ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Monday, February 17, 1997 TAG: 9702170097
SECTION: NATIONAL/INTERNATIONAL PAGE: A-15 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: Associated Press
TELEPHONE USERS - especially those outside the United States - are likely to reap significant savings.
An agreement Saturday to open the $600 billion global telephone market to increased competition should produce more than $1 trillion in benefits to consumers from Bombay to Buffalo by providing lower rates and better service.
The deal, completed among 68 countries in Geneva, offers huge opportunities to American communication giants such as AT&T by dismantling barriers that have kept U.S. companies out of nations where phone service is provided by government-owned monopolies.
The Clinton administration struggled for four years to complete the agreement. It represents the biggest success story so far in the U.S. effort to lower trade barriers in services such as banking and telecommunications, where American companies are recognized as world leaders and where they stand to reap the biggest rewards in the 21st century.
U.S. telecommunication companies expressed eagerness to compete for business in a world where half the population has never made a phone call.
At the White House, President Clinton hailed results of the Geneva negotiations as a landmark agreement that will ``bring clear benefits to American workers, businesses and consumers alike - new jobs, new markets and lower prices - and will spread the benefits of a technology revolution to citizens around the world.''
The administration predicted the new trade deal will mean 1 million new jobs for American telecommunication workers over the next decade and billions of dollars in savings for American telephone customers.
Compared with the rest of the world, the U.S. phone market already has been significantly deregulated with the breakup of AT&T in the 1980s. By lowering remaining barriers to foreign ownership of telephone companies, the agreement is expected to spur even greater competition, to the benefit of U.S. consumers.
In addition, the administration estimated the breakup of overseas monopolies would lower the cost of international long-distance calls to American customers by 80 percent over the next several years, from the current average of $1 per minute to 20 cents.
``A 60-year tradition of telecommunication monopolies and closed markets has been replaced by market opening, deregulation and competition,'' said Charlene Barshefsky, acting U.S. Trade Representative. She hailed the accord as ``one of the most important trade agreements of the 21st century.''
Appearing with Barshefsky were top executives of the major U.S. telecommunication companies. They praised the administration for refusing to accept an inadequate deal last April, a move that almost ended the whole effort and was roundly criticized by U.S. allies.
Barshefsky said Saturday's deal was a vast improvement over the offers made last April. She said Clinton told her that other countries needed to know that the United States was not willing to open its market without getting something in return.
LENGTH: Medium: 61 linesby CNB