DINGELL SAYS DATA DEREGULATION BILL WON'T BENEFIT BELLS ALONE
House Commerce Committee ranking Democrat Dingell (Mich.) said his soon-to-be-reintroduced broadband deregulatory bill “will confer benefits on the baby Bells,” as critics of interLATA data relief legislation often claim. But similar version, then numbered as HR-2420, last year co-sponsored by Committee Chmn. Tauzin (R-La.), “also confers benefits on the public at large and it confers benefits on other segments of industry,” he said Wed. at seminar in Washington sponsored by Quello Center for Telecom Management and Law Review of Mich. State U.-Detroit College of Law.
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Ubiquitous broadband deployment hasn’t occurred, but it’s not too late for industry entrepreneurs to succeed in carrying out that deployment if Congress “opens the way for them,” he said. “There’s seems to be a problem in the way -- the FCC, with its hand around the throat of broadband.” He again said “fiefdom mentality has made the agency a relic,” and rather than “focusing on the road ahead” the FCC in recent years had “its eye firmly fixed in the rearview mirror.” Dingell expressed hope that new FCC Chmn. Powell would “retool the agency,” and that HR-2420, which he and Tauzin will reintroduce after the spring recess, “will create a regulatory-free zone where telephone companies can compete with cable companies and others.”
HR-2420 last year had hundreds of supporters, but languished in committee. Former FCC Comr. James Quello said bill faced battle in Senate. “We have a job to do with our friends in the Senate,” he said, referring to Sens. Stevens (R-Alaska) and Hollings (D-S.C.), who oppose measure.
Dingell said he wasn’t concerned that Powell at recent Telecom Subcommittee hearing (CD March 30 p2) didn’t present more specific details on how he would reform FCC. Preciseness isn’t as important as fact that Powell has pledged to go forward with reform-oriented agenda, he said.
Tauzin and Dingell “will abandon the new era of IT [information technology] competition in exchange for the old bricks-and-mortar model of monopolization” by reintroducing interLATA data relief legislation, said Thomas Santaniello, mgr.- public policy, Computing Technology Industry Assn. (CompTIA). He disputed Dingell’s assertion that HR-2420 not only would benefit baby Bells but would benefit general public and other industry segments.
CompTIA, which represents 8,000 information technology and telecom companies, fired off letter to all members of Congress Wed. urging them to maintain “open and fair competition” in local loop. “The Internet is often described as ‘a network of networks.’ The local loop is the ‘gateway network’ to the Internet,” CompTIA said. “If Congress were to roll back the clock on competitive deregulation and ‘re-monopolize’ the local loop, the gateway into the New Economy for many consumers and business would be shut.”
Luncheon program was lovefest, with ex-FCC Comr. James Quello and FCC Chmn. Powell praising each other, with helping of humor from Powell. “There are a number of things you have to do in life,” he said, glancing at Quello: “Know love, have children, see the ocean and befriend a dirty old man.” Praising Quello’s long experience at Commission, Powell said not enough attention was given to “venerability and the importance of wisdom that can’t be gained in a few years.”
On afternoon panel, industry and consumer representatives sparred over process for deregulating as technology changes. AT&T Gen. Counsel James Cicconi said deregulation should be triggered not by new technology but by “whether technology is delivered over a monopoly network.” Companies with monopolies shouldn’t be deregulated, he said: “First demonopolize, then deregulate.” Consumers Union Co-Dir. Gene Kimmelman added warning against “anticipatory deregulation based on hopes.” Deregulation should be based on proved experience, he said. He also emphasized importance of being “pragmatic” by building “midcourse corrections” into any legislation that dealt with deregulation.
“ILECs should not be construction companies for our competitors,” USTA Interim Pres. Gary Lytle said in arguing for lessening competitive interconnection requirements for data services. SBC’s Project Pronto is being deterred by such requirements, he said. SBC came up with way to “bring technology to the hinterlands” through remote terminals and now is being pressured to increase size of those terminals to point they're not practical so competitors can hook in, he said.
Best way to deregulate is to look at each market and see whether it’s competitive, said Preston Padden, exec. vp of Disney- ABC. It’s obvious that broadcasting is “wildly competitive” and yet is saddled with “regulations as old as Gary’s [Lytle] copper networks.” However, he urged deregulation in “principled manner.” Some broadcasters want deregulation of their own networks but not their competitors, he said. “You can’t slice the salami that thin.” On related topic, he said content security was needed to stimulate development of broadband interactive TV. Consumer demand is dependent upon “compelling content” more than anything else “but owners need to know their platforms are secure,” he said.