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Pacific Rim Fertile Growth Area.

There is little argument from any quarter over the proposition that the most fertile area for economic growth in the world today is the Pacific Rim region. As President Reagan said last fall . . . "we have a great interest in the Pacific Basin. That is where I think the future of the World lies."

Our two great states of Hawaii and Alaska have benefited from substantial investment from the Orient . . . and both look to the Pacific for markets for goods and services.

It is this atmosphere of revitalization, of growth, of expansion, and of contact with some of the great cultures in the history of civilization that makes it particularly interesting to be involved in the Pacific world of telecommunications. Because the great advances in communications technology will play an increasingly important role in the development of commerce in this region.

I'd like to bring you up-to-date on some of the developments in the United States over the past year. Specifically, I'd like to comment on three areas: the first being the continuing drive in our country toard a more competitive industry; the second, the development of a satellite policy encouraging some new competition for Intelsat; and the third, the efforts to assist developing countries to realize more benefits from telecommunications technology.

I've found a tremendous interest in the United States market and the changes in the regulation of American telecommunications. This interest seems to be of two kinds. The first group are those who understand that we have opened up our market to all comers. The second group are those who are curious about the effort to increase competition and even more curious about the break-up of AT&T.

What we are dealing with in my country are really three separate but related policies that have been combined under the deregulation heading. They are: true deregulation . . . where previously regulated entities are no longer regulated (like GTE Sprint and MCI); decisions that reduce barriers to entry and result in reductions of cross subsidies and more cost-based pricing; and the actual AT&T divestiture and the consent decree . . . and the theory of separating local service, long distance, and customer premises equipment--under the guidance of the Court and the Justice Department.

We can only hope that the markets of our trading partners are as open as ours are.

The bottom line is that the break-up of AT&T and the emphasis on entry of more competitors are decisions in the long-term interest of our country.

We can only hope that the markets of our trading partners are as open as ours.

In November of 1984 . . . after a long period of discussion an consideration . . . the President issued a decision finding that alternative systems were in the national interest for some services but also reaffirming the present intention of the United States to support the Intelsat system.

The President indicated that competition woudld only be allowed in what we call the customized business services. His determination placed off limits for fthe separate systems any traffic interconnected with the public-switched network which is the vast majority of the traffic carried by Intelsat.

When all of these actions are weighed together it becomes obvious that the United States Government highly values the Intelsat system and is intent on maintaining it but, at the same time, believes that some competition in certain areas would be best for American users.

Finally, let me comment on several other developments that impact on the telecommunications needs of the developing countries and how the United States is responding.

First, the Maitland Commission . . . and then the United States Telecommunications Training Institute.

Both grew out of the 1982 ITU Plenipotentiary Conference in Nairobi.

We have monitored closely the Commission's work and are most encouraged by its approach with recognizes the need to raise the priority of telecommunications development, enhance self-sufficiency, improve existing international assistance structures, and encourage private sector involvement.

Internally we in the United States have also sought to respond to some of the needs of the developing nations by creating the Telecommunications Training Institute.

The Institute has progressed, largely through the hard work of one dedicated man . . . Mickey Gardner, who headed the American delegation in Nairobi. Now, in its second full year of operation, the Institute has become a joint venture between Government and a number of communications firms in the United States.

In the first two years, the Institute has trained over 400 managers, engineers, and technicians from 70 countries. Twenty-two percent of the 1983 and 84 participants were from the Pacific Region. And the numbers are growing!

In 1985, the USTTI will have 27 corporate sponsors . . . an increase of 59 percent over last year. And Government support is growing as well.

In the future, the Institute may develop the capability of sending teams to other nations for assistance as we try to broaden our help to developing nations.

We think this is an example of the kind of program that can be most effective.
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Author:Markey, D.J.
Publication:Communications News
Article Type:transcript
Date:Mar 1, 1985
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