Scout Report: Week ending July 1, 1994

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CONGRESS PLANS REWRITE OF TELECOMMUNICATIONS LAW
(from E-D-U-P-A-G-E, published by EDUCOM)
Two House bills (one from the Energy & Commerce Committee & one from the Judiciary Committee) would in effect rewrite the 1934 Communications Act and the 1982 consent decree that broke up the Bell System. If the bills become legislation, the Bell Operating companies would be allowed to manufacture telecom equipment and to offer cable TV services, in-state long-distance service, and out-of- state long-distance service under certain conditions; the long distance carriers would be allowed to compete with the regionals in the local market and to reduce the local access fees they pay the Bells; and the cable companies would be allowed to compete in the local phone business. The legislation will face problems in the Senate, where a bill sponsored by Senator Hollings would make it more difficult for the regional Bells to enter the long-distance market. (Wall Street Journal 6/29/94 A2)

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