FCC'S MARTIN ‘SYMPATHETIC’ TO TELCO AND CABLE REGULATION PARITY
FCC is “very sympathetic to regulation parity” between broadband services provided by cable companies and telcos “but there are limits to what the Commission can do,” Comr. Martin said Wed. in Comnet session in Washington. In What’s Ahead in Communication Policy and Regulation he said 2 deployment models were “regulated very differently.” Citing current cable open access proceeding at FCC, Martin said he was “hesitant to apply legacy regulations” to cable industry: “I am worried about regulating up.” When Commission opens proceeding and then fails to reach decision, uncertainty created can dampen investments in new technology, he said: “The Commission needs to be careful with regulatory parity” and “not impose new burdens on new technology.” Regulatory parity should be implemented “with very subtle tools,” otherwise it could “slow deployments [in markets] where cable has been very successful,” he said.
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Asked about prospects of Tauzin-Dingell data regulation bill in coming year, Andrew Levin, aide to Rep. Dingell (D- Mich.) and House Commerce Committee, wouldn’t make prediction, but said he “believed the President would sign the bill if it reached his desk.” Levin said bill sponsored by House Commerce Committee Chmn. Tauzin (R-La.) and Dingell suffered from many “misconceptions” due to lobbying, press attention and relentless advertising: “The major thrust of the bill is to level the playing field between competing broadband technologies.” Current situation is “regulatory accident,” with cable largely deregulated by Congress in 1996 toward its “primary mission of delivering TV,” he said: “Telephone companies are at the other end of this spectrum.” Debate on Telecom Act was “what to force the Bells to do in terms of sharing facilities and open the local loop to competition.” Cable has 70% broadband market share compared with 20% for telcos, he said: “What is appropriate for cable should be for the telephone companies.”
In response to question about broadband plan promised by Administration, NTIA Dir. Nancy Victory said “the Administration is focused on broadband as a key telecom issue.” She said her agency was “trying to gather information” on the proper govt. role in broadband deployment. She said rumored March 18 deadline for broadband report “is not correct” and report “may be earlier or later.”
Besides broadband, spectrum is other major issue Victory has faced since joining NTIA. “The U.S. finds itself staring at a scarcity of spectrum. Sure there is some left, but there are many competing applications,” she said. Agency will “look at different management techniques” in spring. FCC, NTIA and other affected govt. agencies are completing “viability assessment” to open up additional spectrum to 3G services. Spectrum under consideration includes 1710-1770 MHz band federal spectrum and 2110-2170 MHz nonfederal. Target is to complete assessment by late spring, she said: “The question is how soon and at what cost.” Levin questioned whether 3G should be “highest priority” for new spectrum and said Dingell and other members of Congress shared opinion. He said arguments against transferring spectrum to 3G included: (1) “After 911, it is more difficult to move government spectrum.” (2) “Killer apps” may not be there yet. (3) Many would have carriers use existing spectrum more efficiently. “I'd like to see better use of spectrum to improve the quality of current voice services” rather than worry about 3G data services, he said.
On NextWave, Levin said he believed “no additional legislation is needed” to prevent repeat of debacle. It raised “number of questions for the FCC” but maybe not for “FCC as currently configured,"-- thought to which Martin offered curt “thank you.” “It would require a Ph.D. in game theory to figure out what will happen with auction 35 and the bids,” Levin said. “The Commission needs to remember that spectrum auctions are a tool to get spectrum out to the market efficiently,” Martin said that when auctions were used as budget tool, “the Commission makes mistakes.”