Net neutrality is the ‘big brawl and stumbling block’ to passage ...

Houses. “Overall we believe the prospects of a franchise bill being enacted this year look iffy at best,” said the report on the updated bill (HR- 5252) posted Fri. on the Senate Commerce Committee website. The report compared the House and Senate versions. Federal franchise authority is the main driver of the legislation, so if the Senate passes its bill, differences “probably can be ironed out with the House,” the report said. But Universal Service Fund reform could be a “tough issue” in House-Senate conference, the report said. If the bill fails, Congress is likely to try to extend for another year exemption from Anti- Deficiency Act rules for the E-rate program. Discussion of the Senate bill’s VoIP and interconnection provisions is hung up over state sovereignty issues, but this could be resolved in conference, the report said. Still unresolved are matters dealing with E-911 as applies to VoIP providers. A “white space” provision is vulnerable to broadcaster opposition, the report said. Another “tough issue” is broadcast flag, which Senate Majority Leader Frist (R-Tenn.) is said to support but which House Commerce Committee Chmn. Barton (R-Tex.) opposes unless fair-use legislation is included, the report said. Broadcaster opposition also is likely to sap support for the Senate cable/satellite downconversion mandate, the report said: “Cable carriage language may bolster multicast must- carry, but litigation fights may loom.” Broadcasters are expected to “shoot at” the Senate requirement that the FCC do a further NPRM before changing its media ownership rules, the report said.