The telecommunications provisions contained in the Balanced Budget Act have merely two flaws. They will gut vital telecommunications policy goals that have enjoyed bipartisan support for decades. And they will do nothing to help achieve a balanced budget.

The Republican conferees have made it clear that getting a good "score" from the CBO is more important than good policy. But this is not a baseball game. Members will have that opportunity next week.

Under this bill, affordable telephone service will be held hostage to the politics of the budget process by delaying payments for universal service support from FY 2002 to FY 2003. Who will pay for the consequences of prohibiting the government release of private funds to high cost and rural markets when they need it to provide basic telephone service at affordable rates?

This bill also requires a glut of spectrum to be unleashed on the market by the year 2002. Forget the fact that the law of supply and demand dictates that the value of this spectrum will be severely diminished, or that more than $10 billion, or half of the amount raised in prior spectrum auctions, may never be collected by the U.S. Treasury because of bidder defaults.

Finally, this bill will allow broadcasters to own two or more television stations, or a television station and a newspaper, in many markets throughout this country. So much for competition and a diversity of media voices.

Simply stated, these are bad telecommunications policies, that will do little or nothing to raise money for the American taxpayer. I urge my colleagues to reject these transparent attempts to play budget games with our nation's telecommunications infrastructure.

Sincerely,

JOHN D. DINGELL
RANKING MEMBER

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