peterm@rwing.uucp (Peter Marshall) (03/24/91)
According to the 3/20 WALL STREET JOURNAL, "The Senate Commerce Committee overwhelmingly approved legislation allowing the regional Bell telephone companies to make telecommunications equipment...." The JOURNAL article said the 18-1 vote on the bill introduced by Committee Chair Ernest Hollings was criticized by AT&T and consumer groups, because the phone companies would be able to compete unfairly, which could lead to higher rates. The article also indicated that although Hollings wants a full Senate vote soon, a specific schedule has not yet been set; and that although similar House legislation is also expected, it is not likely to move quickly. Rep. Markey is preparing a broader proposal, according to the JOURNAL. Along with the Hollings bill's manufacturing provisions, Markey's bill includes purported safeguards that would be placed on RBOCs if Congress or the courts allows them to enter other now-restricted lines of business. The safeguards would allegedly prevent anti-competitive behavior. The action on the Hollings bill was praised by the Pacific Telesis official who heads the RBOC coalition that has been pushing to remove all the MFJ restrictions. However, the JOURNAL reports opponents are trying to stop or change the bill. An AT&T spokesperson commented "This will take the equipment market back to the past." The article indicates that with some exceptions, the present bill is much like the one that passed this Committee in the last Congress.