July 30, 2002

Washington, D.C. - The Small Business Survival Committee (SBSC) issued a report today - "Broadband, the Last Mile and Small Business" -- explaining why Congress should not pass legislation that would allow local telephone companies to maintain their anti-small business, anti-consumer monopolies.

SBSC President Darrell McKigney noted: "We conclude in our report that, at this point in time, any legislation, such as the Tauzin-Dingell bill that passed the U.S. House of Representatives, geared toward relieving the Baby Bells of their open access requirements when it comes to broadband infrastructure would only serve to perpetuate and expand the Bell monopolies."

"It is critical to remember that the Telecommunications Act of 1996 was meant to expand competition in the realm of telecommunications.  Unfortunately, the local telephone monopolies have marred the road to competition with many potholes, and along the way also hurt the deployment of competitive, high-speed broadband telecommunication services," McKigney added.

The report points out: "If Congress guts the 1996 Act, businesses - particularly many smaller enterprises - will face diminished competition in the broadband market.  In fact, many small businesses in effect will be stuck only with a Bell monopoly.  Cable modem service has very low business penetration rates." The report continues: "Finally, there are real costs associated with businesses not having choices in the broadband market.  Higher costs, fewer choices, and diminished services resulting from continuing or even expanding Bell monopolies translate into slower economic growth as well."

The SBSC report concludes: "Even given all of its setbacks, the Telecommunications Act of 1996 can still work to the benefit of the Bells, the CLECs, long distance firms, and customers, including small businesses.  All the Baby Bells have to do is to stop throwing up roadblocks on the road to competition, including when it comes to high-speed broadband services.  If the Baby Bells concentrate on meeting the competitive requirements under the Telecommunications Act of 1996, then consumers, including business customers, will benefit from increased investment, improved service, and enhanced choices in the broadband market."

For more information, please visit SBSC's website at www.sbsc.org, or call 202-785-0238.  SBSC is a nonpartisan, nonprofit small business advocacy group with more than 70,000 members across the nation.  # # #