WASHINGTON-It is a little hard to tell-and opinions differ-but it appears a bill to give the Federal Communications Commission additional authority to fine local exchange carriers for not opening up their markets to competition could impact wireless carriers just as the industry faces impending regulatory deadlines.
The bill was introduced May 8 by Rep. Fred Upton (R-Mich.), chairman of the House telecom subcommittee. The bill is part of a larger controversy between the Baby Bells, which would like Congress to pass legislation allowing them to offer long-distance data services, and the cable companies, which currently control the residential high-speed data market.
In addition, FCC Chairman Michael K. Powell-in a rare bit of lobbying-urged Congress to give him more authority to assess fines as part of the commission’s enforcement functions.
Upton plans to offer the legislation as an amendment on the House Floor to the Bell-supported bill that would give them data relief. His spokesman said the focus of the bill was in the broadband context, not a more broad approach.
“The intent of the bill is to make sure that we have a level playing field by trying to put some teeth in the enforcement of violations. The provisions were more crafted to deal with the broadband issues to be included in Tauzin-Dingell,” said Upton spokesman Michael Waldron. The Tauzin-Dingell bill would give data relief to Bell companies. Rep. Billy Tauzin (R-La.) is chairman of the House Commerce Committee and Rep. John D. Dingell (D-Mich.) is the ranking member.
The FCC, on the other hand, said that it wanted-and appears to have received-broad enforcement authority.
“Fines are very generic. … There was never any thought that it was for X, Y, or Z,” said David Fiske, acting director of the FCC’s Office of Media Relations.
Powell has consistently said the agency needed more authority so that billion-dollar communications companies would know the FCC means business when it imposes rules and that the fines would be large enough that a company would not consider fines only “a cost of doing business.”
At his recent confirmation hearing, Powell got into a bit of a debate with Sen. Ernest F. Hollings (D-S.C.), now-chairman of the Senate Commerce Committee. Hollings claimed the only ones hurt by larger fines would be customers because the companies would pass the fines onto them. Powell said there needed to be some way to enforce FCC rules.
The Cellular Telecommunications & Internet Association said it has not taken an official position on the Upton bill, but that it does cause some concern.
“There is obvious concern. I would think that you have to be concerned when an agency that has the potential to make decisions that [impact] you and your industry is given greater enforcement authority. Not that we are suggesting that this commission and Michael Powell may not wield that power with great discretion [but] it is rather disconcerting that this is the first initiative the Congress moves on in terms of giving more authority to the FCC,” said Steven K. Berry, CTIA senior vice president for government affairs.
The nation’s largest wireline provider, Verizon Communications Inc., said it does not oppose the legislation as long as it is applied uniformly. Verizon spokeswoman Susan Cavendar Butta said its wireless affiliate, Verizon Wireless, is not actively lobbying on the legislation.
Enforcing rules has taken a more central role since the creation of the FCC’s Enforcement Bureau in 1999. Enforcement is important to the development and success of competition, according to David H. Solomon, chief of the FCC’s Enforcement Bureau.
Solomon has also has said the biggest wireless issue on the enforcement bureau’s radar is the implementation of enhanced 911. Carriers must be ready to implement E911 Phase II on Oct. 1. To date, the FCC has granted a waiver to VoiceStream Wireless Corp., while AT&T Wireless Services Inc. and Nextel Communications Inc. are awaiting approval of waiver applications. Cingular Wireless Inc. is expected to apply for a waiver soon, perhaps as early as this week. Upton is also concerned about this issue. The House telecom subcommittee has scheduled a hearing on the E911 mandate for Thursday.
