SCHAKOWSKY: CONGRESS MUST ASK TOUGH QUESTIONS ABOUT PENDING TELECOM MERGERS AND IMPACT ON CONSUMERS AND WORKERS

MARCH 2, 2005

SCHAKOWSKY: CONGRESS MUST ASK TOUGH QUESTIONS ABOUT PENDING TELECOM MERGERS AND IMPACT ON CONSUMERS AND WORKERS

WASHINGTON, D.C. - U.S. Representative Jan Schakowsky (D-IL) submitted this statement during an Energy and Commerce Committee hearing on pending mergers in the telecommunications industry:

Thank you, Chairman Barton and Ranking Member Dingell. I would also like to extend a special welcome to one of today's witnesses, Mr. James Speta from Northwestern University's School of Law. Although the law school campus is not "technically" in my district, the main campus of Northwestern is - so I am going to claim you as one of my constituents. Welcome.

I am glad we have an opportunity to discuss the questions that are raised by the overlap of the incredible changes in technology since the 1996 Telecommunications Act and the recent cascade of mergers in the telecom industry have brought us here today, especially as they pertain to consumers and those who work in the telecom industry.

Technological developments have meant more choices for consumers. Industry now offers consumers the choice between landlines, wireless, or Voice-Over-Internet-Protocol phone services, just to name a few. However, as we witness the number of companies offering the services drop significantly because of mergers that create a limited number of mega-corporations, we have to ask if consumers will see better prices, whether there will be more technological innovations, and if service will improve. Before we praise what the mergers will do for big business, we need to consider what they will mean for the consumers. The potential for serious losses are great. Business interests too frequently are not in the consumers' best interest.

We also must consider what mergers mean for the workers. Over the past five years, the telecom industry has seen hundreds of thousands of jobs eliminated. The pending mergers threaten tens of thousands more positions. The companies readily admit to these "cost savings" cuts. Workers are being talked about as disposable business liabilities rather than the assets they are. We need to be less glib about people's livelihood.

Congress must ask the tough questions and we need answers to our concerns before these mergers are approved. I believe that as the process moves forward, we must not forget those who will feel the likely fallout of the mergers the most - the employees and the consumers. Thank you.