[opendtv] Senate Drafts Huge Telecom Bill
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 2 May 2006 11:39:05 -0400
Senate Drafts Huge Telecom Bill
By John Eggerton -- Broadcasting & Cable, 5/1/2006 3:59:00 PM
The Senate Commerce Committee has released the=20
draft of its telecom reform bill, and it is a=20
doozy.
In addition to video franchise reform, the main=20
thrust of the House version of the bill, the=20
Senate deals with a host of other issues in its=20
135-page opus.
Don't look for a quick turn-around, however. The=20
committee will do the telecom "two-step," first=20
holding two public hearings on the bill before it=20
marks it up (amends and otherwise changes it)=20
after the Memorial Day recess. That lengthens the=20
odds that a telecommunications bill can be passed=20
this session, given the differences between the=20
House and Senate versions and the dwindling days=20
on the legislative calendar before the session=20
ends
Included in the draft are the video and audio=20
flag content-protection technology, network=20
neutrality, expanding the payments to the=20
Universal Service Fund that helps pay for=20
telecommunications services in underserved areas,=20
municipal broadband, provisions for unlicensed=20
wireless devices, DTV transition-related issues=20
stripped from an earlier bill on the DTV=20
transition, child porn, emergency communications,=20
and even allowing FCC commissioners to talk among=20
themselves.
Key provisions include making cable pay into the=20
Universal Service Fund for modem service--it=20
already pays into it for telephone service;=20
allowing unlicensed devices to operate in the=20
broadcast band; mandating nondiscriminatory=20
access to sports programming; and reinstating the=20
=46CC's audio and video flag rules, with caveats to=20
take care of fair use distribution. Those include=20
carve-outs for "timely: news and public affairs=20
and distance learning.
The cable industry came out pretty well,=20
particularly in the areas of downconversion (see=20
below) and video franchising. Unlike the House=20
bill, the Senate version would leave adjudication=20
of cable service discrimination claims to local=20
authorities. The House bill would make the FCC=20
the judge. That means cable's new competition,=20
the telcos, would face local oversight similar to=20
cable's.
The bill includes a number of DTV-related issues=20
that could not be included in a DTV hard date=20
bill due to Senate rules. They include requiring=20
labels on TV sets that can't receive a digital=20
signal and allowing cable operators to convert a=20
digital signal to analog for customers who don't=20
have digital sets.
Broadcasters have fought the downconversion,=20
saying viewers would be denied the sharp new TV=20
pictures that digital affords.
The bill also directs the FCC to develop rules=20
requiring video service providers to "prevent the=20
distribution of child porn."
Last, but not least, it would allow fewer than=20
the full complement of sitting FCC commissioners=20
to talk among themselves so long as there was at=20
least one member of the minority party present.=20
Currently, FCC commissioners can't meet in=20
smaller groups.
Committee Co-Chairman Daniel Inouye (D-Hawaii)=20
co-sponsored the bill but apparently doesn't like=20
it that much.
"Today, I have agreed to co-sponsor=20
telecommunications legislation introduced by=20
Senator Stevens," he said in a statement. "I do=20
so in a spirit of bipartisanship, because I=20
believe that bipartisanship will be required if=20
we are to successfully update our nation's=20
communications laws. My co-sponsorship, however,=20
is not a demonstration of support for the bill=20
itself.
"This is the draft of the Majority Staff, and I=20
have numerous, substantive objections to the bill=20
in its current form. Given that my colleagues=20
and I have not yet had an opportunity to weigh in=20
on this critical legislation, I consider its=20
introduction the very beginning of the=20
legislative process. "
Inouye feels the network neutrality language in=20
the Senate bill does not go far enough in=20
protecting the Internet from discrimination in=20
service provision by networks, the same criticism=20
leveled by Democrats at the House bill, though=20
that one passed with strong Democrat support=20
anyway.
