, WE PRESENTED SENATOR HOLLINGS STAFF WITH A SPECIFIC PROPOSAL TO MAKE THE BILL LESS REGULATORY, AND MORE MARKET BASED. ALTHOUGH WE DID NOT HEAR BACK BEFORE SENATOR HOLLINGS MADE HIS ANNOUNCEMENT, IT IS NOW APPARENT THAT THOSE TALKS HAVE FAILED. IT SEEMS TO ME THAT S. 1822'S MAJOR PROBLEMS INCLUDED ITS APPROACH TO UNIVERSAL SERVICE, ITS EXCESSIVE REGULATION, ITS PROTECTIONIST DOMESTIC CONTENT PROVISIONS, AND ITS OUTLANDISH, IF NOT UNCONSTITUTIONAL, 5% SET-ASIDE REQUIREMENTS. AND THESE ISSUES NEEDED TO BE RESOLVED BEFORE THE BILL REACHED THE FLOOR. OPPOSITION TO S. 1822 GREW FOR MANY REASONS. IT INCREASED LOCAL PHONE BILLS, GOVERNMENT REGULATION AND STIFLED INNOVATION. IT WAS OPPOSED BY MAJOR NATIONAL GROUPS THAT INCLUDED THE NATIONAL GOVERNORS ASSOCIATION, U.S. CONFERENCE OF MAYORS, NATIONAL LEAGUE OF MAYORS, AND BY MANY INDUSTRY GROUPS. WITH SO LITTLE TIME, AND OVER 250 DIFFERENCES BETWEEN THE HOUSE AND SENATE BILLS, IT WOULD HAVE BEEN A MAJOR FEAT TO ENACT THIS LEGISLATION THIS YEAR. NO DOUBT ABOUT IT, THIS IS AN IMPORTANT ISSUE. THE COMMUNICATIONS INDUSTRY IS ONE OF OUR NATION'S FASTEST GROWING AND MOST VIBRANT INDUSTRIES. THE BEST THING WE COULD DO FOR IT IS TO ADOPT POLICIES THAT ALLOW COMPETITION, NOT GOVERNMENT, TO REGULATE IT. WITH THAT SAID, IT IS CLEAR THAT THE STATUS QUO IS NO LONGER ACCEPTABLE. OF COURSE, I HAVE THOUGHT THAT FOR NEARLY A DECADE. CONGRESS MUST ASSERT ITS AUTHORITY, AND QUICKLY, TO RESOLVE THIS ISSUE. I AM CONFIDENT THAT A STRONG BIPARTISAN PROPOSAL CAN BE CRAFTED AND ENACTED INTO LAW EARLY NEXT YEAR. STATEMENT OF SENATOR HOLLINGS SEPTEMBER 23, 1994 I RELUCTANTLY ANNOUNCE TODAY THAT WE WILL BE UNABLE TO PASS COMPREHENSIVE TELECOMMUNICATIONS REFORM LEGISLATION IN THIS CONGRESS. THE COMMITTEE HAS WORKED HARD AND LONG OVER THE PAST YEAR TO CRAFT A BI-PARTISAN BILL TO PROMOTE THE PUBLIC INTEREST AND SPEED THE DEPLOYMENT OF THE NATIONAL INFORMATION SUPERHIGHWAY. UNFORTUNATELY, IT HAS BECOME CLEAR TO ME IN THE LAST FEW DAYS THAT CERTAIN PARTIES ARE UNALTERABLY OPPOSED TO THE PASSAGE OF THIS BILL IN THIS CONGRESS. THE LEAD CO-SPONSORS OF THE BILL AND I HAVE COME TO AN AGREEMENT THAT THERE IS SIMPLY NOT ENOUGH TIME LEFT IN THE SESSION TO OVERCOME THEIR OPPOSITION. WE WILL NOT BE HELD HOSTAGE AT THE LAST MINUTE TO ULTIMATUMS AND TO THE DESIRES OF CERTAIN PARTIES TO SUBSTANTIALLY REWRITE A BILL THAT PASSED THE COMMITTEE BY AN OVERWHELMING AND BI-PARTISAN VOTE. LAST YEAR, I ASKED SENATORS DANFORTH, INOUYE AND STEVENS IF THEY WOULD WORK WITH ME TO CRAFT A COMPREHENSIVE TELECOMMUNICATIONS REFORM BILL AND THEY AGREED. THE COMMITTEE STAFF BEGAN WORKING ON THIS BILL LAST OCTOBER, AND HAS BEEN MEETING WITH ALL THE MEMBERS OF THE INDUSTRY AND OTHER INTERESTED PARTIES. S.1822 WAS INTRODUCED ON FEBRUARY 3, 1994 WITH A BI-PARTISAN LIST OF 13 CO-SPONSORS, 12 OF THEM ON THE COMMITTEE. S.1822 WAS THEN AND STILL IS THE MOST COMPREHENSIVE TELECOMMUNICATIONS REFORM BILL INTRODUCED IN THE 103RD CONGRESS. INCLUDING THE DELIBERATION ON S.1086, THE DANFORTH-INOUYE BILL, THE COMMITTEE HELD 11 DAYS OF HEARINGS AND RECEIVED TESTIMONY FROM 86 WITNESSES OVER 31 HOURS ON TELECOMMUNICATIONS REFORM LEGISLATION. IN ADDITION, STAFF HELD WEEKLY MEETINGS WITH THE REPRESENTATIVES OF THE TELEPHONE INDUSTRY EVERY FRIDAY FOR SEVERAL MONTHS FOR THREE HOURS EACH MORNING, AND WITH REPRESENTATIVES OF ALL THE OTHER INTERESTED PARTIES ON A REGULAR BASIS. AFTER SENATORS