NetAction

 

Tauzin-Dingell Clearinghouse

 

Published by NetAction Issue No. 70 May 2, 2001

In This Issue:

ACTION ALERT: Bill Threatens Broadband Internet Access

About NetAction Notes

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ACTION ALERT: Bill Threatens Broadband Internet Access

(Date of alert: May 2, 2001)

* * * Circulate this alert until May 8, 2001 * * *

 

Contents of this alert:

1) Oppose H.R. 1542 (The Internet Freedom and Broadband Deployment Act of 2001)

2) Why this bill threatens broadband Internet access

3) Talking points

4) Who to contact in Congress

5) More background

 

1)Oppose H.R. 1542

NetAction is urging Internet users to contact members of the House

Commerce Committee and urge them to vote "no" on H.R. 1542, the

Internet Freedom and Broadband Deployment Act of 2001. This bill

would eliminate a key consumer protection in telecommunications. It

poses a threat to the continued deployment of affordable broadband

and dial-up Internet services, both of which are crucial to bridging

the digital divide. The House Energy and Commerce Committee could

vote on the bill as early as next week. Call committee members TODAY

to urge them to vote "no" on H.R. 1542.

2) Why this bill threatens broadband Internet access

H.R. 1542 would free the four remaining Bell phone monopolies from

their obligation to open their networks to competitors. Rep. Billy

Tauzin of Louisiana, who co-authored H.R. 1542 with Rep. John Dingell

of Michigan, has put the bill on a fast track to passage in the House.

 

Despite its name, H.R. 1542 will not ensure Internet freedom or

broadband deployment. What it will do is eliminate a key consumer

protection that Congress included in the Telecommunications Act of

1996: the requirement that the Bells open their local phone markets

to competition before they are allowed into the long distance

markets. Although this requirement is the only incentive the Bells

have to treat their customers and competitors fairly, H.R. 1542 would

waive this requirement for long distance data markets. Ludicrous as

it sounds, Tauzin claims that this will ensure meaningful

competition. But it won't. H.R. 1542 will put the four remaining

Bell monopolies in control of the nation's telecommunications and

technology infrastructure, threatening the future deployment of both

broadband and dial-up Internet access and of competitive telephone

service. The result for consumers would be less choice, lower quality

service and higher prices for everything from basic phone service to

Internet access.

 

3) Talking points

* H. R. 1542 will not promote competition. The Bells sat on DSL technology for years, deploying it widely only after competition developed.

* H.R. 1542 does not ensure that broadband services will be available in rural communities. Despite Tauzin's rhetoric, there is nothing in the bill that would require the Bells to deploy broadband service in rural areas.

In fact, the Bells have been selling off their rural assets as fast

as possible in recent years.

* The Bells can't be trusted to offer broadband service if the

current restrictions are lifted. In the 1990s the Bells promised to deploy high-speed fiber optic networks in exchange for relaxed rate-of-return regulation. But instead of delivering on those promises, they pocketed the profits.

* H.R. 1542 will make it more difficult to bridge the digital divide With less competition, the cost of Internet access will increase, making the service even less affordable to low-income consumers.

4) Who to contact in Congress

The House Energy and Commerce Committee may be voting on H.E. 1542 as

early as next week. Calls to committee members are urgently needed. A

list of committee members and their office phone numbers is included

below.

 

Republican Members: Phone Number

W. J. "Billy" Tauzin, Chairman 202-225-4031

Michael Bilirakis, Florida 202-225-5755

Joe Barton, Texas 202-225-2002

Fred Upton, Michigan 202-225-3761

 

Cliff Steans, Florida 202-225-5744

Paul E. Gillmor, Ohio 202-225-6405

James C. Greenwood, Pennsylvania 202-225-4276

Christopher Cox, California 202-225-5611

Nathan Deal, Georgia 202-225-5211

 

Steve Largent, Oklahoma 202-225-2211

Richard Burr, North Carolina, Vice Chairman 202-225-2071

Ed Whitfield, Kentucky 202-225-3115

Greg Ganske, Iowa 202-225-4426

Charlie Norwood, Georgia, 202-225-4101

 

