TERRY SAYS PLAN TO CREATE FCC RURAL UNIT ISN'T ‘WARMLY EMBRACED’
Rep. Terry (R-Neb.) said he had encouraged House Commerce Committee Chmn. Tauzin (R-La.) to push for Rural Issues Div. at FCC, but proposal “has not been warmly embraced.” He therefore may introduce legislation to form such unit at Commission, he said Thurs. at National Telecom Co-op Assn. policy conference in Washington. He said survival of some rural communities depended on being connected to rest of world, hence need for Congress to develop policies to ensure basic phone service and promote broadband deployment. Terry emphasized that although Tauzin hadn’t offered support to create rural division, leadership and the committee as whole were “dedicated to getting broadband into every county” in U.S.
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Terry said part of his mission as Commerce Committee member was to convey to other lawmakers challenges faced by rural communications companies, effort made difficult since number of urban members exceeded rural ones. Rural telcos and Internet service providers excel in their communities, frequently offering service some consider superior to that available through Bell companies and other large incumbents, he said. However, those companies continue to face financial obstacles that threaten their existence, Terry said. Congress has opportunity to take several steps that could bolster the viability of rural carriers and help bridge digital divide, he said.
Implementing broadband tax credit regime could be one of most effective legislative measures to maintain investor interest in small telcos and encourage rural broadband deployment, he said. Although he didn’t refer to specific bills, legislation with broadband tax-credit provisions includes bill by Sen. Brownback (R-Kan.) and companion measures by Sen. Rockefeller (D-W.Va.) and Rep. English (R- Pa.). He expressed confidence that such tax relief was on horizon, but said it might not occur this Congress: “I predict we will have some level of success, maybe not this year but probably next year.”
Supporters of tax credits attempted to attach related language to data deregulation bill (HR-1542) by Tauzin and ranking minority member Dingell (D-Mich.), measure agreed to by many House leaders, Terry said. However, Ways & Means Committee Chmn. Thomas (R-Cal.) “doesn’t believe in” tax credits and asserted jurisdiction over issue, ending chance of offering such amendment to Tauzin-Dingell when it moved to House floor earlier this year. Terry voted for HR-1542, which passed House 273-157. NTCA opposes Tauzin-Dingell, rejecting claims that it’s comprehensive rural-market- oriented bill.
Terry also pledged support for legislation to end estate tax permanently; it’s called “death tax” by repeal supporters: “Tax relief is absolutely necessary.” House Speaker Hastert (R-Ill.) later in day said House “next week will be passing” death tax repeal bill. He said law signed last year by President Bush that phased out estate tax over 10 years hindered estate planning, particularly for small businesses. Terry said small telco owners “should be able to pass the company on to the next generation,” and without such repeal must instead consider selling company to satisfy tax burden. He said other legislative means of protecting rural carriers included: (1) Lifting universal service cap. (2) Changing eligible telecom carrier rules, which in current form he said required small companies to open their networks to competitors, thereby deterring investment in those companies.