CONGRESS RESTS WITHOUT INTRODUCTIONS OF BROADBAND BILLS

First month of Congress yielded little progress on what’s seen as biggest telecom task for both Commerce Committees this year -- finding way to increase broadband deployment. “It’s been a very slow month, and a lot of it was scripted during the last session,” said Cato Institute telecom analyst Adam Thierer. “There’s no surprises [so far].” Broadband deployment is to get immediate attention when Congress returns Feb. 26. “We're hearing from our constituents how important this is,” said Hill staffer. But so far lawmakers have continued to push disparate ideas on subject with little progress made on reconciling various bills. In particular, most onlookers are waiting to see new bill expected from House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.).

Latest lawmaker to reenter fray will be Sen. Brownback (R- Kan.), who is expected shortly after his return to introduce bill similar to last year’s S-2902, which would have freed Bell companies from many of their unbundling and other regulatory requirements when providing DSL service. That bill drew support from some in high-tech industry, including Information Technology Industry Council because, unlike Tauzin/Dingell proposal, it addressed “last-mile” problem instead of backbone provision, which many in Internet industry see as sufficient without Bell company involvement. S-2902 also would require Bell companies to actually increase deployment in rural areas to win regulatory relief. “I have contacted a number of private sector groups that are looking at this and saying they will invest” if given relief, Brownback said last week.

Bill is likely to be “very similar,” one Hill source said, although one lobbyist said: “I don’t think a final decision has been made on whether to tweak it.” We're told that’s partly because of staffing issues, with longtime telecom staffer Howard Waltzman joining Tauzin on House Commerce Committee and being replaced in last 2 weeks by Kevin Kruske, who’s formerly of Senate Commerce Committee. Still, Brownback’s deregulatory philosophy is pretty well established, lobbyist told us, and “I don’t think that’s going to change.” Biggest question is whether Waltzman connection is sign of greater cooperation between Brownback and Tauzin on issue. “It’s not unreasonable to think there’s going to be some influence,” lobbyist told us.

Senate passage of any deregulatory bill for Bells still is considered difficult. “It would have to get through Hollings and Stevens,” Hill source said, referring to Senate Commerce Committee ranking Democrat Hollings (S.C.) and Appropriations Committee Chmn. Stevens (R-Alaska), neither of whom have been friendly with Bells. Brownback is “going to have to find some way to convince them that it’s not going to undermine competition,” source said. Although Bell companies have lobbied hard with new members of Commerce Committee, and seemed to win some favor with Sen. Allen (R-Va.) quickly, competitive phone companies said they weren’t worried who got off to quicker start, only who laughed last. “We're going in to meet with [Allen’s] staff next week,” said ALTS Pres. John Windhausen. “I think he'll develop a more sophisticated view.”

Some said best chance for either the Brownback or Tauzin/Dingell measures to pass Senate would be to somehow link one to popular broadband tax credit bill, S-88 by Sen. Rockefeller (D-W.Va.), which already has gathered 46 co-sponsors. “There’s a real good chance we'll see an effort to bundle them,” Thierer said. He said tax incentive bill “could be used as a carrot to bring a lot of other votes” from senators nervous about deregulating Bell companies but wanting to show some progress on broadband deployment. We're told Rockefeller already has received overtures on subject, but has rebuffed them. He is on record as opposing any bills that would reduce telecom competition.

CLECs were cheered by floor speech by Senate Majority Lott (R-Miss.) last week that emphasized need for “enforcement” of phone rules that promote competition over other changes to Telecom Act. He said Sec. 271 bargain for Bell companies to receive long distance authority in exchange for opening local markets “may not be a sufficient motivating favor in many states.” Lott said “I believe that the Congress should consider how to create additional incentives for increased competition” in telecom sectors that “remain dominated by a small number of competitors.” He said he would be interested in measures to make competitors more interested in pursuing residential customers, and would be open to “possible tweaks that may be necessary to ensure full implementation of the Act as it was originally envisioned.” “It’s very positive news… that his emphasis is on enforcement,” Windhausen said. Of course, he added, “there are good ’tweaks’ and there are bad ’tweaks.'”

Meanwhile, Hollings last week reintroduced bill (S-341) that eventually could create “safe harbor” during which violent programming couldn’t be shown on TV. FCC would be required to evaluate effectiveness of V-chip in preventing children from watching inappropriate programming, and failing grade would trigger rulemaking creating safe harbor. Hollings has had similar bill clear Commerce Committee with just Brownback as dissenter 3 times but hasn’t been able to get vote on Senate floor. “I do not want to be put aside. I have been put aside,” he said. Citing recent examples of violence apparently inspired by TV, Hollings last week asked, “How much copycat violence will it take?” He said self-regulation had been proved not to work, and Brownback’s alternative, to give networks antitrust exemption to work together on solutions, wouldn’t be effective. Pointing to last year’s agreement by entertainment industries to limit marketing of violent fare to children, Hollings said: “If it is good for children to limit violent advertisements, it follows that it should be good for children to limit violent programming.” Original co-sponsors of bill are Stevens and Sens. Dorgan (D- N.D.), Inouye (D-Hawaii) and Kohl (D-Wis.).

But next Senate Commerce Committee hearing will be on entirely different subject: DTV. We're told Committee will hold hearing March 1 at 9:30 a.m. on progress of digital transition. Details weren’t available at our deadline.