Telcos See State Jurisdiction Driving Federal Telecom Legislation
With the incoming 109th Congress expected to pass telecom reform legislation, wireline and wireless lobbyists see issues of state jurisdiction playing a role in the debate. Edward Merlis, USTA senior vp-govt. and regulatory issues, said state jurisdictional concerns are one reason he believes Congress, not the FCC, is the only body able to make the needed changes to the telecom regulatory regime. Bobby Franklin, CTIA vp-govt. affairs, said the issues raised in the VoIP debate during the last Congress are likely to be raised in other telecom contexts next year, including wireless.
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USTA said it began its campaign for congressional telecom reform with its board’s approval of “guiding principles” for how lawmakers should accomplish telecom reform. They don’t contain specific policy recommendations. Reforming while preserving the Universal Service Fund (USF) is one of USTA’s main principles, and consumer-driven marketplace competition is another. On USF, USTA said lawmakers must “ensure continued and sustainable funding and require all companies providing service in today’s converged market to contribute.” USTA Chmn. Gene South, CEO and gen. mgr.-Lakedale Communications, said Congress must craft rules that “encourage sound business decisions and investment in new technologies, and we will vigorously advocate for these principles on Capitol Hill.”
Competition is USTA’s other driving principle. The Assn. said it’s calling for a “consumer-driven, rather than government-managed, communications market.” Its principles support “technology-neutral policies that require consumer, public safety and law enforcement obligations, such as 911 and CALEA, universal service contributions and access for persons with disabilities.” Simply put, legislation must get away from the regulation by silos laid out in the 1996 Telecom Act, Merlis said.
Because issues of state jurisdiction are likely to be raised again -- as when VoIP legislation was debated this year -- Merlis said only Congress could work through those issues. “I don’t believe the FCC can do everything that needs to be done,” Merlis said. The FCC routinely is “caught in the cross-fire” on state issues, he said, which is why Congress should act to sort it out.
Meanwhile, Franklin of CTIA said state issues are likely to involve the wireless industry. “We have great interest in a congressional discussion about the role of states when it comes to regulation in the telecom industry,” he said. “It was raised in the context of VoIP, and I believe it will be raised in VoIP and other discussions next year.” The wireless industry has its own interests in state jurisdiction, as states such as Cal. and Minn. have moved to assert more authority over wireless carriers. Franklin said wireless service is a “national-type” service that should be regulated under mainly national standards. He said wireless had similarities with VoIP, which the FCC ruled was to be regulated at the federal level.
Franklin said CTIA was hoping to build off the momentum it developed at the end of this year’s Congress, when the much-sought spectrum relocation trust fund passed in the waning minutes. “We're looking to build on the advocacy it took to get across the finish line,” Franklin said. USF and intercarrier compensation are likely to be big issues for CTIA, too, he said, as wireless carriers make significant contributions to the USF. Competition will be another big issue, as Franklin said CTIA will set out to show that the wireless industry is the “poster child for competition” in the telecom industry. Recently, Senate Judiciary Antitrust Subcommittee Chmn. DeWine (R-O.) and ranking Democrat Kohl (Wis.) said they were interested in holding a hearing on the proposed Sprint- Nextel merger. They said wireless industry consolidation should be examined. Franklin said recent wireless merger proposals shouldn’t hurt the wireless industry’s reputation for competition. “We've got a great story to tell. There’s so much competition, I'm not worried about our ability to highlight all of the competition.”