roundtable: Telecom Post #6
roundtable: Telecom Post #6
Telecom Post #6
CWHITCOM@bentley.edu
Wed, 21 Jun 1995 11:31:33 -0400 (EDT)
Date: Wed, 21 Jun 1995 11:31:33 -0400 (EDT)
From: CWHITCOM@bentley.edu
Subject: Telecom Post #6
To: roundtable@cni.org
Message-Id: <01HRYSQP719U00475I@bentley.edu>
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Free Speech Media, LLC
June 21, 1995
Number 6
5 pages
====================================================
Compiled, written, and edited by Coralee Whitcomb
Please address all questions and comments to cwhitcom@bentley.edu
=====================================================
The following report is posted to various discussion lists
and is also available from the CPSR listserv. To subscribe,
send to LISTSERV@CPSR.ORG with the message
SUBSCRIBE TELECOM-POST YOUR NAME.
The Telecom Post will be published weekly while the U.S. Congress
works on the first comprehensive rewrite of legislation regarding
telecommunications since the Communication Act of 1934.
======================================================
TOPICS
1. S. 652 - Damage Report
2. Democracy for Sale
3. Exon Wins - Score one for the Censors
4. The Public Voice at Risk
5. Government Information Cutbacks
6. Regulatory Reform needs our attention
7. The Role of the Department of Justice
S. 652
THE TELECOMMUNICATIONS COMPETITION AND DEREGULATION ACT OF 1995
As you, no doubt, know by now, the Senate bill passed on
Thursday, June 15 with a vote of 81-18. From a public interest
perspective, the final outcome is a discouraging list of defeats
considering the many heroic online efforts to influence this
legislation. From all accounts, the democratic process took a
back seat to PAC money and industry strong-arming. Senator
Robert Dole (R-KS), the top dog in Senate power, is expected to
be the big winner when the checks get cut. Perhaps we should
direct the online efforts we've developed for telecom policy
into lobbying reform as that is due to come up in the next few
weeks.
The Administration released a statement that sounded very
unhappy with the results. Its final paragraph alluded to the
possibility of a veto in the words, "The Administration's
position on the final legislation will depend on the extent to
which the Administration's concerns have been addressed
satisfactorily during the course of the entire legislative
process".
DAMAGE REPORT
* The consolidation of radio and television stations into a
few oligopolies through enlarged coverage allowed a single
broadcast
owner. (From 25% to 35% and ultimately 50%) The White House
reaction, "S.652 allows dramatic concentration within the
broadcast industry which could reduce the diversity of news and
information available to the public".
* The deregulation of cable is in effect on the date of
enactment. While here is some restraint in the upward spiraling
of rates, deregulation will occur in markets where competition
has not yet arrived. Consumers need protection while competition
ramps up. This issue was a hot button for VP Gore, but seems to
be cooling as time passes. An amendment offered by Sen. Joseph
Lieberman (D-CT) to return language to some form of cable
regulation was tabled with a vote of 61-31. This vote might
signal that the support is not there on this issue to sustain a
presidential veto.
* The checklist, FCC sanctioned approach to allowing RBOCs
into interstate, long distance markets is disliked by the long
distance companies as well as the White House. It is feared
that they will be allowed into long distance before real
competition exists with their local area. The "fix" of choice
is to allow the Department of Justice to play a role in
determining the anti-trust implications in each case. There is
more on that issue below.
* Cable and telephone operators will be prohibited from
merging in densely populated areas but allowed to do so in places that
have fewer than 50K inhabitants. The White House feels the
language is overly broad and that the 50K line is too high and
will include areas where competition could be expected to exist.
* Establishment of a "monster model" of telecommunications
combining content and conduit and ending common carrier service.
Evidence that this is inevitable already exists. As reported by
the Washington Telecom Weekly, "[A] June 13 letter from Time
Warner lobbyist Timothy Boggs to Senate Commerce Committee
Chairman Larry Pressler illustrates what both Senators James
Exon and Ernest Hollings decried as "taking the Senate hostage"
This letter insisted that program access provisions be removed
or an agreement to distribute HBO programming through the
National Cable Television Cooperative would not go forward. An
amendment to remove the program access provisions was offered by
Senator Dole.
* US telecommunication markets will be opened to investment by
foreign corporations, though the President can reject
investments based on national security concerns. No authority
is given to grant 'most-favored nation' status for
telecommunications and the White House claims it needs that for
multilateral negotiations
* All new television sets must contain technology to enable
parents to block programs
* Dole (R-KS) and Paul Simon (D-IL) "Sense of the Senate"
statement, Amend 1349. "The entertainment industry should do
everything possible to limit the amount of violence and
aggressive programming, particularly during the hours when
children are most likely to be watching."
* A Sen. John Kerry (D-MA) amendment to prohibit redlining in
high-cost areas or on the basis of rural location or income of
the resident of the area passed by voice.
* The Snowe-Rockefeller-Kerrey-Exon amendment was threatened
by John McCain (R-AZ) with an amendment to strike. This amendment
provides for affordable rates for schools, libraries and rural
healthcare providers to advanced telecommunications services
and, for now, is the most tangible sign of universal service
provisions. The motion to strike was tabled. The amendment's
final form will "provide or receive telecommunications services
for educational purposes at rates less than the amount charged
for similar services to other parties. The discount shall be an
amount that the Commission and the States determines is
appropriate and necessary to ensure affordable access to and the
use of such telecommunications by such entities." It gives the
Federal-State joint board in conjunction with the FCC and the
States some flexibility to target discounts based on a
community's ability to pay. A universal service fund will make
up the difference to the provider. The vote was 98-1
MONEY TALKS
The reports about the role money played in this legislation are
really scary. Stories abound about the blatant amendments for
sale during the process and about the rush to be on the
Telecommunications Subcommittee at the outset due to the
expected income potential.
The Center for Responsive Politics has tracked the flow of
monies from companies such as Viacom, AT&T and others. Common
Cause tracks gifts to legislators. The list of beneficiaries
include Thomas J. Bliley, Jr, Pressler, Dole, Dick Armey, Jack
Fields. Dole is the big winner even before announcing for
president. He has softened his long-standing opposition to the
long distance carriers and favors legislation requiring the
RBOCs to open up.
Mary McGrory's article, "Revolution on the Airwaves" reports
that the Republicans give gift-giving a whole new twist. They
study the whole range of gifts firms give to determine their
"allegiance" to the Republican cause and suggest editing out
those recipients that don't fit. This new set of rules was put
to industry early in the year in closed door meetings that
excluded press and Democrats
Reactions taken from the Federal Information News Syndicate,
June 19, 1995
Robert Kerrey (D-NE) said S652 is "a contract with 100
corporations in America"
Rick Weingarten, of the Computing Research Association "I'm
personally incredibly depressed about the level and state of the
debate. The pigs are really attacking the trough".
Marc Rotenberg "political leaders elected in 1994 on a wave of
populism, promised to return the government to the people, [but]
they chose instead to turn the government and the nation's
communications infrastructure over to their wealthy contributors
and corporate backers."
Ed Davis of Common Cause "This is legislation that has been
shaped by those who have the money to shape the process."
CENSORSHIP
The Exon Amendment won, 84-16. Huh????
Senator Orrin Hatch (R-Utah) characterized the proceedings as "a
game, to see who can be the most against pornography and
obscenity. It's a political exercise and I'm against it." -
But we have it nevertheless. This is exactly the language we'll
be dealing with - "makes, creates, or solicits, and initiates
the transmission of any comment, request, suggestion, proposal,
image, or other communication which is obscene, lewd,
lascivious, filthy, or indecent, with intent to annoy, abuse,
threaten, or harass another person." Cross this crystal clear
line and you face a two year prison sentence and/or a $100K fine.
A defense against prosecution is that the defendent "has taken
reasonable, effective and appropriate actions in good faith to
restrict or prevent the transmission of or access to" Justice
Department thinks it will be impossible to enforce. You can bet
it will generate some court costs.
It is "[o]verly broad, poorly written, misdirected and we
believe, unconstitutional." said David Mendoza, executive
director of the National Campaign for Freedom of Expression.
