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Barton’s First Priority: 2006 DTV Transition Deadline

While telecom and universal service fund (USF) reform have dominated communications industry speculation about the congressional agenda, House Commerce Committee leaders made clear their first priority: DTV transition by 2006. House Commerce Committee Chmn. Barton (R-Tex.) and Telecom Subcommittee Chmn. Upton (R-Mich.) told reporters Wed. they would push legislation that would enforce a 2006 transition date for conversion of analog TV signals to digital, and it would be up to broadcasters to convince them a longer transition was needed. Barton has proposed a subsidy to help buy DTV converters for the poor and elderly. Upton said DTV conversion hearings would be held soon, and he hoped a bill would be introduced by late May.

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The ambitious agenda for the committee didn’t end there. Barton suggested sweeping reforms for USF and said that “philosophically” the program should be “repealed.” In practicality, Barton said, any USF reform would have to include some protection for rural providers that receive the fund. But Barton also said USF reform should focus on new technologies, and he highlighted cellphone service as a cost-effective technology to serve rural residents. Barton also asked why urban residents need to subsidize rural communications: “Is there a universal service fund for radio stations? For TV stations?”

The Commerce Committee leaders also said there would be sweeping reform of telecom law, with an emphasis on regulatory parity. Upton said the AT&T-SBC merger announcement partly came about from the regulatory benefits for the companies. Companies often act “based on what’s regulated and what’s not,” Upton said. Updating telecom laws will be “a lengthy process,” he said, but he hoped the House could vote on a telecom package by the Aug. recess. He predicted the House would take action on telecom reform before the Senate. Upton also said there would likely be a full committee hearing on the proposed SBC-AT&T merger.

In reviewing USF, the House Commerce Committee will reform the E-rate program, they said. Upton said the committee’s leadership was waiting for the final report on E-rate from the Oversight & Investigations Subcommittee, which has been studying charges of fraud and abuse. “It does need reform. There are way too many abuses,” Upton said. Barton said E-rate has already served its mission to connect schools and libraries to the Internet and has now essentially become “a maintenance program.”

But before tackling the tough issues, Upton said the Committee would start by enacting legislation Congress failed to move last year, namely indecency and junk fax. He has already introduced indecency legislation -- the same bill that overwhelmingly passed the House last year - - and said a full-committee markup could be scheduled within 2 weeks. He said he hoped to have it on the House floor in March. On junk fax, Upton said he would introduce a bill to loosen requirements on businesses to collect written authorization of customers before they could be faxed.

Upton also said he hoped broadcasters could work out a reasonable DTV transition schedule themselves instead of forcing the House to impose one. “If they're not able to come up with an agreement themselves, we'll have to do something about it,” Upton said. But Upton emphasized that DTV transition would be the first priority for the committee, before telecom and USF reform. Upton said he wanted a DTV bill on the House floor before Aug.

Additionally, Barton said he wanted FCC Chmn. Powell to stay as head of the agency, and didn’t offer any suggestions for a replacement, though he said he’s talked with the White House about the appointment. Two Texans have been discussed as replacements: Former Tex. PUC Chmn. Rebecca Klein and Pat Wood. Barton said that the FCC chairmanship could be the most important nomination that President Bush makes aside from Supreme Court justices, because of the telecom industry’s importance to the economy.