BEAUX AND PACKWOOD INTRODUCED THEIR OWN BILL, S.2111, ON LONG DISTANCE RELIEF FOR THE REGIONAL BELL OPERATING COMPANIES (RBOCS), WE ENTERED INTO DISCUSSIONS WITH THOSE SENATORS AND THE RBOCS. AFTER MANY MORE HOURS OF NEGOTIATION, AND THE CONCERTED EFFORTS OF SENATOR LOTT, AN AGREEMENT WAS STRUCK. ALL OF THE RBOCS COMMITTED TO ME AND THE OTHER CO-SPONSORS THAT THEY WOULD NOT SEEK CHANGES TO THE LONG DISTANCE SECTIONS OF THE BILL IN THE COMMITTEE OR ON THE SENATE FLOOR. I HAVE BEEN SURPRISED AND DISMAYED TO LEARN IN THE LAST FEW DAYS THAT CERTAIN OF THE RBOCS HAVE VIOLATED THIS AGREEMENT. THE COMMITTEE REPORTED A SUBSTITUTE VERSION OF S.1822, INCORPORATING THE AGREEMENT ON LONG DISTANCE, ON AUGUST 11, 1994 BY A VOTE OF 18 TO 2. ALL 11 DEMOCRATS AND 7 OF 9 REPUBLICANS VOTED FOR THE BILL IN THE COMMITTEE. THE BILL CONTINUES TO HAVE BROAD PUBLIC SUPPORT. SUPPORTERS OF THE BILL INCLUDE CONSUMER GROUPS, THE BURGLAR ALARM INDUSTRY, THE LONG DISTANCE INDUSTRY, THE CABLE INDUSTRY, THE NEWSPAPER INDUSTRY, THE SATELLITE INDUSTRY, THE COMPETITORS TO THE TELEPHONE COMPANIES, THE DISABLED GROUPS, THE ELECTRONIC PUBLISHING INDUSTRY, THE BROADCAST INDUSTRY, PUBLIC INTEREST GROUPS, THE ELECTRIC UTILITIES, THE COMPUTER INDUSTRY, THE TELEMESSAGING INDUSTRY, THE PAYPHONE INDUSTRY, AND THE DIRECTORY PUBLISHING INDUSTRY. ONLY ONE SECTOR OF THE INDUSTRY CONTINUES TO OPPOSE THE BILL -- THE TELEPHONE COMPANIES, AND ESPECIALLY, THE RBOCS. THE RBOCS HAVE CONTINUED THEIR OPPOSITION TO THE BILL DESPITE THE INCLUSION OF SEVERAL SIGNIFICANT PROVISIONS DESIGNED TO HELP THEM BECOME MORE COMPETITIVE. FOR INSTANCE, THE BILL ALLOWS THE RBOCS INTO MANUFACTURING, ALLOWS THEM INTO LONG DISTANCE, ALLOWS THEM TO PROVIDE ELECTRONIC PUBLISHING SERVICES, ALLOWS THEM INTO CABLE, AND GIVES THEM REGULATORY FREEDOM WHERE THIS IS COMPETITION. IN ADDITION, THE BILL REQUIRES ALL POTENTIAL COMPETITORS TO THE TELEPHONE COMPANIES TO CONTRIBUTE TO UNIVERSAL SERVICE IN ORDER TO PREVENT CREAM-SKIMMING. DESPITE ALL THIS SUPPORT, DESPITE ALL THE COMMITTEE'S EFFORTS, PASSAGE OF THE BILL APPEARS TO BE IMPOSSIBLE IN THIS CONGRESS, FOR SEVERAL REASONS. FIRST, THE RBOCS HAVE VIOLATED THE TERMS OF THE AGREEMENT THAT THEY HAVE REACHED WITH ME AND OTHER MEMBERS OF THE COMMITTEE ON LONG DISTANCE. THE RBOCS HAVE CONTINUED TO SEEK CHANGES TO THE LONG DISTANCE SECTIONS OF THE BILL THROUGH THEIR TRADE GROUP, THE U.S. TELEPHONE ASSOCIATION. TWO OF THE RBOCS, BELLSOUTH AND AMERITECH, HAVE ALSO SENT OUT LETTERS TO THEIR SHAREHOLDERS OR EMPLOYEES CRITICIZING THE LONG DISTANCE PROVISION WE NEGOTIATED WITH THEM, WHICH THEY AGREED TO SUPPORT THROUGHOUT THE SENATE. WHILE I DO NOT BLAME ALL OF THE RBOCS EQUALLY FOR THESE PROPOSALS, IT IS CLEAR THAT WE CANNOT GO FORWARD ON THIS BILL UNLESS THE AGREEMENT ON LONG DISTANCE IS MAINTAINED. SECOND, THE RBOCS CONTINUE TO OPPOSE THE BILL IN SEVERAL WAYS. THEY ARE ADVERTISING IN ALL THE MAJOR NEWSPAPERS AGAINST THE BILL. THEY ARE EVEN ADVERTISING AGAINST THE CABLE PROVISIONS OF THE BILL WHICH THEY SUPPORTED IN COMMITTEE AND WHICH WERE ADOPTED BY THE COMMITTEE IN GOOD FAITH. DESPITE OUR SUBSTANTIAL EFFORTS TO NEGOTIATE AND MAKE CHANGES TO THE BILL BASED ON THEIR SUGGESTIONS, THE RBOCS HAVE INDICATED THAT THEY WOULD RATHER NOT SEE A BILL GO FORWARD IN THIS CONGRESS. THE RBOCS CONTINUED OPPOSITION IS MYSTIFYING IN LIGHT OF THE NUMBER OF PROVISIONS AND CHANGES WE HAVE MADE IN THE BILL ON