E-911, SPECTRUM REFORM ARE CENTERS OF BURNS TECH AGENDA
Senate Communications Subcommittee Chmn. Burns (R-Mont.) unveiled ambitious telecom technology agenda Wed. that included spectrum reform and E-911 as its “centerpiece.” Legislation to control spam would be first priority, but agenda also included several telecom-related measures: (1) Tax incentives for broadband build-out. (2) Wireless privacy. (3) Universal service reform. (4) Development of U.S.-Asia free trade network. “We can pass some of this agenda,” said Burns, who acknowledged passage of all items on the agenda would be difficult: “If we don’t offer something, we'll get none of it through.”
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Burns committed to moving away from “failed current auction model, which has resulted in numerous bankruptcies at companies and failed promises for consumers.” He said he would examine “potentially revolutionary ideas.” Legislation will follow 2nd General Accounting Office (GAO) report on spectrum due out at end of Jan. GAO report last year raised concerns about spectrum management, including: (1) Division of authority between FCC and NTIA. (2) Inadequate U.S. preparation for World Radio Conference. Followup report would analyze spectrum management regimes in other countries. Burns said: “Spectrum reform is long overdue. In Europe we have witnessed how the system failed consumers and we must avoid implementing a similarly exploitative process in the Unites States.” He also said single agency was likely to conduct more coordinated oversight of spectrum management, as opposed to splitting authority between FCC and NTIA.
Kickoff for E-911 caucus is scheduled for Feb. 24, said Burns, who will be co-chmn. of event with Sen. Clinton (D- N.Y.). Caucus will promote universal, nationwide public safety communications infrastructure, he said. E-911 will remain top priority because of “life-or-death” nature of issue, he said. Clinton’s interest in E-911 was spurred by Sept. 11 attacks, Burns said. Legislation will address lack of unified funding structure, readiness of public safety answering points (PSAP), carrier action on meeting E-911 mandates.
Although spectrum reform and E-911 were given top priority, first bill to be introduced from agenda came Tues. when Burns offered broadband tax incentive legislation (S- 160) with Senate Finance Committee Ranking Democrat Baucus (D-Mont.) that would allow companies to classify broadband construction as capital expenditure. Burns said Tues. on Senate floor that S-160 “generally mirrors” legislation (S- 88) by Sen. Rockefeller (D-W.Va.) in 107th Congress, and that bill was based on legislation by then-Sen. Moynihan (D-N.Y.) in 106th Congress. But instead of using tax credits as means of fostering investment, as previous bills did, Burns said changes in expensing provisions would do better job of motivating investment in down economy.
In Burns’ bill, anyone building out broadband in rural or under-served areas would receive one of 2 tax breaks: (1) If deploying current broadband technology such as DSL or cable modem, they could immediately expense 50% of capital expenditure. (2) If they deployed “next-generation” broadband, defined in bill as at least 22 Mbps downstream and 5 Mbps upstream, company could expense 100%. Burns said it was technology-neutral and would sunset in 5 years. He pointed to 2-year broadband tax credit that Mont. launched in 1999, saying “it had very positive effects.” But he said it had been suspended “because of the current budget shortfall which the state is facing, which is exactly why we should consider a federal broadband incentive at this time” when Congress is taking up economic stimulus legislation. Baucus made same argument.
Agenda also will include universal service reform. Burns said he would be guided by following principles: (1) Ensure stability and sustainability of universal service fund. (2) Ensure contributors are assessed in equitable and nondiscriminatory manner. (3) Minimize regulatory costs associated with complying with universal service obligations. (4) Develop contribution recovery process that’s fair and readily understood by consumers.
Senate Judiciary Committee Chmn. Hatch (R-Utah) supported bill, highlighting that providers would “only receive the benefit of this incentive if they actually build new infrastructure and actually provide service.” He said he looked forward “to taking a leading role in helping this bill move through the Finance Committee,” on which he serves. Bill had 7 original co-sponsors.
Wireless phone calls would be secure under bill Burns said he would introduce with Sen. Wyden (D-Ore.). Legislation would prevent eavesdropping on wireless phones through scanners. Agenda includes U.S.-Asia Network, which is designed to promote free trade and “make sure that American technology products can compete on a level playing field in foreign markets,” Burns said. Agenda will include “Technology Neutrality Initiative” to address problem of national govt. favoritism for domestic technologies. “A multilateral process will eliminate government policies that impair international commerce and reduce consumer choice,” he said.
Burns laid out following timeline for NexGenTen: (1) Spam, spectrum reform and E-911 were “current projects.” (2) ICANN reform, wireless and online privacy would be addressed in spring. (3) Broadband expensing, universal service reform and the U.S.-Asia network would be part of summer agenda. (4) Digital democracy would be addressed in fall.