Printer Friendly

NEW STUDY REPORTS SIGNIFICANT JOB GAINS FOR KENTUCKY; BELL COMPETITION IN NEW BUSINESSES BRINGS ECONOMIC GROWTH, JOBS

 WASHINGTON, Aug. 9 /PRNewswire/ -- Kentucky would gain more than 59,000 new jobs over the next decade if telecommunications law and regulation were changed to allow free and open competition, according to a study released recently.
 The study concluded that a total of 3.6 million jobs would be created throughout the United States over the next 10 years if the Bell companies were permitted to compete in long distance telephone service, telecommunications equipment manufacturing, design and development and video programming and retained their freedom to offer information services. These new jobs would be across the country in every industry. In addition, lifting the current restrictions on Bell company competition would bring dramatic reductions in rates for telecommunications and cable TV services, which also would have a ripple effect throughout the economy.
 The study, which was conducted by the prestigious WEFA Group, utilized sophisticated econometric models to forecast the economic impact of Bell company entry into these currently restricted lines of business on the national and state economies.
 According to the study, Kentucky will be one of the top five states in terms of new jobs created as a percent of its total work force. Lifting the Bell company restrictions would generate 59,180 new jobs in Kentucky alone by the year 2003, 3.1 percent more than the state could otherwise expect by that time from normal economic growth. Well more than half of those jobs -- 35,251 -- would be created in the first five years after the restrictions were lifted. The most new jobs -- 18,492 -- would be created in Kentucky's manufacturing sector.
 "This study confirms what South Central Bell has been confident of for some time -- that open competition in the telecommunications marketplace would allow us to offer innovative services and to contribute significantly to economic growth and job creation for the people of Kentucky," said Margaret Greene, Kentucky president for South Central Bell.
 In addition to creating 3.6 million new jobs, the study predicts that the ripple effect of Bell competition would include:
 -- an additional $247 billion increase in the gross domestic
 product;
 -- improvement in America's balance of trade of $33 billion;
 -- federal deficit reductions of $150 billion; and,
 -- an increase in consumer spending of $137 billion by the year
 2003.
 All of these results are based on comparisons with WEFA's Baseline forecast, which projects the development of all aspects of the American economy through 2003, but assumes no line-of-business relief.
 WEFA further predicts that consumers would save almost $630 billion by 2003, which averages $63 billion each year, as a result of lower telecommunications and cable TV rates. The rate declines include: long-distance and local toll call rate decreases of 50 percent as compared to the Baseline forecast, saving consumers over $490 billion by 2003; local rate increases of less than one-half the amount of the Baseline forecast, saving more than $30 billion over the 10-year period; and, cellular rate decreases of 15 percent (including toll charges) over five years, saving more than $25 billion by 2003. Average cable TV prices decrease almost 5 percent when local telephone company entry is granted, vs. an increase of 27 percent in WEFA's Baseline forecast, saving consumers nearly $75 billion.
 The regional Bell companies were excluded from participating in long-distance services, telecommunications equipment manufacturing and information services as part of the court-supervised breakup of AT&T in 1984. The 1984 Cable Act prohibited Bell companies from providing video services to customers in their regions. In 1991, the information services restriction was lifted by a federal court.
 -0- 8/9/93
 /CONTACT: Bill McCloskey of South Central Bell, 202-336-7825/


CO: South Central Bell ST: Kentucky IN: TLS SU:

IH-MH -- DC006 -- 0708 08/09/93 11:19 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 9, 1993
Words:619
Previous Article:CONGRESS PASSES CLINTON BUDGET; MUSEUM DIRECTORS HAIL GIFTS PROVISION
Next Article:COMMERCIAL TRUCK SALES POST BEST RESULTS IN 14 YEARS, SAYS NATIONAL AUTOMOBILE DEALERS ASSOCIATION
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters