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from: Telecom Web

Is It Back To The Drawing Board For Pending Telecom Reform?

The number of senators doubting the passage of telecom legislation this session continues to grow.

"We only have three weeks," said Sen. John Sununu (R-N.H.), featured this past weekend on C-SPAN's "The Communicators" show (which will encore tonight at 8 p.m. on C-SPAN 2.) Noting that some lawmakers are threatening a filibuster over net neutrality, Sununu predicted Congress will return next year to "take a look at the lay of the land and perhaps craft a new piece of legislation."

Last Friday, research/consulting house Stifel Nicolaus circulated a client note suggesting passage of a broad-based bill during a lame-duck session is iffy, although "efforts have begun to attach some of its provisions to separate legislation" as some key Republicans worry about prospects for near-term Senate passage of a comprehensive bill. Franchising or other components, for example, could end up attached to must-pass appropriations legislation.

The fate of the once-ambitious Advanced Telecommunications and Opportunity Reform (ATOR) Act (H.R. 5252) has become more complicated, and a filibuster threatened if stronger net-neutrality language isn't forthcoming. Much of this revolves around the debate over how the FCCshould or shouldn't regulate a wide assortment of activities and conditions associated with IP-based carrier businesses, consumer protections and content freedom.

The senator explained his net-neutrality questioning last week of Federal Communications Commission Chairman Kevin Martin during his re-nomination hearing (Telecom Policy Report, Sept. 13). "I'm concerned about the FCC and their commitment to the deregulatory process," he told C-SPAN, criticizing what he called Martin's efforts to institute cable price controls and discourage "the marketing of new VoIP products." According to sister publication CableFAX Daily, the Senate Commerce Committee is expected to approve Martin's nomination tomorrow in an off-the-floor vote.

Despite widespread doubts about ATOR's passage in this session or a post-election lame duck season - especially if the Democrats are able to win over the Senate and/or House of Representatives from the Republicans - no one has yet outright declared that ATOR, indeed, is a sinking ship. However, additional blasts across the net-neutrality bow recently came from several known critics, including the telco-leaning American Consumer Institute (ACI), and Scott Cleland, founder and president of consulting firm The Precursor Group and chairman of the Netcompetition.org, which is backed by broadband telecom, cable and wireless companies.

In addition, according to a new story posted today on TelecomWeb new break's sister e-letter Telecom Policy Report's page (http://www.telecomweb.com/tpr), the U.S. Internet Industry Association released a 10-page critical analysis of net-neutrality legislation, concluding the proposed amendments and stand-alone bills don't make sense for the broadband Internet industry or consumers. The white paper maintains current proposals impair customer choice, discriminate against broadband network operators, remove free-market forces that would otherwise provide strong protection for consumers, would regulate a market condition (anti-competitive practices) that doesn't exist, would interfere with existing broadband services essential to the operation of the Internet, and would kill broadband innovations and investment.