June 2006

Senate Commerce Approves Telecom Bill

By a 15-7 vote, the Senate Commerce Committee voted to send a broad telecommunications bill -- the Communications, Consumer's Choice, and Broadband Deployment Act -- to the full Senate for a vote. Its fate there is hardly assured. Sen. John Kerry (D-MA) says that the bill may not have the 60 votes it needs to pass the Senate because it doesn't mandate network neutrality. The bill now moves to the floor, where the net-neutrality debate will almost certainly be renewed and more amendments offered. The bill streamlines the video-franchising process, similar to a bill already passed in the House but with more local oversight than the House's more national version. Both bills create a de facto national franchise that will help telephone companies more easily roll out video and broadband service and that cable operators can opt for once a competitor enters the market. But even if the Senate version passes on the floor, the two very different bills must be reconciled. While the House bill was pared back to essentially only video franchise issues by House Commerce Committee Chairman Joe Barton in an effort to get a bill that would pass this session, the Senate bill contains a range of issues including money for emergency communications, unlicensed wireless devices in the broadcast band, labels for analog TV sets, digital TV and radio content protection and more. Sen Stevens has worked hard to accommodate various groups in an attempt to keep the bill both large and passable. It includes elements he reluctantly had to strip from a Senate DTV transition bill. Both Rep Barton and Chairman Stevens have pledged to pass a bill this session, so the House bill must be expanded, the Senate bill contracted, or a middle ground found.
http://news.com.com/Senate+deals+blow+to+Net+neutrality/2100-1028_3-6089...
* Senate Commerce Passes Franchise Bill
http://www.broadcastingcable.com/article/CA6348269.html
* Senate Bill Eases Telco Entry
http://www.broadcastingcable.com/article/CA6350789.html?display=News
Senate panel rejects Net neutrality amendment
The Senate Commerce Committee on Wednesday rejected an amendment to bar broadband high-speed Internet providers from discriminating against content or services. The amendment offered by Sens. Olympia Snowe, a Maine Republican, and Byron Dorgan, a North Dakota Democrat, would have prevented broadband providers from giving priority to any individual company's content or services. The panel tied 11-11 in its vote on the amendment, and Chairman Ted Stevens said it failed.
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID...
* Net Neutrality Vote
http://www.drewclark.com/2006/06/net-neutrality-amendment-fails-11-11.shtml
* Senate Panel Defeats Net Neutrality
http://www.multichannel.com/article/CA6348259.html?display=Breaking+News
Commerce Committee Narrowly Defeats Build-Out Provision
In an extremely close vote (12 to 10), the Senate Commerce Committee Wednesday defeated a phased-in video franchise build-out requirement. The amendment, co-sponsored by Senator John Kerry (D-MA) and Barbara Boxer (D-CA) would have no build-out requirement for the first three years, then a requirement of a 15% building out within two years, then if that were achieved, another 20% until the build-out was complete. But Republican votes, buttressed by the argument that any build-out requirement could scare off Wall Street, barely won the day.
http://www.broadcastingcable.com/article/CA6347946.html?display=Breaking...
* Panel Nixes Build-Out Amendment
http://www.njtelecomupdate.com/lenya/telco/live/tb-TGSU1151523448904.html
Senators Fight Taxes on Calls, Connections
Federal taxes on local telephone calls would disappear, and new state and local taxes on Internet connections and cell phones could not appear, under bills that advanced in the Senate Wednesday. In two committees, senators voted to forever block state and local governments from taxing connections that link consumers to the Internet. A temporary ban on such taxes expires in 2007. Sen. Ron Wyden (D-OR), who won approval of the ban in the Senate Finance Committee, said he didn't want the Internet to fall victim to taxes like the telephone tax enacted for the Spanish-American War. The Senate Commerce Committee also included the prohibition in a bill designed to create more competition in cable television markets. Sen. George Allen (R-VA) said new taxes would impede the growth of high-speed Internet infrastructure. Sen. John McCain (R-AZ) won approval of a similar ban on new cell phone taxes for three years. McCain said consumers already pay about 17 percent of their cell phone bills to the government. The amendment would not affect current taxes.
http://www.washingtonpost.com/wp-dyn/content/article/2006/06/28/AR200606...
(requires registration)
McCain À La Carte Bill Voted Down
