Today's Quote

March 6, 2006

The Honorable Ted Stevens
The Honorable Joe Barton
The Honorable Daniel K. Inouye
The Honorable John D. Dingell

Dear Chairmen and Ranking Members,

First, I would like to thank you for your leadership on telecommunications issues. And, while there are many important issues to be discussed, I write today to highlight two in particular.

You and many observers have noted the increased cross-industry competition, particularly among telephone companies and cable operators. This is undeniably a good thing for consumers as telephone companies enter the video market and cable operators enter the telephone market. We remain committed to working with you constructively on issues related to both video and telephone competition and believe it is important to ensure a level playing field for all providers in both those markets.

However, the Bell monopolies seek to short-circuit this process by having you focus only on one side of the equation – video – and they do so by grasping for special benefits that are unparalleled for companies of a scale that dwarfs their competitors. Regrettably, they do so also by hiding behind myths that upon closer examination are simply a smokescreen for their own business decisions taken over the last ten years since passage of the 1996 Telecommunications Act.

It is important to take stock of where we are in 2006. In the last decade, the Bell monopolies have all but wiped out their telephone competitors; they have swallowed their long-distance competitors; and with the announcement of the at&t-Bell South merger, they are on the verge of recreating Ma Bell. And only one competitor really stands in their way: the cable industry.

My point here is not to question the merger, which will be handled appropriately by the relevant federal agencies and Congressional committees. Rather, it is to suggest how extraordinary it is for an industry, in which one company alone – at&t – has a market capitalization greater than that of the entire cable industry, not only to ask for special favors from Congress but in fact demand free license to enter the video market while maintaining all current regulation on a much smaller cable industry. And if the goal is more competition, it is manifestly unfair to the wireless, CLEC, VOIP provider and cable industries to focus solely on the video market when there is only one communications market in which a single industry has over 90% market share: the voice market. The competitive markets in their entirety should be reviewed, and if appropriate, reformed together.

This attempt by the Bells to short-circuit reform, of course, is ridiculous on its face. But the Bell monopolies employ the tried and true method of making unsupported claims that mask the real issues before us. I have attached a document that outlines and refutes a number of these half-truths and myths.

The cable industry lives in and has thrived in a competitive world. We welcome Congress’ examination of the telecommunications laws and believe that a careful examination of both the video and voice markets is warranted. We look forward to working with you on these and other important telecommunications issues.

Sincerely,

Kyle McSlarrow

Cc: Members of the United States Senate

Members of the United States House of Representatives
http://www.ncta.com/press/press.cfm?PRid=679&showArticles=ok