BROADBAND TAX CREDIT LEGISLATION COULD GET ATTACHED TO WAGE BILL
Broadband tax-credit legislation by Sen. Rockefeller (D- W.Va.) could get attached to minimum wage bill (S-964) by Senate Health, Education & Labor Committee Chmn. Kennedy (D- Mass.), Kennedy’s Economic Policy Adviser Kevin Richards said. Speaking during Verizon-led broadband panel Fri. in Washington, Richards said Kennedy supports tax-credit approach to providing incentives for broadband deployment.
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Rockefeller bill (S-88) would provide tax credits equivalent to 10% of cost of deploying current-generation broadband facilities, and 20% toward cost of next generation broadband. Bill has 65 supporters with last week’s addition of Sen. Carnahan (D-Mo.) as cosponsor. House companion bill (HR-267) by Rep. English (R-Pa.) has 194 cosponsors. Minimum wage bill that S-88 could get attached to has 37 cosponsors, while House companion (HR-665) by Rep. Bonior (D-Mich.) has 152 supporters.
Despite support for broadband tax credits, Richards said “there isn’t just one way” to spur broadband deployment, and “perhaps a combination” of components from several bills under consideration could achieve goals of: (1) Promoting competition. (2) Improving consumer choice. (3) Increasing U.S. standing as technology leader among developed nations. On this last point, he said: “We're the only nation among the G7 [nations] that doesn’t have a national broadband policy.” Bills that Richards cited as providing some of these components were: (1) Legislation (S-2448) by Senate Commerce Committee Chmn. Hollings (D-S.C.), which would invest funds from phone excise tax to deploy broadband infrastructure in rural and underserved areas. (2) Bill (S- 2430) by Sen. Breaux (D-La.) and Senate Minority Whip Nickles (R-Okla.), which would require FCC to develop rules within 120 days of enactment to create regulatory parity among telcos and cable providers.
In considering deregulatory approaches or govt. investment in broadband infrastructure, lawmakers must take into consideration all technologies in order to bolster competition, Richards said. He acknowledged broadband market advantage that cable has over the Bells, but said lawmakers should include wireless and satellite providers when promoting broadband, rather than solely addressing competition between telcos and cable.
Verizon Vp-Public Policy & External Affairs Thomas Tauke said public policy is “major hindrance” to creation of fiber networks. He said Verizon is supportive of Breaux-Nickles bill, which would address “unfair situation between us and the cable companies” and would serve as an incentive for capital investment. Regarding CLEC and DLEC interconnection to Verizon facilities, he said: “We want them to use our networks -- that’s good business for us -- if the rules are right.” Tauke addressed critics of deregulation who say that Verizon will build advanced networks even in absence of revised regulatory framework. He said: “But the question is will public policy facilitate [deployment] or stand in the way. Will broadband be deployed sooner, or later?”
AT&T said in response to Tauke’s comments that “right” rules envisioned by Verizon would give Bells ability “to use monopoly power to gouge competitors.” Spokeswoman said Verizon’s chameleon-like public pronouncements reveal flaws in its public policy recommendations: “When they're on Wall Street they're talking about how wonderful their broadband deployment is going. When they're in Washington, Verizon says it needs help.”