roundtable: Chhairman's Mark on Telecommunications

roundtable: Chhairman's Mark on Telecommunications

Chhairman's Mark on Telecommunications

Vigdor Schreibman - FINS (fins@access.digex.net)
Fri, 24 Mar 1995 07:20:06 -0500 (EST) 

Date: Fri, 24 Mar 1995 07:20:06 -0500 (EST)
From: Vigdor Schreibman - FINS <fins@access.digex.net>
To: Vigdor Schreibman - FINS <fins@access.digex.net>
Subject: Chhairman's Mark on Telecommunications
Message-Id: <Pine.SUN.3.91.950324071906.1411A-100000@access4.digex.net>


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FINS: Communicating the Emerging Philosophy of The Information Age       
FEDERAL INFORMATION NEWS SYNDICATE                    
Vol III, Issue No. 6 (122 lines)                             March 27, 1995
    
     
                  READ THIS ISSUE OF FINS TO CONSIDER:      
                                                             
                *   Teleco legislation reported by Senate Committee
                                          
                *   The end of the beginning noted
    
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CLOSING THE "VALUES-GAP": 
Chairman's Mark on Telecommunications
By Vigdor Schreibman 

	The "Telecommunications Competition and Deregulations Act of 1995," was
ordered reported to the Senate, Thurs Mar 23, by a voice vote of 17 to 2
(subject to amendments), at a markup of the bill by the Senate Committee on
Commerce, Science, and Transportation (Sen. Larry Pressler, chairman). The
bill was proposed by Committee chairman Pressler, after several months of
extensive consultations between members of the Committee, the Senate and
House leadership, and key industry groups.  The Senate staff has been working
on the bill virtually around the clock.

	A number of members, including Sen. Bob Packwood (R-OR), and Sen Conrad
Burns (R-MT) complained they had not seen the chairman's final draft until
the early morning hours prior to the markup, noting visible confusion and
consternation about changes in price cap rates of cable television
regulations they thought had been approved just 24-hours earlier.  Sen. John
B. Breaux (D-LA), commented that the Committee has produced a product that
"nobody likes," indicating the fairness of the proceedings.  Sen. Kay Bailey
Hutchison (R-TX) concluded that "no one can live with the status quo." 
Finally, Sen. John Ashcroft (R-MO), estimated that the impact of the
legislation "could involve from 1/5th to 1/7th of the economy."  He urged
members to "maintain the preeminence" of the United States in this field.

	The chairman's draft (among other effects) would :
	* remove the limitations presently imposed on the Bell Company's entry
into long distance markets based upon an FCC determination that the Company
"has fully implemented" a competitive checklist of 14 interconnector points,
but without any "date certain" mandate, which the Long Distance Carriers
strenuously opposed.
	* end cable and telephone company cross-ownership restrictions.
	* continue authority of the FCC to establish price rate caps in the
cable industry under the "bad actor" standard." The FCC may only consider
a rate for cable programming services to be unreasonable "if it substantially
exceeds the national average for comparable cable programming services." 
	* authorize foreign entities to own US telecommunications common
carriers if the FCC determines that the foreign country provides equivalent
market opportunities for common carriers to citizens of the United States. 
Existing law would continue to apply to broadcast licenses.
	* institute "universal service" under a Federal-State Joint Board. The
Board and the Commission would base policies for the preservation and
advancement of universal service on the following principles:
		(1) Quality services are to be provided at just, reasonable, and
	affordable rates.
		(2) Access to advances telecommunications and information services
	should be provided in all regions of the nation.
		(3) Consumers in rural and high cost areas should have access to
	telecommunications and information services, including interexchange
	services, reasonably comparable to those provided in urban areas.
		(4) Consumers in rural and high cost areas should have access to
	telecommunications and information services at rates that are reason-
	ably comparable to rates charged for similar services in urban areas.
		(5) Citizens in rural and high cost areas should have access to the
	benefits of advanced telecommunications and information services for
	health care, education, economic development, and other public purposes.
		(6) There should be a coordinated Federal universal service system
	to preserve and advance universal service administered by an
	independent, non-governmental entity or person using specific and
	predictable Federal and State mechanisms.	
		
	 Several amendments were also passed including the following:
	* preferred price rates for public, educational, and governmental
entities given access to cable systems, offered by Sen. John F. Kerry (D-MA);
	* telecommunications services supported by universal service funds
reasonably necessary for health care, libraries, and educational entities
(offered by Sen. John D. Rockefeller, IV (D-WV) (10-8 recorded vote); and
	* restrictions on obscene or harassing use of telecommunications
facilities, excluding application to access providers not involving content
of communications, offered by Sen. J. James Exon (D-NE).  The Center for
Democracy and Technology (Jerry Berman) issued a policy post Mar 23 stating
its belief that the amended bill "is an unconstitutional violation of the
free speech and privacy rights of network users and content providers."

	Another amendment to end "red lining," offered by Mr. Kerry and Mr. Lott
was withdrawn for reconsideration.  The amendment appeared to have bipartisan
support and will likely be offered on the floor of the Senate.

	Members of the Committee noted the difficulty of their attempt to place
a broad array of emerging technologies, each with different market impacts,
on a "level playing field."  In addition, the jockeying for dominance on
telecommunications reform by various industry leaders, has been ruthless. 
Chairman Pressler, was targeted for harsh criticism.  He was characterized
as "Senator Dangerfield" by Business Week (Feb 27).  He "makes Quayle look
like Kissinger," according to an industry executive quoted by that magazine. 

	Most members echoed the sentiments of Sen. Trent Lott (R-MI) when 
he stated that the bill was "extremely complicated, not the final word."  
Sen. Olympia Snow, perhaps, best described the nature of the bill with a 
quotation from Prime Minister Winston Churchill, "This is not the end.  It 
is not even the beginning of the end.  But it is, perhaps, the end of the 
beginning."
		
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