February 22, 2002 -- H. Russell Frisby, Jr., president of CompTel, called upon Congress to hold hearings on the Federal Communications Commission's (FCC) recent Notice of Proposed Rulemaking (NPRM) out of concern that it could eliminate competition in broadband services. In a letter to Senate Commerce Committee Chairman Ernest "Fritz" Hollings (D-S.C.), Frisby said the NPRM, like others recently issued by the FCC, "will simply serve to benefit the very largest carriers at the expense of competition and consumers."

On February 14, the FCC adopted an NPRM that proposes to classify Internet broadband services as "information services," thereby excluding the provisioning of such services from the market opening and universal service requirements of the Telecommunications Act of 1996. The Commission's action makes a "tentative conclusion" and, if adopted, would significantly restructure the statutory telecommunications framework established under the Act.

Frisby noted that the NPRM would change what Congress intended when it enacted the Telecommunications Act and thus needs to be evaluated by the Congress. "This NPRM is far-reaching." Fribsy said. "It completely undermines the principles of competition. The Bells would be able to exploit their existing monopoly power free from regulation and unchecked by competition."

Frisby added, "The FCC's job is to implement the law, not rewrite it. This NPRM is tantamount to agency repeal of an Act of Congress. Therefore, it is obvious that Congressional oversight is needed. "

CompTel reiterated the call of Sen. Byron L. Dorgan (D-N.D.), a member of the Commerce Committee, who sent a letter to Hollings calling for Senate hearings on the far reaching NPRM. "Senator Dorgan was the first to call for hearings and we echo him," Frisby said. "This is too important to let go without substantial discussion and review by Congress."

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