TAUZIN AND DINGELL STAFFS MEET FOR HR-1542 SHOWDOWN

Advisers to House Commerce Committee Chmn. Tauzin (R- La.) and ranking minority member Dingell (D-Mich.) held closed meeting Fri. to discuss strategies for fending off opponents of their data deregulation bill (HR-1542). Industry insider said 2 staffs were working with Reps. Towns (D-N.Y.) and Buyer (R-Ind.) to craft Bell-friendly line- sharing amendment to bill. Measure is seen by Tauzin-Dingell opponents as “procedural and tactical move” by Tauzin to subvert attempts by CLEC supporters to amend bill. Towns and Buyer said amendment would strike right balance between encouraging broadband network investment and guaranteeing CLEC access to Bell facilities.

Private meeting, which source said stretched from morning into afternoon, was held in preparation for deadline today (Feb. 25) for submitting amendments imposed by House Rules Committee. Industry observers expect that Rules Chmn. Dreier (R-Cal.) will propose that floor debate be restricted to 4-5 amendments. Source said Towns-Buyer line-sharing amendment would serve 2 purposes: (1) It would compete for Rules Committee attention with CLEC-friendly line-sharing amendment to which Rep. Luther (D-Minn.) recently alluded. (2) It could crowd out expected amendment by Reps. Cannon (R- Utah) and Conyers (D-Mich.) that would bolster Dept. of Justice authority in reviewing telecom disputes and increase antitrust-related oversight of industry.

Although Cannon recently told us in an interview that an antitrust-related amendment was on horizon, its specific language hasn’t been released. He referred to legislation that he and Conyers introduced last year that would increase DoJ’s authority in reviewing Bell company long distance applications and investigations into alleged violations of Telecom Act. Chmn. Sensenbrenner (R-Wis.) in markup of Tauzin-Dingell had introduced an amended version of Cannon- Conyers that would: (1) Require Bells to file Sec. 271 applications with DoJ before offering Internet services across their respective interLATA boundaries. (2) Enable Justice to “issue rules” and “make recommendations” governing its decision to reject or approve such applications. (3) Overturn 7th Court of Appeals, Chicago, Goldwasser v. Ameritech decision, which gave antitrust law back seat to Telecom Act in resolution of telecom market disputes. Sensenbrenner’s version of Cannon-Conyers dropped language that would allow DoJ to re-issue rules “if the Bells are using or are likely to use their monopoly power to engage in exclusionary or anticompetitive conduct.” Committee referred Sensenbrenner amendment, but shot down Cannon-Conyers 15-19. It also gave negative referral to HR-1542.

Tauzin spokesman Ken Johnson said Tauzin “may have had representatives” at Fri. staff meeting, but wouldn’t disclose any strategic developments: “We are going to wait until we have the opportunity to review all amendments to decide which ones we will accept and which ones we will fight vigorously… Compared to the recent 17-hour campaign finance reform debate, this will be a walk in the park.” He said HR-1542 had enough votes to be passed and enough support to fend off poison-pill amendments, and rejected assertions that Tauzin was working with Towns and Buyer to undercut CLEC interests: “Our friends the CLECs see a boogeyman everywhere.”

Towns and Buyer said in Dear Colleague letter late last week that they wanted “to ensure that CLECs have the ability to compete with the Bells in the high-speed Internet market. Our amendment would cure this problem” by enabling CLECs to compete for broadband subscribers without building networks from scratch. They said passage of amendment would: (1) Guarantee that potential competitors had Bell network access “under FCC-regulated rates, terms and conditions.” (2) Preserve an FCC rule that allows CLEC line-sharing of Bells’ copper lines in order to provide high-speed Internet service. (3) Enable CLECs to use their own Internet infrastructure when connecting with Bell equipment. (4) Guarantee CLEC access to Bell rights-of-way. Towns-Buyer letter said their amendment also “maintains other important FCC rules governing law enforcement, pornography, slamming/cramming, privacy and access by persons with disabilities.” Further details were unavailable on amendment and it was unclear whether those items would be worded specifically to protect CLEC access to Bell facilities.