The Senate Commerce Committee voted overwhelmingly not to effectively require cable operators to offer their service à la carte. That vote came as part of the day-long, continuing mark-up of the video franchise/telecommunications-reform bill that is getting larger by the day. As long promised, Sen. John McCain (R-AZ) offered an amendment, co-sponsored by Sen Maria Cantwell (D-WA), that would have denied the new streamlined video franchising scheme to video service providers that did not offer their programming per-channel, and it would have denied broadcast-flag protection to TV stations that did not allow their channels to be offered stand-alone. The vote may have been 20 to 2 against, with the co-sponsors the only ones on the "aye" said, but cable programmers should not be sleeping too easy. The committee's message was clearly mixed. Committee Chairman Stevens said he "believed in some a la carte," and said that he thought it would eventually come. The morning was not a total defeat for Sen McCain. His long-pushed effort to add low power FM radio stations to the broadcast band passed overwhelmingly 14-7, though observers noted it has passed the committee before and been defeated further down the line.
http://www.broadcastingcable.com/article/CA6347942.html
* McCain Loses A la Carte Push
http://www.multichannel.com/article/CA6347938.html?display=Breaking+News
REACTION
Despite Senate Commerce vote, fight to protect open Internet is not over
Statement of Common Cause President Chellie Pingree: "It is extremely disappointing that the Senate Commerce Committee today narrowly failed to approve an amendment protecting our rights to an open, accessible Internet. Senators Olympia Snowe (R-ME) and Byron Dorgan (D-ND) deserve our gratitude for sponsoring this amendment that would have protected consumers' unfettered access to Internet content. We thank the sponsors for their valiant and eloquent fight to pass it. Despite the defeat of this proposal on a tie vote of 11 to 11, this is not the end of the struggle, but the beginning. We will mobilize our activists for the upcoming fight on the Senate floor."
http://www.commoncause.org/site/pp.asp?c=dkLNK1MQIwG&b=810373
Fight for Internet Freedom Moves to Senate Floor
Ben Scott, Policy Director, Free Press: "The tie vote in the Commerce Committee shows the gathering momentum for Network Neutrality across political lines. In the past several weeks, this fundamental principle has moved from obscurity to the center stage in the debate over our nation's telecommunications policy. The issue of Net Neutrality will continue to gain speed as the full Senate takes up a bill that will determine the fate of Internet freedom. The voices of millions of average citizens are just starting to break through the misinformation and lies being peddled by the big phone and cable companies who want to erect tollbooths on the Internet. Across the country, people are catching on to these companies' plans, and they won't forget which leaders stood up for the public interest. We applaud the bipartisan leadership of Senators Snowe and Dorgan on this crucial issue, and thank all of the senators who will carry on the fight for a free and open Internet as this legislation moves forward."
http://www.freepress.net/press/release.php?id=157
Senate Commerce Committee Reaffirms Low Power Radio Service
On June 28th, advocates of low power FM (LPFM) radio, a service used by churches, schools, activist organizations, emergency responders, and hundreds of communities, applauded the Senate Commerce Committee's vote to expand the low power FM radio service. The vote approved an amendment to a major telecommunications bill currently before the Commerce Committee. This vote marks a major step towards the expansion of low power FM radio to the large cities of the United States, and potentially hundreds, if not thousands, of other communities across this country. The vote also affirms the Commerce Committee's previous support of LPFM in 2004 and 2005. Senator McCain (R-AZ), a sponsor of the bill, stated that after 2 years and 2.2 million dollars of taxpayer money were spent, the study reaffirmed the FCC's original conclusions in favor of a full low power FM radio service. "I think we ought to send the National Association of Broadcasters a bill for that study," said McCain.
http://www.prometheusradio.org/
USTelecom Applauds Senate Action To Bring Video Choice and Preserve Universal Service
The following statement is from Walter B. McCormick Jr., President & CEO of USTelecom: "Today, the Senate Commerce Committee under the strong leadership of Chairman Stevens took a bold step toward real video choice for consumers and ensuring the future for universal service. The bill reported from committee will update our communications laws to reflect today's highly competitive marketplace and unleash a new wave of innovation and economic growth. The Committee should also be commended for its sound judgment in rejecting calls for the government to regulate the Internet."
http://www.ustelecom.org/news_releases.php?urh=home.news.nr2006_0628_2
USTelecom Praises Senate Finance Committee Action To Repeal the Federal Excise Tax
The following statement is from Walter B. McCormick Jr., President & CEO of USTelecom: "We applaud the Senate Finance Committee's action today to repeal the remaining portion of the federal excise tax that customers who subscribe to local telephone service only are still forced to pay. Basic communications should not be taxed as a luxury and repealing this regressive tax is long overdue. We look forward to seeing the repeal of this outdated tax this year. Additionally, we applaud the Committee's action to amend the Chairman's mark to include provisions to update the rules governing wireless depreciation and broadband expensing, along with making the Internet Tax Moratorium permanent. We appreciate Senator Santorum for proposing this bill and Senator Grassley for leading it through the Committee."
http://www.ustelecom.org/news_releases.php?urh=home.news.nr2006_0628