=46ollowing is the committee's summary of what's in the bill:
Title II - Universal Service Reform;Interconnection
Subtitle A - Contributions to Universal Service
=B7Requires every provider of a telecommunications=20
service, broadband service or, IP-enabled voice=20
service (VOIP) to pay into USF.
=B7Allows the FCC to develop a contribution=20
mechanism that is competitively and=20
technologically neutral and is specific,=20
predictable and sufficient.
=B7Allows the FCC to assess:
(1) intrastate and interstate revenue,
(2) working phone numbers,
(3) network capacity including broadband connections
(4) or any combination thereof.
=B7Allows an exception for low-volume callers like=20
senior citizens who may have a $2 long distance=20
bill, yet would be assessed $1 under a=20
numbers-based approach.
=B7Provides a USF discount for group plans where a=20
family may have multiple phones under one account.
=B7Preserves state USF programs
=B7Requirements on billing: those who pay into USF=20
can put a line item on the phone bill and can=20
charge an administrative fee to collect the=20
USF.However, such items must be listed separately=20
on the bill and any administrative charge must be=20
based on actual collection costs.
=B7Anti-Deficiency Act Exemption: USF contributions=20
are permanently exempted from the Anti-Deficiency=20
Act.Requires that USF be accounted for consistent=20
with government Generally Accepted Accounting=20
Practices' standards, that the E-Rate program not=20
commit more funds in a year than its program cap,=20
and that excess funds be deposited in the US=20
Treasury.
=B7Includes the "Broadband Data and E-rate=20
Improvement Act" which permits Native American=20
libraries and consortia to receive E-Rate funding=20
and directs the census bureau to collect=20
broadband deployment data.
Interconnection rights and obligations:
=B7Ensures competition for consumer voice services=20
by including an interconnection piece.Without=20
access to the local exchange it is not possible=20
to offer local service.The bill allows VoIP=20
providers to gain interconnection rights, duties=20
and obligations as if they were a=20
telecommunications carrier.
Subtitle B - Distributions from Universal Service
=B7Requires carriers that receive USF to offer=20
broadband within five years of enactment unless=20
it receives a waiver because the cost of=20
deployment is too high, it is not technically=20
feasible, or would materially impair the=20
carrier's ability to continue providing service=20
throughout its service area.
=B7Creates a separate broadband fund of $500=20
million a year to provide broadband to unserved=20
areas.Satellite carriers are eligible to receive=20
those funds.
=B7Tightens requirements that competitive Eligible=20
Telecommunications Carriers (ETC) must meet in=20
order to receive USF.Requirements include: ETCs=20
would have to remain functional in an emergency,=20
provide consumer protection and service quality=20
standards, offer service comparable to the=20
incumbent.
=B7Makes clear that the FCC cannot limit USF=20
support to a single connection or line.
=B7Addresses the phantom traffic issue.Prohibits a=20
carrier from hiding its traffic identifiers to=20
mask whether its traffic is interstate or=20
intrastate.This is especially important for small=20
rural carriers so that they can ensure accurate=20
collection of access charges.
=B7Requires state commissions to conduct random audits.
=B7Establishes waste, fraud, and abuse review.
Title III - Streamlining Franchising Process
* Maintains the basic framework of=20
Title VI: While the draft streamlines the=20
franchise application process in order to=20
encourage competition, it maintains the Title VI=20
structure. Preserves almost all of the existing=20
video regulations-such as must-carry.
=B7Sets strong national limits and leaves the local=20
franchise authorities with flexibility to go up=20
to those limits, preserving flexibility to meet=20
different community interests.For instance, some=20
communities may not want to impose a 5 percent=20
fee on their residents for video service but=20
other communities may need to impose the full 5=20
percent fee because the community has certain=20
projects/needs that require funding.
=B7Preserves local role in ensuring that video=20
service providers don't discriminate and in=20
ensuring that customer protection and service=20
rules are followed pursuant to national=20
standards.FCC sets the standards, the state=20
commissions have enforcement power, and the local=20
franchise authorities have standing to=20
file complaints on behalf of their residents.
