April 25, 2005

The Honorable Joe Barton
Representative
United States House of Representatives
2109 Rayburn House Office Building
Washington, DC 20515

Dear Representative Barton:

As a follow-up to the successful release of its telecommunications study, the U.S. Chamber of Commerce is pleased to announce the formation of the TeleCONSENSUS coalition.

TeleCONSENSUS will advocate for updated federal telecommunications laws that will create jobs, spur investment, foster innovation, expand consumer choice, enhance efficiency, and increase productivity. The coalition will support legislation based on the fundamental belief that telecommunications markets should be driven by consumer demand, advances in technology, and competition between telecommunications companies, while encouraging public interest goals. As a member of Congress, you may be interested to know that modernizing these laws has the potential to create 19,396 jobs in Texas.

Telecommunications is the very lifeblood of our economy. Every single industry in your state—from health care, energy, and insurance, to hospitality and small business—uses telecommunications to drive competition and meet consumer demands. Therefore, TeleCONSENSUS will be made up of a broad cross-section of trade associations, chambers of commerce, telecommunications providers, equipment manufacturers, businesses, and consumers.

Maintaining America's position as a global leader in telecommunications is key to sustaining real economic growth and to improving our country's standard of living. Yet, the telecommunications industry is mired in an economic depression. In October 2004, the Chamber released Sending the Right Signals: Promoting Competition Through Telecommunications Reform, one of the most comprehensive analyses ever conducted of the telecommunications industry. As the study notes, between March 2000 and July 2004, the market capitalization of the telecommunications service industry fell from $1,135 billion to $375 billion, a 67% decline.  Moreover, between March 2001 and May 2004, the telecommunications industry lost 380,500 jobs.

According to the Bureau of Labor Statistics, during the first quarter of 2005, the
telecommunications service and communications equipment manufacturing sectors lost
2,600 jobs in the United States despite overall employment climbing by 477,000 jobs.

These facts clearly demonstrate the need for modernizing the laws that govern the entire telecommunications industry. Over a five-year period, updating these laws has the potential to generate a net gain of more than 212,000 jobs, create $58 billion in new capital investment, and increase the U.S. GDP by $634 billion. This increased economic activity could, in turn, generate more than $113 billion in new government revenues.

If you would like more information about TeleCONSENSUS, please contact the Chamber's Director of Technology Policy, Jason Goldman, at (202) 463-5949.

The Chamber is the world's largest business federation representing more than three million businesses of every size, sector, and region.

Sincerely,

R. Bruce Josten
Executive Vice Presdient, Government Affairs
U.S. Chamber of Commerce