Lawmakers, Regulators Face Key Decisions on Future of Media Ownership, Internet, Public Access, Low Power Radio

LAWMAKERS, REGULATORS FACE KEY DECISIONS ON FUTURE OF MEDIA OWNERSHIP, INTERNET, PUBLIC ACCESS, LOW POWER RADIO
[SOURCE: DemocracyNow!]
Lawmakers and regulators in Washington are in the midst of making a number of decisions that could affect the nation's media ownership laws, the future of the Internet, public access television and the expansion of low power FM radio stations. We speak with Hannah Sassaman of the Prometheus Radio Project which successfully sued the FCC three years ago in an effort to block the new media ownership rule changes.

Headlines Will Return Wednesday July 5

Headlines will be on a break until WEDNESDAY JULY 5. Have a happy holiday.

Senate Mark-up Continues

* The Senate Commerce Committee will reconvene to continue its consideration of the Communications, Consumers' Choice, and Broadband Deployment Act of 2006 on Wednesday, June 28, 2006, at 10 a.m. in room 216 of the Hart Building. See webcast at http://commerce.senate.gov/live.ram *

Senate Telecom Bill Mark-up Recap

The Senate Commerce Committee rejected three Democratic amendments to a telecommunications package. The amendments covered Internet telephone regulation, communications subsidies for emergency responders and city cable franchises. The committee rejected, 7-15, an amendment that would have allowed states to regulate Internet telephone calls. It also rejected, 10-12, the call to add a subsidy for emergency communications to the universal service fund. The third amendment to allow local conditions on cable system sales failed 9-13. The three votes came as the committee continued its marathon debate of a bill, S. 2686, offered by Chairman Ted Stevens. He began Tuesday's session by introducing a package of 16 separate modifications. The package was accepted by voice vote. The most significant of those changes was Stevens' own amendment on video franchising. The change "includes the final four issues requested by the cities," according to a statement by Sen Stevens. Municipalities have been reluctant to accept the key purpose of the bill's video-franchising title, which would allow Bell telephone companies quick entry into the pay-television marketplace by circumventing the review process for local cable franchises. TVWeek reports that the committee put off until tomorrow a debate on net neutrality.
http://www.njtelecomupdate.com/lenya/telco/live/tb-PIGO1151436415191.html
* Chairman Stevens' Opening Statement at the Communications Reform Bill Markup
"The measure is the work product of every Member of this Committee. It incorporates suggestions, language, and in some cases entire bills drafted by our members on both sides of the aisle."
http://commerce.senate.gov/public/index.cfm?FuseAction=PressReleases.Det...
* Congress Looks to Offer Big Telecom "Prize"
http://newstandardnews.net/content/index.cfm/items/3315
* Stevens short on votes for telco bill
Senate Commerce Committee Chairman Ted Stevens said on Tuesday he does not yet have the necessary votes to get legislation to overhaul communications laws through the full Senate.
http://today.reuters.com/investing/financeArticle.aspx?type=governmentFi...
STEVENS OK WITH BUILD-OUT INFO ADDITION
The Senate Commerce Committee began its second day of hearings on video franchise reform with Chairman Ted Stevens (R-Alaska) trying to accommodate a host of groups in marking up a bill he hopes will pass committee and the full Senate. The committee quickly passed the mangers amendment, which had been modified from last week to include provisions pushed by city governments, including extending, from 75 to 90 days, the time cities have to strike and agreement before a new video franchisee can seek a standardized franchise from the FCC. It also clarified the definition of video service provider to include IPTV services like that of AT&T, which has argued that its Internet-based service did not need a franchise. See the URL below for a look at the amendments considered (there were over 100) and which ones created the most fireworks.
http://www.broadcastingcable.com/article/CA6347467.html?display=Breaking...
THE JOKER IN STEVENS DECK -- SECTION 1004
[Commentary] In the dead of night, just before the latest draft of the Stevens bill came out, a helpful Telco lobbyist inserted a little provision to stack the deck in the case of judicial review. Section 1004 of the Stevens draft now places exclusive jurisdiction for all decisions by the FCC in the D.C. Circuit. This includes not just network neutrality, but media ownership, CALEA, wireless issues, anything. Why would anyone do that you ask? Because the D.C. Cir. is, without doubt, the most activist court in the land when it comes to pressing its vision of media and telecom policy. More than any other court, the D.C. Cir. can be credited with destroying hope of telecom competition in the United States by perpetually reversing and remanding the FCC's efforts at rulemaking and enforcement until the FCC finally gave up and effectively deregulated. The D.C. Cir. is also responsible for vacating (eliminating by judicial fiat) the rule preventing cable companies from owning television stations where they have cable systems, and overturning much of the FCC's cable and broadcast ownership limits. Finally, through the legal doctrine known as “standing”, the D.C. Circuit has done its best to make it impossible for regular people to challenge FCC decisions or bring individual cases on antitrust grounds.
