Trade Group Execs Predict ‘Long Ramp-Up’ to Telecom Act Update

USTelecom President Walter McCormick doesn’t “think that people want to undertake a full rewrite of the 1996 Act,” and he predicted that lawmakers will focus on specific problems faced by their constituents. The other panelists agreed. NTCA CEO Shirley Bloomfield predicted a “long ramp-up time” over the next two years until Congress makes any major changes to telecom law, partly because of the switch in House leadership and the emphasis on healthcare, she said. Healthcare and budget issues likely “will consume some of the oxygen for a while,” and lawmakers won’t want to do anything that might hold back employment and the overall economy, CompTel CEO Jerry James said.

The Telecom Act should be updated to clarify the FCC’s authority over the Internet and to reflect increasing broadband adoption and convergence of technologies, McCormick said. A question is whether the Comcast decision upsets the FCC’s plans to move forward on a USF revamp, James said. NTCA thinks the FCC can do many things under its current authority, said Bloomfield. “It’s a question of whether they choose to exercise it.”

All the panelists described near-term plans to lobby the new Congress on broadband issues. USTelecom plans to meet with members and staff in coming weeks, McCormick said. The National Broadband Plan is helpful, since it impartially described the current market and set priorities, he said. In contrast, NTCA is pointing out concerns with the broadband plan in its meetings on the Hill, including about its recommendations for the Universal Service Fund, Bloomfield said. CompTel is already up on the Hill, James said. Qwest is talking to members about its agreement to be taken over by CenturyLink, among other things, McMahon said.

McCormick said he doesn’t think it will “take very long” to get members comfortable enough with telecom issues to “hit some solid singles.” New House Communications Subcommittee Chairman Greg Walden, R-Ore., understands rural broadband issues, and his staff includes Ray Baum, “the only individual in the United States who’s ever achieved global consensus on intercarrier compensation reform.” There hasn’t been as much turnover in the Senate, he said. Many of the new members come from a business background and seem quick to grasp competition issues, said James.

Panelists said they hope to see bipartisan work on telecom issues, despite the rift between parties on other issues. “Sometimes people behave a little bit more collegial in a split Congress,” because there’s more focus on working together to pass laws rather than “jamming” a party’s agenda, Bloomfield said. House Commerce Committee Chairman Fred Upton, R-Mich., and Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va, both have rural backgrounds and could find matters to work together on, she said. Telecom issues tend to be nonpartisan because of their importance to the economy, and everyone understands the need for advanced technology, James said.

Privacy and cybersecurity have reached a “crisis” level and could be priorities for this Congress, James said. Behavioral advertising and privacy are among the “thornier” issues, because so many Internet companies’ business plans are based on “knowing everything they can know about you,” McCormick said. There is bipartisan “concern” about privacy, but doesn’t appear to be partisan or bipartisan consensus on the solution, he said.

Panelists declined to predict which Democrat would be named ranking member of the House Communications Subcommittee. Expected frontrunner Reps. Bobby Rush, D-Ill., and Anna Eshoo, D-Calif, are both suited for the job, Bloomfield said. Eshoo is from Silicon Valley and likely would focus on high-tech and applications, she said. But ultimately, the full committee chairman drives the agenda, she said.