WASHINGTON-The House telecommunications subcommittee last week passed its version of telecom reform by a vote of 27-4, leaving out amendments on network neutrality, universal service and a study of federal spectrum usage.
In a markup that lasted all day, members debated various provisions with network neutrality being a key focus. Network neutrality generally refers to the ability to run any lawful application or connect any lawful device to the communications network. For content providers, it means not being required to pay pipe owners to have their content carried or given priority.
The House bill gives the Federal Communications Commission authority to adjudicate complaints that the FCC’s broadband policy adopted last year had been violated, but does not allow the commission to turn that policy into a regulation. At the markup, an amendment was adopted to strengthen the enforcement provisions by allowing the FCC to assess fines of up to $500,000 per violation.
“The bill beefs up the enforcement tools at the FCC’s disposal to address violations of the commission’s broadband policy. The bill increases fines for violations and has a ‘shot clock’ to require the FCC to take action when action is needed,” said Rep. Joe Barton (R-Texas), chairman of the House Commerce Committee.
Rep. Edward Markey (D-Mass.), ranking member of the House telecommunications subcommittee, tried to make the network-neutrality provisions specific and require network owners to treat all like bits the same. This would have prevented network operators from reserving a portion of the available capacity for their own services.
“This amendment is an attempt to stop those companies from erecting roadblocks to entrepreneurs who have transformed the nation’s economy over the last 15 years,” said Markey.
Pipe owners have said they would like to prioritize packets so they can manage their networks effectively. Network-neutrality proponents warn that this is code for creating two Internets – one with premium content paid for by both the consumers and content providers – and the one that exists today.
“I think this walled-garden approach will fundamentally change the way the Internet works,” warned Rep. Anna Eshoo (D-Calif.). Wireless carriers have had walled gardens for years where only certain content was allowed on their networks, but that is changing with handsets that can reach the Internet outside of the garden.
Consumer groups decried the rejection of Markey amendment.
“This bill means consumers can expect less-not more-competition and innovation from the Internet-based companies,” said Mark Cooper, director of consumer research for the Consumer Federation of America.
The Communications Opportunity, Promotion and Efficiency Act is a scaled-back communications-reform bill. Rep. Bart Stupak (D-Mich.) tried to include universal-service and intercarrier-compensation obligations for Voice over Internet Protocol providers but he was unsuccessful.
The House Commerce Committee leadership has decided that it does not want to attach a universal service provision to its bill. While universal service is popular in the Senate, many conservative members of the House see it as an unnecessary subsidy program. Barton has said he wants to eliminate the universal-service program.
At the end of the day, Rep. Jay Inslee (D-Wash.), a champion of using spectrum for unlicensed uses, tried to amend the bill to call for a study of federal spectrum, but his amendment was ruled out of order.
The Inslee amendment would have required the FCC and the National Telecommunications & Information Administration to conduct a “band-by-band analysis of the usage of spectrum to identify any bands that are not being used efficiently and an analysis of the amount, value, and opportunity cost of spectrum being used by the federal government.”
Provisions to require VoIP providers to offer enhanced 911 service were strengthened with an amendment that was accepted, but the bill still does not give VoIP or public-safety answering points liability protection. The committee could consider the bill after it returns from recess.
