Senate bill targets broadband regulatory parity

Sens. John Breaux, D-La., and Don Nickles, R-Okla., today introduced legislation to ensure regulatory parity among all providers of high-speed Internet services.

The bill would subject all providers of broadband services and broadband access services to the same regulatory requirements and would require the FCC to determine which requirements—if any—should be retained. The commission would have 120 days after the bill's enactment to make these determinations.

In addition, Breaux-Nickles would require telephone companies that offer DSL services to provide all Internet service providers with access to their networks. It also retains existing rules that require incumbent carriers to provide competitors with access to their voice networks.

Tim McKone, vice president-congressional relations for SBC Communications, said in a statement the bill is a positive step toward letting the marketplace—not government regulation—determine the fate of competitors. McKone also said the bill recognizes the disparity between the regulatory environment in which cable companies operate compared to that which governs telephone companies.

"Clearly, today's rules inhibit broadband deployment. But increasingly, U.S. policymakers recognize they can encourage the deployment of high-speed Internet access by ensuring basic fairness in the way broadband is regulated," McKone said.

While favoring no regulation, BellSouth’s Herschel Abbott, vice president-government affairs, said in a statement that Breaux-Nickles represents a reasonable approach.

“Passage will encourage broadband providers to compete for consumers who will be offered improved service, better access and more choices in Internet service providers," Abbott said. "The bill does this by eliminating the cost of regulation that is unnecessary now that competition is in place.

Lauren “Pete” Belvin, vice president-federal policy and law for Qwest, agreed: “By eliminating the one-sided regulatory burdens currently imposed on DSL service, the Breaux bill will make the best in new, high-speed Internet services available to more Americans at a lower price,” Belvin said in a statement.

United States Telecom Association President Walter McCormick Jr. called Breaux-Nickles "a technology neutral national broadband policy."

"Today, local cable monopolies, unchecked by either regulation or effective competition, control nearly 70% of the market and dominate the provision of high-speed Internet access," McCormick said in a statement. "The Breaux-Nickles bill will allow local telephone companies to compete under the same rules as cable operators."

John Windhausen Jr., president of the Association for Local Telecommunications Services found it odd that the Bell companies--which control more than 90% of the local voice market--would complain about unfair treatment in the broadband data market.

"The Bells have enormous advantages over the CLECs--access to municipal rights-of-way, access to buildings, faster line provisioning, and billions in universal subsidies," Windhausen said in a statement. "The CLECs have been calling for parity in the marketplace for years, and now the Bells have move the debate onto our playing field."

H. Russell Frisbee Jr., president of the Competitive Telecommunications Association, called Breaux-Nickles "misguided" and said that studies indicate that 80% of Americans have access to high-speed Internet services, but only 10% purchase broadband services.

"Broadband deployment is not the problem. We need lower prices and new applications to increase consumer demand, which is what competition will bring. Congress should focus on real ways to increase demand," Frisby said in a statement.

—Glenn Bischoff, Senior Writer