(Washington, DC) – Citizens Against Government Waste (CAGW) applauded the regulations issued today by the Federal Communications Commission (FCC) that retain key elements of the Telecommunications Act of 1996 and preserve a competitive market within the industry.

“CAGW is pleased that common sense prevailed at the FCC today,” CAGW President Tom Schatz said.  “This action is salutary confirmation that the FCC appreciates the vital importance of involving state officials in phone service issues, and has wisely taken a step back from overregulation in Washington.”

The new regulations are based on rules adopted last February by the FCC. The four regional Bell operating companies will still have to open up their telephone lines to competitors, but will not be required to share any high-speed networks that they build. 

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

The rule was adopted and regulations issued 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.

“These regulations can be attributed to FCC Commissioner Kevin Martin, who forged a pro-competition rule that still maintains state involvement,” Schatz concluded.  “The Commission was absolutely right to avoid the kind of federal overreach that CAGW has long opposed.”

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