Lawmakers disagree on telecom cures

BOCA RATON, Fla. – Prominent lawmakers shared differing views last night on how to fix the telecom industry here at the opening session of the U.S. Telecom Association annual conference.

Rep. Billy Tauzin, R-La., chairman of the House Commerce Committee, called for radical changes in FCC policies that govern competition, while Sen. Bill Nelson, R-Fla., a member of the Senate Commerce Committee, suggested a more moderate approach that would grant incumbents some relief while staying true to the overall tenets of the Telecom Act.

Tauzin, speaking on videotape from Washington, said the fight would continue to force the FCC to rationalize its policies. Tauzin is co-author of a bill, currently stuck in Nelson’s commerce committee, which would relieve incumbent carriers of their responsibilities to open their data networks to competitors.

“The current policies are awful and discriminatory,” Tauzin said. “The FCC should read the Constitution. The government isn’t supposed to take away assets without just compensation.”

He said the previous commission “overstepped its authority” and that the current commission would be pressured to change unless it can “come up with an extraordinary public reason” for staying the course.

“We need fair rules and fair competition. Telecom should be treated like any other industry,” where market conditions determine the fate of competitors, Tauzin said.

Nelson said the current economic crisis demands a regulatory environment that would be stable enough to stimulate investment, smart enough to stimulate competition and flexible enough to stimulate innovations. However, it doesn’t require a scuttling of the Telecom Act, he said.

“We shouldn’t rush to change the rules of the game. We need to adjust the course when troubles arise,” Nelson said. “Rational and reasonable regulation is needed to grow the industry in this environment.”

He urged the FCC to find a balance between providing the tools needed by competitive carriers to enter local markets, while providing sufficient economic incentives to incumbents to spark investment in new technologies.

Nelson also preached patience. “No one said transforming the telecom industry was going to be easy.”