http://www.wetmachine.com/totsf/
SENATE COMMERCE COMMITTEE MOVES TO LIMIT ADS ON KIDS PROGRAMMING
The Senate Commerce Committee moved to impose new limits on advertising and interactive content in children's programming, piling amendments into a bill that would ease telephone companies' entry into the television business. with no debate, the committee added a provision to the legislation that would apply the current limits on the number of commercials in children's TV -- which now apply to broadcast and cable -- to any video provider. (The Federal Communications Commission limits advertising on children's TV to 12 minutes per hour on weekdays and 10.5 minutes per hour on weekends.) The amendment, proposed by Senators Bill Nelson (D-FL) and Mark Pryor (D-AK) would extend the current limits to any video service aimed at kids on the Web, which is luring younger viewers away from traditional TV. The committee adopted a ban on "any interactivity designed with the purpose of selling or promoting a product, service or brand" during children's programming. The amendment was sponsored by Sen. Jay Rockefeller (D-WV), who also moved to require the FCC complete within six months its two-year-old inquiry into the effects of violent TV on children. In another potentially controversial amendment, the committee voted to bar the FCC from fining independent network affiliates for airing network programming they hadn't been given the opportunity to preview for objectionable content. The amendment from Sen. Ben Nelson (R-NE) would protect stations from the kind of fines generated by the 2004 Super Bowl broadcast, when Janet Jackson's breast was bared in a half-time show and the FCC punished stations that aired the game.
http://www.tvweek.com/news.cms?newsId=10274
(requires free registration)
* Senators adopt Web labeling requirement
http://news.com.com/Senators+adopt+Web+labeling+requirement/2100-1028_3-...
SENATE COMMERCE DEFERS 700 MHZ AMENDMENT
The Senate Commerce Committee deferred action on an amendment that would have reconfigured the 700 Mhz band so that it could be auctioned off in more geographically targeted chunks. Committee Chairman Ted Stevens (R-Alaska) pointed out that he supported the idea, and had even championed it in a DTV bill that had to be stripped of that and other issues to square with Senate rules. But he also said that the auction had already been set for 2008 for the spectrum being reclaimed from broadcasters after the switch to digital, and that to try to reconfigure the band now would delay that auction and could change the value of the spectrum and put an additional burden on the committee for the money promised to the US Treasury. Co-sponsor Olympic Snowe (R-Maine) argued that the Congressional Budget Office had already determined that reconfiguring would not lessen the value of the spectrum, which as currently constituted could be as much as $36 billion.
http://www.broadcastingcable.com/article/CA6347621.html?display=Breaking...
NTCA REACTS TO SENATE MARK OF TELECOM REWRITE LEGISLATION
Calling it another step forward in the process of reforming our communications laws to reflect the changing realities of today’s market place, the National Telecommunications Cooperative Association (NTCA) today commended the Senate Commerce Committee for its thoughtful consideration of S. 2686, the “Communications Consumer’s Choice and Broadband Deployment Act of 2006,” introduced by Sen. Ted Stevens (R-Alaska). NTCA was particularly pleased with the withdrawal of an amendment that would have capped the Universal Service Fund (USF) at $6.52 billion annually. A cap is a disincentive to network investment, as it would hinder a carrier’s ability to receive the support it is due. Capping USF also runs counter to President Bush’s goal of ubiquitous broadband by 2007. The group commended Senator Dorgan for raising the complexities of preempting state control over voice over Internet protocol, noting that “while his attempt to strike VoIP preemption failed to pass the committee, Senator Dorgan engaged the committee in a colloquy about the importance of competitive neutrality and ensuring state and federal USF obligations for VoIP providers,” Bloomfield said.
http://www.ntca.org/ka/ka-3.cfm?content_item_id=4403&folder_id=644
WYDEN GUARDS THE NET
