Communications Act Rewrite Necessary by 2015, House Republicans Say

"The world is changing big time, and it’s time we have some oversight,” Upton said. He said it has been “quite some time” since any rewrite, and the white papers should look at the policy questions facing the industry and what laws are “cumbersome” and which ones are not.

Walden and Upton will face all five FCC commissioners next week for a Dec. 12 oversight hearing (CD Nov 18 p5). Walden has said he wants to debate process changes with the commissioners. The House is also set to take up reauthorization of the Satellite Television Extension and Localism Act, which expires in December 2014. Walden has committed to introducing a STELA draft in Q1, and said in mid-November that his staff hasn’t written the draft yet.

FCC Commissioner Ajit Pai, a Republican, welcomed the rewrite news. “Some provisions of the Act have yellowed with age, unchanged, since the Great Depression; even those of more recent vintage predate the transformative impacts of the Internet, competition, and innovation,” Pai said in a statement. “In a converged industry, it does not make sense to apply different rules to providers and technologies that compete in the same markets.” He called convergence “the norm” and said the FCC and communications law should reflect that, committing to work with the subcommittee in its rewrite. Mike O'Rielly, the other Republican FCC commissioner, also said the news pleased him. “I defer to the Congressional process but am happy to assist in any way possible,” he said by email.

On Tuesday, Walden emphasized the many changes in the communications industry, from video delivery to new tech companies such as Google, to changes in the legal world. “Clearly they're old,” Walden said of the telecom laws, “and a lot’s changed.” The subcommittee will need to hear from all the stakeholders, and it’s encouraging the use of the Twitter hashtag #CommActUpdate to make their points. “This is really a public process to better public policy,” Walden said.

AT&T, Comcast, CTIA, NAB, USTelecom and NCTA lauded the news. “In the nearly 18 years since the last update of the Communications Act, the world has been revolutionized by broadband and new digital technologies,” said Comcast Executive Vice President David Cohen in a statement. “The silos of current regulation may not always fit technological realities. We applaud Chairmen Upton and Walden for beginning the conversation on changing the Communications Act for the 21st Century, and look forward to working with them and other Members of the committee.” CTIA Vice President-Government Affairs Jot Carpenter said Congress should “use this effort not to impose new obligations, but rather to encourage the deployment of advanced wireless infrastructure and streamline the regulatory process.” NCTA President Michael Powell called the telecom laws “frayed” and emphasized the changes to technology, in a statement. NCTA wants to work with House Commerce “to carefully re-examine the aging Communications Act,” he said. AT&T Senior Executive Vice President Jim Cicconi called the updates “a critical step” and slammed current laws as “woefully outdated,” failing “to provide the level playing field needed by competing services and technologies.” They impede “investment and economic growth,” he said in a statement.

NAB “salutes” the proposal for “holistic review,” said President Gordon Smith. He said any rewrite should recognize “a robust future for local broadcasting” and “there can be little doubt that in this multichannel, multiplatform communications world, local broadcasting remains the essential and indispensable programming source in every American community.” USTelecom President Walter McCormick issued a statement committing to work with Upton, Walden and other committee members in the search for “how best to assure American leadership in the information age, and to secure for our nation’s consumers the full benefits of innovation, investment, and robust competition.”

"It’s terrific you're starting what will be a multiyear process,” former FCC Commissioner Robert McDowell, a Republican, told the lawmakers during the Google Hangout. He agreed the 1996 Telecommunications Act is “showing its age” and is built on the Communications Act of 1934. The Communications Act of today should reflect that networks are moving to all-IP, McDowell said. Wireless and fiber deployments have thrived and have typically been less regulated, he added.

Rep. John Dingell, D-Mich., warned of the need for precision. “I caution my Republican colleagues to approach modernizing the Communications Act with great care and attention to detail,” the former Commerce Committee chairman said in a statement. “Changes should not be made simply for change’s sake, but rather based on clear and documented need. I urge my colleagues to proceed in a bipartisan manner and to hold numerous hearings in order to generate the record an undertaking this substantial will require. This will affect a rapidly changing industry, with many jobs and billions of dollars in investment at stake.” He wants to help work on the rewrite, he said.

Consumer needs are paramount in this rewrite, McDowell said. “We need to look at it really from the perspective of consumers,” he said. “The law needs to be flexible and nimble.” The question of potential consumer harm is important, he said. But “right now, it’s a great time to be a consumer,” he added, citing “the golden age of wireless” people are entering. (jhendel@warren-news.com)