Barton Bill Would Establish Federal Franchising for Video

“This is a great step in the right direction,” Rep. Blackburn (R-Tenn.) told us. Before the summer recess, Blackburn sponsored with Rep. Wynn (D-Md.) HR-3146, which would accomplish many of Barton draft’s video franchising goals, she said. The franchising provision -- which would let telcos to enter the market without seeking individual local franchises -- would stimulate competition and reduce service prices, she said. While the bill will require work the next few weeks, she said, “we're pleased to see a good document on the table.”

“New services shouldn’t be hamstrung by old thinking and outdated regulations,” Barton said in a statement. “We need a fresh new approach that will encourage Internet providers to expand and improve broadband networks, spur growth in the technology sector and develop cutting-edge services for consumers,” Barton said. House leaders have vowed to move the bill to the floor this year. “I am confident that, before year’s end, the House will pass comprehensive legislation that keeps pace with evolving technologies, spurs the economy and facilitates growth in this critical infrastructure,” said Upton.

The 77-page bill creates the BITS classification, which includes DSL, cable modem and other broadband services. BITS would be considered interstate services regulated by the federal govt. But the bill preserves state and local authority to manage local rights-of-way in a nondiscriminatory way. The FCC would retain authority over spectrum licensing. BITS providers would be required to connect and exchange traffic with other telco carriers. A company that’s a telecom carrier and a BITS provider would keep rights to access unbundled network elements and collocation under the Communications Act.

The video franchising provision would require each broadband video provider to register with the FCC, the state commission and local franchising authority where service would be provided. If there’s no local franchising authority, the provider can begin offering service 15 days after the registration is filed with the state commission. The bill would give franchisees the right to build over public rights of way within the service area. Many cable video requirements would be applied to broadband, including equal access, retransmission consent, emergency alerts, carriage of significantly viewed signals, ownership limits, basic tier content, equal employment opportunity and closed captioning. The bill also has a provision ensuring network neutrality, to prevent broadband providers from blocking subscriber access to lawful content.

“We think it’s a strong bipartisan step to bring competition in the video marketplace,” said Tim McCone, SBC senior vp-federal relations. He said SBC was pleased with the draft, though some sections may need clarification. In particular, the redlining and build-out sections seem unclear, he said: “I'm not sure I comprehend what Congress is looking at doing there.”

The redlining provision would direct the Commission to take action if it determines there’s a problem: “If the Commission determines that a broadband video service provider has denied access to its broadband video service to a group of potential residential broadband video service subscribers because of the income of that group, the Commission shall ensure that the broadband video service provider extends access to that group.” The bill’s “build out” section says “to be determined.

VoIP providers would be required to provide 911 and E-911 services. The bill also would prohibit any entity with “ownership or control” of an E-911 infrastructure from denying access to VoIP providers -- which safety advocates called a crucial element in ensuring reliable service. Providers of portable VoIP services would be required to provide 911 and E-911 services “to the extent technologically and operationally feasible,” according to the bill. VoIP providers could be required to contribute to the universal service fund, pending an FCC determination that the bill requires to be begun within a month after enactment. If the FCC decides VoIP providers should contribute to the fund, the bill directs the Commission to devise a contribution level that is “equitable and nondiscriminatory.”

USTelecom said it was “encouraged” by the overall direction of the draft but eager to see some areas, such as the sustainability of universal service, addressed in a “more comprehensive manner,” according to a statement by USTelecom Pres. Walter McCormick. “We also believe that any legislation should spur immediate competition in the video market and if regulations are deemed outdated, they should be lifted for all competing services, not solely new ones.”

BellSouth and Verizon said they were pleased with the effort. The bill represents a “fairly broad consensus among the committee leadership,” said Herschel Abbott, BellSouth vp-govt. affairs. “The need to update telecom laws so that they better reflect 21st century technology and services is urgent,” said Peter Davidson, Verizon senior vp-govt. relations. “It is important that Congress gets it right because the legislation will have a tremendous impact on broadband deployment, video competition and consumer choice.” NCTA said it was reviewing the staff draft and looks forward to working with the committee on it further.