THEIR BEHALF. THIRD, WE WERE INFORMED YESTERDAY BY SENATOR DOLE'S OFFICE THAT HE IS UNWILLING TO ALLOW THE BILL TO GO FORWARD UNLESS WE AGREE TO ACCEPT SUBSTANTIAL REVISIONS TO THE BILL. HIS OFFICE HANDED US LANGUAGE AND INFORMED US THAT PORTIONS OF THIS LANGUAGE WERE "NON-NEGOTIABLE". THESE PROVISIONS WOULD HAVE SUBSTANTIALLY DEREGULATED THE INDUSTRY AND WOULD HAVE COMPLETELY ALTERED THE WORK OF THE COMMITTEES AND THE PURPOSES OF THE LEGISLATION. THE PROVISIONS SENATOR DOLE SUGGESTED WOULD HAVE EFFECTIVELY PREVENTED COMPETITION FROM DEVELOPING FOR LOCAL TELEPHONE SERVICE AND WOULD HAVE DELAYED THE DEPLOYMENT OF TELECOMMUNICATIONS INFRASTRUCTURE. I SIMPLY CANNOT AND WILL NOT BE FORCED TO AGREE TO ACCEPT PROVISIONS THAT FUNDAMENTALLY UNDERMINE THE PROVISIONS THAT THE COMMITTEE OVERWHELMINGLY APPROVED JUST LAST MONTH. WE RELUCTANTLY HAVE COME TO THE CONCLUSION THAT THERE IS NOT ENOUGH TIME TO CONSIDER ALL OF THESE AMENDMENTS, PASS THE BILL THROUGH SENATE, CONFERENCE WIT THE HOUSE, AND OBTAIN FINAL PASSAGE BY BOTH BODIES IN THE FEW WEEKS REMAINING IN THIS CONGRESS. WHILE I AM DISAPPOINTED, I REMAIN HOPEFUL. THE COMMITTEE MADE SUBSTANTIAL PROGRESS IN THIS CONGRESS TOWARD TELECOMMUNICATIONS REFORM. THE 18 TO 2 VOTE BY THE COMMITTEE INDICATES THAT THERE IS BROAD CONSENSUS FOR THE LEGISLATION. BUT WE ARE SIMPLY NOT WILLING OR ABLE TO MAKE CONCESSIONS AT THE LAST MINUTE THAT THE RBOCS AND CERTAIN OTHER SENATORS WANT US TO MAKE SIMPLY IN ORDER TO PASS THIS LEGISLATION THIS YEAR. NEITHER THE INDUSTRY NOR THE PUBLIC WOULD BE SERVED BY ATTEMPTING TO REWRITE THE BILL TO SATISFY CERTAIN SPECIAL INTEREST ATTEMPTING TO HOLD THE BILL HOSTAGE TO THEIR UNIQUE VIEWS IN THE CLOSING DAYS OF THE SESSION. WE ARE CONFIDENT THAT WE WILL BE ABLE TO TAKE UP COMPREHENSIVE COMMUNICATIONS REFORM EARLY NEXT YEAR. I EXPRESS MY DEEP APPRECIATION TO THE LEAD CO-SPONSORS OF THE BILL FOR THEIR TIRELESS WORK THIS YEAR. IN PARTICULAR, I EXPRESS MY GRATITUDE TO SENATOR DANFORTH FOR WORKING SO CLOSELY WITH ME TO CRAFT THIS LEGISLATION FROM THE BEGINNING. I KNOW HE IS DISAPPOINTED THAT WE COULD NOT COME TO CLOSURE ON THIS BILL THIS YEAR. BUT THE PROGRESS WE MADE TOGETHER IN THIS CONGRESS WILL FORM THE FOUNDATION FOR THE LEGISLATION WE CONSIDER NEXT YEAR. I THANK SENATOR INOUYE, OUR SUBCOMMITTEE CHAIRMAN, SENATORS BREAUX AND STEVENS, REALLY ALL OUR COLLEAGUES FOR THEIR BI- PARTISANSHIP AND HARD WORK. I LOOK FORWARD TO WORKING WITH THEM AGAIN NEXT YEAR. MFJ TASK FORCE STATEMENT WASHINGTON, Sept. 23 -- The following is a statement from the MFJ Task Force: "We are disappointed that Senator Hollings has decided not to proceed with telecommunications legislation. We continue to support communications legislation to open all markets to fair and equitable competition. "We began this process working with the Administration and committed to work toward good legislation that would foster development of the Information Superhighway. "During the course of the 103rd Congress, the RBOCs agreed to major compromises with the newspaper publishers, alarm companies and labor unions and compromised on cable and other issues in order to facilitate passage of this legislation. "We worked with the House to get overwhelming passage of the Brooks- Dingell and Markey-Fields Bills. "The RBOCs struck a difficult agreement in the Senate on long- distance to keep the legislation moving forward. We have scrupulously