Bill easing curb on Baby Bells clears a hurdle

Article Abstract:

The Senate Commerce Committee approves legislation that would allow Bell telephone companies to manufacture telecommunications equipment. Manufacturing has been ruled out since the Bell system's breakup. The committee's vote is criticized by consumer groups and by AT&T. Opponents say that Bell companies might compete unfairly, which could result in higher phone rates. The committee's chairman, Ernest F. Hollings (D, SC), argues that lifting restrictions on Bell companies will encourage them to invest in US manufacturing at a time when the domestic telecommunications equipment industry is threatened by global competition. Representative Edward Markey (D, MA), chairman of the House Telecommunications and Finance subcommittee, wants a broader proposal that would impose safeguards on the Bell companies, to prevent anti-competitive behavior, if even more restrictions are removed.

Markey, Edward J., United States. Congress. Senate. Committee on Commerce, Science and Transportation, Hollings, Ernest F., United States. Congress. House. Subcommittee on Telecommunications

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Baby Bells get Senate's nod to make gear

Article Abstract:

The Senate votes 71-24 to allow regional Bell telephone companies to manufacture telecommunications equipment. Bell companies are prevented from manufacturing equipment or providing long-distance services under provisions of the 1984 breakup of AT&T. If restrictions on manufacturing are lifted, Bell companies could become competitors to their former parent, AT&T, and to other big equipment companies. AT&T, telecommunications equipment companies, consumer groups and some state regulators are opposed to the proposed legislation, fearing unfair competition by the Bells. The Administration opposes the bill because of a 'domestic content' provision in it which would require that much of any assembly and manufacturing be done inside the US. The legislation now goes to the House. Considerable resistance is expected there.

United States. Congress. Senate

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