SEVERAL AMENDMENTS FLOATING AROUND ON FCC REAUTHORIZATION
With several amendments potentially queued for the FCC Reauthorization Act (S-1264), the Senate Commerce Committee meeting Thurs. has the possibility to be a “war,” an industry lobbyist said. But it’s more likely that members will try to keep the bill as clean as possible, several industry sources told us. Not until Wed. evening, when amendments begin to trickle into the committee, will it be known whether there will be a battle of amendments, lobbyists told us.
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TELRIC pricing, UNE access, local number portability deadlines, media ownership limits and FCC enforcement all could be subject to amendments, industry sources said. Several proposals are being floated by Bells and CLECs. “The CLECs and RBOCs are poised for battle,” said Rob McDowell, CompTel vp-asst. gen. counsel: “The question is, who will fire the first shot.” McDowell said it was unlikely that the first shot wouldn’t come Thurs., since members had emphasized the need for a clean reauthorization bill.
Several telecom lobbyists said there was more likelihood those concepts would get more traction after the FCC released the text of its Triennial Review order. One lobbyists said the order was expected Thurs. “It’s our preference to wait for the text of the order,” McDowell said.
One of the most controversial amendments could be one to eliminate the TELRIC system, which industry sources said was being pushed by Bells. That amendment would modify the Telecom Act’s Sec. 252(d)1a to eliminate the TELRIC formula and replace it with one that factored imbedded costs into the formula. Sources said there originally was a TELRIC provision in the Act, but it was removed after Senate Commerce ranking Democrat Hollings (D-S.C.) said he wouldn’t support the bill if TELRIC was included. Sources said the TELRIC amendment was simpler, and would require the FCC to examine only the current TELRIC formula and modify it if necessary. The Commission is expected to open just such a TELRIC proceeding soon.
ALTS is floating an “anticherry-picking” amendment, designed to prevent Bell companies from using fiber or other broadband technology to keep CLECs from providing local service. ALTS has said there’s concern the Bells would build fiber in competitive areas to effectively shut CLECs out of the market since the Triennial Review wouldn’t give competitors access to new broadband deployments.
McDowell said CompTel had prepared several proposed amendments to deal with FCC enforcement. While the reauthorization act would give the FCC power to assess larger fines, it still wouldn’t compel it to take action, he said. “We're concerned that this isn’t a mandate for the FCC to act,” he said. S-1264 proposes to raise tenfold the fines the FCC may levy against rule violators.
Industry sources said Senate Appropriations Chmn. Stevens (R-Alaska) was considering an amendment that would delay the wireless local number portability (LNP) deadline of Nov. 24. An industry source said as of Mon., Stevens counted 8-9 votes in favor of a delay, vs. 14 against. However, that was before Verizon Wireless’s announcement Tues. that it no longer would contest the deadline and be LNP compliant by Nov. (see separate story, this issue.)
Sen. Lautenberg (D-N.J.) said in the markup of media ownership legislation last week that he would try to attach a UHF amendment to S-1264. The amendment would phase out the 50% discount given to UHF stations when determining audience reach for broadcast entities. Critics said the UHF discount meant that networks potentially could own enough stations to reach 90% of the audience, instead of the 45% approved by the FCC June 2. Lautenberg said the amendment would eliminate the discount for any newly constructed UHF station and for existing UHF stations by 2008.
The markup of S-1264 is scheduled for Thurs., 9:30 a.m., Rm. 253, Russell Bldg. Also scheduled for markup is HR-1320, the spectrum relocation trust fund that passed the House June 11. A committee spokeswoman said legislation on transportation issues was expected to monopolize much of the committee’s time.