Washington, DC – Citizens Against Government Waste (CAGW) today applauded the decision by the Federal Communications Commission (FCC) to keep key elements of the Telecommunications Act of 1996, thus preserving a competitive market within the industry. 

“We are pleased that common sense prevailed over corporate welfare at the FCC today,” CAGW President Tom Schatz said.  “This is a prudent compromise that will help preserve local phone competition, while forging a strong decision-making role for the states.”

According to the rules adopted by the FCC, the four regional Bell operating companies would still have to open up their telephone lines to competitors.  However, the Bells will not be required to share any high-speed networks that they build.  The deal was brokered despite pressure by House Energy and Commerce Committee Chairman Billy Tauzin (R-La.) to eliminate sharing of lines by the Bells.  FCC Chairman Michael Powell also supported such a position.

“Frankly, in the absence of the key role by Commissioner Kevin Martin in forging this compromise, it was doubtful this ruling would have come out as it did,” Schatz said.  “He showed leadership and clear thinking at a time when it was badly needed.

“On the other hand, Chairman Tauzin made the wrong choice by holding private meetings with Commissioners Martin and Kathleen Abernathy seeking to exert his considerable political clout in an effort to get the FCC to ‘reevaluate’ its position,” Schatz continued.  “Chairman Tauzin failed to hold a public hearing with his colleagues to allow questioning of all commissioners, including FCC Chairman Michael Powell, and thereby excluded the views of opponents of the Bell monopolies such as the AARP, American Conservative Union, CAGW, IBEW, NFIB, and other consumer and business advocacy groups.  In the end, Chairman Tauzin did not prevail.  In the future, he will hopefully be more fair about the FCC decision-making process.

“The FCC showed today that they are not playing favorites,” Schatz concluded.  “The decision will help competition, and as a result both taxpayers and consumers.”

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.