Sen. Ron Wyden (D-OR) said, "I will do anything I can to block a major telecom rewrite that undermines what makes the Internet special. I will block it. I will do anything I can to derail it. This is something I consider extremely important." The issue at stake, for him, is Network Neutrality. Historically, phone companies -- the people who now own the Internet pipes -- have been prevented from charging Web sites extra to get hooked up quicker than other sites. Last August, the Federal Communications Commission ruled that the companies could charge more, opening up all kinds of possibilities. Net neutrality backers point out that the new arrangement gives the phone companies a new authority over Internet connections. "From Intel's perspective," explains Marjorie Dickman, a senior government affairs attorney for the company in Washington, D.C., "we believe that without quite explicit consumer safeguards, the openness that has been the hallmark of the Internet up to this point will be endangered." Sen Wyden is a co-sponsor of an amendment to attach net neutrality to the telecom reform bill in the Commerce Committee, and if what comes out looks different, he has options -- including placing a hold on the bill that would slow its process through the Senate. Already, this is a Congress that runs slower than dial-up connection, "There aren't a lot of legislative days left," he points out accurately. "We'll see how much clout the big telephone and cable people have over the United States Senate." And in trying to keep Congress from ratifying a change in the basic principles of cyberspace, Wyden's side starts out with a major advantage: The Internet is a lot more efficient that the Senate.
http://www.oregonlive.com/search/index.ssf?/base/editorial/1151114123112...
CONSUMER GROUPS, STATES QUESTION TELECOM BILL
An overlooked piece of a far-reaching broadband bill scheduled to be debated in a U.S. Senate committee this week would end state regulators' power to mediate in consumer complaints about wireless phone service. Several consumer groups and state attorneys general have protested the removal of state consumer protection powers in a recent draft of the Consumers' Choice and Broadband Deployment Act, scheduled for amendment hearings in the Senate Commerce, Science and Transportation Committee Tuesday and Wednesday. Net neutrality provisions remain a huge focus of debate surrounding the bill, which would also streamline franchising requirements for telecom carriers offering broadband television service in competition with cable TV. But the switch to a national consumer protection model for wireless services could hurt consumers, said representatives of the National Association of Regulatory Commissioners (NARUC). The U.S. Federal Communications Commission (FCC) doesn't have the resources to investigate and mediate thousands of complaints about wireless telephone service each year, said Tony Clark, a member of the North Dakota Public Service Commission and chairman of the NARUC telecom committee. States have long had the power to investigate consumer complaints about wireless service, NARUC notes. The new provision "really takes states completely out of the playing field," said Clark, a Republican. "This is way out of line to take an eraser to the chalkboard of any state consumer protection laws out there." But the Cellular Telecommunications and Internet Association (CTIA), a trade group representing wireless carriers, says a regime of dozens of slightly different state regulations hurts consumers by limiting the services and pricing plans carriers can offer.
http://www.infoworld.com/article/06/06/26/79650_Hntelecombill_1.html?sou...
BROADCAST FLAG WAVES ON HILL
The digital audio and video broadcast flag got a double dose of Hill attention Tuesday. In the Senate, the digital-content-protection technology was part of a video franchising bill being marked up in the Commerce Committee. Two amendments related to the flag were withdrawn, but may be reintroduced during floor debate on the bill. In the House, the Commerce Telecommunications Subcommittee held a hearing on the flags Tuesday under the heading: "Can Content Protection and Technological Innovation Coexist?" Both sides would say the twin goals in the title are achievable, but disagree on how to strike that balance. It was the first hearing held on the audio flag.
http://www.broadcastingcable.com/article/CA6347610.html?display=Breaking...
* Senators endorse broadcast flag plan
http://news.com.com/Senators+endorse+broadcast+flag+plan/2100-1028_3-608...
* Public Knowledge Asks House Panel To Oppose Content Controls
Public Knowledge President Gigi B. Sohn told the House Telecom Subcommittee there is no need for Congress to enact content controls on broadcast digital television and digital radio. At a June 27 hearing on “The Audio and Video Flags: Can Content Protection and Technological Innovation Coexist?”, Sohn noted that TV networks are now offering their programs on digital services, including the iTunes store and direct downloads, while Warner Brothers is working with BitTorrent, the peer-to-peer company. Sohn said in her written statement. “Yet even as innovators in the motion picture and recording industries promote these alternative distribution models and the technologies that facilitate them, their colleagues in Washington are asking Congress to step in and give them protection from the vague threat of massive copyright infringement the industry says these new technologies could facilitate.”
http://www.publicknowledge.org/node/489

