Re: Introduction of S 1312 IS, the Telecommunications Competition Enforcement Act of 1999.
Date: July 1, 1999.
Source: Office of Sen. Ernest Hollings. This document was created by scanning a fax copy, and converting into HTML.
| Press Release of Sen.
Ernest Hollings (D-SC). Re: Introduction of S 1312 IS, the Telecommunications Competition Enforcement Act of 1999. Date: July 1, 1999. Source: Office of Sen. Ernest Hollings. This document was created by scanning a fax copy, and converting into HTML. |
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FOR IMMEDIATE RELEASE. Thursday, July 1, 1999
CONTACT: Maury Lane at (202) 224-6654
SEN. HOLLINGS INTRODUCES LEGISLATION TO REQUIRE RBOCs TO COMPLETE 14-POINT CHECKLIST OR FACE FINES
WASHINGTON -- Sen. Fritz Hollings (D-SC) introduced legislation today to require all Bell Operating Companies (BOCS) to meet the market opening requirements of the Section 271 checkist of the Telecommunications Act of 1996 in half of its states by Feb. 8, 2001 or face a penalty of $100,000 for each day they are not in compliance.
Currently, all BOCs are required to open their markets to competition, yet not a single company has met the market opening requirements of the checklist and no Section 271 applications have been filed since July 1998. Only five applications have been filed since 1996. None of which have been approved by the Federal Communications Commission.
"Since passage of the Telecommunications Act, the Baby Bells have been consolidating and litigating instead of opening the local markets to competition and preparing to enter the long-distance market. Ignoring the 14-point checklist to stop fair competition in the local market will no longer be tolerable," Sen. Hollings said. "In fact, it won't be only intolerable but costly -- to the tune of $100,000 a day for non-compliance."
"In the three years since enactment, however, the BOCs have pursued a strategy of stonewalling and litigation that has delayed implementation of the critical interconnection, unbundling, collocation, and resale requirements of the Act, which is unacceptable," Sen. Hollings said.
Under this legislation, a BOC is required to meet the market opening requirements of the section 271 checklist of the Telecommunications Act of 1996 for all the states in its region by February 8, 2003. The FCC is required to order a BOC to divest its telecommunications network facilities within 180 days in states in which it is in violation of this requirement.
Upon petition by any interested party, the FCC is directed to investigate whether incumbent local exchange carriers (ILEC) with more than 5 percent of the nation's access lines (that are not Bull Companies) have opened their markets to competition pursuant to Section 251(c) of the Telecommunications Act of 1996.
Upon a determination that such ILECs are not in full compliance with Section 251(c), the FCC shall set forth the reasons for non-compliance and grant 60 days for the ILEC to come into full compliance. Absent such compliance after that 60 day period, the FCC is required to assess a civil forfeiture penalty of $50,000 for each day of the continuing violation and order the company to cease and desist in marketing and selling long distance services to new customers.
If upon meeting the checklist requirements, a BOC fails to meet one or more provisions of the checklist, the FCC shall impose a forfeiture of $100,000 for each day of the continuing violation. If upon meeting the checklist requirements, the BOC knowingly, wilfully, and repeatedly fails to meet one or more provisions of the checklist, the FCC shall require the BOC to divest its telecommunications network facilities, within 180 days, in states in which repeated violations have occurred.
Now, BOCs are seeking legislative relief from the pro-competitive provisions of the Telecommunications Act. They argue that they will provide rural America with advanced communications services, but only if they are allowed to provide long distance service to their current customers. The truth is that BOCs can provide advanced services today. However, to get into the long distance market, they must open their local markets to competition. This bill provides an incentive for them to do just that, Sen. Hollings said.
"By requiring a date certain by which the local phone monopolies must open their markets, and by accompanying that requirement with federal enforcement authority, we can be assured that American consumers will obtain the benfits of local competition," Sen. Hollings said.