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Facing a crowded legislative calendar before adjournment, Congress is rushing to complete work on the most sweeping overhaul of the nation's telecommunications system in sixty years. The pending legislation takes important steps to deregulate the system by allowing the Regional Bell Operating Companies (RBOCs), or "Baby Bells," to enter the long distance and equipment manufacturing markets and by ending the ban on compe- tition between telephone and cable companies. Yet disagreement still exists in the Senate over the extent and pace of deregulation. A modified version of the original Senate proposal S. 1822, The Communications Act of 1994, sponsored by Senator Ernest F. Hollings (D-SC)-passed the Senate Commerce Committee on August 11 by an 18-2 margin, but controversial elements of the package are certain to create problems when the bill is debated on the floor. Although Senators could attempt to amend S. 1822 when it reaches the floor, they should consider substituting another alternative that may be introduced. Senator Robert Dole (R-KS) recently has circulated a staff discussion draft, entitled the "Telecommunications Deregulation and Competition Act of 1994," which goes much further toward complete deregulation than any other proposal ever considered by Congress. Unlike the pro-regulatory proposals of the House and Senate, it would rapidly eliminate current regulatory barriers without impos- ing new requirements and would completely deregulate other sectors not mentioned in the House and Senate legislation. True telecommunications reform offers tremendous benefits for the economy. If the Senate adopted the Dole proposal instead of S. 1822, it would radically transform the heavily regulated telecommunications industry into a much more vibrant, competitive sector of the U.S. economy.

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