LAS VEGAS -- The main question in the escalating network neutrality debate is who pays for the rapidly growing number of bits passing through networks, rather than about limits on certain kinds of content, speakers said here at the USTelecom conference Mon. Content providers want carriers to charge subscribers for higher capacity use. Carriers want options, including ad models and even billing content providers.
Cable wants to preserve the status quo, which means high prices for consumers, USTelecom Pres. Walter McCormick said in a letter sent last week to House and Senate Commerce Committee leaders. He was answering NCTA Pres. Kyle McSlarrow’s charges that telecom providers seek legislative bars to competitive entry into the video business. The letter quoted McSlarrow’s comments to lawmakers that “the Bell monopolies seek to short-circuit this process by having you focus only on one side of the equation -- video.” McSlarrow is correct, the letter said -- but because “vibrant competition in the voice communications already exists.” Now it’s time to bring competition to video, the letter said.
Despite NARUC claims to the contrary, the FCC can extend the separations freeze without seeking comment or referring the matter to the Federal State Joint Board on Universal Service, USTelecom told the FCC. “NARUC does not oppose an extension of the freeze, but questions the legality of the Commission adopting an interim freeze without first conducting a notice-and-comment rulemaking coupled with a referral to the Joint Board,” USTelecom said: “NARUC is wrong on the law.”
The House Commerce Committee Wed. unanimously passed a cellphone privacy bill that would make it illegal for online companies to sell phone records without consumers’ permission. The bill would expressly outlaw “pretexting,” the practice of impersonating another’s identity to obtain someone’s records over the phone. The measure also includes a narrow law enforcement exemption so police can obtain data for investigations. “I look forward to quickly moving this bill to the floor,” said Chmn. Barton (R-Tex.).
The diverse demands made in comments on a petition by Fibertech networks asking the FCC to adopt best practices for pole and conduit access shows why the FCC shouldn’t pass “specific, detailed rules,” USTelecom said in a filing at the Commission. For example, USTelecom said, McLeodUSA and segTel argue pole owners should be required to allow attachers to use boxing and extension arms to access poles even if the pole owner hasn’t previously allowed that technique. “This demand calls into question engineering and safety determinations that each pole owner must make,” the group said: “Many owners do not use boxing or extension arms for their own attachments or allow their use for others’ attachments because they pose significant risk of danger to their employees who must access the poles.” USTelecom said “this is exactly the type of situation contemplated when the Commission decided not to adopt specific, detailed attachment rules.”
The telecom industry’s campaign for an FCC crackdown on phantom traffic appears to be growing, but the agency remains mum on whether it plans to take action. The Commission is wrestling with whether the issue should be split from the broader intercarrier compensation (ICC) proceeding, said FCC and industry sources. Two industry groups are pushing proposals at the agency -- USTelecom, which has gained a number of supporters, and the Midsized Carrier Coalition, which includes companies such as CenturyTel and Consolidated Communications.
Broadband deployment will wither without reform of local video franchising, AT&T and a telecom trade group said in answer to an FCC inquiry. USTelecom, speaking for Verizon and other Bells that sell video service, urged standardization of the process for awarding local pay TV permits, but cable firms and cities across the country said local franchise authorities fairly award video licensees to new entrants.
A consensus of opinion among senators failed to emerge Tues. during a Senate Commerce Committee hearing on net neutrality that considered a swirl of industry promises, academic arguments and economic analyses of the complex issue. Some committee members said premature legislation could hurt more than help, but worried the U.S. is falling behind globally in broadband deployment. Senate Commerce Committee Chmn. Stevens (R-Alaska) said net neutrality needs to be defined before the committee can move forward with legislation. Sen. Burns (R-Mont.) said the debate should play out in the marketplace.
President Bush said Fri. he would name CompTel Senior Vp Robert McDowell to be FCC commissioner, a move that had been long rumored. “If confirmed, Rob McDowell will be a great asset to the Commission,” FCC Chmn. Martin said. Confirmation of McDowell finally would give the FCC a full complement of 5 commissioners and Martin a Republican majority of 3. The nomination would fill out a 5-year term ending June 30, 2009.
The Senate Commerce Committee released its witness list for the Feb. 7 hearing on net neutrality: Google Vp Vinton Cerf; NCTA Pres. Kyle McSlarrow; USTelecom Pres. Walter McCormick; Vonage Chmn. Jeffrey Citron; Kyle Dixon, senior fellow at the Progress & Freedom Foundation; Lawrence Lessig, law professor, Stanford Law School; Gregory Sidak, law professor, Georgetown U.; and Gary Bachula, vp-external affairs, Internet2.