WASHINGTON-Senate Majority Leader Robert Dole (R-Kan.) threatened last week to block telecommunications reform legislation from moving forward until changes are made to auction television licenses potentially valued at up to $70 billion.
Dole’s latest salvo against the broadcasters could, if combined with other factors, cause a protracted delay and possibly even derail altogether a telecommunications bill that supposedly had gained enough bipartisan support-including that of President Clinton-and industry backing to send it to the House and Senate floors for passage two weeks ago.
But the prospect for delay is real. Besides the broadcast auction issue raised by Dole, House Republicans are angered by compromises in other parts of the bill that they say make it too regulatory.
Moreover, congressional GOP leaders said no action will be taken on the telecommunications bill until there is a deal with the Clinton administration on a seven-year balanced budget. But there is a growing chance that a budget compromise won’t be brokered at all this year.
Another snag is the busy presidential primary calendar in February and March, which will keep Dole-the top GOP presidential contender-on the road.
“I do think we should resolve this spectrum issue before the bill is considered,” said Dole.
Dole added, “It is going to be very difficult when we are looking at Medicaid, looking at Medicare, looking at farm programs, looking at welfare, all trying to save money here and money there, that we would at the same time say, oh, that’s OK because these are big media interests, we will give it away, whether there is $12.5 billion or $40 billion, whatever it may be.
“For the sake of the taxpayers and for the sake of the American consumers, fix this one corporate welfare provision before we as members vote on it.”
The wireless telecommunications industry does not want to see the legislation unravel because that would jeopardize federal antenna siting guidelines, long-distance access and other provisions in the bill that retain the deregulatory landscape created by Congress in 1993.
But the industry, which has paid nearly $9 billion for next-generation paging and pocket telephone licenses, favors broadcast TV auctions.
So does Sen. Larry Pressler (R-S.D.), chairman of the House-Senate telecommunications conference, who tried to work TV auctions into the GOP seven-year budget bill before bowing to pressure from the broadcast lobby.
President Clinton is also pushing for broadcast auctions.
The telecommunications bill would enable local telephone companies, long-distance carriers and cable TV operators to compete with each other. The measure would override the 1982 consent decree that broke up AT&T Corp., allowing the seven regional Bell telephone firms to manufacture telecommunications equipment and enter businesses they are currently barred from.
Justice Department restrictions accompanying approval of AT&T’s $11.5 billion purchase of McCaw Cellular Communications Inc. would disappear and AirTouch Communications Inc. would no longer be subject to limits imposed on regional Bells.