Kudos to the 18 that voted nay - Biden, Bingaman, Chafee,
Feingold, Glenn Jeffords, Kennedy, Leahy Levin, Lieberman,
Moseley-Braun, Moynihan, Murray, Robb, Simon and Wellstone.
Charles Robb (D-VA) had passed an amendment to tag offending
material.
Microsoft, Netscape Communications and Progressive Networks,
Inc. have formed the Information Highway Parental Empowerment
Group to provide a forum for industry members to work together
on coordinating standards for technology that would give parents
greater control over what their children are able to access on
the Internet.
FREEDOM OF EXPRESSION
Alliance for Community Media et al. v. FCC. A petition for
Supreme Court Review with co-petitioners Alliance for
Communications Democracy and People for the American Way.
1992 Cable Act enables the operator of a cable television system
to prohibit programming on public, educational or governmental
(PEG) access cable channels (public access) based only on its
contents, "programming which contains obscene material, sexually
explicit conduct, or material soliciting or promoting unlawful
conduct". This could conceivably include AIDS, abortion,
childbirth, art censorship, civil disobedience.
Barry Forbes, Executive Director - "This decision is an
unmitigated disaster to Americans who believe that they have a
right to discuss our laws and to encourage peaceful redress of
grievances in our public forums, electronic or otherwise"
GOVERNMENT INFORMATION
HR1854, the FY96 Legislative Branch Appropriations bill is now
staged to arrive on the House floor. This bill will cut in half
the appropriation that finances the Depository Library Program.
Currently 1400 designated libraries receive paper and microfiche
copies of all documents produced by the Government Printing
Office. This bill will require the publishing agencies to
reimburse the GPO for its printing and related expenses. This
is intended to force the system into heavier electronic usage.
The American Library Association opposes this cut and urges all
concerned supporters to contact Senators and urge them to refuse
to change the law governing the program through an
Appropriations bill.
REGULATORY REFORM, S343 and S291
The Citizens for Sensible Safeguards warn that the regulatory
reform bill, S343, otherwise known as the "Dole bill" is likely
to come to the floor this week. This bill would require that
all new and current rules would have to undergo a very complex
risk assessment and cost/benefit analysis before being adopted
or sustained. Every regulation would require new certification
periodically or would be dropped. Unsurprisingly, industry is
pressuring Dole to get the legislation onto the floor.
Conversely, new products such as chemicals are not required to
undergo similar procedures before introduction to the market.
The only conceivable interpretation is that this bill intends to
stop all safeguards imposed through regulation and open the door
to unconstrained abuse of our workers and environment. The House
has already passed similar legislation. For more information on
this very important bill, please contact the citizens for
Sensible Safeguards at regs@rtk.net or 202-234-8494.
THE ROLE OF THE DEPARTMENT OF JUSTICE
An issue which has not been on the top of the charts with the
Internet community but might serve as the undoing of this
legislation is the role of the DOJ in determining that
sufficient competition exists in the local market in order to
release an RBOC into the interstate long distance fray and
manufacturing arena. As the bill was written and passed, the
DOJ is limited to an advisory role. However, there is more to
this story than meets the eye.
Sens. Byron Dorgan (D-ND) and Strom Turmond (R-SC) proposed
amendments that would give the DOJ the role of determining,
independently of the FCC, whether it judged competition to be
sufficient. In Dorgan's amendment the Justice Department would
look at the "Section 8(c) competitive entry test. This test
comes from the Modified Final Judgment and requires that there
be "no substantial possibility" that an RBOC can use its
monopoly status to discourage competition in its market. That
has meant, traditionally, that actual and demonstrable
competition exists. Thurmond's amendment moved to substitute the
Section 7 standard of the Clayton Act. That standard places the
burden of proof on Justice in order to block entry into long
distance. Thurmond claims that this amendment would ensure that
fundamental antitrust principles will be applied.
Though this effort was tabled before the final vote, the vote to
table it was close, 57-43. Since the Administration is strongly
in favor of a DOJ role, the vote could be taken as an indication
that there is Senate support for a veto down the road.
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