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ALTS Calls Broadband Bill 'Unnecessary'
The Association for Local Telecommunications Services (ALTS) claims the continuing explosion of competitive broadband services nationwide will survive on its own — without help from the federal government — and calls broadband legislation drafted by Rep. Billy Tauzin, R-LA, "unnecessary."
Tauzin's Internet Freedom and Broadband Deployment Act, H.R. 2420, would free up Baby Bells from federal regulations so they could, Tauzin says, be in a better position to compete with cable broadband services.
But critics have problems with the legislation, which would give the Baby Bells relief from some provisions in the 1996 Telecommunications Act and allow them to offer broadband services outside their local regions. ALTS, which represents Bell competitors, defines itself as a fierce defender of the 1996 act's provisions.
"We took that as marching orders to go and bring broadband services to America," said Jonathan Askin, general counsel for ALTS. "It's absurd to change the rules midstream, especially since we spent the past four years waiting for good rules and having the incumbent carriers changing the rules every step of the way."
Sticking With The '96 Act
Askin said with the leverage incumbent carriers have had in the political scene, there seems to have been more competition in the courtroom than in the marketplace. He said the more tinkering attempted to the 1996 law, the bigger the can of worms that will be opened.
"We're confident there are enough solid voices in the House and Senate that understand we essentially have to give the act enough time to work itself out," Askin said. "Frankly, we (non-incumbents) think we're the ones bringing broadband to America to an affordable price."
ALTS's argument rests on its claim that H.R. 2420 would exempt the Bell monopolies from their "legal obligations" to open up their markets to competition and would give the established companies a competitive edge over future carriers. ALTS is made up of alternative carriers to the incumbents.
ALTS ticked off a list of recent broadband announcements by competitive local exchange carriers (CLECs) to stress the industry's solo success. The group cited new markets for RhythmsNet Connections in Alabama and Kentucky; Rhythms in Iowa, Virginia and North Carolina; ICG, Covad and Jetstream in California and Colorado; and New Edge spreading to 30 states, as just a few companies that have recently debuted or expanded in areas throughout the country.
Tauzin last week announced he had signed up 218 co-sponsors for his legislation, although the bill is not expected to move this year over powerful opposition of AT&T and House Commerce Committee Chairman Tom Bliley, R-VA.
Bill supporters like the Bell-backed iAdvance Coalition say if the Senate appears unwilling to act, the authors of the bill say they are not going to push for a vote in the House this session. iAdvance has in the past said federal legislation is needed to keep up with the new economy.
"The broad bipartisan support this bill has gained demonstrates once again the importance of eliminating outdated regulations," said iAdvance co-chairman Mike McCurry in a statement. "We are hopeful that Congress will act to bring the benefits of high-speed Internet service to all Americans."
Over the course of the session, lawmakers have been divided over how to ensure rural Americans access to high-speed Internet services — tax breaks, regulatory relief or both.
OpenNET Making Waves in States' Open Access Debates
The nation's largest coalition of Internet service providers (ISPs) and other Net-related companies is making its presence known throughout the states in the debate over open-access broadband regulations.
And after a Federal Communications Commission Chairman William Kennard said last week the agency would look into broadband provider policies, some member companies are refocusing.
The OpenNET Coalition — made up of more than 900 ISPs, including America Online — recently got handed a deflating ruling in the area of open access, but is not giving up on mobilizing state and local government support for open access. Two weeks ago, the U.S. 9th Circuit Court of Appeals ruled that Portland, OR, officials do not have the authority to require long-distance giant At&T to open its cable network to competing ISPs. Despite the ruling, OpenNET hailed the decision as a win for consumers, independent ISPs and all advocates of open access.
"The court has cast the open access debate into an entirely new light," said Greg Simon, co-director of OpenNET. This will "open the door for other Internet service providers to gain access to upgraded cable systems. This is a tremendous victory for consumers across the country," he said.
AT&T and Portland lawyers — supported by groups like the National League of Cities — argued that Net access over cable lines essentially was considered cable services — regulated by — but the federal judges determined that they should be considered telecommunication and information services, which does not necessarily mean that service is subject to all common carrier regulations that apply to phone companies.
FCC Announcement Causes Shift of Movement
On Friday, Kennard announced that he will propose the agency begin a formal proceeding on the issue of multiple ISPs gaining access to a cable company's network. He said the Portland case "clearly recognized the FCC's authority to forbear from regulation in this area."
Kennard said he has asked the FCC staff to develop a framework for addressing the issue.
"I continue to believe that there are powerful marketplace incentives that will move the cable platform to an open platform," Kennard said. "Now is an appropriate time for the FCC to address the legal issues and to assess developments in the marketplace."
OpenNET memberss agree with the FCC decision and said after the AT&T and MediaOne merger, they asked the FCC to do something similar, but no action was taken.
"We think they should be regulated the same and give consumers a choice," said Briana Gowing, spokeswoman for Verizon, a member of OpenNET.
Verizon recently filed a brief in support of Henrico County, VA's, decision to provide open access throughout the county — a decision that was struck down in district court in favor of the incumbent AT&T. The decision was much like that of the Portland case.
OpenNET companies have been supporting or appealing to decisions around the country in broadband access cases, but they may be put on hold due to recent events. Gowing said Montgomery County, MD, is one area currently looking into the issue of open access and new cable service providers.
"Because of the Portland decision and (Friday's) FCC announcement, I don't know if these are going to continue to go forward until the FCC has made a decision," Gowing said. "I think there's still alittle bit of a question as far as what's going to happen next."
OpenNET spokeswoman Kristan Van Hook said states in the 9th Circuit are still going to move on the broadband issue despite the FCC announcement. She said WideOpenWest, a new broadband Internet delivery company, will try its hand in the areas of Denver, Dallas and Houston in the fall. The company will allow multiple ISPs to use its broadband network.
"What we're hoping is that this is an actual system where they'll have open access — it won't be a trial," Van Hook said. "We're hoping that really pushes the FCC — and shows them we don't need another two-year trial."
In Boulder, CO, AT&T is scheduled to begin testing open access on its cable system in November. The test, which will involve 500 customers and several ISPs, is the largest open access test to date. GTE and AOL proved that open access was technically feasible in a Clearwater, FL, trial a year ago. OpenNET has said it would closely monitor the Boulder test to make sure it's not just a "public relations stunt."
The June 7 decision by a California city council has been hailed as a success by OpenNET as a step in the right direction toward open access. The Information Technology & General Services Committee of the Los Angeles City Council voted to require all the city's cable companies to provide open access no later than 2002 as a condition of the renewal of their individual cable franchises. The resolution requires all cable companies provide customers with a choice of ISPs and that the companies deploy high-speed broadband services to every part of the city, including libraries, schools and hospitals.
- by Liza Porteus
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