Barbara Cubin, Wyoming 202-225-2311

John Shimkus, Illinois 202-225-5271

Heather Wilson, New Mexico 202-225-6316

John B. Shadegg, Arizona 202-225-3361

Charles "Chip" Pickering, Mississippi 202-225-5031

 

Vito Fossella, New York 202-225-3371

Roy Blunt, Missouri 202-225-6536

Thomas Davis, Virginia 202-225-1492

Ed Bryant, Tennessee 202-225-2811

Robert Ehrlich, Maryland 202-225-3061

Steve Buyer, Indiana 202-225-5037

George Radanovich, California 202-225-4540

Charles F. Bass, New Hampshire 202-225-5206

Joseph Pitts, Pennsylvania 202-225-2411

Mary Bono, California 202-225-5330

Greg Walden, Oregon 202-225-6730

Lee Terry, Nebraska 202-225-4155

 

Democrats:

John D. Dingell, Ranking Member 202-225-4071

Henry A. Waxman, California 202-225-3976

Edward J. Markey, Massachusetts 202-225-2836

Ralph M. Hall, Texas 202-225-6673

Rich Boucher, Virginia 202-225-3861

Edolphus Towns, New York 202-225-5936

Frank Pallone Jr., New Jersey 202-225-4671

Sherrod Brown, Ohio 202-225-3401

Bart Gordon, Tennessee 202-225-4231

Peter Deutsch, Florida 202-225-7931

Bobby L. Rush, Illinois 202-225-4372

Anna. G. Eshoo, California 202-225-8104

Bart Stupak, Michigan 202-225-4735

Eliot L. Engel, New York 202-225-2464

Tom Sawyer, Ohio 202-225-5231

Albert R. Wynn, Maryland 202-225-8699

Gene Green, Texas 202-225-1688

Karen McCarthy, Missouri 202-225-4535

Ted Strickland, Ohio 202-225-5705

Diana DeGette, Colorado 202-225-4431

Tom Barrett, Wisconsin 202-225-3571

Bill Luther, Minnesota 202-225-2271

Lois Capps, California 202-225-3601

Mike Doyle, Pennsylvania 202-225-2135

Chris John, Louisiana 202-225-2031

Jane Harman, California 202-225-8220

 

5) More background

H.R. 1542 was introduced on Tuesday, April 24, was the subject of a

hearing on Wednesday, April 25, and was approved on Thursday, April

26, by a 19-14 vote of the Internet and Telecommunications

Subcommittee of the House Energy and Commerce Committee. The full

Energy and Commerce Committee is expected to hear the bill next week.

 

Tauzin's claim that allowing the Bells into long distance data

markets before local phone markets are truly competitive is necessary

to ensure widespread deployment of broadband, particularly in rural

communities, is an old ploy. In fact, it's one the Bells have used

before.

 

In June 2000 NetAction released a comprehensive report describing how

the Bells had broken the promises they made to regulators in the

1990s to deploy high-speed fiber optic networks. (See

http://www.netaction.org/broadband/bells.) In many instances the

promises to deploy fiber optic networks were made in exchange for

relief from important pro-consumer regulations. In many states where

regulators went along with these schemes, traditional rate-of-return

regulation - intended to protect consumers from profit-gouging - was

replaced with incentive or price cap regulation.

 

The new regulatory schemes gave the Bells more profits, ostensibly to

be used to build the promised fiber optic networks. But instead of

building the networks, the companies simply pocketed the higher

profits. This is one of the reasons that the four remaining Bell

monopolies - SBC Communications, Verizon, BellSouth and Qwest

Communications International - are among the most profitable

companies in the nation.

 

If the Bells had made a good faith effort to meet the conditions

spelled out in the Telecommunications Act of 1996, we might already

have vigorous competition in both broadband and local phone service.

But the Bells chose instead to stonewall competition by engaging in

protracted legal and regulatory maneuvers, and by lobbying Congress

to change the law. Changing the Act now would reward the Bells for

failing to follow the rules.

 

In addition to threatening the future availability of affordable

broadband and dial-up Internet access, H.R. 1542 could lead to higher

phone bills. The bill broadly preempts state regulators, leaving the

states with only limited authority over voice phone services.

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