We are cognizant of the competitive risks associated when local phone companies enter adjacent markets as well as the influence that cable distribution companies may have over consumers and programmers. But if the technological, structural, and legal barriers that give rise to those risks can be alleviated, we cannot ignore the potential competitive benefits of likely new entry and technological convergence. As I've already stated, the goal is to promote conditions that allow competition to flourish, whether its through price, quality, or innovation. With respect to telecommunications, these principles have worked successfully in the past and there is no reason to depart from them now. It's undeniable that both the health care and defense industries are in a period of dramatic restructuring.
Defense procurement is predicted to be slashed by two-thirds in the coming years.
Health care reform is a major administration initiative and health care providers are struggling under intense cost containment pressures. These pressures have led to calls for antitrust exemptions or altered levels of scrutiny for these industries. Existing policy, especially enforcement of the 1992 Horizontal Guidelines, allows for appropriate treatment of these industries, including full accounting of the sweeping changes they are presently enduring. We take account of defense downsizing in performing our merger analyses. In the first place, merger analysis asks the question whether the merger is likely to have an adverse effect on competition in the future.