Opening Statement by Sen. Conrad Burns (R-MT).
Re: Senate Commerce Committee hearing on broadband Internet access.
Date: April 13, 1999.
Source: Office of Sen. Conrad Burns. This document was created by scanning a paper copy, and converting to HTML.

Statement of Senator Conrad Burns
Commerce, Science and Transportation Committee
Hearing on Broadband Deployment
April 13,1999

Thank you, Mr. Chairman. I commend the Chairman for holding today's hearing, as it concerns a topic that is critical to the future of this country: the pace of broadband deployment.

The Internet has transformed itself in a few short years from an obscure online outpost frequented mainly by scientists to a mass medium used daily by over 100 million people worldwide. The explosion of information technology has created opportunities undreamed of by previous generations, Companies ranging from garage startups to multinational corporations are bringing their goods and services into the electronic realm at an ever-escalating rate. Students are able to gain access to educational materials despite their geographical location.

All of these exciting opportunities risk being stopped dead in their tracks by a problem caused by the very popularity and productivity of the Internet: data congestion. In short, there is a looming "bandwidth deficit" developing in the public switched network. The reason for this looming deficit is the onslaught of data traffic on the network. I authored Section 706 of the Telecommunications Act of 1996 because I wanted to ensure the deployment of broadband advanced services to all Americans, both in rural and urban areas. Undoubtedly, that will be critical for American competitiveness as our country enters the 21st century. Currently, however, fewer than 2% of homes have Internet access speeds of at least 1.5 Megabit access compared to 40% of businesses.

I was extremely disappointed with the FCC's January report that broadband deployment has been "reasonable and timely." Given the statistics I just cited, I find it absolutely unbelievable that the Commission could come to such a conclusion. I can certainly tell you that my constituents in rural Montana are not telling me that broadband deployment is widespread.

The central goal of the 1996 Act is to encourage competition and move away from regulation. Competition encourages investment and innovation in new technologies. Competition, not regulation, empowers consumers with more choices, better services and lower prices.

In the 1996 Act, we expected that cable would compete with the local phone companies and therefore dealt with the issue in two ways. We instructed the FCC and state commissions to encourage the deployment of advanced services to all Americans under Section 706. We also broadened the definition of "cable services" to include interactive services, reflecting the evolution of cable service. Both actions by Congress suggest the point that Congress intended for cable Internet service to remain free from interconnection obligations under the Act. If we impose a regulatory regime on cable operators at this early stage, it could jeopardize their access to venture capital and threaten to derail the very efforts we are trying to promote.

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Regulatory restraint and forbearance -- not new regulations, are the keys to fostering investment in broadband infrastructure.

Broadband services are in an early stage of deployment and there are an incredible number of providers, including cable operators, local telephone companies, satellite companies, and wireless companies, each investing billions of dollars in competing high-speed facilities. Imagine what is possible if we refrain from regulating new competitors so that full competition can develop not only in local markets such as Great Falls, Virginia but also more rural markets like Great Falls, Montana.

Burdensome regulation is simply wrong in a marketplace characterized by aggressive competition and investment. The market not the government, should be able to take care of this issue. I want to encourage deployment of broadband and will oppose any new regulations.

I look forward to hearing all the witnesses' testimony. Thank you.