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Smith Bill Covers Franchises, Municipal Broadband, USF

A comprehensive telecom bill that Sen. Smith (R-Ore.) is working on would revamp franchising, let municipalities build broadband networks and expand universal service fund (USF) contributions, according to a copy we obtained. The bill incorporates 2 measures Smith introduced last year: A video services bill (S-1389) revoking the franchise process, and a USF bill (S-1583) expanding contributions to all 2-way voice services (CD Aug 2 p1).

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Smith “wants to address some core issues that are holding back industry and innovation,” said a spokesman. Several of the bill’s provisions would speed rural broadband deployment. Smith is expected to discuss the bill in detail Tues. at NTCA’s legislative conference, the spokesman said, with introduction likely soon after.

“We were able to influence some of the provisions of Sen. Smith’s legislation, but essentially he was invited to speak at the conference because he represents a number of our members, he is active on telecom issues and he is a member of the committee of jurisdiction,” said NTCA Govt Affairs Dir. Tom Wacker.

Smith’s bill emerges as the Senate Commerce Committee drafts a telecom bill expected to address some of the same issues. Staff members are meeting with committee staff on legislative proposals and to build consensus for an overall bill, said Hill and lobbying sources. The key is devising a “hold-proof” vehicle, lobbying sources said. In the Senate, any member can put a hold on a bill, stalling progress until the member is placated.

BellSouth lobbyists gave Smith’s bill a thumbs up on its franchise piece, akin to one by Sen. Ensign (R-Nev.), said a company spokesman. But the USF provision is tougher to judge, he said. Under it, the FCC would pick the collection method and all 2-way voice communications would have to contribute to USF. The bill would set up a “broadband account” within USF; capped at $500 million, it would help deploy services in rural areas. That worries Bell companies, the spokesman said: “Where is that money going to come from?”