adhered to that commitment. "We will continue to seek a constructive partnership to pass legislation to open all telecommunications markets to competition." CONTACT: Bill McCloskey of the MFJ Task Force, 202-463-4129 or PACIFIC TELESIS "DEEPLY REGRETS" HOLLINGS' DECISION TO PULL TELECOMMUNICATIONS LEGISLATION Washington, Sept. 23 - Pacific Telesis group "deeply regrets" Sen. Ernest F. Hollings' decision to pull S.1822, the telecommunications regulatory reform bill, from the Senate calendar this year, the company's Washington Office head said today. "Although many interest groups had serious concerns about the bill, we believe, and still believe, that there was time to resolve these difficult issues in the last days of the 103rd Congress," said Ronald F. Stowe, Telesis' vice president for Washington operations. "We're very sorry that Sen. Hollings did not agree." "Pacific Telesis has worked very hard to get good telecommunications legislation this year, and will work to see this task completed in the next Congress," Stowe added. "Our goal is to ensure that every competitor is treated fairly and equally, and that every business has the opportunity to enter every market at roughly the same time." Referring to Hollings' assertion that "certain parties" tried to undermine his legislation, Stowe said: "Any suggestion that this company sought to kill this bill is absolutely wrong. The truth is, local telephone companies very much need regulatory reform. The long distance carriers and the cable companies on the other hand, will do anything they can to keep competition out of their markets." Telephone Companies Made Tough Compromises To move the legislation forward, Pacific telesis and other regional Bell companies agreed to tough compromises that would have restrained their ability to quickly enter the long distance market and restricted their right to develop and market information services, Stowe noted. Stowe praised the efforts of Reps. John D. Dingell (D-Mich.), Jack Brooks (D-Tex.), Carlos J. Moorhead (R-Calif.), Ed Markey (D-Mass.) and Jack Fields (R-Tex.), whose telecommunications legislation passed the House on June 28 by overwhelming margins. The Brooks-Dingell and Markey-Fields bills, which were combined after House passage, would allow long distance and local exchange companies into each others' markets and permit competition between cable and telephone companies. The Telesis officer said negotiations were difficult "because the telecommunications industry and the interests at stake are very complex." He adds, however, that talks were rendered "even more difficult when the Senate Commerce Committee released 190 pages of a bill that sought to micro-manage the telecommunications industry through legislation, instead of turning over the nuts and bolts of key issues to the FCC, where they properly belong. Stowe added, "This company was completely faithful to its agreements with Sen. Hollings. We look forward to working with him again next year." The following is the text of a letter from the CEOs of the seven regional Bell companies to Sen. Ernest F. Hollings: "We were disappointed that you cancelled your meeting with us this morning to discuss ways to advance S. 1822. And we were dismayed that you announced this morning that you would no longer seek to bring S. 1822 to the Senate floor this year. "We have individually and collectively been seeking