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The Telecom Tango In Indiana
by Michael Martinez
Indiana state Sen. Brandt Hershman on Tuesday unveiled a bill that would strip his state's regulators of their power to set prices and service standards for the telecommunications industry.
The measure, S. 245, would remove telecom firms from the oversight of the Indiana Utility Regulatory Commission in 2009. The legislation also would let companies raise their prices $1 per month until that deadline, provided they offer high-speed Internet access to more than half their customers. And the bill would create a statewide franchising authority for video programming across all technologies.
The proposal further outlines stringent rules for municipalities seeking to own and operate broadband networks. The rules would authorize the use of taxpayer funds for broadband infrastructure only when funding is not available from private sources.
Hershman, a Republican from Wheatfield, said in a release that the bill aims to drive down prices for consumers by facilitating a free telecom marketplace. He said Indiana's telecom laws are designed for a market that existed "when a blackberry was just a fruit and a google was just a very large number."
But critics of the bill said it caters to dominant providers at the expense of consumers. "This isn't public policy," said Dave Menzer, the executive director of the Citizens Action Coalition of Indiana. "This is AT&T's business plan converted into legislation."
Menzer said he is particularly perplexed by the language on municipally run broadband networks because the bill also includes tax incentives for private firms to deploy broadband. "It doesn't make sense," he said. "We would be able to use public money for private purposes but not public money for public purposes."
Fort Wayne, the second largest city in the state, has used a partnership with Verizon Communications to deploy a citywide broadband network. The network has generated more than $450 million in urban investment.
The Senate Homeland Security, Utilities and Public Policy Committee is expected to hold a hearing on the bill next week.
The legislature began its 10-week session on Wednesday. The tight schedule is expected to force lawmakers to act quickly on the bill. "This is going to happen pretty fast," said Jay Kenworthy, a spokesman for the Majority Caucus.
New Tech Laws In A New Year
A flurry of technology-related measures took effect throughout the country on New Year's Day.
Laws designed to combat identity theft took effect in both Minnesota and Louisiana. The statutes require companies to notify state residents when their personal information is accessed by unauthorized parties. Louisiana's act only mandates that companies report breaches if there is proof that harm has been done to the compromised data. Minnesota's law requires customers to be alerted regardless of the consequences of the data breach.
Connecticut, Illinois, Maine, New Jersey and Nevada also have similar laws.
A new Nevada statute, meanwhile, enables victims of ID theft to apply for special passports after filing police reports. The passports are effectively "get out of jail" free cards that waive the victims of all legal liability related to criminal activity stemming from the stolen data. The author of the bill, state Sen. Bob Beers, is a gubernatorial candidate.
Nevada also has a new notification law that applies to automobile manufacturers that sell vehicles equipped with recording devices known as "black boxes." The act directs companies to disclose the existence of black boxes in vehicle owner's manuals, and to tell customers that they can monitor the performance and location of their automobiles. Under the law, only owners can access the data downloaded by the black boxes.
Gov. Pataki Pledges Tech Investments
New York Gov. George Pataki on Wednesday pledged to build on a series of tech-related initiatives to attract investment.
In his final State of the State speech, the Republican governor touted a recent announcement to build a research and development facility in the Hudson Valley. Earlier this week, Pataki announced details of the plans for the $435 million Institute for Nanoelectronics Discovery and Exploration in Albany.
He said the state will provide $80 million in a partnership that will include private and federal funding. The construction of the facility is part of a collaborative initiative between the federal government and the semiconductor industry. The creation of a separate center in Silicon Valley was announced last year.
"Now it is time to take the next steps to propel New York and New Yorkers to the forefront of the worldwide race toward high-tech supremacy," he said.
Pataki, who is eying a potential bid for the White House in 2008, also said he intends to propose legislation to create "tech zones" based on the state's existing "empire zones," which provide tax breaks for businesses that expand or relocate to certain areas. The tech zones would be affiliated with New York's centers for excellence and would be located in Albany, Buffalo, Long Island, Rochester and Syracuse.
"By combining our centers of excellence and new tech zones with our new math and science high schools, we'll create five hubs of high-tech education, innovation and manufacturing across the state," he said.
Pataki further said he plans to propose a biotechnology research grant initiative that would leverage $600 million in funds.
Verizon Enters Maryland Cable Market
Verizon broke into Maryland's cable market Monday. The Howard County council voted unanimously for a 15-year agreement with Verizon that would let the company market fiber-optic television services.
Under the agreement, Verizon could begin in March to provide its FiOS service to areas of the county where it is deploying its fiber network. The company intends to extend FiOS service across the county over seven years.
Verizon also has reached agreements to provide cable service in Florida, Massachusetts, New York, Texas and Virginia.
Howard County's only cable provider was Comcast. In a release, Verizon Maryland President William Roberts said the introduction of competition will benefit consumers because they will be able choose a cable provider as easily as they choose a phone company. "Competition drives innovation, value and service quality, and it puts the consumer in control," he said.
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