* Preserves local franchise=20
authorities' ability to negotiate rights-of-way=20
management at the local level.
* Preserves the ability of state or=20
local franchise authorities to assess up to 5=20
percent of gross revenues.
* Local authorities still have=20
authority to bring public, educational and=20
government (PEG) channels to their=20
citizens.Requires new entrants to offer the same=20
number of PEG channels as are currently being=20
offered by the incumbent cable operator so that=20
local expression is preserved. In addition, local=20
authorities may add channels over time.
* Preserves existing I-Nets and=20
requires all video service providers to=20
contribute to the support of PEG channels and=20
I-Nets up to 1 percent of the gross revenues.
* Promotes competition and removes=20
obstacles - sets a shot clock of 30 days by which=20
franchise applications must be processed.In=20
addition, the FCC is charged with promulgating=20
national franchise application form.This=20
streamlining will encourage competition and bring=20
choice and lower prices to consumers.
Redlining (discrimination) and consumer=20
protection and service requirements are set=20
nationally and monitored by local franchising=20
authorities.The state commission adjudicates such=20
disputes.Remedies: can require the video service=20
provider to provide service, may assess=20
penalties, can even revoke the franchise.
* Audits of the records of video=20
service providers may be conducted, to the extent=20
necessary, to ensure that the full franchise fee=20
is being paid for the benefit of the citizens.
* Franchise agreements can be no=20
shorter than five years and no longer than 15=20
years.
* The new streamlined provisions=20
apply to an incumbent cable provider when=20
(whichever is earlier):
(1) When the cable operator's current franchise agreement expires; or
(2) when a phone company is granted a=20
franchise in the same franchise area as the cable=20
operator.Under this scenario, there will be a=20
level playing field because the cable operator=20
will be afforded the same streamlined rules when=20
a competitor is entering their franchise area.
* Allows small phone companies to=20
share facilities when providing video services.
Title IV - Video Content
Subtitle A - Sports Freedom
=B7Updates existing Section 628 to ensure that the=20
access to programming safeguards of Section 628=20
apply to all sporting events so that multichannel=20
video programming distributors (MVPD) cannot=20
enter into exclusive deals with program vendors=20
for sporting events.
=B7Preserves the ability of an MVPD to develop for=20
its own use local programming, such as news or=20
local interest shows, that are not sporting=20
events.
=B7Clarifies that the FCC has the needed=20
adjudicatory authority to police these provisions=20
and makes such other changes as are appropriate=20
to ensure competition and diversity in=20
programming available to MVPDs.
Subtitle B - National Satellite
=B7Directs the FCC to require that satellite=20
licensees offer the same services offered to=20
contiguous states to noncontiguous states to the=20
degree it is technically feasible to do so.
Subtitle C - Video and Audio Flag
=B7Authorizes the FCC to reinstate the rules that=20
the FCC had previously adopted limiting the=20
indiscriminate redistribution of digital video=20
broadcast content over the Internet and to make=20
any modifications that may be needed consistent=20
with the provisions of this subtitle.
=B7Directs the FCC to establish a Digital Audio=20
Review Board, including industry and consumer=20
group participation, which would recommend rules=20
to prevent indiscriminate redistribution of audio=20
content.The FCC would have the authority to enact=20
the recommended rules after putting them out for=20
public comment.If the Digital Audio Review Board=20
cannot reach a consensus then the FCC would=20
recommend statutory authority to invoke the FCC=20
proposed rules to the Congress.
Title V - Municipal Broadband
* Affirmatively permits municipal broadband services.
* Requires that all laws applicable=20
to private broadband service providers also be=20
applicable to municipal broadband service=20
providers.
* Encourages municipalities to=20
enter into public-private partnerships to offer=20
broadband service and would specify an open=20
bidding procedure to choose the private partner.
