TAUZIN FIGHTS BACK AGAINST BELL COMPANY DATA RELIEF CRITICS
Braving criticism from mostly hostile panel, House Commerce Committee Chmn. Tauzin (R-La.) affirmed his commitment to loosening regulations on Bell companies seeking to provide data services across LATA lines. At event in Capitol sponsored by Comdex, he said he would “dedicate the next 2 years” to having Telecom Subcommittee “deliver bills that guarantee that broadband networks are free of regulation.” Tauzin said Sec. 271’s restrictions on Bell companies offering long distance service were written with voice traffic in mind, and prospect of getting into long distance voice market was enough of carrot for Bells to open local markets. He said opponents of his plan, who said data traffic was part of carrot arrangement in Sec. 271, were “changing the intent of the Act” to add “new lever” on Bells.
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Opponents of Tauzin proposal said incumbents were impeding DSL roll-out by independent providers as well as failing to open local markets. “Gutting the [Telecom] Act is not the solution” to falling broadband stock prices, said Techcentralstation.com columnist James Glassman. CLECs “need the gentle hand of regulatory oversight, reassurance from Congress that they're committed to the Act,” Teligent Senior Vp-Gen. Counsel Larry Harris said. “Then investors will return.” SBC Federal Regulatory Affairs Dir. James Smith said, “It’s going to be fashionable this year to be critical of the Bells.”
Sen. Allen (R-Va.) appeared to ally himself closely with Tauzin earlier in day, saying he was working with Tauzin on examination of Telecom Act, asking “have regulations outlived their purpose?” He said Congress’s priority should be looking at “impediments that prevent RBOCs from making investments.” Spokeswoman told us later that Allen was “concerned that the current tax and regulatory policies may impede the speedy deployment of broadband Internet capabilities to all Americans.” She said Allen wanted to see broadband policy that ensured “that as many people as possible, particularly in rural areas, get access to high-speed data services.” Tauzin and his co-sponsor, House Commerce Committee ranking Democrat Dingell (Mich.), are expected to have tougher time clearing bill in Senate than House.
House Telecom Subcommittee ranking Democrat Markey (Mass.) continued his opposition to reopening Telecom Act, saying that would be “playing with economic fire.” He said Act succeeded in inducing “paranoia in incumbents,” driving them to roll out advanced services more quickly. Rep. Davis (R-Va.), who’s returning to Telecom Subcommittee this year, warned that “new competitors could be adversely affected” by what was shaping up as “huge run on the Telecom Act this Congress.” He told assembled lobbyists that they should “be engaged like never before… There’s a lot of money going into efforts to change the Act.”
On wireless, “we're doing our best” to get spectrum out of hands of military and into public domain, Senate Armed Services Committee Chmn. Warner (R-Va.) said. “I'm sure we can isolate the needs of the Defense Department,” he said. “We've got our arms wrapped around too much” spectrum.