Broadband Bill is a 'Dangerous Fantasy,' Glassman Tells House Judiciary Committee; Tech Central Station's Host Testifies Before Panel.

Business Editors/Hi-Tech Writers

WASHINGTON--(BUSINESS WIRE)--June 5, 2001

A broadband bill before Congress is a "dangerous fantasy," TechCentralStation.com host James K. Glassman told the House Judiciary Committee in testimony today.

Glassman criticized the bill sponsored by Reps. Billy Tauzin, R-La., and John Dingell, D-Mich., HR 1542, which would eliminate current legal requirements that Bell phone companies open their local markets before they enter long distance markets.

"HR 1542 is being promoted as a way to boost deployment of high-speed data services," said Glassman. "In fact, it will produce the opposite result. It will severely harm prospects for sustainable and effective telecommunications competition - and it will further deter the deployment of broadband Internet technology and do substantial damage to the U.S. economy as a result."

Glassman argued that the bill, which is termed a deregulation bill, will in fact lead to even more government interference in the telecom industry. "It will lead us straight back to remonopolization and re-regulation - back to the conditions that existed before the breakup of AT&T in 1984," he said. "If the Tauzin bill becomes law, and the Bells, as expected, eviscerate their opposition by leveraging their local monopoly, ...Congress will not stand by and allow such a powerful monopolist...to set prices, quality and extent of service. Congress will step in, as it should, with strict mandates. We will be right back where we started."

Glassman noted that the bill has already been amended to include a deployment timetable mandate on Bell companies.

The very existence of the bill is damaging competition, Glassman said, citing the results of a soon-to-be-released study he is in the process of completing. "The mere prospect of the passage of HR 1542 and its predecessor last year has already severely damaged the (competitive) industry by helping to cut off the flow of investment capital," he said.

"What I care about is the U.S. economy and the standard of living of average Americans," Glassman concluded, "and what I know is that competition and deregulation produce better results than monopoly and regulation. This bill kills competition by killing competitors, and it will lead to more regulation, not less."

Glassman is the host of TechCentralStation.com, a web site devoted to exploring the intersection of public policy and the high-tech industry. He is currently a fellow at the American Enterprise Institute.