BREAUX AND NICKLES INTRODUCE BILL TO MANDATE BELL-CABLE PARITY
Sen. Breaux (D-La.) and Senate Minority Whip Nickles (R- Okla.) unveiled their broadband bill Tues. that would eliminate regulatory distinctions between Bells and cable industry in provision of high-speed Internet services. Biggest change to bill since it began circulating recently is amount of time it would give FCC to create parity in broadband regulations (CD April 23 p1). Rather than imposing 90-day limit on Commission, Breaux-Nickles sets 120--day maximum for FCC action. Breaux said he had spoken with Senate Commerce Committee Chmn. Hollings (D-S.C.), who agreed to hold hearing on bill. Breaux reiterated that although Tauzin-Dingell data deregulation bill (HR-1542) would create such regulatory parity, it couldn’t pass in Senate.
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Nickles said that rather than increasing regulations for cable and satellite broadband companies, regulatory parity for all providers “would encourage people to make the investments necessary to bring broadband to the entire country.” Sen. Hutchison (R-Tex.) said current policy was “regulating entrepreneurship right out of this country.” Breaux-Nickles would “take away regulatory harassment” from potential investors in broadband infrastructure, thereby boosting economy by hundreds of millions of dollars, she said.
When asked how bill would prevent ILECs from illegally transmitting regulated voice calls using Internet protocol technology, Breaux said “the FCC knows where the pitfalls are” and had expertise to prevent companies “from scamming the system.” He said that while Congress could provide general road map for broadband deployment, it was more appropriate for FCC to spell out details on specific rules and regulations.
AT&T Gen. Counsel James Cicconi said passage of bill “would be a sledgehammer blow to a telecom industry that is already reeling.” He said Breaux-Nickles would enable Bells to destroy their DSL competitors: “At best, it would leave consumers with a duopoly. At worst, it means a deregulated monopoly free to raise prices and ignore regulators.” NARUC leaders sent letter to all Senate members urging them to reject bill. NARUC Telecom Committee Chmn. Joan Smith said: “The bill has nothing to do with broadband deployment or regulatory parity, but has everything to do with robbing customers of new choices in products and services in the telecommunications marketplace.”
USTA Pres. Robert McCormick praised bill, saying it would unleash “head-to-head competition” and increase consumer choice: “By establishing a technology-neutral national broadband policy, the Breaux-Nickles bill furthers the procompetition goals of the ‘96 Telecommunications Act and makes them applicable to the Internet.” Verizon Senior Vp-Public Policy Tom Tauke agreed that bill “represents regulatory fairness” and would “clear away the roadblocks to investment.”
BellSouth and Qwest both issued statements supporting Breaux’s bill. Qwest Vp Lauren Belvin called it “straightforward legislation” that could make high-speed Internet services available to more customers. BellSouth Vp Herschel Abbott said it was “reasonable approach” that would “encourage broadband providers to compete for consumers.” Asked about bill during his appearance at a U.S. Chamber of Commerce conference, SBC Chmn. Edward Whitacre called it “a commonsense bill, [with] no complicated pieces.”