Local Government Concerns Lead Senate Committee to Rethink Telecom Bill

LOCAL GOVERNMENT CONCERNS LEAD SENATE COMMITTEE TO RETHINK TELECOM BILL
[SOURCE: National League of Cities press release]
Dearborn (MI) Mayor Michael A. Guido told the Senate Committee Commerce Thursday that the bill it is currently considering will hurt consumers, cities and counties by nationalizing video franchising instead of encouraging local competition. Speaking on behalf of a number of national organizations representing city, town and county officials, Mayor Guido voiced his opposition to many of the provisions in the Communications, Consumer's Choice and Broadband Deployment Act of 2006 (S. 2686), introduced by Commerce Committee Chairman Ted Stevens (R-Alaska). According to Mayor Guido, S. 2686 would undermine local franchising enforcement and compliance authority, threaten local budgets, limit the benefit of broadband-video competition to a few well-to-do neighborhoods, weaken provisions that ensure video providers meet each community's needs and interests, and undermine the ability of local governments to protect their residents and/or respond to cable customer service complaints. In commenting on the measure, Guido said, "While this bill appears to preserve local video franchising, it in fact strips that authority from thousands of elected mayors, commissions and councils across the country and unfairly places it in the hands of five un-elected commissioners of the Federal Communications Commission here in Washington, D.C. Communities across the country have seen the telephone companies bypass poorer neighborhoods while upgrading services in more affluent areas," Guido said. "Indeed, it has been reported that AT&T informed its Wall Street investors that in Michigan, the company was going to provide its video product to ninety percent of its 'high value' residents, but to only five percent of its 'low value' residents -- those customers who buy less than $110 a month in telecommunications services. It's not hard to see how such a business plan on a national scale will deprive millions of Americans of the benefits of increased competition and technological advances." Mayor Guido noted that new providers of video into residential markets should not be given a "blank check" and said that local governments are more than willing to work with them to increase competition. Recently, more than 600 local communities in Michigan asked AT&T to enter into their video marketplaces. Guido said, "But AT&T remained silent, leading Michigan's towns and cities to publicly ask AT&T, 'Can you hear us now? We want competition!' It was not until the media was alerted that AT&T finally began to respond." Due to the concerns raised by Mayor Guido and others at today's hearing, US Senator Ted Stevens (Ala-R) announced that the bill would be redrafted over Memorial Day and new hearings would take place in early June. Guido said the coalition was eager to work with the Senate Committee on key provisions of the bill. Members of the coalition to support local video franchising include: The U.S. Conference of Mayors, the National League of Cities, the National Association of Counties, the National Association of Telecommunications Officers and Advisors, the Government Finance Officers Association, the International Municipal Lawyers Association and the National Conference of Black Mayors.
http://releases.usnewswire.com/GetRelease.asp?id=66053

* Senate Telecom Draft May Be "Too Tough" on Cities
http://www.broadcastingcable.com/article/CA6335869?display=Breaking+News