The House Committee on Energy and Commerce

Prepared Statement of The Honorable Fred Upton

Competition in the Communications Marketplace: How Technology Is Changing the Structure of the Industry.

Full Committee on Energy and Commerce
March 2, 2005

I want to commend Chairman Barton for convening this hearing and providing us the opportunity to hear from today's distinguished witnesses.

It is a constant refrain of mine, which I will repeat today, that the telecommunications marketplace has evolved dramatically - both in terms of technology and consumer preference -- from the days when Congress debated and passed the Telecommunications Act of 1996.

The mergers which we are examining today are further evidence of this dramatic evolution, and they represent a natural and healthy progression in the marketplace.

These companies will be better positioned -- combined rather than separate -- to do battle in a world where the meaningful fight will be amongst inter-modal competitors -- as they aggressively seek to win the hand of residential, business, and governmental consumers in the offering of a suite of IP-enabled voice, data, and video services.

Given the dramatic changes in the communications marketplace over the last 10 years, these mergers are not only logical, but they are integral to ensuring a vibrant and inter-modally competitive communications marketplace.

I consider these mergers a necessary tune-up for the telecommunications industry, ensuring that the country's economic engine is geared up to compete globally. As goes the tech sector - so goes the economy.