good-faith negotiations with you and your staff, and seeking Senate advocates for constructive improvements in S. 1822. "There are still several weeks remaining in this Congress, and we hope you will continue efforts to reach a resolution on the issues that have created widespread objections to S. 1822. As you fully are aware, it is not only the RBOCs that have been seeking critical improvements in the bill. As diverse interests as the National Assoc. of Regulatory and Utility Commissioners and Sen. Metzenbaum have strongly voiced objections to S. 1822. Labor groups, governors, and many others have been seeking major changes in the legislation before they can support it. "It is not accurate to state that the RBOCs have been attempting to stop this legislative process. Laying the blame on our companies ignores the myriad of organizations and Senators opposing S. 1822 for reasons other than RBOC concerns. In fact, we have been working constructively on this legislative effort from the day it was introduced in the House in early 1993, aiding the passage of a good bill in that body. "It is also incorrect to state that we have broken our agreement with you on long distance relief. We have never sought to change this provision as reported out of your committee, or to use USTA to change the agreement on our behalf. USTA was not a party to that compromise and has independently pursued changes in the regulatory problems the agreement creates for its non-RBOC members. "We will continue to be available to meet and discuss these issues at any time. In the meantime, we urge you to reconsider the withdrawal of S. 1822." Sincerely, /Signed by/ Richard C. Notebaert Edward E. Whitacre, Jr. President and Chairman and Chief Executive Officer Chief Executive Officer Ameritech Southwestern Bell Raymond W. Smith Richard W. Odgers Chairman and Executive Vice President and Chief Executive Officer General Counsel Bell Atlantic Pacific Telesis Group John L. Clendenin Richard D. McCormick Chairman of the Board Chairman and President and Chief Executive Officer Chief Executive Officer U S WEST BellSouth William C. Ferguson Chairman and Chief Executive Officer NYNEX cc: All Members of the U.S. Senate 9/23/94 CONTACT: Bill McCloskey of the MFJ Task Force, pager number 1-800-946-4645, PIN No. 2297390/ STATEMENT OF JAMES E. LEWIN, JR., SPRINT VICE PRESIDENT WASHINGTON, Sept. 23 -- The following is a statement issued by Sprint (NYSE: FON) Vice President-Government Affairs, James E. Lewin, Jr., on the status of Telecom legislation: "It is very unfortunate that the opposition to S. 1822 has apparently been successful in its attempt to derail this important legislation. It is a sad day for the industry and the consumer. It has been 60 years since the passage of the Communications Act. Our country desperately needs modern, forward-thinking communications legislation to guide us into the highly competitive world marketplace in the 21st century. "The Bell companies and their allies have blocked this advancement from happening. Sprint will do whatever it can in the closing days of Congress to get this legislation on the President's desk. "Senators Hollings and Danforth and the other supporters of S.1822 deserve much credit for their leadership on and devotion to this issue which is so vital to the American economy." CONTACT: Janis Langley, 202-828-7427, or Eileen Doherty, 202-828-7423