Senate to Lay H.R. 1542 to Rest?

A Connecticut-based research firm says Rep. Tauzin's Internet Freedom and Broadband Deployment Act doesn't stand a chance since Senator Jeffords' defection from Republican Party will most likely kill the bill.

by ISP-Planet Staff [June 1, 2001]

Dataquest Inc., a unit of Gartner, Inc., contends that Vermont Senator James M. Jeffords' exodus from the Republican party will have a dramatic effect on the Internet Freedom and Broadband Deployment act that moved to the Senate for a vote last week.

McCain out, Hollings in
One week ago, bill H.R. 1542 was expected to pass through the Senate, but Gartner Dataquest analysts believe that this is highly unlikely to happen now that the Republican party is no longer the majority party in the Senate.

The bill calls for deregulating competitive data services, including Internet access, and codifying the deregulation of the Internet. It also prevents the regional Bell operating companies (RBOCs) from offering voice-over-the Internet-type services until they receive approval from the FCC to offer in-region long distance services.

The chairmanship of the committee with the greatest impact on the telecom industry—the Senate Commerce, Science and Transportation Committee—will move from Republican Senator John McCain to Democrat Ernest Hollings.

David Rendall, Gartner Consulting group vice president, said the bill will fail as a result of changes in the Senate's agenda.

"Hollings has long been an adversary of the RBOCs, and his return to the top spot on the Commerce Committee will prove to be an unfortunate development for backers of the Internet Freedom and Broadband Deployment Act, H.R. 1452.''

Anti-competition's Uncle
The Telecommunications Act of 1996 has not effectively opened telecom markets to competition, and many Democrats think that more legislation is the answer. Gartner Dataquest analysts counter that additional government regulation is not the answer.

Ron Cowles, Gartner Dataquest principal analyst, said that regardless of intentions, additional telecom laws will not promote local competition, but properly designed incentives and a new regulatory paradigm will.

"The government should immediately open an 'information inquiry' to examine telecom policies and processes necessary to advance the United States into a future world we call the 'infocosm,' " Cowels said. "Such an inquiry should seek to attain universal information service to benefit all.''

Most analysts agree, government should remove all the encumbrances that stymie competitive entry and infrastructure investments. It should also reduce all competitive barriers to entry, including rate subsidies, onerous right-of-way processes and other encumbrances. The government should also provide for interconnection negotiations among the parties without interference.

Cowels added that the government needs to understand that broadband will need to be universally available, not a niche application.

"The government should enact incentive programs designed to attract competitors to the local exchange marketplace and reward carriers for building advanced networks,'' Cowles said.

The government should also provide investment incentives for the deployment of advanced networks to serve both the unserved and underserved areas."

—End