House passes broadband bill
computerworld.com
Broadband bill scheduled for House vote tomorrow
By GEORGE A. CHIDI JR., IDG NEWS SERVICE
(February 26, 2002)
After many delays and contentious industry debate, the Internet Freedom and Broadband Deployment Act (download .pdf), better known as the Tauzin-Dingell bill, is scheduled for a vote in the U.S. House of Representatives tomorrow.
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First introduced early last year, the bill is meant to make it easier for the large incumbent local phone companies such as Verizon Communications and BellSouth Corp. to deliver high-speed Internet services to consumers. The bill was introduced by Reps. William "Billy" Tauzin, (R-La.) and John Dingell (D-Mich.). If passed, it would largely eliminate requirements for the incumbents to open their local phone networks to competitors before receiving permission from state and federal regulators to enter the long-distance data market.
Long-distance companies and competitive local exchange carriers such as Covad Communications Co. argue that the bill is a gift to the local phone monopolies and would kill off meaningful competition for local service. Incumbents argue that their real competition is from cable Internet services, which face fewer federal regulations and are thus able to deploy services less expensively.
"All the requirements would remain for us to have to receive permission for long-distance voice services," said Selim Bingol, a spokesman for San Antonio-based SBC Communications Inc. Election-year politics and the moribund national economy could help get the bill passed, he said.
"I think there's momentum," Bingol said. "It's all about economics. ... This is going to help remove some disincentives to investment in broadband. We hope the momentum will carry over into the Senate."
The House remains closely divided on the issue, and some amendments may be considered when the House Rules Committee takes up the bill today, according to Andy Davis, a spokesman for Sen. Fritz Hollings (D-S.C.), chairman of the Senate's Commerce, Science and Transportation Committee.
Hollings' committee will be the first to consider the bill in the Senate if it passes in the House, although Hollings opposes the legislation.
Hollings sees the bill "as the exact opposite direction we should be taking," Davis said. Hollings proposed legislation in July that would structurally separate the local phone monopolies' retail and wholesale divisions as well as raise the maximum fine for noncompliance with the Telecommunications Act of 1996 to $10 million from the current $1.2 million.
Hollings' bill is still under consideration by his committee.
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