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from: Technology Daily

Dingell's Remarks On Telecom Bill Draw Mixed Reaction From Bells

By David Hatch

(Thursday, November 9) The Bell telecommunications firms had mixed reactions to news that incoming House Energy and Commerce Committee Chairman John Dingell, D-Mich., will pursue fresh telecommunications legislation in 2007.

Dingell opposed this year's deregulatory bill -- passed by the House in June -- that was strongly backed by AT&T, BellSouth and Verizon Communications.

Speaking to reporters a day after Democrats won control of the House, Dingell on Wednesday outlined several issues he plans to tackle, including reform of the universal service fund. The latter subsidizes telecom connection costs for rural and underprivileged citizens.

But Dingell was noncommittal about whether the creation of national video franchises -- a key tenet of this year's bill and the main reason for the Bells' support -- is on his agenda.

Said BellSouth spokesman Bill McCloskey: "We'll have to see what happens when [the Democrats] get organized...I can't imagine if there is legislation that we wouldn't be involved. But we wouldn't be involved in proposing any legislation. That's the nuance."

"We stand ready to work with Congressman Dingell and other members of Congress to tackle the important issues confronting our nation, such as continuing the investments needed to bring broadband deployment to all Americans, and ensuring universal service and video choice for consumers," added AT&T spokesman Michael Balmoris said.

AT&T and BellSouth are seeking to merge, so they could be combined when Dingell begins hearings and drafting legislation.

Verizon Executive Vice President Tom Tauke previously has said his company does not expect to pursue federal legislation in 2007. Verizon declined to comment Thursday -- as did the National Cable and Telecommunications Association, which was less bullish about this year's measure.

AT&T and Verizon have secured video franchising relief in eight states in the past 18 months. Dingell tried unsuccessfully to amend the House bill with provisions requiring new video providers to offer their services within entire communities.

The latter move put him at odds with Bell companies opposed to such requirements. Under local franchise regulations, cable operators have been required to make sure their systems reach all members of communities.

On a related note, Dingell appeared to backtrack from remarks Wednesday to reporters that the FCC should delay voting on the AT&T- BellSouth merger until 2007 so his panel could exert oversight.

"Well, first of all, I've not said that it should be delayed," he told the CNBC cable network, according to a transcript circulated by Bell companies. "I've said that it should be looked at and looked into carefully by the agencies responsible for that."

Regarding telecom legislation, Dingell said he also wants to re-examine the need for so-called network neutrality regulations, which would prohibit high-speed Internet providers from potentially blocking or degrading competing content sent over their networks.

Phone and cable outlets oppose such restrictions on the grounds that they could hinder their ability to deliver bandwidth-heavy services. Controversy over the issue has stalled Senate telecom legislation.

Net neutrality is likely to get more attention in a Democratic-controlled Congress -- although party members are divided on the issue, sources noted.