FINAL TAUZIN-DINGELL COMPROMISE RESTING ON GOLDWASSER PROVISION

Resolution of negotiations between House Commerce and Judiciary Committee leadership on data deregulation bill rests on whether to give Dept. of Justice (DoJ) expanded role in reviewing Bell company applications for long distance authority, congressional source said. Commerce Chmn. Tauzin (R-La.) and Judiciary Chmn. Sensenbrenner (R-Wis.) for months have debated issue of Bell company deregulation behind closed doors and have remained tight-lipped on sticking points of those negotiations. But now congressional source closely following contentious debate said Tauzin and Sensenbrenner were considering meeting halfway on Sensenbrenner proposal to expand DoJ’s role in reviewing applications for Sec. 271 relief.

Bill (HR-1542) by Tauzin and ranking Democrat Dingell (Mich.) would ensure that Bells could provide Internet backbone and high-speed Internet services across their respective interLATA boundaries without needing FCC approval. However, Sensenbrenner amendment, which Judiciary Committee referred (CD June 14 p2) to full House in June, would require Bells to file applications with DoJ before offering such services. Amendment effectively would overturn a 7th U.S. Appeals Court, Chicago, Goldwasser v. Ameritech decision, which gave antitrust law backseat to Telecom Act in resolution of telecom market disputes. Source said committee chairmen hadn’t agreed on language that would produce compromise on Goldwasser issue, but said that could materialize over weekend or early this week. Source also said negotiations between Tauzin and Rep. Pickering (R-Miss.) had centered on HR-1542’s potential impact on Telecom Act’s interconnection requirements, but agreement hadn’t been reached

Sensenbrenner spokesman said there was “no agreement just yet,” but acknowledged that Goldwasser had been and continued to be “big concern” for Sensenbrenner and other Judiciary members. He said any compromise language would have to address those concerns. Staffer said he was unaware of any discussions planned for weekend. Commerce spokesman confirmed that talks between Tauzin and opponents of HR-1542 had been “primarily” between Tauzin and Sensenbrenner, but declined to shed light on those discussions: “We're getting closer to reaching an agreement with several key members who have expressed opposition in the past.”

USTA Pres. Walter McCormick welcomed fact that House Rules Committee Vice Chmn. Goss (R-Fla.) had confirmed what until now had been speculation that some version of HR-1542 would go House floor before congressional recess. This week, “House members are likely to vote on the Tauzin-Dingell broadband legislation,” McCormick said. “We expect a strong vote in the House because this bill gives consumers more choices, injects hundreds of billions of dollars into the economy and will help create new jobs for America.”

AT&T spokesman said decision to go forward with vote was ill-timed and that bill, no matter how it might be altered, was unwelcome legislation: “At a time when the nation is facing many serious issues, we are disappointed that Congress is spending time on a Bell special-interest bill that will result in job loss and the remonopolization of the telecom market. It’s hard to conceive of any compromise that would fix Tauzin-Dingell. It is beyond repair. We will work vigorously with our allies on the competitive side of the telecom industry to try and defeat it.”