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For Immediate Attention                                                             December 1, 2005



Communications Convergence Brings Consumer Benefits

WASHINGTON, D.C. - Three waves of convergence in the communications sector offer the potential for great benefit for consumers, according to a new Joint Economic Committee study released today by Chairman Jim Saxton. The new study, Convergence in the Communications Industry: Three Fronts and What They Mean for Congress, examines how the convergence of new technologies and products is creating value for consumers and outpacing the existing regulatory structure.

According to the study, the three areas of convergence are: continued integration of the communications and computer sectors as communications become increasingly digitized; convergence in the communications network as new technologies compete to deliver voice, video, and data to consumers; and the emergence of new products and services that combine voice, video, and data to meet the needs of consumers.

“New developments in technology are creating exciting new services and products for consumers,” Saxton said. “Technological innovations include smart products that integrate voice, video, and data. These new products are leading to more competition and improved value for consumers. Many such products use wireless broadband access to the internet to more fully tap available content.

“While these technologies and products race ahead into the 21st century, we continue to be saddled with an outmoded regulatory structure. While some regulation may be necessary to protect consumers' interests, it is no longer feasible to regulate voice, video, and data services under segmented regulatory silos,” Saxton concluded.

For a copy of the new study, Convergence in the Communications Industry: Three Fronts and What They Mean for Congress, please visit the committee website at www.house.gov/jec/

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Press Release 109-48

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