TAUZIN-DINGELL SEEN ON SURE PATH TO DIRECT FLOOR VOTE

Bill by House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.) would ensure that Bells could provide Internet backbone and high-speed Internet service across their respective interLATA boundaries without prior FCC approval. Cleland, who advocates govt. deregulation (CD Oct 24 p1) as an effective means of stimulating telecom infrastructure investment, said “the speaker has given every indication that he supports Tauzin’s and Dingell’s efforts to get floor time for the bill. The speaker is aware that there is a wide bipartisan majority in support” of floor vote. House Rules Committee spokeswoman agreed Tauzin-Dingell’s movement depended on Hastert: “The speaker needs to schedule a vote and [then Dreier] sets a deadline for amendments.”

Former Hill staffer now working for CLECs agreed Hastert would give bill floor time and said there would be no need for Tauzin-Dingell proponents to consider other parliamentary or procedural options: “It’s all in Hastert’s hands… The issue here is how controlled the floor activity will be.” Once speaker gives nod to Dreier to draft rules for debate, “speculation is that Rules [Committee] will allow 4 to 5 amendments,” he said. Although committee is responsible for formal adoption of rule, “you don’t know what influence Rules will have over the amendments” since it was unknown whether Hastert would “strong-arm” committee on which amendments to accept, source said. Regardless of how final rule pans out at committee level, it’s unlikely members will attempt to block it on floor unless rule is unusually restrictive, he said: “I'd be surprised if there will be an attack on the rule.” Hastert’s office declined comment.

Amendments likely to be given green light by Dreier include one by Rep. Oxley (R-O.) that would make compliance with wiretap-related network upgrades required by Communications Assistance for Law Enforcement Act (CALEA) prerequisite for deregulation under HR-1542, former Hill staffer said. Oxley, although co-sponsor of Tauzin-Dingell, introduced measure (CD Sept 24 p5) following Sept. 11 terrorist attacks. He said assault on nation was reminder not to further delay enhancement of govt.’s ability to carry out court-authorized electronic surveillance.

Another measure that’s top contender as amendment to HR- 1542 is by House Telecom Subcommittee Chmn. Upton (R-Mich.) to bolster FCC’s enforcement capabilities, source said. Upton’s bill (HR-1765), which has received support from Tauzin and FCC Chmn. Powell, would enable Commission to slap violators of telecom regulations with $1 million fines and $10 million cap for continued offenses. Tauzin in mark-up of HR-1542 last year had rejected Upton’s attempt to amend bill with enforcement language, saying it wasn’t germane. Although Upton later introduced HR-1765 as standalone measure, Tauzin said Rules Committee could issue germaneness waiver (CD May 18 p2) and allow Upton bill to be offered as amendment to Tauzin-Dingell on House floor. HR-1542 opponents such as subcommittee ranking Democrat Markey (Mass.) have said that HR-1542 would negate any of benefits Upton measure might confer upon FCC and public since Tauzin- Dingell essentially “decriminalizes” many of FCC’s rule violations.

Amendment to mandate stricter build-out provisions in Tauzin-Dingell also could be introduced, source said. Although HR-1542 contains provisions that would require Bells to achieve mileposts in deployment of high-speed Internet infrastructure over 5 years, many already have attained those capabilities in their respective regions, he said. For example, HR-1542 would require that each company or affiliate, within one year of bill’s enactment, attain high- speed capability in at least 20% of its central offices. That percentage would increase gradually over 5 years, with 100% deployment required in 5th year. Since Bells already have achieved some of those milestones, current build-out requirement that’s “incorporated into Tauzin-Dingell is a joke,” he said. He said that informal proposals to address that issue were circulating in Congress.

Provisions in Tauzin-Dingell that would eliminate CLEC access to unbundled network elements (UNEs) deployed as part of new broadband infrastructure also could be addressed in form of amendment to HR-1542, source said. Although FCC is considering modifying its UNE rules, there is likelihood that amendment to preserve that requirement would emerge on House floor, he said.

Although House passage of Tauzin-Dingell is seen by many observers as possible or even likely, prospects in Senate are less optimistic. Senate Commerce Committee Chmn. Hollings (D-S.C.) has made it abundantly clear HR-1542 won’t be considered by his committee, and has said purported need for such deregulatory action was “ridiculous.” Bank of America Securities analyst Douglas Shapiro said Hollings’s opposition means bill “remains mired in legislative limbo” and “seems dead.” Verizon Pres. Ivan Seidenberg predicted this week at Comnet show in Washington (CD Jan 30 p2) that Senate would indeed consider Tauzin-Dingell “as well as other approaches.” He said HR-1542 would “serve as a catalyst for broadening the debate” on deregulation, comment that former Hill staffer Julian Epstein seized upon as acknowledgment by Bells that debate had moved beyond Tauzin-Dingell. Epstein’s LMS consulting firm, whose clients include HR-1542 opponent AT&T, said “an emerging Bell tactic now seems to be apparent -- get a face-saving vote in the House later this spring, and then redirect all efforts to the FCC to achieve the legislative goals through the regulatory process.” He said it was “a strategy that’s unlikely to bear fruit.”