Updated Barton Draft Prohibits Redlining, Drops Buildout
The House Commerce Committee released an updated draft of its telecom bill Thurs. that telcos welcomed for its emphasis on market-based competition. The new version of the bill drops a “carve-out” provision that would have addressed buildout requirements for video providers - something that telcos opposed. But the updated bill does prohibit redlining, a mandate most telcos said they would accept. The bill contains 4 titles with regulations covering broadband Internet transmission services, VoIP, video and national consumer standards.
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The bill would prohibit the FCC or states from regulating broadband Internet transmission services (BITs) except in cases where FCC jurisdiction is exclusive. BITs providers aren’t allowed to block access to content, and telecom carrier access to network elements, resale, colocation to provide telecom services and special access aren’t affected by the bill. VoIP is considered an interstate service subject to FCC jurisdiction. Providers must register with the FCC, and must exchange traffic with telecom carriers and other VoIP providers with dispute resolution to be handled by the FCC. Each VoIP provider must ensure that 911 and E-911 are provided to subscribers, and it’s up to the FCC to decide whether to impose universal service contribution obligations on VoIP providers.
Broadband video services (BVS) are considered intrastate services subject to federal jurisdiction. Providers must register with the FCC, provide PEG channels, pay a franchise fee to local govts. not to exceed 5% of gross revenue, and are subject to Title VI provisions such as must carry, ownership restrictions, obscenity safeguards, emergency alerts, equal employment opportunity and closed captioning. Redlining is prohibiting and program access is similar to DBS, according to the bill. Finally, the bill sets national consumer standards for BITs, VoIP and BVS including: Do not call, automatic dialing, access by the disabled, customer privacy, telephone harassment, unsolicited faxes and spam. States may enforce the consumer standards.
SBC praised the bill, saying it would bring more competition to the marketplace. “This is a strong, positive step for consumers and the country,” said Tim McKone, SBC senior vp-federal relations. “It will help spur more investment in advance technology and foster real competitive choice for broadband, TV and entertainment services.” USTelecom said the bill’s “reliance on market-based competition” would spur new broadband investment, job growth and increased video choice for consumers. “This is a strong start,” said USTelecom Pres. Walter McCormick. The group hopes the committee will address other “critical” issues including universal service, offering regulatory flexibility for rural carriers in providing broadband service and “freeing traditional voice service to fully compete,” he said.
Qwest said the bill would “usher in a new era of competition in a rapidly changing landscape in telecom,” according to a statement released by Gary Lytle, Qwest senior vp-federal relations. He called the bill a “significant step toward ensuring that the Internet age is not saddled with outdated regulations.”
Verizon said it was still reviewing the draft, but “it appears that it would significantly advance consumers’ interest by promoting competition and speeding” broadband deployment. “For consumers’ sake, we are very happy to see that the legislative process is moving forward,” said Peter Davidson, senior vp-federal govt. relations. “Congress should update the obsolete telecom and video laws as soon as possible to remove roadblocks to broadband deployment.” - Anne Veigle