April 30, 2002

WASHINGTON, DC - April 30, 2002 - Telecommunications legislation just introduced in the Senate by Senator John Breaux would stifle the deployment and availability of broadband services, the Small Business Survival Committee said today.

"This bill would have exactly the opposite effect of what its proponents claim," said Darrell McKigney, President of the SBSC.  "Rather than spurring the availability of broadband, Senator Breaux's bill would actually turn the clock back on such services.

"The growth of broadband service availability in recent years has been a direct result of the pro-competitive policies put in place by the Telecommunications Act of 1996, which allowed new companies to enter the market. If enacted into law, the Breaux bill would give the Bell companies greater power to exclude those competitors.

"The sponsors of the Senator's bill claim that there needs to be parity in the regulatory treatment between cable modem and DSL services for high-speed Internet access.  The fact of the matter is, the vast majority of small businesses do not use cable modems for Internet access.  By eliminating DSL competition and allowing the Bells to monopolize broadband, Senator Breaux will hand the Bell companies a hostage small business consumer.  

"It's really quite simple: fewer competitors mean fewer broadband options and higher prices for customers.  More competitors mean greater customer choice and lower prices.  That is the goal Congress should strive for. In an effort to cling to their monopoly, the Bell companies have  fought The Telecom Act at every opportunity.  The Breaux bill, unfortunately, throws the Bells another lifeline to maintain their monopoly and would sink what's left of the competition -- many, of which, are small competitors."

The SBSC, which has long championed greater competition in telecommunications services, said it will join forces with other groups that oppose this bill to help educate lawmakers on the issue.