FOR IMMEDIATE RELEASE                                          AT
THURSDAY, MARCH 23, 1995                           (202) 616-2771
                                               TDD (202) 514-1888

Statement of Anne K. Bingaman, Assistant Attorney General in
charge of the Antitrust Division, Department of Justice, 
Concerning Telecommunications Bill voted out of Senate Commerce
Committee Thursday, March 23, 1995:

     The Administration is gratified that telecommunications
reform legislation has been agreed upon by a majority of the
Senate Commerce Committee, and congratulates Senators Pressler
and Hollings on a significant advance in the effort to guarantee
open and competitive telecommunications markets.  However, the
Administration is concerned that the legislation approved by the
Committee today falls short of the steps needed to open local
telecommunications markets to real competition.  More work
remains to be done to make certain that this legislation gives
consumers the choice and low prices in local telephone service,
long distance and cable service which Americans deserve and
rightfully expect, and the Administration looks forward to
working with the Congress to achieve those goals.     

     While the Administration is still analyzing the bill, the
legislation voted out of the Senate Commerce Committee today
appears to be a substantial improvement over the Pressler draft
of January 11, 1995,  in that it removes the so-called "date
certain" for entry of the Regional Bell Operating Companies into
long distance. The bill also contains several areas in which it
appears that further improvement is needed:
     
       The bill removes the Department of Justice from a
separate role assessing the state of competition prior to RBOC
entry into long distance.  The Administration believes that this
is a mistake.

        The Administration is concerned that the bill as
reported by the Committee today could effectively encourage cable
companies to move basic service to upper tier services, and then
to raise the prices on those upper tier services with inadequate
price protection for consumers.  The Administration is concerned
that the bill as drafted could cause substantially increased
cable prices for many American consumers.

        The bill repeals the current restriction on cross-ownership of cable and telephone companies in the same service
area by permitting telephone companies to buy out local cable
companies, their most likely local competitor.  By allowing
movement to a "one-wire world,"  with only antitrust litigation
to prevent it,  the bill could have the effect of curtailing
important potential competition, and thereby raising both
telephone and cable prices in the future for American consumers.

     The Administration understands that this bill represents
only a first, but important, step in the legislative process. 
The Administration is still analyzing the bill and looks forward
to working with the Congress to strengthen its provisions in
these and other respects before final passage to further the goal
of obtaining open markets and the benefits of competition for
American consumers in the vital telecommunications arena.    

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