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Congressional Broadband Efforts Likely to Highlight IP Services

Congress is seeking a law that would create a regulatory class for Internet Protocol platforms. It would likely cover services such as VoIP, video over IP and standard broadband, whether delivered by cable providers, phone or power companies. The House will likely seek to keep these services mostly free of regulation, especially by the states. But it will probably try to ensure that VoIP meets public service obligations such as 911 and the Communications Assistance to Law Enforcement Act (CALEA), which would allow police to wiretap Internet phone calls.

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Such provisions could be included in legislation that’s not part of a broad rewrite of the 1996 Telecom Act. Congress may enact a series of measures to modify or supplement telecom regulation in place of an overarching measure, House members have said recently.

While IP services aren’t tied formally to broadband deployment, many believe they will generate demand for high-speed access. Other legislative measures could also affect how broadband develops in the U.S. These include reform of the Universal Service Fund (USF) and E-rate program. Even efforts to move to digital TV could spur broadband deployment, officials said.

In the Senate, the focus will likely be on USF, where concerns are growing that the fund can’t sustain itself. With fewer contributions coming from interstate long distance calls -- USF’s main funding source -- several senators, especially Senate Commerce Committee Chmn. Stevens (R-Alaska), are talking of a need to expand the financing base. He has said cable broadband should be a contributor. An element of the debate will probably be extending the definition of basic service to broadband and other advanced telecom services, which could mean more money for rural deployment.

House Commerce Committee Chmn. Barton’s (R-Tex.) first priority is DTV transition. While on its face it has little to do with broadband, the bill would clear broadcasters off analog spectrum, opening frequencies for wireless services. Wireless providers could use that spectrum for Wi-Fi or WiMax, which would increase competition with cable and telco broadband.

Further, many municipalities want to offer telecom and broadband services. Some states, such as Pa., have prohibited local govts. from creating such services, though Philadelphia was exempted. Other states, such as Tex., Colo., Fla. and Ia., are considering similar legislation. According to House Telecom Subcommittee Chmn. Upton (R-Mich.), the House may address the issue in its bill on IP-enabled services. Upton said a possible amendment to the bill would limit what municipalities could do. He said some members are concerned that local govts. have advantages over industry on issues such as rights of way. Upton said it was seen as a “soft subsidy.”

But some rural members appear to favor municipalities entering the fray, especially if incumbent providers are slow to roll out service. House Rural Caucus Chmn. Peterson (R-Pa.) said he was frustrated by lack of deployment in many rural areas and was puzzled why Pa. would prevent municipalities from doing it themselves, especially when Philadelphia got the green light.