LoKT Telecom/Internet Law Blog

9.28.07 Congress and Federal Activity Update

FTC Wants Authority to Address Deceptive Practices in Telecom Industry: In a Senate Commerce Committee subcommittee hearing, FTC Chairwoman Deborah Platt Majoras asked that the FTC be given greater power to police unfair and deceptive practices in the telecommunications industry. Now, the FCC maintains regulatory responsibility for acts by common carriers. Legislation would be required to grant the FTC such oversight.

Farm Bill May Contain Telecom Funds: The Senate Agriculture Committee is marking up a five year farm bill that could contain some benefits for rural broadband providers. The discussion draft currently circulating contains a provision authorizing $25 million to the Agriculture Department for a broadband loan program. The bill also would create a national center focused on extending broadband to rural areas. The center would work with existing local development offices and would be required to provide annual updates on the broadband loan program's effectiveness.

More Money for Rural Broadband Studies Proposed: Rep. Zack Space (D-Ohio) proposed a bill (HR-3627) allocating $40 million in grants to encourage broadband deployment. The money would be used to fund studies to determine areas of a state lacking broadband and identify potential providers. The money would not, however, be available to subsidize providers.

Bush Administration in Favor of Permanent Internet Access Tax Moratorium: The Bush Administration again made clear its support for making the Internet tax moratorium permanent. S-1453 was in the process of being marked up while amendments circulated and competed for votes. The bill was pulled on the 27th when it appeared that Republicans had enough votes to make the ban permanent. A middle ground may be the best either side of the debate can hope for resulting in a temporary extension. Senator Kerry (D-Mass.) has proposed a six year ban, which would be the longest ban ever approved by Congress.

House Telecom Subcommittee Hearing: The House Telecom Subcommittee Hearing will have a hearing on Tuesday, October 2nd. Among topics to be discussed are: the special access market; municipal service providers; and copper lop retirement.

9.13.07 Congress and Federal Activity Update

E-911 Bill: A House Telecommunications Subcommittee hearing on a proposed E911 bill was postponed to the 19th. HR-3403 was proposed by Rep. Bart Gordon (D-Tenn) on August 3rd. It would grant VoIP providers access to 911 networks at the same rates, terms and conditions currently provided to commercial mobile services providers. Theoretically then, a VoIP provider would be able to order trunks to local PSAPs (assuming that PSAP was accepting VoIP traffic). The bill would also mandate that all 911 fees collected by states actually be used for 911 or other emergency services.

DOJ Against Net Neutrality Regulation: The Department of Justice filed comments at the FCC opposing any potential FCC regulations limiting providers' ability to prioritize Internet traffic. DOJ warned that failure to allow providers to act on bandwidth demand issues would ultimately dissuade investments in network upgrades. Supporters of regulations of net neutrality argued that DOJ's comments ignore the market failure that has resulted in a broadband duopoly. The logic follows that without a fully competitive market, there is little to stop an area's duopoly providers from prioritizing traffic in a discriminatory fashion.

Internet Tax Moratorium Set to Expire: With the Internet Tax Moratorium set to expire in November, lobbying on both sides has increased steadily. Pro-moratorium lobbyists are pressing for a permanent extension of the act. State tax officials would prefer the moratorium be allowed to expire at best, or at worst, that any extension last no longer than four years. Senate Commerce Committee Vice Chairman Ted Stevens (R-Alaska) has called this issue the "most pressing broadband issue" currently before Congress.

Do Not Call List Permanent: Legislation is being drafted by Rep. Mike Doyle (D-Penn.) that would make permanent any consumer telephone number entry on the national Do Not Call list. Currently, numbers may be deleted after five years, meaning consumers who signed up in June 2003, could have their numbers scrubbed as early as next summer.