Congress mulls slew of Net-sex rules

CONGRESS MULLS SLEW OF NET-SEX RULES
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]

McClatchy ordered to divest Pioneer Press

MCCLATCHY ORDERED TO DIVEST PIONEER PRESS
[SOURCE: MarketWatch, AUTHOR: David B. Wilkerson]

Adelphia Deal Moves One Step Closer

ADELPHIA DEAL MOVES ONE STEP CLOSER
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]

Televisa not done after losing Univision battle

TELEVISA NOT DONE AFTER LOSING UNIVISION BATTLE
[SOURCE: Reuters, AUTHOR: Cyntia Barrera Diaz]

Observers Expect TV Issues To Dominate FCC Agenda

A panel of telecommunications providers handicapped some of the most pressing issues facing the FCC, and the transition to digital television transition and news rules for media ownership were among the most prominent. Congress has set February 2009 as the "hard date" by which broadcasters must end analog broadcasting and send only digital signals. That date could be delayed if the FCC does not take the "transition seriously," said Rick Chessen, a partner at the law firm of Shepphard Mullin Richter & Hampton. Chessen, former chairman of the FCC's digital TV task force, noted that the agency needs to keep monitoring and ensuring that the various industry players involved in the transition keep making changes so they are ready for the cut-off date. Broadcasters will have to do a tremendous amount of work to meet the 2009 DTV deadline, Chessen said. They may need to obtain additional financing and to coordinate with other broadcasters. They also will have to move their transmitting towers, and the time available for that is limited because it can only be done during favorable weather conditions, he said. Consumers will have to be prepared for the transition as well, he added. "There's nothing you can do to get people more irate than make people lose their television signals," Chessen said. "There's got to be a massive effort to bring consumers along." David Oxenford, a partner at the law firm of Davis Wright Tremaine, said media ownership will be the big issue for the FCC in the foreseeable future.
http://www.njtelecomupdate.com/lenya/telco/live/tb-QZVX1151433423465.html