Tauzin offers compromise on broadband bill

By Margaret Johnston, IDG News Service |  Business

The U.S. House of Representatives' Energy and Commerce Committee is debating a
controversial bill whose sponsors say is designed to provide market incentives
to speed up the delivery of broadband Internet services to both consumer and businesses.

The committee is expected to vote late Wednesday on an amended version of the
bill proposed yesterday. The bill, sponsored by representatives W.J. "Billy"
Tauzin, a Republican from Louisiana, and John Dingell, a Democrat from Michigan,
and called the Internet Freedom and Broadband Deployment Act of 2001, attempts
to deregulate broadband services. It rejects the application of "antiquated
telephone rules to a new market like broadband," said Tauzin, the committee's
chairman, in an opening statement to the committee Wednesday. But opponents
have criticized the bill as protecting incumbent local exchange carriers (ILECs).

The bill would take away from the U.S. Federal Communications Commission and
states the ability to regulate high-speed data and Internet access service.
The original version of the bill proposed last month contained language that
also limited the FCC's ability to force the regional Bell companies to open
up their networks to competitors trying to use the established infrastructure
to deliver services.

The amended draft, however, clarifies that it would seek only to deregulate
high speed data and Internet backbone services -- rather than voice as well.

The key provision of the amended bill proposed yesterday, Tauzin pointed out:
"clarifies that the bill's prohibition on federal and state regulation
of network elements only applies if those elements are used to provide high-speed
data services, Internet backbone services or Internet access service."

The Telecommunications Act of 1996 stipulated that ILECs can enter the long-distance
market only when they open up their local markets to competition, and that stipulation
has been interpreted by state and federal regulators, including the FCC, to
mean that ILECs should lease out elements of their local networks to competitors
entering their markets.

The House committee was prepared to spend Wednesday afternoon hearing a number
of proposed amendments to the Internet Freedom bill, though debate was interrupted
at least temporarily by a fire in the building that forced House members and
those listening to the debate to vacate the premises for a while. The hearing
room where the debate was taking place was standing room only earlier in the
day, packed with telecommunications lobbyists representing both the ILECS and
competitive carriers.

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