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from: Technology Daily

Telecom Bill Appears Dead For Year

By David Hatch

(Revised Thursday, November 9) Pending deregulatory telecommunications legislation faces new hurdles now that Democrats have won the House and gained control of the Senate, industry sources said.

The Senate Commerce Committee approved a bill authored by Chairman Ted Stevens, R-Alaska, in June. But it subsequently stalled amidst controversy over provisions that critics consider too weak to prevent telecom and cable companies from dominating their high-speed Internet lines

The Republicans' loss of the Senate could further dim prospects for Stevens' legislation during a post-election, so-called lameduck session of Congress set to begin Nov. 13.

Heightening the election's impact, two Republicans defeated Tuesday -- Sens. Conrad Burns of Montana and George Allen of Virginia -- are Senate Commerce Committee members and strong supporters of Stevens' bill.

"...The Senate Democrats will keep anything from happening other than that which is necessary for the continuity of government," a former Democratic Hill staffer said, referring to the forthcomging post-election session.

"I don't think anybody is putting high odds on [telecom] action this year," added a telecom industry source, while another source was even blunter. "That bill's dead," the source said.

In analysis issued late Tuesday, the investment firm of Stifel Nicolaus predicted that the Democratic takeover of the House and Senate would not result in major communications policy changes.

Instead, the firm anticipates that any telecom or media legislation enacted by Congress would be "modest in scope."

The industry group Hands Off the Internet said in a statement: "Today's change in the makeup of Congress should change nothing in the debate over regulating the Internet through so-called net neutrality mandates." The organization, whose members include AT&T and BellSouth, opposes tough Internet regulation. he industry group Hands Off the Internet said in a statement.

Despite the odds, there continues to be speculation that Stevens will try to move at least portions of his bill during the post-election session to salvage part of his legislation following months of debate, drafts, hearings and committee action. A Stevens spokesman did not return calls seeking comments.

Stevens, who also is Senate president pro tempore and a former Appropriations Committee chairman, is an expert at parliamentary procedure. He commands grudging respect from even his fiercest critics, who concede that he should never be underestimated or discounted.

Earlier this year, the House passed a deregulatory telecom bill spearheaded by outgoing Energy and Commerce Chairman Joe Barton, R-Texas.

One source suggested that Republican FCC Chairman Kevin Martin might be strengthened by the election results because industry players would seek relief from the agency instead of Congress.

"He's going to be the only source of relief now," the source said, adding that while companies could theoretically get telecom legislation passed in Democratic-controlled chambers, "the price is way too high."

But others predicted that the Democrats would ratchet up FCC oversight -- which, in turn, could affect Martin's agenda.