* Provides that if the municipality=20
did not partner with a private entity, the=20
municipality must first notice its intent to=20
offer a broadband service so that private=20
providers may try to bid to offer the same or=20
better service at a lower price.There would be a=20
30-day notice process by the municipality and if=20
a private operator did make a bid, a third party=20
would compare the private proposal to what the=20
municipality proposed and determine if the third=20
party could offer the same service, over the same=20
area, to the same recipients in the same time=20
frame at a lower price.Assuming no private bid or=20
that the private bidder could not offer the same=20
service for less the municipality would be free=20
to offer its own service.
* Grandfathers from the notice=20
provisions existing municipal broadband services=20
and projects that have already begun.
Title VI - Wireless Innovation Networks
Unlicensed white spaces:
=B7Amends Title III of the Communications Act to=20
allow unlicensed devices to operate in the=20
portions of the television broadcast spectrum not=20
being used by the television broadcasters.
=B7Directs the FCC to complete its existing=20
rulemaking to protect the television broadcasters=20
and other licensed services from harmful=20
interference from unlicensed devices.The title=20
would also specify that any remaining licensed=20
public safety uses in any of the television=20
broadcast spectrum must also be protected.
=B7To ensure protection, the FCC is required to=20
establish a certification and testing procedure=20
to take place in certified labs that would=20
demonstrate compliance with the FCC's rules and=20
that broadcasters would be protected before the=20
unlicensed devices could be sold.
=B7Provides that the FCC could require the=20
unlicensed devices to include a remote feature by=20
which the device could be deactivated or modified=20
by a radio signal in the event the unlicensed=20
device did cause interference in the real=20
world.The FCC would establish an expedited=20
complaint resolution process to ensure that=20
broadcasters are able to remedy any interference=20
that might occur immediately.
Title VII - Digital Television
=B7Requires television manufacturers to place=20
labels on the television screen and packaging for=20
any television set that cannot receive digital=20
signals warning the consumer that the TV would no=20
longer be able to receive broadcast television=20
signals over-the-air after February 17, 2009.The=20
labels and package information would be required=20
in English and Spanish.
=B7Requires the FCC develop additional consumer=20
information to be made available in stores and=20
online regarding what the transition is, how it=20
serves the public interest, why it is necessary,=20
and what consumers need to know to ensure that=20
they continue to get their video services.
=B7Establishes a DTV working group for education,=20
outreach and technical assistance.The working=20
group would develop a national plan that could be=20
implemented locally to facilitate the transition=20
and would also require television stations to=20
broadcast pubic service announcements to help=20
guide the public through the transition.
=B7Permits cable operators to transmit an analog=20
signal of any television station requesting=20
carriage by the cable operator under section 614=20
or 615 of the Communications Act to their=20
subscribers with analog TVs to ensure continued=20
viewing of over-the-air signals for cable=20
subscribers with analog TVs.
=B7Reinstates video description rules developed by=20
the FCC to aid the blind and requires the FCC to=20
submit transition coordination reports with=20
respect to Canada and Mexico.
Title VIII - Protecting Children
=B7Directs the FCC to promulgate rules that would=20
require that video service providers prevent the=20
distribution of child pornography.
Title IX Internet Neutrality
=B7Directs the FCC to commence an annual study of=20
the Internet and how information is transmitted=20
over the Internet.If at any time the FCC=20
determined that there were problems in the way=20
that the flow of information over the Internet=20
was being conducted, the FCC would make=20
recommendations to Congress regarding what=20
authority the FCC would need to correct such=20
behavior.
Title X - Miscellaneous
=B7Amends the Communications Act to permit meetings=20
of less than all of the Commissioners as long as=20
there is participation by a Commissioner in the=20
minority party.Commissioners would also have=20
greater flexibility to meet with government=20
officials together or in small groups, to appear=20
at industry conferences or seminars together or=20
in small groups.
=B7Includes a severability clause so that if any=20
provision of this Act is found to be=20
unconstitutional, such Court decision shall not=20
impact any other section or provision of this Act.
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