Telecom
House Rebuffs Net Neutrality Bid, OKs Telecom Bill
     The House this week overwhelmingly passed a measure to overhaul telecommunications law after defeating an amendment designed to ensure neutral treatment for high-speed Internet content. The vote for passage was 321-101, while the language to strengthen so-called network neutrality provisions in the bill was defeated by a tally of 152-269. The bill is largely designed to expedite the entry of the Bell telecommunications companies into the video services market by allowing them to obtain nationwide franchises. Edward Markey of Massachusetts, the top Democrat on the House Energy and Commerce Telecommunications and the Internet Subcommittee, led an attack on what the House bill's critics see as its two main failings: the lack of a requirement that new entrants into video services provide service to all neighborhoods, regardless of income; and the limited nature of the legislation's network neutrality rules.

Telecom
Sen. Stevens Changes Tune On Net Neutrality
     Senate Commerce Committee Chairman Ted Stevens will alter his approach to network neutrality in an upcoming telecommunications bill. In remarks to the press after a speech at a National Cable and Telecommunications Association event, the Alaska Republican said he would change his legislation, S. 2686, to clarify "that the FCC should be involved in net neutrality that affects consumers and the competitive market." "That is a major change, in my opinion," Stevens said. "It is reshuffling who is going to deal with net neutrality, and that is important." The current version of the bill merely requires that the FCC study the subject. The Senate panel has scheduled a June 13 hearing and June 20 vote on its measure. In related news, nonprofit advocacy groups lobbied House lawmakers for net neutrality protections, while the National Grange, a general farm and rural public-interest group, recently voiced its opposition to neutrality mandates.

Television
Sen. McCain To Add Cable Bill To Broader Measure
     Sen. John McCain will seek to add his just-released cable-programming bill to sweeping telecommunications legislation in the Commerce Committee. The panel has scheduled a June 20 vote on the bill. McCain, R-Ariz., delayed introducing his measure several times in recent months in an effort to line up co-sponsors, particularly a high-profile Democrat. But when he could not secure any, he introduced the measure. Commerce Chairman Ted Stevens, R-Alaska, declined through a spokesman to comment on McCain's plan. Despite lack of support from fellow lawmakers, McCain won praise from AT&T, Qwest Communications International and Verizon Communications, three Bell companies that could benefit from language that would provide local franchise relief for video programmers offering per-channel pricing instead of bundled tiers.

Television
FCC Chief Preps For Battle Over 'Must Carry'
     FCC Chairman Kevin Martin will pursue his plan to require cable carriage of the multiple signals to be offered by digital television broadcasters despite opposition from powerful lawmakers. "An item on must-carry is currently on circulation among the commissioners on the eighth floor," an FCC source privately confirmed. The source said the item likely will be on the agenda for the agency's June 21 meeting, along with a proposal to modify restrictions on media ownership. The nation's transition to digital television will enable each station to transmit several programming feeds instead of one. Last year, under then-Chairman Michael Powell, the FCC denied a broadcast industry request that cable operators be required to carry the additional stations. Strengthened by a Republican majority with the confirmation of GOP regulator Robert McDowell, Martin has signaled a willingness to reverse the 2005 decision.

Antitrust
Foes Of AT&T Merger With BellSouth Detail Concerns
     Opponents of AT&T's planned merger with BellSouth urged regulators to block the deal or at least impose substantial restrictions to rein in the market power of the mammoth company to be formed. The FCC may conduct its review this fall, but the timeframe for the Justice Department review is uncertain. The $67 billion transaction announced in March follows on the heels of the government's approval late last year of AT&T's acquisition of SBC Communications. Mark Cooper, research director at the Consumer Federation of America, asserted that the deal should be blocked because the former SBC has a history of anticompetitive conduct. The company has been fined more than any other company over the past 10 years for violating its regulatory obligations, he said. Cooper said AT&T has indicated that it will not compete on price but instead will push bundled offerings to encourage consumers to purchase more services.

Trade
U.S. Takes Firm Stance On China's IP Obligations
     The United States could bring action against China in the World Trade Organization as soon as this fall if it fails to meet its obligations to protect intellectual property rights, a U.S. trade official said. Tim Stratford, assistant U.S. trade representative for China affairs, told the U.S.-China Economic and Security Review Commission that the trade office has initiated a "detailed" dialogue with China on its lax enforcement of intellectual property rights. "We are laying the groundwork for a case," he said. China remains on USTR's priority watch list of the world's top IP infringers. Stratford said that if U.S. concerns are not resolved on a bilateral basis in the coming months, "we are prepared to take the next steps."

Privacy
Veterans' Secretary Outlines Steps To Secure Data
     The secretary of the Veterans Affairs Department apologized for a security breach that compromised the personal data of veterans and active-duty military members and outlined steps to prevent another breach. The records were compromised when a VA computer was stolen. James Nicholson told the House Government Reform Committee said his agency had a policy that prohibited taking home personal data on veterans, but it was not followed. He said he has suspended the practice of permitting employees to remove claims files from their regular workstations. VA also will hold a nationwide Security Awareness Week starting June 26 to let department managers review information security and reinforce privacy obligations with their staffs. An inventory of all positions with access to sensitive data will be completed by the end of the month, and that is also the deadline for employees to get privacy and cyber-security training.

Budget
Groups Blast Panel's Educational Technology Cuts
     Technology groups are appalled by a House subcommittee decision to eliminate Education Department funding for what they consider to be a key technology program. The House Appropriations subcommittee that oversees the department moved to kill funding the Enhancing Education through Technology program, or EETT, in fiscal 2007. The initiative, which funds tech resources in local schools, faced elimination last year, but Congress ultimately provided $272 million. EETT once was funded at $700 million. The latest action is "catastrophic" for elementary and secondary education, Consortium for School Networking Board Chairwoman Sheryl Abshire said in a statement, noting that it will impact the ability of teachers to taking online accreditation courses, of school administrators to collect required data, and of students to access online and digital resources. The Software and Information Industry Association and the State Educational Technology Directors Association also expressed outrage over the proposed cut.